HOA’s Harm Reporting HOA Abuse/Fraud
HOA abuse and fraud is common and widespread. Some of the most common forms of abuse/fraud are listed in the article on this website .......“Most Common Forms of HOA Fraud.” Unfortunately, and especially in California, between current laws (Davis-Stirling Act and CA Corp. Code) and powerful HOA Industry groups (CAI, ECHO), homeowners do not have power comparable to Boards. There is no single CA State agency that regulates HOA’s. However, there are some Federal Agencies that will, or have been known to, investigate HOA abuse/fraud. There are also several CA and National non-profit consumer groups that have an interest in our plight. Basic rules for reporting: Follow any instructions given by the source to which you are reporting. Be as brief as possible. Report ONLY what YOU have seen or experienced, first-hand. Be as specific as possible regarding the effect(s) upon YOU of the abuse/fraud. BEST Sources for Complaints: Federal Housing and Urban Development HUD is especially concerned about discrimination in HOA’s based on “Family Status”, i.e., families with children, and “Disability.” Complete Form 903. IRS – “Information Referral.” The IRS is very interested in what is called “Private Inurement and Excessive Benefits Transactions” within non-profit corporations. This basically means any employee, Board member or vendor using the non-profit corp. for personal benefit or enrichment, or receiving excessive remuneration. Form 3949A Federal Consumer Financial Protection Bureau. This Federal agency deals with improper handling of foreclosures by HOA’s. http://www.consumerfinance.gov/complaint/ Your State Legislature - Committee on “Housing and/or Community Development” - Go to that Committee’s site. Write to the Chairperson. You can also send an email or call. FBI - Most types of fraud, e.g., theft, embezzlement, illegal use of email/phones/mail (to obtain contracts), safety code violations, election rigging, online hate-speech. Submit complaints by email or mail. However, be advised that any initial contact with the FBI should be through an attorney retained by homeowners, with significant evidence of criminal activities https://www.fbi.gov/about-us/investigate/corruption “Watch-dog” organizations may be worthwhile contacting: Ripoff Report - http://www.ripoffreport.com/ Consumer Watchdog - http://www.consumerwatchdog.org/node/add/complaint /
HOA’s Harm Reporting HOA Abuse/Fraud
HOA abuse and fraud is common and widespread. Some of the most common forms of abuse/fraud are listed in the article on this website .......“Most Common Forms of HOA Fraud.” Unfortunately, and especially in California, between current laws (Davis-Stirling Act and CA Corp. Code) and powerful HOA Industry groups (CAI, ECHO), homeowners do not have power comparable to Boards. There is no single CA State agency that regulates HOA’s. However, there are some Federal Agencies that will, or have been known to, investigate HOA abuse/fraud. There are also several CA and National non-profit consumer groups that have an interest in our plight. Basic rules for reporting: Follow any instructions given by the source to which you are reporting. Be as brief as possible. Report ONLY what YOU have seen or experienced, first-hand. Be as specific as possible regarding the effect(s) upon YOU of the abuse/fraud. BEST Sources for Complaints: Federal Housing and Urban Development HUD is especially concerned about discrimination in HOA’s based on “Family Status”, i.e., families with children, and “Disability.” Complete Form 903. IRS – “Information Referral.” The IRS is very interested in what is called “Private Inurement and Excessive Benefits Transactions” within non-profit corporations. This basically means any employee, Board member or vendor using the non-profit corp. for personal benefit or enrichment, or receiving excessive remuneration. Form 3949A Federal Consumer Financial Protection Bureau. This Federal agency deals with improper handling of foreclosures by HOA’s. http://www.consumerfinance.gov/complaint/ Your State Legislature - Committee on “Housing and/or Community Development” - Go to that Committee’s site. Write to the Chairperson. You can also send an email or call. FBI - Most types of fraud, e.g., theft, embezzlement, illegal use of email/phones/mail (to obtain contracts), safety code violations, election rigging, online hate-speech. Submit complaints by email or mail. However, be advised that any initial contact with the FBI should be through an attorney retained by homeowners, with significant evidence of criminal activities https://www.fbi.gov/about-us/investigate/corruption “Watch-dog” organizations may be worthwhile contacting: Ripoff Report - http://www.ripoffreport.com/ Consumer Watchdog - http://www.consumerwatchdog.org/node/add/complaint / DON’T BOTHER - The following State/Local sources are UNLIKELY to offer any assistance: District US Congressman or Senator - Usually allied with many in the HOA-Industry State Legislature Representatives - Typically closely allied with developer, construction and RE interests. Bureau of Real Estate - No jurisdiction. State Attorney General - In many States the AG has jurisdiction over Corporations Codes and HOA laws, but will Only intervene in extreme violation cases. In CA, your complaint is forwarded on to the HOA. It is then up to the HOA to respond or not. No CONSEQUENCES if they do not respond! State Consumer Protection - Unlikely to have any jurisdiction over HOA’s County Grand Jury - No jurisdiction County Sheriff City/County District Attorney - No jurisdiction Local News Media - Mostly interest in stirring controversy; Likely allied with or influenced by HOA “VIP’s”. back to Contents