Homeowners seek fair play in local city elections from their HOA board

April 16, 2009

By Chris D. Calvin, Ph.D. (View author info)
Copyright (c) 2009 MCC

Homeowners very concerned about the direction their HOA has been taking over the last few years in local elections contacted an area tax watch group with potential infractions of the non-profit status of their association and possible state election law violations.

Because HOA's now have unprecedented powers allowed by the legislature through an ever expanding lobby of developers (ULI), management companies (CAI) and legal vendors (TCREA), armed with a Texas Supreme Ct. ruling dating back to 1987 (Inwood vs. Harris), these Quail Valley residents urged confidentiality in reporting these infractions because they feared retaliation.

One tax watch advocate was quoted as saying that, "according to the Internal Revenue Service and the Texas Ethics Commission rules, it is illegal for non-profit corporations to actively campaign or solicit funds for individual candidates or parties. Under the Texas Election Code, section 253.093, subsection d it is a infraction of state laws. We confirmed this by calling TEC legal consultant Robert Manus."

Residents of the Quail Valley subdivision contacted the tax watch group after a campaign release appeared in their HOA newsletter, the ValleyViewNews, on Thursday, April 9th and again on Monday, April 13th soliciting financial support for the Missouri City district C incumbent Barbara Gibson, a former HOA president and member of the CAI.

The homeowners were very concerned, but didn't know where to turn because HOAs can retaliate against your home and family through fines and eventual confiscation of your property. According to the residents, 3 council members and the mayor (Allen Owen) currently reside in their subdivision and swing a great deal of influence in the city and with their HOA board. Apparently the mayor and several council members are backing Ms. Gibson in her re-election bid.

"The concerned homeowners contacted us in order to see what could be done about this ongoing problem," said a spokesperson for the watch group. As it turns out the HOA and the candidate may be in violation of numerous state and federal laws and regulations, but for now the watch group has only filed formal complaints with the Treasury Department (IRS) through its non-profit referrals (Form 13909) and the Texas Ethics Commission under TEC state law 253.094 (subsection d).

Other options open to the watch group include filing a complaint with the secretary of states office against the corporate charter for the HOA, contacting the state attorney generals office and filing a 3rd degree criminal felony complaint through the district attorneys office of Fort Bend County. According to the spokesperson they are still considering these options as viable.

Stay tuned as we update this FBW exclusive report on the Missouri City, TX district elections...

Related Sources:

http://politickernh.com/texas/tags/texas-ethics-commission

http://www.ethics.state.tx.us/main/enforcement.htm

http://pages.prodigy.net/hoadata/

http://www.ahrc.com/new/index.php/src/tools/sub/yp/action/display/id/1863