H. O. A. problems

Discussion in 'Business Operations' started by mtjohn, Jun 6, 2009.

  1. mtjohn

    mtjohn LawnSite Member
    Messages: 3

    Can anyone help me? An H.O.A. that we have worked for the past 5 years has gotten behind to our maintenance co. in the last 5 months to the tune of $30,000 +. Like everywhere else the housing market decline has slowed the construction of new houses so the developers are not paying their dues. We have talked to them and they keep putting us off saying that they don't have the money. Any ideas?
  2. Greg78

    Greg78 LawnSite Silver Member
    Messages: 2,010

    Yup, I'd be taking my contract to my attorney, and would probably be stopping work on the property or properties.
    $30,000 is a lot of money I would have never let it get that far out of hand.
  3. whoopassonthebluegrass

    whoopassonthebluegrass LawnSite Platinum Member
    Messages: 4,305

    How badly do you need the account (assuming they'll pay)?
  4. Greg78

    Greg78 LawnSite Silver Member
    Messages: 2,010

    Another good question. I just assume that everyone doesn't have all their eggs in one basket and could lose their biggest account and keep on going without major problems.

    You know what they say about assuming. LOL
  5. mtjohn

    mtjohn LawnSite Member
    Messages: 3

    No this is not are largest or our only acct. In the past we have done a lot of new construction for them, so we have let it go longer than we should have.

    We have spoke with an attorney he says we can go after them but they don't have have the money so all we will be doing is paying him. The 3 main developers don't have to pay dues on lots that are not built on they were paying them when the market was good.
  6. howierd3866

    howierd3866 LawnSite Senior Member
    Messages: 348

    good luck...I would be picking out a new house in the subdivision that they own...We got they same problem here about the same amount from one of the states biggest builders..for the last year hard to get any money becuase every time we get a contact person they get lay off..We are now dealing with the VP it a little better now but about every 90 days we get a good size check.Just like a lottery hoping to keep working for them and getting paid been as much as 40k..I keep looking online and in the paper to see how there stock and news are doing.
  7. old oak lawn

    old oak lawn LawnSite Senior Member
    Messages: 703

    I have gone through the same thing, but for MUCH less $$. They get behind and i have to call the prop. management company who has to get on the developer to pay his part. What a wast of my time. At some point you have to cut off service and you have given them 2 months more then i would have. I think it's time to get your attorney to go to work.
  8. mtjohn

    mtjohn LawnSite Member
    Messages: 3

    we are a small co. but we have paid our help. ins., suppliers, but not ourselves so things are really tight now it hard to listen to these developers whine when things were good they were not paying us any more.
  9. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    Kind of funny how it runs down hill, they say they dont have money, so now your in a bind because they wont pay you,

    I'm sure you have a contract. funny how letters from attornies have results.
    somehow when people find out that there going to loose a home, proptery or other tangable items, they find money.

    Best of luck to you
  10. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Messages: 2,542

    put a lien on all the properties you've worked on in the development.

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