Homeowners Associations Must Comply With State Law

BY KATHLEENE PARKER
White Rock

Editor:

Two years ago, I wrote a letter to this paper about the need for democratically, ethically run homeowners associations in Los Alamos.

In 2024, a lien was placed on my property for “non-payment” of my HOA’s assessment, plus $400 in “attorney fees.” I hired an attorney, who gave the HOA 20 days to prove I had even been billed at all (and that via certified mail), plus provide copies of the alleged attorney invoices, or we would sue.  The lien was removed!

However, my attorney warned me of a growing trend in “predatory billing” among HOAs, which, he explained, have learned that (1) few people understand their rights and (2) are frightened, because a lien (perhaps resulting from unjustified fines, fees, or retribution), can result in an HOA seizing a member’s property—though not if the property owner fights back!

 I also recently learned that—far from being deregulated—HOAs must be registered as a corporation in New Mexico, which means each must adhere to corporation law, which is friendly to HOA members. It also means:

·       HOA boards must be elected in full compliance with corporation laws, including that all members (property owners) must be properly notified (No, “Well, we emailed.” Or, “only dues-paying members”.) of the annual meeting during which the board election will occur.

·       A board, to be empowered—meaning to have validity and the legal authority to do diddly squat—must be elected by a quorum of members!If no quorum, it isn’t okay for the board to say, “Well, we tried.  We’ll just do what we want.”  The HOA must do whatever is needed to attain a quorum.

·       Lacking adherence to New Mexico law, board actions are likely invalid, since, if not legally elected, the board has no authority to “represent” the membership or act on their behalf—and that is (though some boards seem unaware) what boards are supposed to be doing.

·       Bylaws, as the governing framework of an HOA, can only be changed—addition of a bylaw, removal of a bylaw, edits to a bylaw—must happen in compliance with the law, including notice—via certified mail—to all HOA members.

I have heard of HOAs—here in Los Alamos—where board presidents have refused to step down or stand for election; where HOA boards retaliated against members who criticized them; where a management company required attendance in Santa Fe (for a Los Alamos HOA meeting); where bylaws were secretively changed to allow the enforcement of covenants in ways not previously allowed in that HOA; where a management company fined members for “violations” not in the HOA’s covenants and where in-person meetings are refused and then some members (Known board critics?) were unable to access Zoom meetings.

Perhaps this was because of ignorance of the law—by boards and by HOA members—or perhaps it was because members have just accepted whatever HOAs or their management companies do or didn’t know ways to stop them.  However, when behavior reflects a heavy hand and boards not representing members’ wishes but their own, that should be unacceptable.

Oh wait! Under New Mexico law, it is unacceptable, that is, if we stand up for our rights!