HOA Fight May Cause Loss Of Services -- from KSAT 12

Northeast Side Complex Faces Water, Electricity, Cable Shutoff

SAN ANTONIO -- The Village at Woodlake Condominiums were once a prime place to live on the city's northeast side off of FM 78. But now, the pool is closed and the complex is in danger of losing some basic services because of a fight involving the homeowners' association.

"Unfortunately, there's gonna be innocent people forced out of their homes," said Denny Huston, the former HOA board president.

The reason is that Travelers Insurance has dropped the insurance that protected the directors and officers of the HOA in case they were sued in their official capacity. Travelers cited the frequency of claims against the HOA as the reason the policy was not being renewed.

"On the tenth of June, at midnight, this HOA basically ceased to exist," said Huston.

In single family home developments, HOAs have more limited duties, but at the Village at Woodlake, the HOA pays for all residents’ water service, basic cable television, outside lighting and landscaping, and if those bills are not paid, then even the electric gate would cease to function. Currently, nobody in the complex is authorized to collect the monthly dues or pay the complex’s bills.

"Our hands are tied as to what's going to happen in the next few weeks," said Huston.

Huston said he’s contacted a number of government offices asking for help, but has been turned down. He produced letters from the Texas Attorney General’s Office and the Texas Secretary of State’s Office, and he said he contacted his county commissioner and the Bexar County District Attorney’s Office. Dee McGee has managed HOAs for more than 30 years and looked into solutions for the Village at Woodlake.

"They will cut their water off," said McGee of Maximum Management Resources.

She could only think of one possible solution. "They'll appoint a receiver who will take over and collect the money and make the payments, get everything sorted out," said McGee.

The problem is that means owners may end up paying a lot more money. She said that people who buy into developments where HOA membership is required should remember that they are co-owners of the HOA, and that if the HOA suffers as a result of continual challenges and lawsuits, they too will suffer.

The Village at Woodlake hopes a government agency will take note of their plight before residents lose water and other basic services.