Management companies should be bonded in favor of the homeowners. Management companies should only manage. They should not be involved with the accounting - collecting homeowner fees, controlling bank accounts, signing checks or giving legal advice. Managers should not be allowed to charge any legal costs or insurance costs to homeowners. Audits should be rigorous and in depth.
Current audits are generally perfunctory and meaningless.
Homeowners should have the right to vote on whether the association may file a lawsuit other than a Small Claims action. There should be limits set on lawyers fees for collections and suits against homeowners. Small Claims court should be used instead of non-judicial foreclosure to collect delinquent assessments. Reserves and all other association resources should not be used for legal fees and without an express vote of the homeowners. The provision which allows the winner in a suit to claim legal fees should be abolished.