Tag Archives: property management

Slaton Financial graphic asking who controls your HOA's bank account, with navy and gold branding

Who Really Controls Your HOA’s Bank Account? A San Antonio Lawsuit Has Answers

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A San Antonio Homeowner’s Fight for a Straight Answer

Karina Miller, a disabled Navy veteran, bought a condo in the Lafayette Place Homeowners Association in Bexar County back in 2019. By October 2025, she’d sold it and moved out. In a lawsuit reported this month, she says she didn’t leave because she wanted to — she left because she couldn’t get a straight answer about her own account.

According to KSAT (August 18, 2026) and Military.com (August 19, 2026), Miller says charges appeared and disappeared from her account with no explanation, she was locked out of the online resident portal for roughly ten months, and she was later hit with $350 in late fees she says she was never notified about. When she asked for itemized billing, the HOA’s attorneys reportedly never responded. A scheduled mediation session came and went with no one from the HOA showing up. The association denies the allegations and says it will defend the lawsuit.

The Real Problem Isn’t the Fee — It’s Who Controls the Books

Set aside who’s right about the $350. The pattern in this case is the part every Texas HOA board should sit with: a resident asking a basic financial question — what is this charge, and can I see the itemized statement — and getting silence instead of an answer.

That silence is rarely personal. It’s structural. In the standard property management arrangement, the management company takes full custodial control of the association’s money. The bank account is opened under the PM company’s own EIN, not the HOA’s. The PM company controls deposits, withdrawals, and the ledger. Residents — and often the board itself — are on the outside looking in, dependent on whatever reporting the management company chooses to provide, on whatever schedule it chooses to provide it.

When that reporting is timely and accurate, nobody notices the arrangement at all. When it isn’t — when a resident asks for an itemized statement and hits a wall of unanswered emails — the board is the one left holding the bag, even though the board never had real visibility into the account in the first place.

Why This Keeps Showing Up in the News

This case isn’t an outlier. Texas and national outlets have covered a steady stream of HOA financial disputes this year, from managers accused of moving association funds into personal accounts to associations suing former management companies over missing funds and lapsed insurance. The details differ, but the structural setup is often the same: one party holds the account, and everyone else — board members, residents, sometimes even incoming management — has to take their word for what happened to the money.

A Structural Fix: Keep the Money in the HOA’s Own Name

At Slaton Financial, we handle bookkeeping, accounts receivable, and accounts payable for HOAs a different way. The HOA’s bank account stays in the HOA’s own name, under the HOA’s own EIN, at a bank the board chose. We — or our affiliated property management entity — are added only as a sub-user, with permission to initiate deposits and payments. The association’s money never passes through an account we control.

The practical effect is simple: any board member, and in most cases any resident who asks, can go directly to the bank and see the real, unedited statement. There’s no separate ledger to reconcile against, no gatekeeper standing between a homeowner’s question and the actual record. We follow the same principle for payroll — we initiate payments directly from a client’s own account to employees and the IRS, rather than collecting payroll funds into an account of ours first.

This isn’t just a transparency preference. It changes who’s exposed if something goes wrong. A board that never had custody of the funds and never made unilateral decisions about them is in a fundamentally stronger position if a dispute ever ends up in front of a judge — or, more often, it prevents the dispute from reaching that point at all.

Questions Worth Asking Before the Next Board Meeting

Any Texas HOA board can ask its current management company three questions: Whose EIN is on the operating account? Can a board member log into the bank directly and see live statements, or only a report we’re given? If we switched management companies tomorrow, would the banking history come with us?

If those answers are uncomfortable, that discomfort is worth taking seriously — long before a resident’s simple question turns into a lawsuit.

Slaton Financial provides bookkeeping, tax, and payroll services for Texas HOAs and small businesses using this account structure. If your board wants to see exactly how it works, we’re glad to walk through it.

Illustration of a locked bank account document representing HOA board control over association funds, Slaton Financial branding

Who Actually Controls Your HOA’s Bank Account?

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The Question Most HOA Boards Never Think to Ask

When your HOA hires a management company, you probably ask about fees, response times, and reserve planning. Here’s a question that rarely comes up in the interview, but should: whose bank account is your association’s money actually sitting in?

For most Texas HOAs, the answer is uncomfortable. It’s not the association’s account at all. It’s the property management company’s.

The Industry Standard: The Management Company Holds the Keys

Across the property management industry, the default arrangement is for the PM company to open a bank account under its own EIN and pool it with funds from other HOA clients it manages. The company controls the deposits, the disbursements, and the decisions. The board is often “consulted,” but in practice has little real authority over its own money.

This is such a common structure that most board members assume it’s the only way things work. It isn’t – but it’s rarely explained clearly during onboarding, and it’s buried in language most volunteer board members don’t have time to parse.

Why This Matters More Than Boards Realize

When an HOA doesn’t legally control its own bank account, two things tend to follow. First, if money goes missing, gets mismanaged, or simply isn’t tracked well, the board still takes the blame. Homeowners confront board members directly – “You’re spending all our money,” or worse – even though the board never had real signing authority or visibility into the account.

Second, the arrangement creates real legal exposure. It’s part of why the property management industry sees so many disputes and lawsuits: when funds sit in a company’s own account rather than the client’s, accountability gets murky fast, and boards are left defending decisions they didn’t actually control.

The Clause That Can Hold a Board Hostage

The risk shows up most clearly when a board decides to switch management companies or bookkeepers. Because the outgoing company holds the account, some management agreements give that company up to three months to return the association’s funds – with no obligation to hand over the banking history that goes with them.

That means a board trying to leave a bad relationship can lose access to its own money for months, and lose the historical record entirely. We call this what it is: the association is being held hostage by its own bank account.

A Different Model: The HOA Keeps Control

At Slaton Financial, we set HOA accounts up the opposite way. The bank account stays in the HOA’s own name, under the HOA’s own EIN, at a bank the board chooses. Slaton Financial – or our affiliated property management entity – is added only as a sub-user, with permission to initiate deposits and payments on the board’s behalf.

The money never passes through or sits in our accounts. The board can see every transaction in real time, retains signing authority, and never has to wonder who’s actually in control.

We apply the same principle to payroll for every client we serve, not just HOAs. We never collect a client’s payroll funds into our own account and then pay employees and the IRS from there. Instead, we initiate those payments directly from the client’s own account. It’s a small structural difference that eliminates the “the bookkeeper ran off with payroll” risk entirely, because we’re never holding the money to begin with.

What This Means If You Ever Need to Make a Change

Because the HOA owns the account and the banking relationship from day one, switching bookkeepers or management companies later doesn’t require negotiating for the return of funds or begging for transaction history. The board already has both. There’s no three-month hostage clause to worry about, because there’s nothing to hand back – the account was never anyone else’s to hold.

What Your Board Should Ask Before Signing (or Renewing) a Contract

Before your next management or bookkeeping contract is signed, it’s worth asking directly: whose EIN is the account under? Who has signing authority? And if we ever wanted to leave, how long would it take to get our money and our records back?

The answers tell you a lot about how much real control your board actually has – and how exposed individual board members might be if something goes wrong. If you’d like a second opinion on your current setup, or want to see how the sub-user model works in practice, we’re happy to walk through it.