Missouri HOA President Is Accused of Diverting $30,000 for Personal Condo Repairs

A Branson, MO, homeowners association is suing its former president and her husband, claiming the pair improperly spent more than $30,000 of the association's money on their own condo repairs.

The lawsuit, filed by the Woodlands Property Owners Association in Taney County Circuit Court last month, alleges that Cheryl Honey and her husband, Clint Honey, used HOA funds to repair water damage in their own condo and two others.

According to the filing, Honey made it appear as if the repairs were for exterior damage, which would be covered by the HOA, when the work was actually on the interior of the condos.

According to the condominium declarations for the Woodlands Condominiums, HOA funds can be used on repairs to the exterior of condo buildings, but cannot be used on interior repairs.

"An owner shall be obligated to keep in good repair and condition the walls, the materials such as, but not limited to, plaster, plasterboard, gypsum dry wall, paneling, wallpaper, tiles, paint, finished flooring, wall and floor tile (but not including the sub-flooring which makes up the finished surface of the perimeter walls), ceilings and floors within his unit (including unit doors and windows)," the declaration reads.

The lawsuit alleges that Honey authorized three separate checks totaling $30,886 for a contractor to perform interior repairs. When confronted, the lawsuit claims, Honey "admitted misconduct" and when asked why she didn't use her homeowners insurance to cover the damage, "she stated that she did not want to do so."

Honey resigned from her role as president on July 14.

The HOA has also named her husband, Clint Honey, in the lawsuit, claiming he "has accepted this benefit by continuing to live in the Unit without accounting for the money owned by his neighbors misspent and paid for his personal benefit."

According to the suit, the Honeys planned to put their unit on the market, and the interior renovations were intended to increase the home's value.

The HOA says Honey "placed her self-interest ahead of the interest she owed to her fellow members, and breached her duty of loyalty to the Association, by directing that Association funds pay for her personal interior repairs," failed to notify the HOA before authorizing the work, failed to properly document how the funds were spent, and failed to reimburse the association.

As remediation, it is asking that the court impose a constructive trust on the couple’s condominium and any future jointly owned property until and unless the $30,886 is repaid.

Units in the Woodlands typically range from $170,000 to $260,000, and the community amenities include a clubhouse, swimming pool, fitness center, and walking trails, all maintained by the HOA.