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SusanS9 (California)
Posts: 56
Posted:
If motions are made and approved by Board, but president does not follow through and carry out what was agreed to, what can homeowners do that does entail waiting for election or recall? Will small claims court hear case (CA?)
WeezieC (Louisiana)
Posts: 16
Posted:
Where's the rest of the board? If it is something they approved and agree upon then they can persuade the president that the action needs to be taken. Their persuasion can go all the way to relieving the president of said if the board elects its officers. Just my first reaction.
WeezieC (Louisiana)
Posts: 16
Posted:
Sorry, it's late here. The board can remove the president from office if it elects its officers vs members electing officers.
WeezieC (Louisiana)
Posts: 16
Posted:
Sorry, it's late here. The board can remove the president from office if it elects its officers vs members electing officers.
SusanS9 (California)
Posts: 56
Posted:
But insufficient votes to remove from president office.
SusanW1 (Michigan)
Posts: 5,202
Posted:
What is this motion that has the president in such a position of power?
Contact another board member and be sure this is brought up again under previous business.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Susan,

There isn't anything the members can do. Where are all the other board members? Perhaps it was decided not to follow through with a particular motion that was made. If you are not a member of the board you may not be a party to everything the board decides to do. If the other board members are concerned that the Pres is not following through on motions approved then they can remove him a pres. If on the other hand, the members are concerned that certain maint projects are not being undertaken then they can bring up those issues at a board meeting. If gov docs or state law is not being violated there may not be cause for a small claims action.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By MaryA1 on 09/22/2010 8:52 AM
Susan,

There isn't anything the members can do. Where are all the other board members? Perhaps it was decided not to follow through with a particular motion that was made. If you are not a member of the board you may not be a party to everything the board decides to do. If the other board members are concerned that the Pres is not following through on motions approved then they can remove him a pres. If on the other hand, the members are concerned that certain maint projects are not being undertaken then they can bring up those issues at a board meeting. If gov docs or state law is not being violated there may not be cause for a small claims action.

Susan:

If the President is not following through then the board needs to take action as needed. You need to check with the board and see if there was some decision as Mary stated that they decided not to follow through with for some valid reason. Because you did not state what the issue is ... then it is difficult to comment.

However, I do disagree with Mary in the fact that the Board is elected and is suppose to represent the members. To state: "There isn't anything the members can do" is not a proper statement. Members elect the board and can recall or replace board members in most states. If the board is not performing their duties then you could recall or again (depending on the issue) file a court claim. If possible depending on the issue then court should be the last resort as this is usually costly, unless done via small claims.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Janet & Snake,

The OP stated the Pres is not following through on motions made and wanted to know what the members can do about it. I answered that the members cannot do anything because this is not an issue for the members to be involved in. First of all we don't know what the motions were. And secondly we don't know if the board decided not to follow through with a project outside of the board meeting. Of course the members have a right to recall any board member who isn't performing his job properly but they should have definite proof of that before taking that action.

BTW, if you read my whole response you will note that I ended by saying: "If on the other hand, the members are concerned that certain maint projects are not being undertaken then they can bring up those issues at a board meeting. If gov docs or state law is not being violated there may not be cause for a small claims action."

Janet,

Your statement that the board is supposed to represent the members is incorrect; they represent the assn and have a fiduciary resp. to do what is best for the assn -- not the members. And, from the little bit that the OP posted, you don't know that the board isn't doing their duty -- only that the Pres isn't following through on motions. What these motions were for we also don't know!
RichardP13 (California)
Posts: 1,767
Posted:
Mary

This is from CAI

A board has a fiduciary relationship to the community association. Its fiduciary duty requires directors to act in the best interest and for the benefit of the corporation, thus the community as a whole. Directors are fiduciaries of the members, and may be personally liable if they fail to meet their fiduciary duties to the membership. Raven's Cove Townhomes, Inc. v. Knuppe Dev Co 114 Cal App 3d 783, 800-01, 171 Cal. Rptr 334, 344 (1981)

In further states that the Board of Directors is charged with the ultimate responsibility and authority for operating the community association on behalf of its owners.
LoriL1 (Florida)
Posts: 78
Posted:
Mary,

This is from the Florida Condominium Governance Form:

General
1. The board of directors has a fiduciary duty to the unit owners and has the responsibility to act with the highest degree of good faith and to place the interests of the unit owners above the personal interests of the directors.

If you would like to view this document in its entirety the link is below:

http://www.myfloridalicense.com/dbpr/lsc/documents/CondoGovernanceFormMaster06252010.pdf

IMO, the members ARE the association!
MaryA1 (Arizona)
Posts: 7,043
Posted:
Snake,

You are totally wrong in your assessment of me. Although the board has a fiduciary duty to do what is best for the corp doesn't mean the members shouldn't count. I think a good board will do their best to find out what the members want and act accordingly. However, if they deem that what the members want is not good for the assn then they are not obligated to do what the members want. In my assn, where I serve on the advisory board, if a project is being contemplated which will impact a certain section of the s/d the board will send a letter to the homeowners in that section to find out what their position is on the project.

BTW, I understand that the assn is the members; however when the BOD has to make a decision they have to take into account the whole assn not just a handful of the members and that's where the difference comes in. If there are 100 members in the assn and 75 voice their opinion the board must do what they feel is best for all 100 members not just the 75 who have spoken out.
RichardP13 (California)
Posts: 1,767
Posted:
Snake

You must have read my mind. I like where you come from.

The very same attitude and cavalierness will change the makeup of politics in Washington this November. If 75% of your members voiced their opposition to a ptoject, then that project had better be tabled for lack of support. I think Mary is tired from posting so much lately.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By MaryA1 on 09/25/2010 2:06 PM
Snake,

Although the board has a fiduciary duty to do what is best for the corp doesn't mean the members shouldn't count. I think a good board will do their best to find out what the members want and act accordingly. However, if they deem that what the members want is not good for the assn then they are not obligated to do what the members want.

BTW, I understand that the assn is the members; however when the BOD has to make a decision they have to take into account the whole assn not just a handful of the members and that's where the difference comes in. If there are 100 members in the assn and 75 voice their opinion the board must do what they feel is best for all 100 members not just the 75 who have spoken out.


Mary ... Unbelievable!!! If 75 speak out then your attitude is a handful of board members are the experts and know everything regarding what is best (who died and made them God).

You keep ignoring the basic fact:

Directors are fiduciaries of the MEMBERS, and may be personally liable if they fail to meet their fiduciary duties to the MEMBERSHIP. Therefore, you do not go against the majority of members.
LoriL1 (Florida)
Posts: 78
Posted:
Although I disagree with Mary declaring Janet’s statement incorrect, I must state that there are times that the BOD must make decisions that may not necessarily be popular among the majority of members. Our parking rules are a perfect example. If it was left up to the majority of our members, parking on the street would be allowed, however that would be in direct violation of the Florida Fire Prevention Code and the members’ safety comes before their personal convenience!

SusanW1 (Michigan)
Posts: 5,202
Posted:
I also agree with Mary.

Oftentimes, the board has to make unpopular decisions - for the good of the HOA in the long run.

Members will come and go, but the HOA must always be put into position to last forever.

And PS - the majority is not ALWAYS right.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Thanks Lori & Susan,

The BOD is elected to manage the assn and to do what is in the best interest of the ASSOCIATION! The members do not always know what the gov docs say, much less state law. It would not be uncommon for a large number of the members, perhaps even a majority, to want to do something that violates the CCRs and/or state law. So, should the board do it just because the members want it? I think not! Of course the members always have the ability to recall those "errant" board members who thought they knew best. I know of numerous cases where this happened only to find out, after new, more knowing board members were seated, that the previous board was right in their decisions -- they weren't doing anything wrong. Which only lends more credence to the fact that in most instances the members don't always know what is right! And no, I'm not down on members; I'm one myself. But I am a member who is educated -- I know what my gov docs and state law say. I'm not going to accuse the board of violating either w/o knowing for sure that they are. Unlike most members who like to make unsubstantiated claims. Those of you who took exception to my opinion were quick to say the board should be recalled without even knowing what the motions made were about or even if the board made a different decision outside the board room. That tells me that you like to think the member is always right and also tells me that you don't know much about HOAs except maybe your own. If you'd been involved with HOAs for as many years as I have and have seen both sides of the picture with an objective mind (objectivity is very important!) then I like to think your attitude would be much different.
RichardP13 (California)
Posts: 1,767
Posted:
Lori and Susan

If you openly presented the issue about regulations regarding parking and the Florida Fire Prevention code, I guarantee you wouldn't have 75% opposition to setting up rules and enforcing them. I would grant you that you'll have some opposition, but that is human nature. BUT, a majority gets you elected or puts someone else in that agrees to the 75%. That's the system.

What the OP was referring to is what is happening to more and more HOA's these days and that is lack of leadership on a Board and having a small group or an individual appoint themselves dictators and rule with an uneven hand.

In appears Florida is instituting a certification program for Board members, which I think is long overdue. Maybe other states, like California, will follow suit.

Granted, members will come and go and the HOA should be maintained (not sure putting into position to last forever, that's a long time, but continuously acting like dictators won't be tolerated. You may have directors that on the surface may mean well, but they have NO business sense, and as people have pointed out here, this is a business. Sometimes, because you don't practice transparency, your association can slip into a financial crisis, such as my association. They feel, like our various governments, that because you have money, you should have the absolute authority to spend money and no worry about consequences, or better yet, blame someone else.

Posters here constantly tell others to read, read read their governing docs for the answers. How many Board members have read their own governing docs, I can speak for my board and they haven't.

The majority may not ALWAYS be right, BUT they are NEVER wrong when they go to the polls.
RichardP13 (California)
Posts: 1,767
Posted:
In response to the OP, IF the President decided to continually act in defiance of the motions approved by the Board, THEN the President, should be removed as an officer and demoted to a member at large. IF that doesn't work as you eluded to, THEN bring the issue to the members and give them the option of recalling or electing someone else at the annual election (it depends on when their term is up)

Too many Boards hold the membership hostage because they know that they can't be voted out, because quorum is too high to count votes. I am working with my Assembly-person in California to change the Davis-Stirling Act to eliminate quorum once and for all from all HOA's. Maybe then, Boards will be more responive to the community and follow ALL the laws, not pick and choose the ones they want.
RichardP13 (California)
Posts: 1,767
Posted:
I am going to add one more for Mary. You mention that the Board is elected to do what is in the best interest of the Association. What if the Board did what was in the best interest of the Association, but didn't follow the governing docs for approval. Case in point. Our Board authorized instituting legal action(s) in the amount exceeding $100K over a four month period. The CCRs state that any litigation exceeding $2500 shall be approved by a majority of the members. There was no discussion in open session, no minutes available to members, no detailed financials showing payment(s) to legal. It showed up as a footnote in our Annual Report. Big reason why our Association is now broke and having to short-fund our reserves to pay our bills.
LoriL1 (Florida)
Posts: 78
Posted:
Richard,

I just have to ask what makes you think that we didn’t openly present the regulations regarding parking? Are you kidding? With the exception of tattooing the information on their foreheads, everyone has been well informed! Heck, we even had a fire and had at least 10 emergency vehicles respond, so you’d think they’d get the message.

And as far as being elected…what a joke! When the developer turned over, there were only 5 members that submitted their interest in being on the
5-member board. According to Fl. Condo Law (we’re a condo), if there are not more candidates than vacancies, no election is necessary! Every year, it’s the same story…we never have an election because we never have enough candidates to hold one. This is very sad because someone has got to run the business! So, it always comes down to the same, burned out, beat up members stepping back up to the plate to carry the load once again. We're not dictators or ruling with an uneven hand, we're just carrying out our fiduciary responsibilities as required.

I also copied the information regarding Florida’s Board Member Certification process, which IMO is not much of one, but may be more than other states have. You either sign a form saying you’ve read & understand the governing documents, etc. etc., or you complete an educational course. So…I wonder how many just sign the form instead of attending a course where they might actually learn something! I am a staunch advocate for reading & understanding the governing documents, but I feel this should be in addition to a curriculum that includes Florida Law. I’m sorry that your board is not better educated regarding their own governing documents. Good luck with that!

We’ve somewhat strayed from the original question, but there doesn’t seem to be enough info from the OP to give an informed answer. Were there extenuating circumstances, is this the first time this has happened or does this happen all the time? When were the motions approved? A lot of people expect immediate action when they don't realize that some things take longer to accomplish that they think...especially if it involves a government entity.

BOARD MEMBER CERTIFICATION
Within 90 days after being elected or appointed to the board, the board member must certify in writing to the secretary that he or she has read and understands the governing documents and will faithfully discharge his or her fiduciary responsibility. In lieu of this certification, a board member may submit certification of satisfactory completion of the education curriculum administered by a division-approved condominium educational provider. Failure to do either of these means that the director is suspended from service on the board until he or she complies. The board may temporarily fill the vacancy during the period of suspension. Any vacancy created based on a director being suspended may be filled according to law until the end of the period of the suspension or the end of the director’s term of office, whichever occurs first. The associations must maintain the certificates for five years after the election.
RichardP13 (California)
Posts: 1,767
Posted:
Lori,

I don't know what you parking rules or restrictions are, but, IF they are to enforce Fire Code, then IMO it's a no brainer. Either you enfore or the local government enforces.

You're taking my comments personally. They were general statements, based on information submitted over time to this specific forum.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Richard,

I think your problem is that you think all boards operate as yours do. Well,I've got news for you, they don't. In fact I'm of a strong opinion that most boards act fairly in regard to their members and run a smooth operation governed within the requirements of their gov docs and state law. When I give a general opinion (such as the one I gave earlier that some of you disagree with) it is with the thought in mind that the board is running the assn properly; that they know what powers they have as defined in their gov docs and are familiar and in compliance with the state laws. In other words, they are upholding their fiduciary duty to the assn. If the majority of the members decide to recall them because they did not act on their demands, so be it. But, when the fire dies down don't be surprised to learn that the board was right and the members were wrong! I've seen it happen far too many times and members such as yourself who think the board is always wrong will be there pointing their fingers at this new board blaming them and wanting to recall them.
RichardP13 (California)
Posts: 1,767
Posted:
My problem??

As you said, only your opinion.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Snake,

You should not judge all board members and all BODs the same. Some may be corrupt and errant in their duties; however not all fit in that shoe. When I give an opinion it is based upon what the BOD "should" do. How much experience do you have and does it apply to more than one BOD?

When an OP states a problem or concern with a board member or the BOD, we must have as much info as possible before we can offer an opinion. We have often found, after asking questions, that the OP was not giving a true picture of the problem and in many instances the BOD was not in the wrong but rather the OP was not familiar with state laws or even know or understand his gov docs. This is why we ask questions. In this case it is important to know

1) what the motion was -- it could have been for something insignificant or for an important project. What action should be taken would depend upon which.
2) if the board decided not to take the action outside the boardroom -- I'm not saying they should make decisions outside the boardroom, but some boards do. And,if that was the case then the fact that the Pres did not act on a motion made during the meeting is a moot point.

You need to realize that not all states have an open meeting law which requires all board meetings to be in the open except for discussion of certain legal or confidential issues. It just so happens that the OPs state (CA) does have an open meeting law however we all know not all boards comply with it. I didn't say the BOD did meet privately or even say they could or should. I only said that perhaps they did.

The OP did not offer much info and,incidentally, she has never posted again. Of course I know the board can be recalled but that action should never be instigated without knowing for certain (and having proof) that the board has not complied with the gov docs and/or state law. The OP certainly did not give us enough info to determine whether or not the board should be recalled. In fact, if the OP is not a board member, she may not have all the facts or not have all the facts straight. In fact I just thought of another thing, she didn't say the motion was voted on, which is important to know.

RichardP13 (California)
Posts: 1,767
Posted:
Mary

The OP stated that motions were made and approved. I'm assuming that means voted on.

What proof does a member or group of members need to recall a board. If you repeatedly ask why the governing docs and state laws were broken and they repeatedly refuse to answer? If they spent over $300K over budget with no explanation or accounting do you recall them? Remember, this is a business. If you are incompetent you get fired and replaced. This is not government work where you're protected by civil service rules.

Snake is right, Boards haven't read their own governing docs. We just passed new Bylaws, no Board member read them before they approved to send out to a vote. Sounds like our federal government, what a role model. Attorney, who specialize in HOA law gets it wrong. I know my governing docs inside and out. I know State Civil and Corporation Code, but more importantly, if I have a question or not sure about something I WILL ask for help. I know finances, I know organizations and I know how to lead by example.

Mary, I think you hope that these Board members are doing the right thing, but deep down...you know it ain't true.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Richard,

Yes, I know there are many boards out there who do not operate properly -- they have no regard for the state laws or even the requirements of their gov docs and do a myriad of other things that are considered unethical, etc., etc. But, I don't think this applies to ALL boards as some people do. I know there are many boards who do a very good job; don't break the law, are concerned about what their members want, are careful to keep a balanced budget, etc, etc. I also know attorney's are not always right in the advice they give.

You ask what proof is needed to recall a board. I would say proof that the gov docs and/or state law has been violated. All too often the members hold a recall election w/o proof that the board did anything wrong. Once the new board takes over they soon find out the old board wasn't doing anything wrong and may even start doing the same things that got them recalled! I know this happens for a fact -- I'm not making this up.

When I bought my first HOA property I decided to learn all I could about HOAs; 13 years later, I'm still learning. During these 13 years I've been a board member, attended a course of study on HOAs, gave presentations on HOAs, worked with a group and individually on state legislation, privately helped individuals with HOA problems, and have made a point to know and understand my gov. docs, all the state laws and many of the fed laws. Presently I am a member of my HOA board's Advisory Committee, chairman of the Grant committee and Legislature Liaison. I've been very involved at the state legislature for the past 8-10 years and have a good working relationship with many of the legislators, lobbyists and attorneys who work on HOA legislation.

P.S. I couldn't help but chuckle at your remark that your BOD never read the proposed bylaws change before presenting it to the members for a vote. Couldn't help but think about our Fed. legislators who didn't bother to read the healthcare bill b/4 they voted for it. You've probably heard about AZ's new illegal alien law that's gotten so many people in an uproar. Most of the legislators and other "important" people who have voiced their objections to the law have never read it and have stated so publically.
RichardP13 (California)
Posts: 1,767
Posted:
Mary

First, let me say that I have mush respect for what you present on this forum, much more than anyone else. I also know that you try and stick up for as many Board members as possible, having been down that road. My advise, let them stand up and be counted themselves.

My expertise is making organization operate more efficiently. I only moved into my HOA 2 1/2 years ago, but from the beginning tried to take an active role in its management. Found out that to get involved I had to make some changes, thus the change to the bylaws. I've begun to work with my local chapter of CAI as well as State Legislators to make changes to quorum for secret ballot elections. It's a long haul as the powers to be don't want anything or anyone messing with their machines. I would rather have Boards elected by the members even if the numbers were small than the current process that is in place now.

I too got a chuckle out of the individuals in high places that shot their mouth off on Arizona's Immigration Bill. Some of the same people crying foul should be worried about the ones coming into this country and whose jobs they will be taking. It one cycle after another.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Richard,

Thank you; I appreciate your kind words.

Sorry that I give you the impression that I like to stick up for board members. I guess I might give that impression when I'm just trying to find out more info. Many of the OP's don't always tell the whole story and some don't tell the real story. By asking questions we sometimes get a whole new prospective on what is really going on. I like to give everyone the benefit of the doubt and like to hear all sides of an issue b/4 giving my opinion but of course that isn't possible in this type forum.

I've enjoyed working on HOA legislation. Becoming oriented with the legislative process has been a real learning process. I'm hoping to get my open meeting law amendment through this next session. Good luck to you in this new venture of yours. I hope you find it to be as rewarding to you as I have. One little bit of advice is to not be afraid to compromise.

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