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RobertS32 (Idaho)
Posts: 1
Posted:
Several HOA homeowners who have been subject to constant violation letters have rallied a large amount of homeowners to organize their own HOA meeting (not official meeting) and vote in their own board. They carried this out and around 70 people showed up (out of around 350 homes) to this unofficial meeting and elected new board members. Our checks for the HOA are at a property management company and we are not sure what legal means they will use to obtain the cash in the account and checks from the PM. I'm going to see an attorney tomorrow. My question is, has this crazy situation been caried out before?

Thanks for your time responding.
GlenL (Ohio)
Posts: 5,491
Posted:
It's been tried before but usually they end up in protracted and expensive litigation. Why didn't you just recall the existing Board and properly elect their replacements? Somewhere in your CC&R's should be how to properly do what you are trying to accomplish. Also you should check your State's HOA legislation (if any) and the non-profit corporation statutes for the proper way to do this.

Studies show that 5 out of 4 people have problems with fractions
DonaldN (Connecticut)
Posts: 183
Posted:
after reading Glen's answer I'm not sure I understand the question - here's what I think you're asking - you have a subgroup of homeowners who formed their own HOA and want to proportion the existing assets and income.

don't know if its' been done before but I don't think they would have a legal leg to stand on - good luck !!!
DonnaS (Tennessee)
Posts: 5,671
Posted:

Donald,

You are absolutely correct. This rebel group has absolutely no leg to stand on. They need to follow their own documents and State regulations on recalling the Board and then electing a Board that they feel will run the HOA according to their wants and needs. They did not probably even have a quorum of the 350 homeowners so they basically just proved a point. That is that they are unhappy with the way things are running.

What is scarey, they complain that they do not like how things are being handled and yet they go off, half cocked without following any set procedures. That is certainly not how one should handle a HOA rebellion.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Wait a minute -
did they call a special meeting, with due notice to all members stating the purpose of the meeting?
did they have a quorum?
did they recall the current board, by motioned vote(s)?
did they elect a new board?

They MAY have done this legally.

If not, laugh it off.
If so, you have a new board
DonaldN (Connecticut)
Posts: 183
Posted:
true Susan - Robert, fill us in on the specific details - thanks
MaryA1 (Arizona)
Posts: 7,043
Posted:
The only way this could have been done legally is IF the members are authorized, through the bylaws, to hold a meeting w/o the board being involved. I've never heard of any bylaws that allow this. Mostly it's stated that the Pres will preside over the meetings of the assn and the board is charged with noticing and holding meetings. Even if they followed all the correct procedures for noticing and holding a special meeting and met all the quorum requirements if they were not authorized to hold the meeting w/o board involvement then it was not a legal meeting. I would suggest the board contact an attorney immediately. In the mean time the board should take steps to ensure they cannot access the assn's bank account and hold off turning over any records to this "board". Perhaps a letter to the community stating the BOD is waiting for a legal opinion would also be in order.

I doubt the required quorum was met with only 20% of the members in attendance. My bylaws state a special meeting may be called if 25% of the members petition the board to hold a meeting and then a majority quorum is required to hold the meeting. The members resp for holding this meeting are those who are in violation of the gov docs so it's understandable they would not be concerned with abiding by those same gov docs with regard to holding a meeting and voting in a new BOD. IMO, these are the type of members that should be running the assn -- NOT!!!

DonnaS (Tennessee)
Posts: 5,671
Posted:

Robert,

So you had approximately 20 % of the members attend this meeting. What does the other 80 % think, why were they not representeded and who was in charge of the meeting? Lots of unanswered questions.
GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By n/a on 10/04/2010 6:59 AM
The only way this could have been done legally is IF the members are authorized, through the bylaws, to hold a meeting w/o the board being involved. I've never heard of any bylaws that allow this.

Never say never. Ours sets the procedure for homeowners to petition the Board to call a special meeting and if it doesn't within the specified time frame - it allows the members to call and hold the meeting.

Studies show that 5 out of 4 people have problems with fractions
SusanW1 (Michigan)
Posts: 5,202
Posted:
Our HOa also allows the Members to call a special meeting.
MaryA1 (Arizona)
Posts: 388
Posted:
Glen,

I didn't say "never". I said the only way it could be done legally is if the members are authorized to hold a meeting.
SureshD
Posts: 268
Posted:
He's referring to this:
" I've never heard of any bylaws that allow this. "

It looks like you said it to me too.
MaryA1 (Arizona)
Posts: 388
Posted:
That was an aside to my first statement.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Sometimes when we reread the post, some of us pick up another point that was missed. This is an interesting thread with members really going off on their own without following any of the proper procedures that they may have available. Idaho Laws surely must come into play and I see no mention of them anyplace.

In Robert's O.P, he also had this " Our checks for the HOA are at a property management company and we are not sure what legal means they will use to obtain the cash in the account and checks from the PM."

I certainly hope that the P.M will do their job and refuse to turn over the funds. The H.Os are not entitled to these funds. They belong to the entire association and a duely elected Board for community bills and expenses, not some members who are trying for an overthrow.
MaryA1 (Arizona)
Posts: 388
Posted:
Donna,

I don't understand why the BOD (the original board) would be wondering what the PM might do. The board is in charge; not the PM. IMO, all they need to do is to inform the PM that the election was not legal and they are still the board members, not those individuals who were elected at this meeting. The PM should also be instructed to inform the board Pres of any communications with this rogue BOD and any attorney they may hire. The PM needs to understand that, no matter what occurs, he/she is working for this board and cannot do anything the rogue board tells him/her to do.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Mary,

Yes, as I said, I certainly hope that the P.M does their job and put the right information into the heads of the rogue bunch, telling them that they absolutely have no rights to any funds and any input as to what the P.M should do or not do. But if you remember, there are also P.Ms that don't know the laws and might not be on the up and up as well. Robert does have some legitimate concerns. You and I and a few others have difficulty in grasping things like this going on in a HOA when our HOAs seem rather normal and stable. But, there is an attorney involved so that mixes this up even more.
JanetB2 (Colorado)
Posts: 4,219
Posted:
For single family home info here is the non-profit corporations act: http://www.legislature.idaho.gov/idstat/Title30/T30CH3.htm
There is alot of different sections pertaining to meetings, so something here may answer your question.

Here is a link for your state property statutes and Chapter 15 pertains to condominiums: http://www.legislature.idaho.gov/idstat/Title55/T55.htm

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