HOA President acting without board knowledge.

Started by NoelleC3 • 7 replies • 1588 views

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NoelleC3
Posts: 43

Posted:

Today during a community wide potluck at our clubhouse I noticed a huge piece of furniture on the second floor loft.... it was barely seen from the first floor.

I asked our one board member who was there what is that?? She said "I don't know... I have no clue." One of our homeowner's told us "oh the President bought that from me and plans on putting the exercise equipment in our new work out room!. She bought it for $50 "

I was like what? SHe can do that? The board had NO idea she spent funds, nor did the approve the use of the second hand exercise equipment.

SusanW1 (Michigan)
Posts: 5,202

Posted:

First of all, you don't know if the president spent HOA funds - the item was just purchased by her.
Second, you don't know if the exercise room is a wish or a plan on the part of one person or a behind-the-back action.
So, you need to wait to see what happens at an official meeting concerning this whole thing.

NoelleC3
Posts: 43

Posted:

I understand the President will be looking for reimbursement on a peice of equipment that the board did not approve..... that is what I know.

SheliaH (Indiana)
Posts: 6,964

Posted:

You still need to wait for more information before doing anything. If the president acted inappropriately, you may want to hold an executive session to deal with the matter - it should be as simple as saying "you don't have authorization from the board to di this and we're not going to approve this expense after the fact, so you'll have to eat it. Whatever you do with the equipment is up to you. And, by the way, don't toss the stuff in or around the trash dumpsters!"

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

MaryA1 (Arizona)
Posts: 388

Posted:

Noelle,

How do you know the board did not approve this $50 expenditure? And is $50 really worth getting all bent out of shape over. Just because she "may have" spent $50 w/o board approval does NOT mean she would spend $500 or $5,000 w/o board approval!

NoelleC3
Posts: 43

Posted:

HI Mary..

If you read my post. One of the board members said she had NO idea what it was.. but she and I were informed at the same time of the purchase of the item for the HOA by the President as one of the homeowner's fessed up and said he sold it to her.. and he stated what her intentions were.

The board member freely informed me "she had NO idea what that was, what it was for ect. "

Our terms are ending in 4 months anyway. and this gal can't run again for a year. so we are all due for break.. really soon.

MarkM19 (Texas)
Posts: 65

Posted:

Noelle,
So do you guys have term limits? Why does she have to wait a year to run again? This is the first time I have heard anyone mention that sort of thing. Can you give us somedetails about your bylaws on this topic.

Our assoc. allows the Board members to spend small amount like this without getting Board approval.

Thanks
Mark

FredB4 (Ohio)
Posts: 375

Posted:

Interesting. We have term limits but only if someone else wants to be on the board, otherwise board members stay as long as they want or are allowed to stay. We also have a clause that allows the board to remove any board member for any reason at any time. We are a small HOA of 48 units.
We were allowing small expenses without approval but are stopping it because small unnecessary things can eat up the funds that could be better used elsewhere.

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