How should I proceed?

Started by MC4 • 8 replies • 1645 views

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MC4 (Florida)
Posts: 29

Posted:

I will inform you that the Closed Board meeting with the attorney was very informative. Now what was very intriguing was that when I addressed the attorney, regarding the 20% increase the previous 2 board members instituted and I explained to him that it was against our governing documents, he stated that it was illegally done. That we can only increase the dues by 5% and if more than 5% it had to be done by a 2/3 vote of the members. At that point myself and the other 2 board members made a decision to overturn the increase and decrease it to $25, as per our governing documents. Now we are being challenged by the VP whom was not in attendance and never has time for anything. He is claiming that this was done during a secret meeting in which he was unaware off. Now he was informed of the close meeting and its agenda via email and telephone. The illegal increase of the dues has been a #1 concern by the members. The posting for the Board meeting was posted in a public bulletin in our community. How do we deal with a Board member that is challenging a decision, because he wasnt able to attend. Did we do something wrong?

MC4 (Florida)
Posts: 29

Posted:

after I posted this and although the previous board committed an inappropriate action. I believed we did one as well, becasue the decision that we made was done under a close meeting with the attorney and two wrongs dont make it right. Now how do I correct this action, immediately.

GlenL (Ohio)
Posts: 5,491

Posted:

IMHO and not legal opinion you did nothing wrong. I believe that consultation with an attorney is the one thing in FL you are allowed to go into executive session for. You would simply note that the Board voted to repeal the previous rate increases after consulting with the HOA attorney. If you want to be a belt and suspender type guy then in the next regular Board meeting have the repeal on the agenda and re-vote.

Studies show that 5 out of 4 people have problems with fractions

SusanW1 (Michigan)
Posts: 5,202

Posted:

The president should only declare the motion "dilatory" - and strike the entire mess. Note the motion in your minutes as withdrawn.

Start over.

PS HOW did this ever get passed? Your board needs to know your documents better!! The fact that an entire group was duped into passing this illegal motion tells me something. No one yelled "Fire"???

TimB4 (Tennessee)
Posts: 21,059

Posted:

Yep, the actual motion/vote to overturn the increase should be done in an open meeting. make the motion, discuss it and then vote on it.

OR

in an open meeting, make a note that based on consultations with legal, it was discovered that an increase in excess of 5% is not allowed without a membership vote. Therefore, the previous increase, being illegal, is hereby over turned. then entertain a motion to increase the assessments by 5%.

MC4 (Florida)
Posts: 29

Posted:

once the attorney stated it was illegal, we overturned it right there and then there were 3 out of 4 board members. Now should the 5% increase which is legal be done at a general meeting? The management company keeps telling us that we cannot do it until we examine the budget, but it should of never been done to begin with. There was only 2 board members out of 4 and 11 members total. Board did not meet quorum, as stated in our documents. The qourum is the majority of the board which is 3 out of 4. The previous board stood with only 2 board members and never appointed or elected anyone for the other two position. Therefore based on our documents and the lawyer. Any decision that was made by those two members, which was only the President and VP were inappropriate, because the board failed to meet qourum.

GlenL (Ohio)
Posts: 5,491

Posted:

Why do you only have four members? Is that all you have or is that the number mandated in your CC&R's? How do you handle tie votes?

Studies show that 5 out of 4 people have problems with fractions

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I agree the increase was done wrong. But it sounds like you have financial problems.

Soooo..... if you still need the money and you cant increase dues over a certain percent, you will need to do a special assessment or each owner in the amount you need.

So no matter how you do it, you will still end up paying the same amount of money whether its higher dues or special assessment.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Steve,

I agree that the OP Association must have a financial issue. However, the OP also stated that any increase over 5% requires a membership vote (vs. the need for a special assessment).

I believe that the OP has larger issues then just financial (like the illegal actions of past boards) and they are trying to remedy those first prior to moving forward and address other issues.

Tim

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