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KassemS (Florida)
Posts: 5
Posted:
Hi,
I am a member of my association purely by being a homeowner and paying my yearly dues. I occasionally attend monthly meetings and decided based on the actions of the board over the years and their way of doing business that I will get involved by running for a seat on the board of directors. I noted some perculiar actions occurring and I wish to ensure that our election which is to culminate with our monthly meeting in January (January 19) to be percise, was on the up and up. So here are my comments:
First, I noted that that the Manager sent out the intent to run to paperwork to the homeowners at the end of November 2010. There were already intents to run paperwork in there for 3 out of the 4 board of directors dated and signed on 13 Oct 2010. Why would they have received the intent letter over a month before all of us homeowners receive them and had them signed and already turned in?
Second, they mailed the ballots, proxies and intents to run to the homeowners and they are so confusing even I can not understand them. Different dates and instructions on each of the forms make determining what actions are to be taken as a homeowner and voter even more confusing. And since I am very confused right now, I can just imagine so are the majority of the other 246 homeowners.
Next, although this has nothing to do with the election process, the last few months our HOA Management company with the Board of Directors have conducted what I consider some interesting actions with regard to our budget. First they gave our management company a raise of 10-15% and they did it without a budget meeting. In fact the manager was the one who brought it up at a budget meeting and when certain members of the association quickly complained that this action should be brought up at a budget meeting the board tabled it without action. Although that particular monthly meeting when written and posted by our Manager stated that the raise had been brought up and approved by the board and having attended the meeting it was totally untrue.
They then decided to put up a notice for a budget meeting but put out the notification for the meeting 3 days prior to the meeting. In the past, I had been taught that with regard to those special meetings, notification had to go out to members 14 days out. At this meeting they then approved a 20-25% raise to our contractor who mows our common areas and also lives in our community.
Next, the board voted on purchasing $1000 on Xmas decorations. When they purchased them, they actually overspent and spent $1500 instead and this last month they decided to cover themselves they probably need to put that extra expense in the minutes as a vote for approval.
I have seen other strange things happen and all I wish is that our Board remains a ethical shepherd of our monies and community. My fear is many of these members have been on the board so long (some as mauch as 6 years) they have become oblivious to the community needs.
Other then getting a lawyer (which I am contemplating) and bringing legal action for a complete auditing of the books, who can assist me in these matters?
vr
Kassem
CarolF (Florida)
Posts: 435
Posted:
First please tell us if you are a condominium association (FL Statutes 718 apply) or a Home Owners Association governed by FL 720. I know you say HOA, but some condo associations or townhouses use that term.
SusanW1 (Michigan)
Posts: 5,202
Posted:
K - please break up your "issues" into paragraphs. Makes it much easier to understand.

re: election process - The bylaws should outline the calendar to follow in terms of nominees and ballots. If not, ask the MC what the procedure is.

You can also ask them to clarify the forms, since you are confused. Ask how many others are confused.
You can wait until all the dust settles and vote live at the Annual Meeting, too.

RE: budget. Again - the guidelines should be in your documents. You have a right to see the contract with the MC and should be able to see the minutes of the meeting where the increase was passed. You can ask for an explantion at the Annual Meeting.

RE: holiday decorations. They overspent, then after the fact, approved additional funds. Yes, it's backwards, but apparently it was in the budget. So ask about that, too.

FredB4 (Ohio)
Posts: 375
Posted:
I wouldn't jump to any quick conclusions. Sometimes there is a good explanation for what seems like a poor decision by the board.
The amount of increases seem rather high and I would certainly question what the justification was for that.
Ask for a copy of the management contract, which you are legally entitled to, and review what their agreement is concerning increases in their rates.
Before increasing your mowing contract the board should have requested bids from at least three companies to ensure that you were getting a competative rate. Ask if that was done and ask to see a copy of the bids.Maybe the resident contractor was doing it at a reduced rate and can no longer continue at that rate, but does a good job and still is giving you a good rate.
Board members are usually voted in at the annual meeting.If other owners are dissatisfied maybe you can encourage them to attend the annual meeting and vote you on the board.
I would say that the additional expense for Christmas decor was out of line.It appears that they didn't plan out the expense and just went ahead and bought what they wanted. That is poor planning and not the way to protect the financial stability of the association, which is the prime duty of the Board of Directors.
Your bylaws are a legally binding document and your management company and board are required to follow them.
They sometimes are difficult to read but take the time to study them. They usually cover most situations.

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