Lack of Board Members

Started by HughJ1 • 8 replies • 2586 views

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HughJ1 (California)
Posts: 4

Posted:

We are a 10 year old community of about 40 single family homes. The current board has had the same 5 members for over six years and is threatening to resign. Homeowners do not attend the publicised quarterly meetings.
What happens if the Board resigns? Can the management company replace the Board?
Is Receivership a consequence? If so, what happens under Receivership?
HughJ1

RobW (California)
Posts: 279

Posted:

The current Board can resign, but it could be done like this:

1st director resigns. The Board president appoints another homeowner (maybe you?) to serve out the remainder of his/her term.

2nd director resigns. The Board president appoints another homeowner to serve out the remainder of his/her term.

3rd director resigns. The Board president appoints another homeowner to serve out the remainder of his/her term.

4th director resigns. The Board president appoints another homeowner to serve out the remainder of his/her term.

5th director (president) resigns. The new Board chooses a new president, and the new president appoints another homeowner to serve out the remainder of his/her term.

Of course, this solution is predicated on my presumption that at least 3 homeowners in your community are willing to serve. Why are the current directors threatening to resign?

Rob

JanetB2 (Colorado)
Posts: 4,219

Posted:

Like Rob my question would be why are they wanting to resign?

Since they have been the board for six years are they possibly burned out and want a break? What everyone in your association needs to understand is you only have 40 homes; therefore, it will be more of a burden more often on everyone than in an association that has 200 homes. When you purchase in an HOA subdivision you do so with the knowledge that there are Boards, Officers, Meetings, and Rules. When there is no participation and lack of interest then Board members or Officers begin to feel like they are putting forth alot of their time and effort without any appreciation and feedback from the HOA membership and become frustrated.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Usually Committee members "feed" the board. That's why it's good to have strong committees. They get to know the workings of the board and have an understanding of the process of a meeting.

Look for new members from committees.

(When I hear that Boards can't find members, that tells me they have been to isolated and have not gone outside of their own little group to get input on running the HOA. The self-implode)

HughJ1 (California)
Posts: 4

Posted:

Janet B 2 got it right. There is burn out on the part of the existing board. And no sign of any other homeowners stepping up despite verbal and written requests for new blood.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Hi Hugh:

Check your state statutes and governing documents to see what happens if no one would step up. In some cases a homeowner could end up being appointed even if they do not want the position ... statutes and documents will govern this situation NOT the Management Company.

My suggestions would be:

Have your next meeting someplace neutral if not already being done. For non-profit associations many times there are community centers, city mtg rooms, churches, etc. who may let you have a room for free or minimal charge. This would relieve a burdon on someone having to clean house for a meeting then cleaning up afterwards.

Have a small pot-luck or finger food get together just before the meeting. Everyone in today's society has busy lives and it would be nice to not worry about rushing home and fixing dinner then going to a meeting, and possibly encourage more meeting participation.

Maybe each quarter have 5 homeowners provide a door prize. It could be anything from a home baked cake, a couple of movie tickets, homemade craft item, etc. it does not need to be anything expensive. Then for each home that has someone present, their name/address is entered for door prize drawings. Having more than one prize is good just in case someone forgets it is their turn, there would still be other door prizes available.

These are just some ideas to make the meetings more fun and encourage more participation. What everyone needs to realize is you are all a "team" and everyone needs to participate at some point in time for the mutual benefit of everyone in your subdivision. If you purchase a home in an HOA at some point you need to be willing to step up for a term, especially in smaller subdivisions.

RobW (California)
Posts: 279

Posted:

Hugh, when you said that homeowners don't attend the Board meetings, you didn't say why. Is it that the meetings aren't announced?

Here's the problem. You are all members of a legally constituted corporation in the state of California. Check out the Davis-Stirling information at www.davis-stirling.com, and also your by-laws. You are required to have a board of directors, by law. Without a board - and this is very important!!! - you cannot conduct business.

Read this: Board of directors required (Corp. Code §7210):
http://www.davis-stirling.com/MainMenu/MainIndex/LosingEntireBoards/tabid/1365/Default.aspx

And this: Collapse of HOA:
http://www.davis-stirling.com/MainIndex/CollapseofanAssociation/tabid/1464/Default.aspx

If the board resigns without appointing replacements, all sorts of nasty liability ensues for those board members. And if no one in your association is willing to serve, EVERYONE WHO OWNS A UNIT THERE IS LIABLE FOR EVERYTHING THAT HAPPENS.

Now, the 40 members can all agree to dissolve the corporation, but it's a huge job, and will cost a mint in attorney's fees.

Here's my recommendation: Go to the next board meeting and ask the board members what they want to do. And if they are determined to resign, volunteer to be appointed to one of the positions. Then, ask them to stay on until you find at least 2 other people willing to serve, and start campaigning for volunteers.

Isn't democracy grand?

Rob

HughJ1 (California)
Posts: 4

Posted:

Thanks Rob. Those are interesting references to follow up. Notice of board meetings and agendas have been properly communicated to the homeowners. They only attend meetings if there is a problem that affects them directly whether it is a board responsiblity or not (like dog poop on lawns).
It looks like it would be very counterproductive for the board to resign. More effort must be made to find new members.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Hugh,

It would be very counterproductive if the remaining residents ignored the board of directors request for help to relieve them of burn out, not the other way around.
It sounds like you're very proactive and the recommendation to install you, first, then have others wait until two others sign on to the board is outstanding.

My experience is that burn out occurs when the board of directors is too active on the property and, unknowingly, assumes many of the daily responsibilities for which the HOA is handsomely paying the property management firm.

This is a prime object of my presidency in 2011, to restore balance between our master association (which oversees the complete operation at arm's length + makes all the important decisions) and the property manager (who works at ground level with residents and ensures small repairs are complete and the property is functional).

If you offer relief, use your property manager and have you neighbors report to them, not you.

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