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FrankL4 (Florida)
Posts: 6
Posted:
The Board of directors admits it is prejudiced against blacks and has tried to justify it's decision not to allow a black buyer in our Resident Owned Mobile Coop. As president and sole dissenter, do I have to do the bidding of the Board or comply with law and a higher morality?
DonnaS (Tennessee)
Posts: 5,671
Posted:

Frank,

Completely step away from any morality issues on this. As the President, your job is to lead the Board to compliance with all Federal, State, local and the governing documents for your association.

Enter the Federal laws. The Fair Housing Act says that no one may refuse housing to anyone based on color of their skin. That is plain and simple. Okay, so deny this guy his right to purchase in the Coop and see how fast a lawsuit is brought upon the association. It won't come from the prospective buyer but from the big guns in the NAACP and so on. This is the 21st century. What are these other Directors thinking?

Run a copy of the FHA and make everyone who is being ignorant about this, read it. Do the right thing and insure that the laws are being followed. Even in Florida, you are required to follow the FHA laws.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Frank, Just for you information

"Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). More on the Fair Housing Act

Title VI of the Civil Rights Act of 1964
Title VI prohibits discrimination on the basis of race, color, or national origin in programs and activities receiving federal financial
assistance.

SusanW1 (Michigan)
Posts: 5,202
Posted:
That's all your HOA would need - to be slapped with a Civil Rights violation!!

PS - I hope that your board's overt statements are not in the minutes!!
FrankL4 (Florida)
Posts: 6
Posted:
OK, That answers my question. I must comply with law, even as the Board is trying to find loop holes to disallow these more than qualified buyers. They found a statute disqualifying the seller, based on not giving us first right of refusal, but as we've not insisted on this in former sales, I know we have set a precedent. I will lay down the law and stand by it. thanks, for your support. Frank 4
DonnaS (Tennessee)
Posts: 5,671
Posted:

Frank,

Are you following State Statutes 718?
JonD1
Posts: 2,350
Posted:
Just wondering Frank how as President with one vote do you plan to impose your opinion on the remaining Board members?

I would guess like most your Board operates unde the majority rules concept.

Perhaps, what your fellow Board members are doing is improper however you being alone in your viewpoint leaves you little ability to chenge the course of their decision.

I would also suggest that perhaps not using the Board's right of first refusal in the past does not now eliminate its usage in this or any other future sale.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Frank,

Here is another thing to consider. Since you, and your fellow board members are aware of the fair housing requirement of non-discrimination (it would be hard to prove otherwise) disregard of the law in your decision making will nullify your D&O insurance coverage for this issue if the people want to bring legal action. Therefore, each member of the Board will have to pay for legal expenses out of their own pocket and would be personally responsible for any damages awarded by the court.

Once the issue is known to the members, I suspect that the Association would refuse to cover any legal expenses associated with the case as well.

Additionally, as the executive body of the corporation, the Board could be held responsible for any Federal and State criminal charges that may be associated with the issue (I don't know if there are any, as I have never checked into the possibility).

Ask the board members if they are willing to lose everything they have when they make that decision.

Tim
DonnaS (Tennessee)
Posts: 5,671
Posted:

Frank,

Could you please send us the wording of the Right Of First Refusal from your documents. The State Statute in 718 only refers to tenants having that right. The prospective buyer plans on residing in the unit? So the Board wants to have first rights if he plans on selling? How have they used this right previously?
FrankL4 (Florida)
Posts: 6
Posted:
Donna, we are governed by Florida statutes 719 and 723, primarily. The First right of refusal is in our prospectus defined as 81.64 pg.289 and it refers to "lesee" and "membership certificate". Redefined, in the document "lesee" is the unit owner and Membership certificate is defined as a share in the corporation. Tim, In other incidents, where the board did not act on by laws, in the past, our attorney said it is as if the
Board gave license to not complying with the rules. One such incident involved the "no pets" restriction which existed from the organization of the park, to present. People were refused entry, based on that rule, yet every board member had a 4 legged pet or two. The attorney said, by their own inexcusable behavior, the Board reversed the first decision, by action, rather than by decree. Also, I vote, only in case of a tie. We establish a quorum, which is not based on the president's attendance. I follow in the footsteps of a president, who was solely" running the place" and he never asked the board's opinion on anything. He was an officer out of control. I, on the other hand, give most responsibility to the Board members, except when I believe they are wrong. I try to instill a sense of civility and conduct the meetings rigidly. Frank L 4
BrianB (California)
Posts: 2,820
Posted:
Bravo TimB4...

Ignorance of the law is no excuse (you will still be found guilty). But willful disregard will get you the $250,000 fines and 5 years in prison judgements from the bench. Knowingly and willfully proceeding in the face of knowledge of wrongdoing is reckless disregard, and the stakes are raised immensely.

As Tim said, if your board continues, they will get sued, and when they go to their insurance company for coverage, they will hear this. "We are sorry, but after a careful review of your claim, we are denying coverage under Section.XXXXX. Furthermore, we suggest you seek outside counsel, as we will not be representing you in this matter."
FrankL4 (Florida)
Posts: 6
Posted:
As Donna answered my question as I intended it, I called an emergency board meeting, at Noon, today. I asked the board members, again, what their thoughts were. They all attended a coffee social, which we hold every Tuesday morning in the Rec. Hall and asked folks, who were there, what they thought of having blacks in the park. Only one person had a negative comment. It may have softened their view point, but I asked again for a vote. 2 of the members changed their votes and I declared the acceptance of our new neighbors. Had it come to locking horns with them, I would have iterated what Donna said. I did tell them, their ignorance causes them to vote according to prejudices which will not exist on this board, as long as I remain president. I thank HOA for giving us a venue to learn from each other.Frank L4
TimB4 (Tennessee)
Posts: 21,061
Posted:
Frank,

That is Great! Thank you for keeping us updated.

I also think that you made a great stand to make your Association better.

Tim
FrankL4 (Florida)
Posts: 6
Posted:
Thanks, Tim! As you and others have said, to break civil rights laws is suicide. That was not the basis for my decision to confirm our prospective neighbors. Yes, the other directors were influenced by that harsh reality and by the positive feedback, they were surprised to hear, earlier this morning. Our former president told a Mexican American he couldn't live amongst us because " We can't understand a word you're sayhing". Yeah, ignorance runs rampant, even in God's Waiting Room! Again, thanks for being here! Frank L4

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