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Declaring Chapter 13 and being on the Board??

Started by FionaC • 15 replies • 1665 views

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FionaC (California)
Posts: 212
Posted:

If ccrs do not make any reference board members being in arrear in dues. Meaning our current ccrs do allow our BOD to be in arrear in dues and yes.. they currently are. I was curious how this will work with one of them preparing to file chapter 13?

Her dues will be paid back over the next 5 years according the courts. Is there anything that can be done to her if she continues to be on the baord or runs again for the new election?

Our ccrs do not mention nor address this. NO rules address this.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Fiona:

Here is information for California:
http://www.davis-stirling.com/DirectorsNotinGoodStanding/tabid/2753/Default.aspx
RobW (California)
Posts: 279
Posted:
Fiona, here's a rule that addresses it:

Recall Election. It only takes 5% of the members to sign a recall petition, and if the Board then refuses to schedule the meeting in the allotted time, the homeowners themselves can hold the meeting without the Board. the entire Board can be recalled, and replaced, if it comes to that.

Rob
AnnD2 (Connecticut)
Posts: 76
Posted:
Do you really have no rules for payment of fees/dues? If there is any mention of payment obligation by members, it also applies to those serving on the board. All rules of an organization apply to the members of the board, as well as to the general membership....

PeterD3 (Florida)
Posts: 708
Posted:
AnnD,

The question is not about rules regarding payment or their application per se but rather does failure or being behind prohibit BOD membership.
RobW (California)
Posts: 279
Posted:
In California, there is nothing in the civil code that requires that a Director or Officer be a member in good standing. (Your state's mileage may vary.)

If the subject isn't covered in the HOA's governing documents, and it's not covered in the state civic code pertaining to HOA's, then the options are limited:


  • You can go to a Board meeting and ask the Director to resign, for the good of the community. (That can actually work. It's how I became president of my HOA.)

  • You can amend your governing documents to cover it.

  • You can recall the Director and elect someone else to serve out the term.

  • You can wait until the term is up and elect someone else to fill that seat.

  • You can be patient and compassionate, since there but for fortune...



Rob
SusanW1 (Michigan)
Posts: 5,202
Posted:
Five years in arrearage?? And she's on the board??? OMG!!
SusanW1 (Michigan)
Posts: 5,202
Posted:
I mis-read what you said about the court paying for her dues over 5 years.

How far is she in arrearage/
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
She needs to be replaced.

Do you really want someone who cant handle personal finances making decisions for your money and others? No.
FionaC (California)
Posts: 212
Posted:
Filing a chapter 13... makes sure all debtors or creditors are paid back.

The HOA is going to recieve proper payments. She is only behind 4 months. I assume she may even pay that off before the filing of the 13. But this is not community knowlege.. She desclosed this to me.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Well it might be community knowledge now if others from your community review postings on this site, after a private disclosure was aired on a public forum.

FionaC (California)
Posts: 212
Posted:
MY HOA BOARD IS NOT THAT BRIGHT..LOL I have suggested this forum to them multiple times. They have not and will not use it. But the privacy issues in our detailed collection policy prohibits the board from discussing BK"S and financials with anyone outside. I only know of this because of the neighbor feeling comfortable sharing with me.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
But this is not community knowlege.. She desclosed this to me.


Doesn't really matter. The HOA should follow through with collection just like any other resident. Its very likely, although hopeful, the HOA will not receive dues in the future.
SusanW1 (Michigan)
Posts: 5,202
Posted:
The board should focus on the past due assessments only. (How she got there or what she is doing about her finances or mortgage problems are irrelevant.)

The board needs to process this case exactly like any other homeowner. To not do so could get the board into trouble, ie. not treating all homeowners alike. That is WILLFULL disregard of the rules on the part of the board.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Posted By SusanW1 on 02/21/2011 7:57 AM
The board should focus on the past due assessments only. (How she got there or what she is doing about her finances or mortgage problems are irrelevant.)


Correct. Say nothing of her personal problems. Ask her to resign because she is past due in assessments. If she doesn't resign, use your docs to have someone step into her place temporarily, then elect a new person to take her place.
FionaC (California)
Posts: 212
Posted:
Quote:
Posted By SteveM9 on 02/21/2011 10:44 AM
Posted By SusanW1 on 02/21/2011 7:57 AM
The board should focus on the past due assessments only. (How she got there or what she is doing about her finances or mortgage problems are irrelevant.)


Correct. Say nothing of her personal problems. Ask her to resign because she is past due in assessments. If she doesn't resign, use your docs to have someone step into her place temporarily, then elect a new person to take her place.

Susan... honestly? if a chapter 13 pays back past dues... I am confused as to why this such a big deal. Chapter 7 would wipe out her debts totally and ti would be a loss. A chapter 13 makes payments back to her creditors... there is a huge difference.

Our current CCRS... do NOT mention anything about board members must be in good standings.. our rules say nothing about it. We don't have the legal docs to support removal. Iknow this as i poured over our ccrs when one of our bm's foreclosed. We coudn't remove him from the board until after he moved ou!!

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