HOA Records

I went by the new management company offices yesterday to inspect the HOA records. Apparently I'm not asking for the correct stuff. They gave me the board book from the prior management company and minutes from the last 2 meetings since the new company took over. In the prior board book there were minutes up to 5-2010 and nothing until 11-2010 which was in the new management company's book.

Shouldn't there have been minutes from meetings between last May and November to take up the business of replacing the management company? I'm interested in looking at what companies bid on the contract and what their bids were? What should I be asking for?

The new community manager said that most of the board interaction is now done via email. What kind of things are require an act of the board and what kind of stuff would be considered just instructions to the management company? Can I request to see emails pertaining to HOA business?

Thanks

I asked specifically for "meeting minutes" and financials. They gave me a binder that only had meeting minutes from last May and previous. I got the Nov 2010 and Jan 2011 minutes from out web site. Also there were no minutes from annual meetings. As far as I can tell there is only one committee for Architectural Review and the board is the committee. Our bylaws allow for acts without a meeting but requires the act to be signed by all 3 board members. Should these be included in the minute book?

What kind of stuff requires an act of the board? Is it just big stuff like electricity and landscaping contracts or does it also include out of the ordinary expenditures, like getting trees planted or mulching the play area? What about unbudgeted expenditures where you are drawing down from the reserve fund?

I agree with Melissa.

Perhaps some work is being done within the approved budget for that project.

Perhaps there is a Reserve Plan and work is being done as a part of that calendar.

The Secretary of the HOA should be able to provide you with the annual meeting minutes. There you will find the approved budget with all the expenses listed. And also a Balance Sheet reporting ALL accounts and their balance at the end of the year.

The minutes of "acts taken without a meeting" should be included at the following month's regular or open mtng. of the board for board approval. I've been on my board for almost 4-1/2 years and we've only taken action without a meeting twice, both about time-sensitive proposals. You also are permitted to have copies of the financials once they've been approved by the board pending the year end audit.

The board may not make decisions by email. If there is a quorum-2 in your case- they must post a notice of the agenda so that owners can attend. Your docs--maybe your bylaws--should state how much $ the board or the M.C. can approve without holding a meeting. Small matters, though, shouldn't require an open meeting of the board, e.g., ordering several new flats of flowers.

In Cali, bids/proposals may be deliberated and decided by the board in Executive Session, but for nearly the past year, we've discussed/decided at open meetings. If your board discussed/decided on a new M.C. in Exc. Session, they need not provide you with the bids, etc., only the executed contract. You could compare the new contract with the old M.C. contract to see if you're getting more or better services. My HOA spent way too little for several years on Mgmt. Companies and suffered for that later.

If the "couple" of trees were not replacements for some that had died, i.e., they were additions, they shouldn't be paid for out of reserves, but out of your operating budget,, and then added to your list of trees the next time you update your reserve study. Playground mulch (and new trees) seems to me to be part of your landscaping budget and perhaps the funds are from that or those line items. How big is this playground anyway?? How much would mulching cost?

I certainly would ask the M.C. for copies of the minutes for those missing '10 months if, in fact, open meetings were held during that period. You aren't, however, permitted to have access to Ex. Sess. minutes.

For materials that should be recorded in minutes, go to sterling-davis.com and scroll down their very useful Index: to Meetings or Meeting Minutes.

What size is your HOA? Condos, or?

Please note: All of my comments are based on CA law; Texas may be different.

The reason for the trees in your playground area: It is to protect the equipment from getting too hot in the summer possibly burning children playing. A playground in the HOT sun is just asking for trouble. Providing a shady area is helpful.

Mulch is a much more complicated issue than it first appears. You can't just use any type of mulch for certain type of areas. Some mulches attract and keep termites in them. This brings termites to the structures. Playground areas offer a variety of different mulch types. There are some "Safety" type mulches made of old rubber tires. Unfornately, these are much more expensive than your regular pine mulch.

These two issues may be why the HOA made these decisions on the trees and mulching. It is never that simple in a HOA...I had to do research in mulch options in the past. You would be surprised at all the options and NOT all of them cheap. Plus if you need ALOT of it, you can't just go to Lowes/Home Depot and get the bags.

Budgets for a HOA are done yearly and at the beginning of the year. They are "Projected budgets" which are always subject to change as conditions change. All the HOA has to do if it is non-profit is to spend as much money IN as it does OUT. It's not unusual for a HOA to go on a spending spree at the end of the year to avoid taxes. You may find alot of odds and ends then.

I don't see an issue with planting the trees for the one's removed. The city cut down some of ours at our front entrance. The board voted for the city to remove them as long as we agreed to replace them with a smaller less invasive tree species. Crepe Myrtles are usually that type of tree HOA's or cities plants when replacing bigger trees. They are pretty and don't grow as tall. So the tree issue sounds like an agreed upon condition that they followed through with.

The mulch is a necessary item for a playground. Buying it is only HALF the battle. There are delivery fees involved. Plus what if they hired a contractor to spread the mulch out? It doesn't spread out on it's own. Don't know many delivery truck drivers who stick around when their load is dumped off...

Sometimes you have to look beyond the dollar signs. Next time, ask if you can be involved in gathering bids and submitting them to the BOD. I would have loved it when I was "King" LOL....

Hi Kurt:

It sounds to me as if potentially the board has given the MC too much power. If as you stated above the MC asked landscaper to install, this should not have happened without board approval.

You are a larger HOA with 245 homes, so having an MC for certain items especially collecting dues, managing fines, sending out meeting notices, etc. is all well and good. However, there are certain items that the board and committees of homeowner’s should handle. It is the HOA money so the MC many times will do what is the easiest solution because that is not money coming out of their pockets, so costs is not a priority always considered.

I think you have a good idea to suggest forming committees to oversee landscaping and other items in your HOA.

Kurt, good for you investigating and questioning the association business decissions. If more homeowners took an active interest in association business we would not have many of the problems we now face. I encourage you to continue to ask questions and offer solutions. This is exactly what we claim we are looking for, active interest and participation from the membership.

Carolyn,
Current HOA president