When a MGMT Co. Comandeers the HOA

Hi Paul:

I would send a certified return receipt letter requesting to view the information to both the board and management company. As noted below in the state statutes there is suppose to potentially be five days written notice to abide by the law.

Your HOA and board should understand that the management company works for you and if they attempt to commandeer as you noted in the title to your post, then they can be replaced if everyone so desires following proper procedures.

Here is the statute regarding access to association records:
http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-510

This right of examination shall exist without reference to the duration of membership and may be exercised (i) only during reasonable business hours or at a mutually convenient time and location and (ii) upon five days' written notice reasonably identifying the purpose for the request and the specific books and records of the association requested.

This is statute on distribution of information to members:
http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-510.2

Members may not want other members to know how they voted, therefore the MGMT company is asking a lawyer what to do next. Just my hypothesis.

To answer the larger question, this happens because the Board allows the MC to get away with it.

As for the election:

I expect that your Association is a incorporated under the Virginia Nonstock Corporation Act.

If the member desires to inspect the election paperwork, as was pointed out, they should submit a written request, best if by certified mail, and cite VA § 13.1-933. Inspection of records by members and VA § 55-510. Access to association records or, if a condominium VA § 55-79.74:1. Books, minutes and records.

They should request the sign in sheet, the list of members allowed to vote, the proxies, the ballots and the inspectors tally sheets as would have been used under VA § 13.1-847.1. Voting procedures and inspectors of elections.

If they find any issues, they should make a complaint to the Board first to correct the issue. At the very least, they should point out to the Board the initial refusal of the MC to allow access to inspect the records, thereby failing to comply with VA law.

Tim

Thanks for all the replies this has been very informative. Tim, are you ever right about the "board allowing the MC to get away with it". This is why I believe the community is sort of split. The last few boards have been too squeamish to do anything about this and at probably feel that the MGR is almost a babysitter. They lack confidence and the Type "A" personality prop. MGR is all over it. As a businessman, from the beginning I would have never let the same Co. handle both MGMT and the bookkeeping as this is bad practice and why there have been issues with this company/MGR getting away with things he shouldn't be able to. You always want to divide power and have checks and balances. One of the reasons that most companies have a treasurer and a Controller. The controller has all the bookkeeping but can't disburse a red cent and the treasurer exactly the opposite yet both are on the same tier of the corporate ladder.

I sort of agree with Tim about the "secret ballot" as I don't believe the ballots have names on them. If the board handled the elections themselves the only way to certify it is to open up the ballots for inspection on election night. This is the way it was done for the very first election or two before this co was hired.

Another issue that concerns some members is that the MGR is present at all meetings but is not required to be. This again IMHO is not good practice because the MGMT co's performance should be up for discussion and this is difficult with the MGR present and overseeing the meeting.
The same is true of him being there on election night when prospective board members make their case before the HoA members. Any prospective may want to make the case that he/she is going to review and possibly replace the MGMT co which could be a popular position, but a problem when the MGMT co is counting the votes. This is sort of where we are/were with Laura. I'm not saying the MGMT co stacked the deck, but I sure believe those ballots should have been available for inspection.

Michael:
Virginia does have manager licensing and a place to file complaints. If I were you, I would file a complaint against this manager.
Jeanne

My question is why can't the HOA members certify the election themselves? Take one volunteer or two from members of the HOA-not necessarily board members- to count the votes and then set them out for observation.

Michael,

They can. Who is involved in entire process is up to the Board of Directors.

My Associations uses volunteers from the membership to count the ballots.

Tim

Michael,

You need to read the contract. Some have auto renewal or they continue on a month to month basis. Most require some sort of advance notice and might even require an opportunity to meet or beat any outside bid.

Tim

Your situation is not unique. Many HOAs / POAs did not want to manage their own Association due to many issues. Once these mgt companies get in, they essentially comandeer the Association and hold the members hostage. Ever increasing dues to line a mgmt companies and their attornies pockets with the association members monies.
A simple solution is to fire the company, take control of your own association. We found a simple solution that resolved the problems associated with these issues. Feel free to contact me by E-Mail, [email protected], and I will correspond with you and gladly share the solution we found.