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HeatherB3 (Florida)
Posts: 32
Posted:
So, I am now on the BOD. It took a lot to get where I am now and to be honest. I HATE IT!!!

OK enough of my complaining, now on to the good questions.

1. President cares nothing about the pool, landscaping, common grounds, the gate, and anything else that involves spending money. All he wants to concentrate on is getting dues that are in the arrears paid up. He has said “we will do nothing until we are back in the black.” Meanwhile, the spa is not heating, the gate is creaking, the pool furniture is falling apart and I am getting bitched at every time I walk outside from my neighbors asking “Can you PLEASE get this fixed.

2. Our PM does NOTHING!!! BUT, our President Loves him and does not want to get rid of him. Over the past three months since I have been on the BOD, I have gotten 4 sets of bids, which is very time consuming they were asked for by HIM, for jobs that are needing to get done and once I present them to the other BODs, our wonderful Pres says “I said nothing gets spent until we get back in the black.” I have not answered my phone or emails from anyone from the HOA in a week and today I got a nasty email followed up by a phone call saying “you have to answer me, if you are not cut out for this, maybe we should replace you.”

3. One of the promises I made to the community when I ran was better communication and transparency. I was hoping to achieve this by starting a website. I typed out a few questions to ask our attorney, which I feel they are rhetorical, but never the less, when I sent them to our PM to send to our attorney, he said that this must be approved by our President. REALLY?

Here’s the list of questions… what do you guys think and what should I do???? Help???

1. We are playing with the idea of setting up a website and if we do,
to help with the cost and being a "not of profit" can the association
charge for advertising on the website? Would it be a conflict if BOD
members wanted to advertise their own business? What about vendors
that are under contract to service the community? Our goal is to make
the website cost neutral by offering advertisement opportunities.
However, could we take more money in for advertisement over the amount
it cost to run it can we put it in our general fund? Or would this be
"making a profit" at that point?

2. Our covenants allow for "telecopy" for notices. Is this the same as
email in the legal world? Would we be able to sent notices to
Homeowners via email if they so desire?

3. Would homeowners be able to vote for amendment changes online, via
email or online voting system?

4. Could our paper proxies, that are sent out for our annual meeting,
be sent and returned from the homeowner online, either as an online
fill-in form or another online voting/proxy system?
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
All he wants to concentrate on is getting dues that are in the arrears paid up.


Seems like a good idea. You cant maintain the spa or pool if you have no money in your bank account.

Quote:
2. Our PM does NOTHING!!!

Well, im sure he doesnt just sit around and do nothing. You just dont know. You should spend some time with him, figure out what he does.

Quote:
3. One of the promises I made to the community when I ran was better communication and transparency. I was hoping to achieve this by starting a website.


So start a web site, explain whats going on. Explain you need to get reserves up and a few things will be delayed for repairs like the spa. When ever a bunch of people ask you questions, post the answers on the web site. Its pretty simple

Quote:

to send to our attorney, he said that this must be approved by our President. REALLY?


Of course he has to approve. Attorneys dont work for free. Your four questions could cost your HOA $600. The attorney will have to go through all your condo docs to look up your questions. Each HOA is different, and all HOAs have different docs. They specifically address things like voting, etc.

You just started, and you have a long way to go. If you really want to help, start communicating more. Transparency is key to making HOA's work smoothly.
GlenL (Ohio)
Posts: 5,491
Posted:
Heather, I don't know the answer to your questions, so I'll leave them to others to answer. No matter, how many times HOA Boards are touted as quasi-governments the one thing a Board president does not have is veto power. If the majority of the Board votes to spend money (provided you have it)then the president cannot stop it from being spent. Same thing for changing PM's or for that matter unless your voted into a particular office (rare but there are CC&R's that mandate that)the Board can remove him as president and elect someone else to that office. NOTE: The Board can't remove him from the Board, just from the office he holds.

And yes it is customary to have a "chain of command" for communications to the HOA attorney and other vendors. Otherwise you have a plethora of people giving countermanding orders or asking for redundant information.

Studies show that 5 out of 4 people have problems with fractions
TimB4 (Tennessee)
Posts: 21,059
Posted:
Hi Heather,

Welcome to the club of serving on the Board.

First and foremost, the questions to the attorney should have been approved by the Board because the lawyer will charge money to answer the questions. The correct answer shouldn't have been that the President needed to approve it but that the Board needed to approve it.

We are playing with the idea of setting up a website and if we do,
to help with the cost and being a "not of profit" can the association
charge for advertising on the website?


Yes you may charge for advertising on the site. Note that any monies collected for advertising should be reported as income when you file your taxes.

What about vendors that are under contract to service the community?

They can advertise or not.

Our goal is to make the website cost neutral by offering advertisement opportunities. However, could we take more money in for advertisement over the amount it cost to run it can we put it in our general fund?

You could take in more and place it into any account you desire.

Or would this be "making a profit" at that point?

Being non-profit doesn't mean that you are not allowed to make money. However, I do not know all the details associated with how much you can or can't make. Check with your State Corporation Commission and the IRS.

Our covenants allow for "telecopy" for notices. Is this the same as
email in the legal world?


Telecopy is generally used as another word for fax.

Would we be able to sent notices to Homeowners via email if they so desire?

Yes.

However, it may not eliminate the need to mail the notices. This will depend on the wording about notices within your governing documents and (perhaps) State law, as some have adopted statutes regarding the use of e-mail.

Would homeowners be able to vote for amendment changes online, via
email or online voting system?


Typically voting is by secret ballots. However, if your governing documents and/or State law allows registering votes by other means this is a possibility. The Association will need to have a paper trail on those votes to ensure a vote isn't registered twice or two different members from the same lot vote.

My Association does allow proxies to be sent by e-mail. Therefore, my Association has used emial for directed proxies which basically allowed the vote by e-mail.

Could our paper proxies, that are sent out for our annual meeting,
be sent and returned from the homeowner online, either as an online
fill-in form or another online voting/proxy system?


This will depend on your States corporate/hoa law along with your governing documents on how proxies can be received. Typically, they do not need to be on a specific form.

Pres says “I said nothing gets spent until we get back in the black.”

Not a bad idea providing safety issues are still corrected. If you have that many people behind in assessments causing the Association to defer maintenance, then you may want to consider a special assessment to pay for some of the items.

Tim
SusanW1 (Michigan)
Posts: 5,202
Posted:
Heather
How is it that you don't know the HOA is in the "red" and thus, can't fix creaking gates and old furniture?

Study your financials!!

The next time someone asks you why can't things be fixed, say, "We have to set priorities. We can't spend what we don't have."
JonD1
Posts: 2,350
Posted:
Heather:

As others have suggested you need to educate yourself about the state of your property. How many units do you have?
How many are not paying CCs or are in forclousure? What is the financial state of the property? Maybe the President has some real concerns. Just how much is the property in the red??? Do you know??

What amount do you take in each month and what does it cost to provide basic services? How much do you have left over at month's end? Reserve accounts do you have one?? How much???

And about those unhappy campers who make threats to remove you. You will never make everyone happy. You can't.
So listen and after you gather the information and knowledge you need to form an honest opinion provide that and they will have to deal with it.

Do you have any idea what is being spent on legal fees to make collections? After 3 months I doubt you have any real idea of what the PM does do. Take the time to find out.

IMO you need to take the timem to learn all you can and be informed. And it is quite possible the President has their hands full without a 3 month member now making suggestions and demands that they have little if any knowledge of.

Our attorney runs $250 per hour or part their of. As President I have instructed them to speak with only two parties the MC's office and me. It is not feasible to have anyone call and discuss what they feel needs a legal opinion on the property's dime. Your questions for the most part were not in need of a legal opinion rather the area was more geared to the person who prepares your taxes and does you accounting.

And this is just my opinion, while "transparency" is a wonderful buzz word that cures all the world's ills in the minds of some it is NOT and should not be the #1 goal of HOA Boards. And understanding there may be more pressing needs right at this moment is your first and most important jobs a a Board member.

Sort of like if on the Titanic someone thought explaining how and why the boat was going down was most important. While saving the ship should have been their only goal. IMO the Board's #1 job is doing their job and managing the property and its affairs.

JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Heather:

Just as it took a lot of effort and time to get where you are now … keep in mind it will also take time to potentially fix issues and see certain changes. I understand why you might hate it at this time, but with patience and effort it can get better. Remember it is the entire board voting on these issues to fix, not just the president’s decision as others have stated above. When anyone gripes at you listen, empathize (this generally diffuses anger) with something to the effect of “I understand why you may feel that way”. Then politely inform them you are only one member of the board and for any major concerns, please submit a request to be added to the next board meeting agenda where they can be addressed at a proper meeting. Let them know the entire board must vote on decisions and you as one person cannot make any decisions alone.

Per your questions:

1) As Tim stated yes you can charge for advertisements, to avoid any potential “conflict” issues make sure everyone is charged the same and that especially no BOD members is given any free advertisement space. Conflict comes into play when anyone receives any special benefit. Non-profit corporations can earn a certain amount of income to pay for expenses. You might check with your tax person to insure what your state laws are with regards to state taxes and they will also know the IRS regulations. Checking on this up front will help insure you stay within any needed boundaries. Think about it this way other organizations such as Girl Scouts, Cancer Society, Elks Lodge, etc. are also non-profit corporations.

2) Telecopy = Fax Copy … “Telecopy” was derived from the fact that the telephone system was being utilized to send a copy image to another entity via facsimile machine. LOL you either have an older HOA or an old timer did the documents to utilize the old word telecopy instead of fax, I have not heard that word used in many years. How notification to members is provided should be stated in your By-Laws. If the By-Laws allow electronic notice for association business and meetings then yes. The following HOA statute states:

 720.306 Meetings of members; voting and election procedures; amendments.—
 (5) NOTICE OF MEETINGS.—The bylaws shall provide for giving notice to members of all member meetings, and if they do not do so shall be deemed to provide the following: The association shall give all parcel owners and members actual notice of all membership meetings, which shall be mailed, delivered, or electronically transmitted to the members not less than 14 days prior to the meeting.

3) Maybe … IF your Articles of Incorporation or By-Laws allow. Per FL HOA state statute:

 720.306 Meetings of members; voting and election procedures; amendments.—
 (1) QUORUM; AMENDMENTS.—
 (a) Unless a lower number is provided in the bylaws, the percentage of voting interests required to constitute a quorum at a meeting of the members shall be 30 percent of the total voting interests. Unless otherwise provided in this chapter or in the articles of incorporation or bylaws, decisions that require a vote of the members must be made by the concurrence of at least a majority of the voting interests present, in person or by proxy, at a meeting at which a quorum has been attained.

4) If the HOA governing Articles of Incorporation or By-Laws allow for electronically transmitted material, then you can email the information to the members. However, the member must return with “signature” on the document. Potentially the member would then need to print, “sign”, and then scan in order to email back to the association secretary a proper proxy for voting at the annual meeting.

 720.306 Meetings of members; voting and election procedures; amendments.—
 (8) PROXY VOTING.—The members have the right, unless otherwise provided in this subsection or in the governing documents, to vote in person or by proxy.
 (a) To be valid, a proxy must be dated, must state the date, time, and place of the meeting for which it was given, and must be signed by the authorized person who executed the proxy. A proxy is effective only for the specific meeting for which it was originally given, as the meeting may lawfully be adjourned and reconvened from time to time, and automatically expires 90 days after the date of the meeting for which it was originally given. A proxy is revocable at any time at the pleasure of the person who executes it. If the proxy form expressly so provides, any proxy holder may appoint, in writing, a substitute to act in his or her place.

Have patience and tackle one thing at a time. The most important issue per your statements at this time will be getting the financial situation under control. As Susan stated you need to study your financials and determine with fellow board members how best to approach the problem. The board is going to potentially have three choices 1) increase assessments, 2) cut costs being spent, or 3) as Tim stated potentially consider a special assessment. The members need to understand you cannot spend money you do not have.

Until the financial situation is under control the board might get those who complain together with other volunteers to form a committee and have a community fix up party. Individuals will have partial cans of paint around they can donate and some may have experience in certain areas to take care of minor fixes. Maybe you can give old pool furniture a painted face lift and tighten some screws, take care of minor landscaping issues, take a can of WD-40 to creaking gate, etc. Make it fun with maybe a potluck and music while working as a community effort.

CarolF (Florida)
Posts: 435
Posted:
Heather - would you confirm that you are in a Homeowners Association of individual homes & lots (under FL 720), and not a condominium association (under 718). From this post, I'm not sure.
DavidS36 (Nevada)
Posts: 20
Posted:
I kind of agree with previous posters in as much as being a new member of the Board, it is up to you to get a handle on the relationships of the Board, the management company, contractors, and financial institutions. First, start with the annual budget, the reserve accounts, and the monthly expenditures. I believe all Board members must be familiar with where the money is, where it comes from, and how it is spent. DO NOT accept a pat answer that "we have to be in the black". If the community is really going broke, then that must become known to every homeowner: and now! Once you have a foundation in the financials, that knowledge will leverage itself into everything else.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Hi again Heather,

I don't want you feel like you reached out for help and got beaten up for it. We are all offering our opinion and advice based on the info in your posting, personal experiences, research and (hopefully) common sense. I know that I can become a little over zealous with a response from time to time. When this happens it's usually because I don't want the individual making the same mistakes I did.

A lot of us have been where you are. Someone who took the time to step forward in the hopes of correcting one issue and discovered that there are several other issues you weren't even aware of.

If you can get the information out to the membership, the complaints should become less. Therefore, you have the right goal in trying to improve the communication. Perhaps articles on how the finances work, where the money goes, etc., will help educate the membership.

If you are asked about getting something fixed, take the time to explain the issues of finances and tell them that you will do what you can but to please place the complaint/request in writing. The more people that complain will help demonstrate a need to address an issue either by fixing it or explaining the situation behind it.

Tim
JonD1
Posts: 2,350
Posted:
From another post from the same op I believe she states the amount owed to the property is equal to 40% of the property's annual budget. That's quite a bit of money which will do nothing but increase if left unaddressed.

IMO that might be reason for concern rather than communications and transparency with the property owners.

Collections would be my main concern.

TimB4 (Tennessee)
Posts: 21,059
Posted:
If it's that high, I agree with you Jon. However, I also think both issues can be addressed at the same time.

The President and Treasurer can concentrate on collecting the past due accounts.

Heather can concentrate on establishing and funding the website so the information is gotten to the membership.

Tim
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:

Heather can concentrate on establishing and funding the website so the information is gotten to the membership.


Heather, you can start a web site with Google's blogger.com in about 5 minutes, for free. Add 1 update about the current situation, then add some more, then add your docs, etc. The more you add, the more people will visit. You dont need to make this a bigger project than it is. Advertising is a waste of time in my opinion.

Your time would be better spent working on HOA projects vs getting people to advertise.
DonnaS (Tennessee)
Posts: 5,671
Posted:


Heather,

You have been on a mission to get on your Board and then you write. "I HATE THIS JOB AND I AM NOT EVEN GETTING PAID" From all of your previous criticism of your Board, did you think that you could just get elected and straighten out the mess that the "incompetant" previous Board had created? Welcome to the real HOA Board world.

I have to tell you that you ran with some grand ideas and I wish you luck in gaining some progress in fixing your HOA but I read back on many of your posts and I must say that I think that you are lacking much knowledge on how your documents and the Statutes do work. You need to start reading and then reread those documents before you try to change so many areas in your associations governing docs. You may have bit off more than you can chew.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By DonnaS on 05/11/2011 11:42 AM

did you think that you could just get elected and straighten out the mess that the "incompetant" previous Board had created?

Donna,

I think we all thought something like that at one time or another. Then, like Heather, found out the realities of the situation.

I know that what I found after being elected to my board was far more then what I thought I knew when I was member prior to being elected. It had me take a hard look at what I wanted to accomplish and the sense to realize that I couldn't do all I wanted (I really hated admitting that to myself). Therefore, I prioritized and singled in on one goal at a time.

I concur that reading and understanding the governing documents and State statutes are a must and should be done first (and continued while within any Association). Once that knowledge is gained, then a look at how things are being done vs. should be done coupled with finding out why they are being done that way needs to be completed. Then one can identify what can be fixed now and what needs to be fixed later and prioritize.

Tim
HoaC (Florida)
Posts: 95
Posted:

Hello all. I am new to posting. I have been reading this forum for a little while using a friends login info. She has been sharing the info she has learned from this site. So, I decided to make my own ID and post.

We followed up on some advice someone left here about a company called .... We have started using their software. We have allot of direct E-Mails and we are answering them. As all ways, there are some complaints, but the forum they provided has assisted Allot in the communications in our community. One of the things we are getting compliments on is how transparent we have become. It seems when we started placing our meeting minute, treasury reports and budgets on the site, everyone got a chance to see them and chime in.
Our forum has allowed these PPL to chime in and offer opinions and advice on solving the problems.
They get to manage their accounts. I know, as the president, I use to hate this job as well. Now, it seems as if the association is almost on autopilot.

I had some of the same grandeur ideas about how i was going to change things that was going on. Wow, was I delillusional. But, not on person had set a full term as a BOD. Now, we have some on their second terms.
Transparency is difficult to do with out accountability. What we have now assigns that accountability.

I hope things get better. But, I would suggest getting a website and some software that will help with these issues. BTW, We have recovered almost $107,000.00 in arrears with this automated software. The automated billing and collections has allowed us to focus on other issues we needed to focus on.

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