After a Board Resigns

Started by DesmondD • 15 replies • 5796 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

DesmondD (Florida)
Posts: 11

Posted:

Hello - I have a house in Florida and as usual we have problems with a Board who know everything and don't need to listen to the owners.
We are putting a great deal of pressure on them to account for their actions we feel they may just jump ship and resign en masse. If all the Board resign at one time how does the HOA function in the inter-regnum while we arrange for a vote for new directors.
your advice would be appreciated

thanks
Des

MelissaP1 (Alabama)
Posts: 13,836

Posted:

What a loaded question...Aren't the board members made up of the owners? So how exactly aren't they listening to owners if indeed they ARE owner's too? You have to factor in that there is no "They or them" in a HOA. No matter who you elect to be a HOA board member, your going to have issues with them. I compare it to having your best friend run and win for governor. You supported them the whole election and then when they are in office they pass a bill for higher taxes...

My suggestion is to find people willing to volunteer now. If your HOA doesn't have anybody because they see how the current board is treated...I'd suggest working with the existing board better and educating yourselves on how a HOA works. Seems to me the problems lies within how things are perceived and not on the reality of what has to be done for things to run.

Why not try to change the dynamics of your HOA a bit and learn a bit about how to improve. It would make it easier for the existing board members who most likely have no clue on what they are doing just like anybody else would too. Unfornately, the board or members in a HOA aren't all corporate managers...they are stay at home moms and cub scout dads...Their only qualification is they own a house there...

Former HOA President

DonnaS (Tennessee)
Posts: 5,671

Posted:

Desmond,

This happens all of the time. Residents are unhappy with their Board, they start reacting without being prepared for the consequences and end up in a situation that is harmful to the entire community.

Maybe the Board does know more than the members. Why are they not listening? These general type statements certainly do not help anyone who is willing to listen and offer suggestions. Maybe the members have not paid good attention. Apathy amoung members has been and always will be a HOAs biggest problem. Who elected these Board members. Who will replace them? Do you have a plan?

JenniferM10 (Illinois)
Posts: 97

Posted:

Small side point to Melissa- I've seen you make the statement before that board Members are residents, therefore, there is no "them". However, I think it depends on your community. My community has a definite "us" and "them" feeling, fostered by the people on the Board and perpetrated by the community as a whole. Somehow it doesn't go away, even when we get someone new on the board.

As a volunteer I've heard the most disparaging remarks make about "the residents", as though the Board members weren't residents themselves.

Honestly, I wish more people did have your feeling that we're all the same group, but I don't think it's the reality everywhere.

DesmondD (Florida)
Posts: 11

Posted:

Hello

thank you or your remarks and I understand some of your comments fully

Foreigners own aprrox 60 of our 22o units and one member of the Board made his bid to get on the Board by telling all the US residents his aim is toget rid of the foreigners -- so we do have a us and them

The treasurer has recently stood up at a Board meeting and told everyone the HOA come in under budget for 2010 by $50,000
I have a copy of the CPA approved accounts and we OVER spent the budget by $135,000
He keeps repeating this figure because he keeps trotting out the 2010 Budget - not the final accounts
Our president sits there and says nothing to correct this impression
They are spending all the accumelated operatingg profits of the last 4 years

I am not being rude but I dont need a lecture on not uderstanding the work of members od the board

That is why I posed my question to try to see the way forward and to be able to speak to people about our options
thanks
Des

DonnaS (Tennessee)
Posts: 5,671

Posted:

Desmond,

I think that your options might be.

#1 A special assessment if there are shortages that must be made up
#2 Recall the Board or any specific Board member who is not doing their job.
#3 Start to lein anyone who is not paying their dues if that is where the shortages are coming from
#4 Redo the Budget and make adjustments that are needed. You may have to cut something out temporarily.

Were your accumulated profits in the Reserve accounts? I sure hope not because those may only be used after an affirmative vote by the members. Is there an explaination of what the $135,00 went?
My original comments were not meant to be rude at all and I apologize if you took them that way. I was on my Florida Board for several years and still own rentals there so I keep involved and up to date.
It is amazing on how many new posters here don't understand how the operations of the association are handled and I asked those questions to find out how HOA savy you were. Questions were answered perfectly.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By DesmondD on 06/13/2011 2:09 AM

We are putting a great deal of pressure on them to account for their actions we feel they may just jump ship and resign en masse. If all the Board resign at one time how does the HOA function in the inter-regnum while we arrange for a vote for new directors.

Best case, they appoint people to the board to serve the remaining of the term before resigning. Of course this could be as simple as telling one of the members "I quit, you handle it" or as formal as discussing it at a meeting.

Worst case, they all just resign, someone claims to have been appointed, collects all the books and appoints others to fill the remaining terms.

Members option - petition the court to place the Association into receivership (not the best move - but certainly an option). A receiver will be appointed by the court and paid by the Association. They will only answer to the court and not the membership. Expect assessments to increase to pay receivers salary and benefits.

If the Board isn't responding to requests, it's best that a recall election be done where other members are nominated and elected to serve.

Tim

DesmondD (Florida)
Posts: 11

Posted:

Hello Donna

Thank you for your responses and I apreciate your help

We understand your recommendations and we are aware of these but can you please amswer the actual question - if all resign at the same time what officially happens if there are no directors

thakns

rgds
Des

DesmondD (Florida)
Posts: 11

Posted:

Hello Tim

sorry did not pick up your response before i posted a few minutes ago

So if no directors we have to go to court

thanks
Des

TimB4 (Tennessee)
Posts: 21,059

Posted:

That or someone steps forward and assumes control.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Desmond,

Have a committee in place that will assume control until you can set up an emergency election, asap. Unless 1 of the Board members stays on, that person can appoint a Board.

And then there is recievership, the almighty money pit.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Sorry, I hit post before I was finished.

Ideally, prior to everyone resigning, the out going board would consider it their duty to appoint their replacements or call a special meeting for the membership to elect new board members. However, there is nothing other than a personal sense of duty that I know of which would require them to do that.

This is why I said that it's best to go through the process of recall the Board which would typically require:

petition to hold a special meeting
Notice of special meeting
holding the meeting
taking the vote to recall
if successful, taking the vote to elect new directors or allowing the remaining Directors to appoint replacements
announce results
turn over the records.

Basically the same process of holding an annual meeting but the meeting would be called by the membership via petition.

Tim

MelissaP1 (Alabama)
Posts: 13,836

Posted:

In our HOA, we can disband our HOA by a majority vote. Which means if our board quit and the other members agreed to no longer have a HOA, it would be turned over to a Management company. Our documentation dictates it as much. However, if a HOA has no board or organization, the court system could appoint some kind of management. It could be a person in the community willing to take on the job or it could be a professionally hired company.

It's best to try to work on the situation amongst yourselves if you want to have any kind of homeownership control. Otherwise, none of the owners will have a vote or be able to control any rules.

Former HOA President

DesmondD (Florida)
Posts: 11

Posted:

Thank you everyone for your advice

it helps

rgds
Des

GregA3 (California)
Posts: 8

Posted:

Homeowner apathy is very common in HOAs. Homeowners simply do not want to get involved in HOA issues until the board does something that they don't agree with and then homeowners complain that the board is not listening. Homeowners need to, at least, attend some board meetings to put a face with the board and visa versa. Our board is going through the same thing now and I'm on the board. We have tried everything to get homeowners attention to issues we are trying to resolve and some are expensive ($130K range). Once we put out a Special Assessment notice, homeowners suddenly became experts in how to address this issue and complained that they knew nothing about this issue even though the board put out notices and letters to homeowners many times over the last 3 years. Most homeowners will not admit they were asleep at the wheel. Now our board is considering the same action. The management company would continue to provide the daily administration of the HOA and may have to go to court to seek an administrator to act in the HOAs interest and sign checks until homeowners volunteer to take over.

Being on the board is a thankless job and apathy is a terrible disease in HOAs.

DonnaD (Tennessee)
Posts: 38

Posted:

Well said Greg.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here