How Legal Is This??

Started by FionaC • 12 replies • 1682 views

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FionaC (California)
Posts: 212

Posted:

I am out of town for the next few weeks. I understand our current board without me has decided to have an annual block sale. Which is something done just about annually.

Getting to the point. We have some common area large storage unit that our community has used for storing bikes and other small items that are secured.

Once a year or so they clean out this room, with appropriate notice and whats left behind or unclaimed is donated to charity.

My neighbor called to alert me. She told me our HOA BOD, ( mind you I am not home ) just today posted a notice stating they will be cleaning out the room this weekend. If you do not remove your bike, or what not.. it IS GOING TO BE SOLD AT THE COMMUNITY YARD SALE.

I have emailed my BOD's.. no response. Can they give a 48 hour notice? Meanwhile... I have to have my neighbor move my bike out or it would be "sold". More like I'd be opt to call the local police and let them know who took the bike...

I have not control over this and frankly am at my wits end. I am sure I am not the only one out of town.. and will return to a "stolen" bike.

Just how legal is thi?

TimB4 (Tennessee)
Posts: 21,061

Posted:

Fiona,

You know that we can't say if an issue is legal or not. We can only provide opinions and advice based on our experiences, personal knowledge\research and, hopefully, some common sense.

You say that they clean out this room once a year. How much notice did they give in the previous years?

I believe the more notice the better but too much notice will result in zero actions from members as they think they have plenty of time. It's always possible that someone is on vacation, on a business trip or out of town and will miss any notice given. What about deployed military personnel? How did previous boards handle these issues when they cleaned out the unit?

Perhaps the Association needs to adopt a policy for future sales to address these issues. Perhaps the Association should only use the large storage unit for association equipment (as this would certainly prevent these issues).

Tim

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Simple. Ask your neighbor to get your stuff until you return. Case closed. No need to sue or call police when there is such a simple solution.

FionaC (California)
Posts: 212

Posted:

I didn't say anything about me calling the police. I just think this is a dangerous move by our board. In the past 12 years I have lived here, we have given a 2 week notice.

This one is 48 hours. With intent to sell items not removed. Doesn't sound right, but I did not approve this.

FionaC (California)
Posts: 212

Posted:

Quote:

Posted By FionaC on 07/15/2011 10:25 AM
I didn't say anything about me calling the police. I just think this is a dangerous move by our board. In the past 12 years I have lived here, we have given a 2 week notice.

This one is 48 hours. With intent to sell items not removed. Doesn't sound right, but I did not approve this.

I guess my question should of been, how do I make it known I didn't endorse this move by my HOA BOD?
I don't want to be held responsible for this chaos.

GlenL (Ohio)
Posts: 5,491

Posted:

If someone comes up to you complaining, simply say. "I was out of town when this was decided, if you have a complaint it should be sent to the Board." This does not mean you go around proclaiming your innocence and blaming your fellow Board members. One is a statement of fact, the other IMHO is a passive-aggressive tactic to snipe at your fellow Board members. Chances are there will be very few complaints unless someone deliberately tries to turn 'a molehill into a mountain'.

Studies show that 5 out of 4 people have problems with fractions

RZ (Arizona)
Posts: 51

Posted:

Inform the Board in writing and in person over the phone that you are out of town and your items are not for sale.

Tell them you are more than willing to move them to avoid any confusion on what is and what is not for sale. Ask them how they would like you to proceed. Doing this should swing the legal pendulum over to your side.

I would be surprised if with proper notice the Board ups and sells your items. Hard to imagine people would deliberately want to sell you items after you told them not to.

Document how you informed the Board prior to the block sale just in case.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By FionaC on 07/15/2011 10:28 AM
I guess my question should of been, how do I make it known I didn't endorse this move by my HOA BOD?
I don't want to be held responsible for this chaos.

I would assume that this decision would have been made at a board meeting (at least, it should have been). The minutes of that meeting should show you were absent. You're off the hook.

If this move by the board was made without a motion being made at a board meeting and an affirmative vote by the majority of those board members attending, then I question the legality to sell anything, period.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I don't know how the HOA justifies these funds from the "yard sale" on their books. A non-profit corporation is to spend as much money as they receive in. This is to be done through dues collections. It isn't by outside sources. I would suspect that any money collected by this sale is subject to taxation. It's not like giving to a charity even though those are non-profits. So I would be more concerned on how this money is handled and justified.

Former HOA President

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Income received from assessments in considered "exempt income" by the IRS and generally is not subject to taxation. Income from other sources such as interest on accounts, income from clubhouse rentals, yard sales, etc., is considered by the IRS as "non-exempt" income and may be subject to taxation. There are certain rules and income and expense ratios that must be adhered to. All of this is explained in the instructions for IRS Form 1040H and in 26CFR1.528-6 thru 26CFR1.528-9.

JohnM48 (Pennsylvania)
Posts: 89

Posted:

Actually, that IRS Form is 1120-H.

Here's a link to the official instructions - http://www.irs.gov/pub/irs-pdf/i1120h.pdf

Association President

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By JohnM48 on 07/16/2011 12:36 PM
Actually, that IRS Form is 1120-H.

Here's a link to the official instructions - http://www.irs.gov/pub/irs-pdf/i1120h.pdf

John,

Yes. What was I thinking? Thanks for the correction.

JohnM48 (Pennsylvania)
Posts: 89

Posted:

No problem Bruce. It's an easy mistake, "1040" is the most recognized (and hated) number in the country!

Association President

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