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ThomasC11 (California)
Posts: 210
Posted:
Our Association has filed for bankruptcy and is now short on revenue. We have always had a history of not assigning anyone to pick up trash in streets and common area, not even the obvious choice of the landscape co.

Unfortunately our local rental population enjoys leaving their cans and bottles and whatever else they have in their car, in the parking lots and bushes. The BOD claims that work needs to be prioritized and that the trash is on a 2nd tier of priority.

I can't get the Association/BOD to recognize that this is a major problem. Is not the responsibility of the HOA to protect and preserve the common areas, including picking up trash and debris regardless of financial status? The bankruptcy is a convenient crutch at the moment.
PetunkaM (Florida)
Posts: 1,009
Posted:
Given the circumstances, could not a couple of volunteers solve this problem? Just a suggestion.

GlenL (Ohio)
Posts: 5,491
Posted:
Thomas, you need to take off the rose colored glasses and look at this realistically. Yes the HOA should be policing the common areas but if they have filed bankruptcy then I'm guessing that the majority of units are in default and you can't pay for services with money you don't have. That is unless you and the other units that are paying are willing to vote in a major assessment increase to pay for the clean up.

Studies show that 5 out of 4 people have problems with fractions
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Who do you think the "HOA" is? It isn't an entity or a "they". It is YOU and YOUR neighbors. It is only funded by your dues and managed by the owners. It sounds like a lack of management skills and frought with the blame game skills.

It's time to pull up the old boot straps and make a change. Realize if YOU have a problem with it you can't make it a "THEM" problem. Why pay someone if there's enough people who should pick up after themselves? Time to clean house and get on the ball. Stop living with your heads in the sand and get to the business at hand...

Former HOA President
ThomasC11 (California)
Posts: 210
Posted:
It was a simple question, take it easy. Is it the Association's responsibility to preserve the common area or not?

This has been a problem long before the bankruptcy so don't look to that as an excuse.
GlenL (Ohio)
Posts: 5,491
Posted:
Yes it is but if there are limited funds then something has to be put on the back burner, just because they just NOW filed bankruptcy doesn't mean they had plenty of money before. You don't just wake up one morning and say: "What a beautiful morning, I think I'll file bankruptcy today!"

Studies show that 5 out of 4 people have problems with fractions
ThomasC11 (California)
Posts: 210
Posted:
thank you Glen for answering the question. We lost a major lawsuit with a builder, hence the bankruptcy. We also had to ask homeowners for a $3,000 assessment so we have been down that road.

Before I got involved, I had gone to a Board meeting almost 6 years ago and asked about the increase in trash in the Common Area. Was told to pick it up myself. We had plenty of money then so hard to explain that response.
JohnM48 (Pennsylvania)
Posts: 89
Posted:
Thomas,

Sorry to hear about the bankruptcy and the assessment.

If I may say so, your last visit to the board meeting was 6 years ago? While I agree that the boards response is less than friendly, doing something then would have been more productive than complaining about it now.

Please understand, I'm not trying to be condescending. Our HOA had been horribly mis-managed with a pathetic, ineffectual board for many, many years. Despite that, I allowed my self to stay "fat, dumb and happy" - until recently. I'm actually kicking myself for not having become involved sooner.

For the last several years, I've been vocal about the problems in our HOA, but nothing more. Finally, 2 1/2 months ago, I got onto our board (through our Finance Committee). It took a little work, but I was able to convince the rest of our board of the problems we were facing, and the best approach to solving them. Those who did not agree, have simply resigned.

I'm now president of the association, with an excellent board at my side. The changes we've been able to institute in the last 2 months, and the resulting improvements in our community are surprising to me. I expected the improvement, but not so quickly.

I think the point other posters have been making (and I wholeheartedly agree) is - rather than complain, get involved (even if you have to make a lot of noise to do so).

Good luck.

Association President
ThomasC11 (California)
Posts: 210
Posted:
John, my involvemnent has been extensive (committees, help lead a recall) and still have no luck getting basics taken care of. That is prompted my initial questio about trash being allowed to remain in streets for days and days.

I have also supported multiple people who have gotten on the board and say it is like banging their head against the wall.

So the next step, unfortunately is to seek legal action. And no I do not want to move, I like my view and should not have to.

thanks for the advice, glad you saw some significant changes.
JohnM48 (Pennsylvania)
Posts: 89
Posted:
Sorry Thomas, I missed the "before I got involved" part of your post.

Certainly, the board has an obligation to maintain the common areas, and I agree you shouldn't have to move.

Unfortunately, the bankruptcy is throwing a good-sized wrench into things. If nothing else, there is already too little money to pay for necessities, if the board is forced to defend a lawsuit, there will be even less money.

I'm not saying not to bring legal action, but I would fully explore all other avenues first (you may have already done so), such as a recall vote for the entire board. It takes a concerted effort of the majority of your homeowners but if things are that bad, the homeowners may have had their bellies full of the nonsense.

The last thing you want would be for your association to enter receivership.

Association President
ThomasC11 (California)
Posts: 210
Posted:
Correct, the Board is hanging their hat on the bankruptcy status. I am trying to recruit a group of 5% (47) of the Homeowners to form a group to show force in numbers. Thing simply don't get done! One perpetual Board member tosses his cig butts in the street in front of clubhouse and nobody does anything about it.

That is the culture I am combatting.
JohnM48 (Pennsylvania)
Posts: 89
Posted:
I understand Thomas - sounds like the culture we used to have here.

Good Luck!

Association President
ThomasC11 (California)
Posts: 210
Posted:
Any insight into how you were able to turn things around would be helpful. We are in a great part of Laguna and we should be more attractive to new homebuyers. For the reasons stated we are not. I am still not giving up.

thanks
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Thomas,

Build your small group and begin cleaning up your property to boost your morale and, I guarantee, instill a bit positivity in a bad financial situation. You'll get nothing done going to a meeting and demanding others do this. You seem to have a lot of energy. I change batteries, light bulbs and spread mulch every year and get no love for it.
JohnM48 (Pennsylvania)
Posts: 89
Posted:
Thomas,

3 months ago, we had a paid property manager whose husband was the VP and of the remaining 8 board members, 4 were her closest friends, 1 ineffectual president who merely recited what the board told him to, and 3 members who wanted change, 2 of which were followers only. Luckily, 2 of the board members (one of the PM's friends and one of the followers) had resigned pending replacements.

I had been working on one of the board members, trying to convince her of the mismanagement of association at the hands of the PM and likely several of the board members. Finally, the shocking amount of our delinquencies came to light as did the realization that we were quickly headed towards bankruptcy.

I have owned & operated a tax accounting / business consulting firm for many years and, as such, was asked to join the Finance Committee along with another guy with significant finance experience (who is now my VP). At our first meeting, we introduced ourselves and gave some professional background - we were voted on to replace those resigning (who immediately left). As soon as we were voted on the board, the treasurer stormed out of the meeting, having resigned. This left us down one board member, but the ranks were thinning on the side of the PM.

Because of my accounting and auditing background, I took charge of our audit to determine just how bad the finances really were. I was able to show how had we not eliminated the PM position and moved to true self-management, we would be declaring bankruptcy by the end of this year. Even her closest friends could not dispute the numbers and analysis I presented - we voted to remove the PM. That move alone bought us quite a bit of time before bankruptcy would be necessary.

Even though the PM's friends voted to remove her, they did so very reluctantly and each of them resigned within a week. While that left us seriously short-handed, the odds were in our favor now. Our annual elections were coming up and, for the first time in 27 years, we held actual, legitimate elections, allowing nominations from the floor. Our docs provide for this of course, but nonetheless it was never done before. We got several excellent new board members, and went a long way to restoring the membership's faith in its board.

Our ineffectual president saw that he was ill-qualified to lead the association in difficult, uncertain times - he stepped down as president, but remained on the board. I was elected president.

With the PM and the dead-wood board members gone, we were free to make the necessary changes. Since we opened communications up with the membership for the first time in nearly 30 years, we had gained back a lot of their trust. We then restructured how we do business, saving thousands in every day operations. We were able to renegotiate contracts, saving tens of thousands. We began aggressive collection of our delinquencies and have already returned about $10,000 to the reserve funds (which were nearly depleted, having been used for operating expenses).

2 1/2 months later, and we are no longer in danger of bankruptcy and our community is generally happier and friendlier that it has been in years. We still have a long way to go, but we've made great progress in a short period of time. I'm a lucky guy, I have a nearly ideal board at my side who share my vision for a better community and are willing to work for it.

Association President
ThomasC11 (California)
Posts: 210
Posted:
Hi John, I apologize for not replying to your lengthy response. The post slipped away from me, but was able to go back and locate.

You seem to have come in there and cleaned things up. I plan on running for the BOD in the summer, realizing that if I want it done, need to do it myself. Working through others is certainly less productive.

Thanks again for the reference, best of luck.
ThomasC11 (California)
Posts: 210
Posted:
Thanks Kelly, we are getting like minded people together and will change things around. Tired of people telling me I should just move, should be the other way around.

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