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GordonS (Florida)
Posts: 10
Posted:
Our HOA recently voted in a new board in February 2011.
The new President, who went door to door soliciting himself and issuing handouts with incorrect information is making illegal changes to our community.
Without bringing the subjects up in open meetings, he took it upon himself, and the other 2 new board members, to change management companys, attorneys, accountants and banks. When confronted on why the changes and why they were not discussed in an open meeting with minutes to reflect, he insisted he simply didn't have to.
Since he assumed his role, he has done nothing legally.
Funds were used, without notice, to have a July 4th barbeque at our clubhouse. He stated the funds used for the event were obtained by using the fees collected when a new homeowner is screened.
As far as the property management company...he fired the company who has been here for the past 13 years. They were on site 5 days a week, with their office being only 3 miles from our community. The company he changed to will only be on site twice a week, and their office being 19 miles away.
Our development consists of 255 attached family townhomes in clusters of 5.
The management company he terminated our contract with still manages 6 subdivisions within our community. Now we feel we have less support and staff on our development to assure everything is running smoothly.
Our President skirted around the fact on why he changed attorneys or accountants. Again, the other subdivisions have not, nor have any plans of making such a change.
On the issue of banks, when confronted why the change of banks at our last meeting, our President told us it was due to their fees. I personally contacted the bank and received a letter stating that no fees were ever charged to our association. We plan to show him this letter at our August meeting.
Despite all the changes, we have not seen a reduction in our maintenance. In fact, our President wants to construct a shed near our clubhouse to store a golf cart for the new maintenance compsny. A meeting is scheduled next week and many homeowners plan to attend this meeting (architectural committee meeting) to protest such a structure, as we feel it will be an eye sore to our community and cost the association thousands of dollars from our reserve fund.
Lastly, our new President has been rude to homeowners and verbally threatening to them. He has done the same to vendors and to his colleagues on our Master Association where he was elected 2nd Vice president this past March.
On a vote of 11-4 he was stripped of his title of 2nd Vice President at the last Master Homeowners meeting because of his behavior.
By the way, I was a recipient of one of his, now famous, threatening calls. I was at work at the time I received his call and could not calm him down. He even said to me " I bet you are taping this call". I assured him I was not, although I wish I was able to. After work, I filed a report to the local police department. Although I was not threatened physically, I wanted it on police record in the event either myself, my family or property was injured.
On last note, we recently found that our new President has a $20k lien on his home in our community due to his having unpaid IRS funds.
I represent a group of homeowners and asking...were his decisions to make all these changes, not in an open meeting with minutes to reflect, legal?
Thank you for your time.
Gordon S.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Gordon,

Welcome to the Forum and I'm sorry to hear about your issues.

Should the decisions you talk about have been made by the Board in an open meeting? - Yes

Were those decisions illegal? - I can say that based on your posting, it appears that they were in violation of FL HOA laws.

Were the decisions criminal? - No. The State considers these type of violations a civil matter and not criminal. Therefore, there is no government agency you can turn to for help (at least none that I know of).

What can you do? - you have the following options:

1. Go through the process of recalling the Board
2. Wait for the next election and solicit proxies yourself and do not re-elect these individuals.
3. Consult an attorney and seek a legal injunction (expensive for you and your neighbors and may take a very long time).
4. Do nothing.

Personally, I would go for option 1 or 2.

Perhaps other members of the forum will have more options.

Questions:

Are you still under control of the developer or has the Association been turned over to the membership?

Are you considered a condominium community?

Tim

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Tim always gives excellent advice. ! I am glad you did file the police report as that is EXACTLY what you should have done and so should others. Has there not been a recall meeting to recall him out of office? Wasn't clear in your post if that had happened yet.

The HOA should have an insurance policy. That policy has protection given to Board members to NOT be sued as individuals for their actions as board members. Basically, if you sue the HOA for the president's actions, you can't go after their personal assets. However, it doesn't mean they can run rough-shot either. You may want to call the insurance company and find out about this policy. It will help you understand some of the legal/illegal actions.

It's best to be pro-active than reactive. Find someone willing to take on the job as President and get them elected. Hopefully, with enough help with the other board members, that new president can make the changes to get things back.

Former HOA President
SusanW1 (Michigan)
Posts: 5,202
Posted:
You said "he and two other board members" made all those changes. How many on the board? Perhaps three is a majority to pass motions. But still, those moves/changes should have been stated in the minutes as a motion and vote.

Your bylaws may give the board power to make all this changes you listed.
EbonyJ (Tennessee)
Posts: 62
Posted:
I agree with the others, I would get enough members involved to recall the board before the situation gets worse
PetunkaM (Florida)
Posts: 1,009
Posted:
Since he assumed his role, he has done nothing legally. .. I represent a group of homeowners and asking...were his decisions to make all these changes, not in an open meeting with minutes to reflect, legal? [Gordon]

Gordon,

These are pretty strong words. Were none of the changes ever discussed at any BOD meetings? I would try to zoom on a specific issue or two. Challenging or complaining about everything gets pretty old very quickly and you may soon lose the support you need to make the necessary changes. I will try to be open-minded in my reply.

1. It is my opinion, the President or Treasurer, can change banks, accountants or an attorney without the need for a board meeting.

2. Using operating funds for the July 4th picnic may be perfectly acceptable, providing the board has included and an ā€˜entertainment fund’ in your budget or amended budget.

3. Changing a management company requires a contract which should be reviewed and approved by the BOD as described in your By-laws. Yes, this should/must be done at the BOD meeting. Was it not? You also object to the new company being on site only 2 days a week. Well, is not that enough? Is this arrangement less expensive? Have you read the new contract and compared it with the old one? Perhaps there are some benefits you may not be aware of. Possible?

4. Building a shed on common property may be considered an’ improvement’. If true, the money cannot be taken from deferred maintenance or replacement reserves, unless you have an ā€˜improvement fund’. If there is no ā€˜improvement fund’ it is quite possible the board may have to obtain an approval by all owners to build that structure and the funding would require a special assessment used only for that purpose. You need to review your docs. Covenants usually address improvements. You may also ask if such shed can be insured. I would. Not all sheds need to be ugly.

Comingling money is not a good idea although it does happen. Many HOAs simply do not understand all restrictions they have to deal with when it comes to fiscal management. Your treasurer should be able to answer your financial concerns, hopefully.

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