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MarieL (Illinois)
Posts: 82
Posted:
Our BOD has 9 members, 3 are chronic delinquents and remain 3 and 4 months behind in payments. My question is should these people be allowed to remain on the board and make financial decisions on behalf the HOA, when they are incaple of managing their personla finances? The assessment is $100.00 a month, not big money..
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Marie:

Yes … unless otherwise stated in the governing documents or state statutes.

Here is a link for your State statutes:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3273&ChapterID=62

LOL … guess the question is if they cannot manage their personal finances then why do the Members elect them to oversee the HOA finances? It is your association and the member’s choice on who is serving on the BOD.

JanetB2 (Colorado)
Posts: 4,219
Posted:
Also, if your association is registered as a Not For Profit these are the statutes which may apply:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2280&ChapterID=65
MarieL (Illinois)
Posts: 82
Posted:
Unfortunately, like many HOA's, the HO's here are apathetic and don't care who is elected to the board. Out of the 34 HO's our annual meeting was attended by 7 HO's and 7 BOD's. So its like beating a dead horse complaining about anything here. The BOD does as they please, does not comply with by-laws and the few of who are unhappy can't do anything about it.The law is on their side, not the HO's.
Thank you for your response.
MarieL (Illinois)
Posts: 82
Posted:
Unfortunately, like many HOA's, the HO's here are apathetic and don't care who is elected to the board. Out of the 34 HO's our annual meeting was attended by 7 HO's and 7 BOD's. So its like beating a dead horse complaining about anything here. The BOD does as they please, does not comply with by-laws and the few of who are unhappy can't do anything about it.The law is on their side, not the HO's.
Thank you for your response.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Marie:

Apathy is difficult … you just need to keep trying and at some point the toes will get stepped on or pocket book affected … at that point watch apathy fly out the door.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Marie

Some HOA documents do have rules/regulations about deliquent members serving on a BOD. Some say if more the 30 days deliquesnt they can be removed by the BOD.

While not advocating removal, check your docs and maybe politely/privately refer to them to see if you can chide them into catching up.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Hi Marie, I can't help but wonder why, in such a small HOA, the board has nine members????

Are you on the board?
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By CarolR11 on 03/06/2012 4:20 PM
Hi Marie, I can't help but wonder why, in such a small HOA, the board has nine members????

That is a good point Carol … they would probably be best served with only three.

Marie … that might be something for you to pursue and try to get owners tuned to an idea to amend the documents. You have too many chiefs vs. members.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Marie

I agree, 9 out of 34 on a BOD is a bit much. Our Bylaws say not less then 3 nor more then 7 and we are 120 standalone homes.

Check your documents.

SimoneT (Florida)
Posts: 116
Posted:
Quote:
Posted By JohnC46 on 03/06/2012 6:03 PM
Marie

I agree, 9 out of 34 on a BOD is a bit much. Our Bylaws say not less then 3 nor more then 7 and we are 120 standalone homes.

Check your documents.


LOL, we are 450 and have 3 to 7. It used to be up to 11. The By-Laws were changed.
DavidS36 (Nevada)
Posts: 20
Posted:
Check your CC&R and by-laws. I likely states that “only members in good standing” may serve on the board. This term applies to past due fees and monthly dues. If this is the case, then demand in writing to the Board that all board member be current on dues or resign from the board.

I agree with previous posts, too, in that there seems to be a large board for such a small community.
MarieL (Illinois)
Posts: 82
Posted:
Thank you David.
I checked our CC&R's and they say the Association has the right to suspend the voting rights of homeowners who are delinquent and suspend use of recreational facilities,until they are paid to date.,We don't have recreational facilities, only a park like common area and this is not applicable to us. Does this mean the delinquent board members should be removed from the board until paid to date, or just not allowed to vote until the assessments are paod to date?

I know our board is much too large for 34 units. How many do you suggest we should have. We have 4 officers and 5 directors now.

Thank you for your sound advice.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Marie, from what you say, it appears that the delinquent directors may only be have their voting rights as members suspended, but not their votes as directors. But do check your bylaws.

It sounds like you have officers who are not directors?

How many directors do your governing documents state that you should have? Usually this would be in your bylaws.

As Janet suggests, 3 would be a good number. Are you on the board?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Marie

Our docs (my summary):

Any director more the 30 days late on dues, assements, fines (any money owed the HOA), maybe removed by the majority of the BOD when a BOD Quorum is present.

Example: 9 BOD members, 5 present (a quorum), 3 can vote to remove the deliquent director.

Or course those are our docs, they might well not be yours but reread yours especially under BOD Numbers Powers Meetings, etc.

Now to carry ours to an extreme. Members of the BOD could find reasons to fine a fellow BODer (the pain in the butt type one) and if he fought it and refused to pay, we could vote him off. Heck we can even do it at a special meeting....which we will call when he is out of town.

More then one way to skin a cat if you know what you are doing....LOL
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By MarieL on 03/18/2012 7:31 AM
I know our board is much too large for 34 units. How many do you suggest we should have. We have 4 officers and 5 directors now.

Hi Marie:

One HOA I am involved is 40 Units and only has three (3) Directors who also serve as the three Officers. I would say potentially for less than 50 units only 3 should be needed.

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