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DianaE (Colorado)
Posts: 40
Posted:
Our BOD of 3 has decided to make all the decisions regarding contracts for our HOA of 34 members. This does not seem right to me, but now there is no voting on contracts at annual meetings. It seems the by-laws say the BOD can do anything they want. Is this the way it normally is done in HOAs? Since most of the members dont show up, it is always the same BOD anyway. Just wondering if this is the way it should be........
RogerB (Colorado)
Posts: 5,067
Posted:
DianaE, yes this is the way it is normally done. It is the responsibility of the BOD to make decisions on contracts and all other business matters.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Diana

Typically the BOD is pretty free to do as they wish. Sometimes a BOD might be limited by the docs like can raise dues no more then 20% without a vote.

Read your docs.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
I know our documents give the Board the responsible to award contracts. With our older building and the repairs that are constantly needed it would be a nightmare to have a member vote on every contract. Especially for me as Secretary an having each unit assigned a percentage of vote per Nebraska law.
BradP (Kansas)
Posts: 2,640
Posted:
Diana:

depending on your state statutues any contract should be discussed in an open meeting. Our state regs require us to give a reasonable opportunity for members to speak on each item, however, the board still makes the decision. That is why it is important to have honest board members
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By BradP on 04/05/2012 6:58 AM
Diana:

depending on your state statutues any contract should be discussed in an open meeting. Our state regs require us to give a reasonable opportunity for members to speak on each item, however, the board still makes the decision. That is why it is important to have honest board members

Since our Board meetings are open, (Except when we (rarely) need to go into executive session, are in compliance if it were in our state statues. However, I don't remember reading anything like that in our state statues.

What I would have a problem with is a member vote on every contract.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By BradP on 04/05/2012 6:58 AM
Diana:

depending on your state statutues any contract should be discussed in an open meeting. Our state regs require us to give a reasonable opportunity for members to speak on each item, however, the board still makes the decision. That is why it is important to have honest board members

Brad

I believe this is overkill. An example. The toilet in the clubhouse overflows the morning of the day that you have rented out the clubhouse. We need it fixed now...now. $hit is all over the floor.

Would this agreement/contract with a plumber to correct such be delayed until members have an opportunity to speak on it?

Let us (nor the law) go overboard.

I can hear some now saying of course get it fixed...but...but...they hired the brother of someone and he charged more then my plumber would charge.......LOL

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
I believer the rule for discussing contracts in an open meeting doesn't mean we have to have a members meeting, just that members are welcome to sit in on the Board Meeting when contracts are discussed.
A toilet overflowing in my opinion would be considered an emergency.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Hi Dian, Here in CA, by state statute and our HOA's bylaws, the Board votes to approve contracts. Discussions about contracts in formation may legally be done in executive session, but we discuss most of ours in the regular or open meeting.

In the past 6 months, we've (the Board) approved three contracts in the low to mid-six figures that'll be expensed from settlement funds from our successful construction defect lawsuit. These each involved interviewing 3-4 contractors and we did all of that in executive session and approved the contracts at open meetings.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By DianaE on 04/04/2012 11:55 AM
Our BOD of 3 has decided to make all the decisions regarding contracts for our HOA of 34 members. This does not seem right to me, but now there is no voting on contracts at annual meetings. It seems the by-laws say the BOD can do anything they want. Is this the way it normally is done in HOAs? Since most of the members dont show up, it is always the same BOD anyway. Just wondering if this is the way it should be........

The powers/authority of the Board should be contained within your governing documents (CC&Rs, Articles of Incorporation, Bylaws) and any applicable laws (COA/HOA and corporate).

Typically, when an Association is established, they are provided with broad powers. State Corporation laws, applicable if the Association is incorporated (most are), designate that those powers be applied by the Board. These powers typically allow for awarding contracts, buying and selling property, borrowing money, etc. (basically anything you can do an incorporated Association has the power to do).

This is why it's important to become active within your Association (serving on the board, committees, volunteering for xyz tasks or just attend meetings) so you are as much part of the process as possible and able to influence the decisions made. If you are elected or appointed to the board, then you will be part of the vote in those decisions.

Realistically, with notice requirements and the cost of printing and postage, to have the entire membership vote on what company should remove a dead tree becomes costly and delays the work being accomplished. For us, this could delay awarding a contract by 30-45 days. This is why I believe that most of the day to day stuff should be at the board level and not the general membership level.

Usually, if things are properly maintained and assessments are kept low, membership apathy can set in and those who are on the board will be voted back in for as long as they are willing to serve. I'm not saying that this is right, I'm just saying that this is typically the reality of most Associations. I would suggest that you attend as many board meetings as you are able and at the next election, toss your hat into the ring. If you are elected to the board, you could then propose changes to require some votes at the membership level.

Hope this helps,

Tim
DianaE (Colorado)
Posts: 40
Posted:
Yes, what you said does helps. Good to be reminded that common sense should decide when it is necessary to call a membership meeting. Thanks for all the input.
BradP (Kansas)
Posts: 2,640
Posted:
Quote:
Posted By JohnC46 on 04/05/2012 5:05 PM
Posted By BradP on 04/05/2012 6:58 AM
Diana:

depending on your state statutues any contract should be discussed in an open meeting. Our state regs require us to give a reasonable opportunity for members to speak on each item, however, the board still makes the decision. That is why it is important to have honest board members


Brad

I believe this is overkill. An example. The toilet in the clubhouse overflows the morning of the day that you have rented out the clubhouse. We need it fixed now...now. $hit is all over the floor.

Would this agreement/contract with a plumber to correct such be delayed until members have an opportunity to speak on it?

Let us (nor the law) go overboard.

I can hear some now saying of course get it fixed...but...but...they hired the brother of someone and he charged more then my plumber would charge.......LOL


you can believe State of Kansas statutes are overkill, but they are what they are. Every meeting we have and every agenda item we have to give members an opportunity to speak about it. Your example of an overflowing toilet would never make a meeting because that would fall under emergency repairs.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
The same people who argue that every single maintenance item needs a full body debate and vote are the same ones who are the first to complain that the plumber wasn't called when the toilet backed up, ruining someone's usage of the facility. An HOA will grind to a halt under such micro-management.

This is a no-win situation. The real issue in these types of reports is that a home owner distrusts the board and its actions. However, outside of one-off maintenance repairs - which really aren't contracts but service calls fulfilled through a one-time invoice - contract discussions and votes should be public.

Trust is the issue here.

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