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KaanchoG (Utah)
Posts: 6
Posted:
We currently have a HOA where:

1) Fee is too high but facilities are too little
2) The HOA board does not show us any of the receipt at the end of the year. They just give us a plain statement and they dont want anyone to audit.
3) The HOA president has been sitting in that position for over 5 years. There is no talk of election at all.
4) The laws governing the HOA does not say anything about electing board members.

I want to know if there was a way we can find out about our rights and procedures so that we can remove or hold the HOA board accountable.

The HOA is in Utah county, Utah.

Thank you
TimB4 (Tennessee)
Posts: 21,059
Posted:
Kaancho,

Welcome to the forum. In order to provide you with a better answer, I need to know the following:

1) Is the Association still under control of the developer/builder?

Typically, the governing documents are written so the developer maintains a voting majority until x lots/units are sold. If this is the case, there might not be many options available to you at the moment.

2) Is your Association incorporated?

If the Association is incorporated (most are), then the corporate laws of the State where the Association was incorporated would also apply (in addition to any HOA laws). If you don't know, you can check to see if the Association is incorporated in Utah by using this link to the Utah Corporation Commission search page:

https://secure.utah.gov/bes/

Tim
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Kaan

Associatins are governed by:

1. Covenants, Conditions and Restrictions (CC&Rs)......are that dictate how the homeowners association operates and what rules the owners must obey. These legal documents might also be called the Master Deed or another name. These documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal, state or local laws.

2. Bylaws.....which might also be part of the CC&R's or a separate document. Usually in the Bylaws is how a Board Of Director's is elected, their terms, voting procedures, recalls, etc.

3. Rules and Regulations.... which are usually clarifications of CC&R's and/or Bylaws but could also be simple things like the hours the pool is open. More on R&R's later.

Usually CC&R's/Bylaws cannot be changed/modified without the majority of owners agreeing. Quite often 75% and in some cases 100% must agree. Say the CC&R's/Bylaws call for a BOD of 3 to 5 members then there must be 3 to 5 members on the BOD unless the majority of the owners vote to override this. How many is a majority? Well this will also be defined in the same documents.

One common area of complaint is that the same people are on the BOD and in control year after year. Well that is entirely possible and well within many CC&R's/Bylaws. Typicaly they will say if there are vacancieas on the BOD then the BOD can appoint owners to fill the vacancies. Why vacanies? Well say there are two open positions (their terms expire) but only one person runs for election. There is still one vacancy. That one person may also have to receive a specific vote majority and if they did not, then there are two vacancies the BOD can fill.

Surprise...surprise..they filled them with those whose terms expired so the BOD consists of the same people.

Rules and Regulations cannot override CC&R's, and/or Bylaws. They can only clarify. They cannot say 7 BOD Members if the CC&R's/Bylaws say 3 to 5 members but they could define if 3, 4, or 5.

Not all CC&R's/Bylaws are alike so one can often get two different answers to the same question they ask, especially on this chat.

Bottom line is if people do not read/learn/understand their CC&R's/Bylaws then those that do could end up in control year after year after year.

Throw da bums out......LOL

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

Me again......LOL

Many CC&R's/Bylaws will say that owners elect the BOD but that the BOD elects its own officers thus he same person might well be President year after year.

Throw da bum's out.....LOL

JonD1
Posts: 2,350
Posted:
Quote:
Posted By KaanchoG on 06/03/2012 12:30 PM
We currently have a HOA where:

1) Fee is too high but facilities are too little
2) The HOA board does not show us any of the receipt at the end of the year. They just give us a plain statement and they dont want anyone to audit.
3) The HOA president has been sitting in that position for over 5 years. There is no talk of election at all.
4) The laws governing the HOA does not say anything about electing board members.

I want to know if there was a way we can find out about our rights and procedures so that we can remove or hold the HOA board accountable.

The HOA is in Utah county, Utah.

Thank you

Kaancho:

Seems there is a little confusion. Do you wish to remove the President ONLY or is it you wish to hold the Board accountable?

I wonder how many units make up your property? How long have you lived there? Are monthly meetings held? Do you or have you attended?

I would wonder how you have determined the fees to be to high? How much are the fees? Do you have details as to the property's finances or is this just an opinion?

What makes you believe the Board should provide each owner with receipts? And the entire Board is against an audit?

As for the President serving 5+ years that in and of itself is not a problem. Is there anyone else willing to step up and serve? Do the other Board members support the President?

How about you? Are you willing to serve? Or is it you just wish to hold others accountable?

Just how many other owners support your views? Any?

Seems to me you have a serious lack of knowledge and information reagrding your property and its operation. As others have suggested your first step would be to read all of the governing documents and state law in order to have some understanding of what is occuring and if in fact the President needs to be removed or the entire Board needs to be replaced.

Sometimes people draw conclusions based on limited knowledge and their opinions of what should be rather than real evidence of misbehavior or abuse of auhtority on the part of the Board.

What type of job does the Board do in managing your property? Acceptable?

If necessary the process to remove the President or change the behavior of the Board without removal can be long, costly and require much effort. Then that might leave you with the need to find others willing to serve who can perform the job.

Good luck

BrianB (California)
Posts: 2,820
Posted:
Quote:
Posted By KaanchoG on 06/03/2012 12:30 PM

I want to know if there was a way we can find out about our rights and procedures so that we can remove or hold the HOA board accountable.

The HOA is in Utah county, Utah.

Thank you

Yes. read the By-laws of your HOA. They should be in your real estate paperwork, closing papers, or given to you by the previous owner, or given to you by someone at or near closing. The by-laws contain the rules on how your HOA does business, including elections, recalls, papertrails, etc.

Then, read your CC&R's (see above). Those contain your rules, regulations, covenants, and rights.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The CC&R's are considered PUBLIC documents and should be on file at your courthouse records department. the by laws may or may not be filed. It depends on the state. if not, then the HOA should have a copy if exists. The article of incorporation are filed at the State level. Should be able to do a web search for the. If they are filed.

The election and recall process should all be in those documents. As someone pointed out the board may be elected from the general membership by the general membership. the actual officer positions is then voted on between that board. The only odd caveat is that the President can NOT do the job of the Secretary. Which the duties of each position is also covered.

Apathy is the number 1 problem of a HOA. So you often get the people in charge because they are the only ones willing to take the free job...There is no "They or them" in a HOA...Only YOU and your neighbors...

Former HOA President
KaanchoG (Utah)
Posts: 6
Posted:
Thank you for your quick reply.

1) Is the Association still under control of the developer/builder?

Typically, the governing documents are written so the developer maintains a voting majority until x lots/units are sold. If this is the case, there might not be many options available to you at the moment.

-> The association is not under control of the developer/builder. The townhomes were built about 15 years ago. I moved into this about 4 years ago.

2) Is your Association incorporated?

If the Association is incorporated (most are), then the corporate laws of the State where the Association was incorporated would also apply (in addition to any HOA laws). If you don't know, you can check to see if the Association is incorporated in Utah by using this link to the Utah Corporation Commission search page:

https://secure.utah.gov/bes/

-> The Association is incorporated. I was able to find the HOA under the website above.

The only board members that I know of are President and Vice President and they were elected over 5 years ago. There is no election or any other meetings except once a year meeting at an odd time (due to which most HOA members cannot attend). The Bylaws(the document that I got at the beginning when I bought the home) dont say anything about electing of the board members at all.

KaanchoG (Utah)
Posts: 6
Posted:
Hi JonC46
thank you for your reply.

Where is it possible to get CC&R? Are we as HOA members entitled to them?

The only HOA paper I got was the one when we moved in. (http://www.scribd.com/doc/95870847/Hoadoc-Redacted). This doesnt say anything about election of board members

HOA DOC - http://www.scribd.com/doc/95870847/Hoadoc-Redacted

KaanchoG (Utah)
Posts: 6
Posted:
Thank you JonD1 for your reply.

Do you wish to remove the President ONLY or is it you wish to hold the Board accountable?
-> We want to remove President since they are not doing a good job at the moment. But going forward we want to hold the board accountable.

I wonder how many units make up your property? How long have you lived there? Are monthly meetings held? Do you or have you attended?
-> There are 86 units on the property.
I have lived here for 4 years.
There are no monthly meetings (just one meeting at an odd time during weekday per year). The meeting invites are sent out 2 months ahead and are held at 5:15 in evening when most people are at office.
I attended the meeting this year and got the impression that most people are not happy about the current board.

I would wonder how you have determined the fees to be to high? How much are the fees? Do you have details as to the property's finances or is this just an opinion?
-> The fees are currently $100/per month (For utah county this is high when I have spoken to friends relatives who live in townhomes). It covers basic garbage and limited cable. At the end of the year we get a breakdown list where there are lots of suspicious expense (there is a misc expense).
There is no audit proof to verify this.

As for the President serving 5+ years that in and of itself is not a problem. Is there anyone else willing to step up and serve? Do the other Board members support the President?
->We have more people willing to replace the current president. But there is no election that has ever been held. The bylaws dont say anything about this also.

Just how many other owners support your views? Any?
-> Most people who have attended the meeting had negative experience with the board. There are over 20+ people whom we have spoken with who want to remove the President and hold the future board accountable.

What type of job does the Board do in managing your property? Acceptable?
-> The board does a poor job of coordinating of removing snow, cleaning leaves especially this year.

Please let me know if that helps.

Thank you
KaanchoG (Utah)
Posts: 6
Posted:
Melissa and Brian
Thank you for your reply.

The only paper I have seen regarding the laws governing the HOA is here: http://www.scribd.com/doc/95870847/Hoadoc-Redacted

This doesnt say anything about election of board members or removing them.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Kaa

The link leads to a redacted (edit/updated) copy of the CC&R's. The CC&R's do not make any mention of voting, BOD, etc. but throughout them, there is referenece to Bylaws plus Rules and Regulations, so I assume they exist somewhere. Your job is to find them, read them, understand them, then take what you consider appropiate action.

Hope this helps.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Kaancho,

The doc that you termed your Bylaws doesn't sound like Bylaws. Bylaws contain what others have written: how many directors should be on your board; elections of these directors; how long their terms are; how homeowners ("Members") vote; how often board meetings must be held; how to recall a Board.

Generally, there's an odd number of directors on the Board specified--probably three in your case. Usually, election for directors are held annually. Often directors' terms are for 2 years, but sometimes 3.

These usually are not in CC&Rs so as others have written, you must find your HOA's Bylaws. If you have a prop. mgr., that's a good place to start. If your HOA has an attorney, that's another possibility. If your CC&Rs refer to Bylaws, they're somewhere! In our CC&Rs, Bylaws are defined in a "definition of terms" section at the beginning of our CC&Rs.

I do see that your dues also would pay for snow removal and landscaping of some kind along with trash removal & basic cable. There also may be some kind of insurance. In addition, there may be a reserve account, in which X amount of $ is set aside each month.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Kaancho,

As a corporation(I expect you are a nonprofit Association), the Utah Revised Nonprofit Corporation Act. would need to be complied with.

Per this act, 16-6a-803, there should be a minimum of three directors. Typically these three directors would fill the offices of President, VP and Treasurer/Secretary.

For the members to recall a director, you would need to follow the procedures in your governing documents and Utah 16-6a-808.

This is typically done by a group of members getting together and gathering enough signatures on a petition to call for a special meeting of the membership for the purpose of recalling abc directors and, if successful, to vote for replacements.

This will require a lot of leg work as well as volunteers willing to serve as a Director if the recall is successful.

Don't forget to check the Condominium Ownership Act or the Community Association Act (which ever is applicable) for any additional requirements.

hope this helps,

Tim

KaanchoG (Utah)
Posts: 6
Posted:
Thank you All for the helpful information.

I think I have sufficient information because of all the help I got here. I am very grateful for the help.

Thank you
TimB4 (Tennessee)
Posts: 21,059
Posted:
Kaancho,

In reading the Utah Condominium Act and the
TimB4 (Tennessee)
Posts: 21,059
Posted:
oops, let me try again.

Kaancho,

In reading the Utah Condominium Act and the Community Association Act, both laws require that Bylaws exist and be filed with the County. Therefore, if your Association isn't providing you a copy, you should be able to get one from your County Records department.

Tim
MrB1 (Utah)
Posts: 1
Posted:
Start with the Utah Condo Act to understand your rights. Your CC&R's or Bylaws will tell you how often elections are to be held.
As for financial records, you can request examine those records in writing, the committee must allow your access no later than 2 weeks during reasonable weekday hours from the time they receive your request.
Good luck.

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