HOA BOD overspending the homeowner's money

Hello, we had a Board of Directors who at one point assessed a special assessment to re-roof our condos. We paid a certain amount for one year. One of the Directors got a contract because she worked for a roofing company and I assume it worked into her favor. By the time the job was done, the insurance was able to get us the refund for hail damage in the amount of $XXX.XXX. Nothing was told to the Homeowners, and all that money was budgeted to spend for upcoming expenses that year (without Homeowners knowing that. Only HOA BOD knew what they were doing. Most of communication was done between monthly meetings and a regular Homeowner did not have access to the phone calls, e-mails, etc.). We noticed that we had luxury extras in our landscape and expensive entrance signs but the BOD refused to give the homeowners access to the financial records (we requested). Next thing you know those who wanted to know the truth about the money, are being "persecuted" for violations with very harsh letters from attorneys...
According to the by-laws HOA BOD needed to credit the money that was reimbursed from special assessment, back to Homeowners. It was not done. HOA BOD President was absolutely rude, uncontrollable and "kept moving forward". Later on we found out that her name was not even on a title. Her husband owned a unit, not her. He owned a unit but they did not live there. Their daughter and her family occupied that unit. Our by-laws clearly state that a Director must be a unit owner. She resigned. With fight, spit and sweat, but she resigned. But what do we do with the money that was overspent? Can Homeowners or a new HOA BOD do anything at this point?

Thank you.

Thank you, it helps. Sounds like a very expensive lesson to the Homeowners

As I recall the money was spent with unanimous board approval to repair decks that were failing and some poorly constructed when originally built; to remove 20 year old shrubs and trees that were dead or dying, to replace a a massive wood privacy fence around the pool that was rotten and termite infested and fostered the swimming and vandalism of young children from surrounding apartment housing...with a durable and beautiful metal fence system that virtually stopped the vandalism, trespassing and dangers of young children dying; and installed three little park areas for BBQing with park grills and concrete picnic tables since the insurer no longer allowed individual owners to BBQ on their patios or at their condos; replace chimney caps that had failed again and again and caused perpetual expenses for the HOA to repair interior walls and ceilings; to replace windows in individual units where termites and years of water damage had caused serious rot and mold problems;and install formal entrance markers to reflect the name of the community and display the fact that was/is a private condominium community since most people in the area thought it was "just another Section 8 apartment housing complex". Had the money not been spent on these improvements and the decline continued, individual property owner's property values would have plummeted to half their value. After the improvements, property values increased despite the general market decline. Besides, what good would have it been to return the money then turn around and institute special assessments in the future? I think that board did a great job, as do many other owners in the community. Does all that sound like the money was "squandered"? I think not.

All,

This thread is a perfect example of how a persons perception can determine if a boards actions were based on a good decision or a bad decision.

The perception of a member not involved in the decision making sees it as a bad decision because the money from insurance could have offset the special assessment.

The perception of a Director involved in the decision sees it as a good decision because the work needed done and the insurance money was available, because the special assessment paid for the roof repairs.

From my perspective, I see an Association who didn't properly plan to repair the fence, decks, etc. (as a reserve study and properly funded reserves based on the study should have been able to fund these items). Additionally, it appears that the Board needed to better explain the need for the expenditures to the membership (perhaps owning up to the poor planning). Had they better explained the issue, the perception of wrong doing for having a special assessment might have been minimized.

Tim

This "I" didn't put anything on your property. The unanimous vote of a seven member Board of Directors and an Attorney put a lien on your property...rightfully so.

That board member may have more support than you know. I know lots of owners happy with the community improvements. Besides several people (other owners) told me you are not even an owner, just the wife of the owner...is that true?

Kelly, you've been helpful. Very helpful. Bama can pour all kinds of dirt behind the backs only, it will be smiles and courtesy in person. He/she (I bet I figured out by now who she is) never showed up at a single monthly meeting for over, how long, Bama? Yet she has a nerve to get on my thread and pour more dirt... How despicable!