JcC (Indiana)
Posts: 5
Posts: 5
Posted:
Anyone know how a Property Management company can take over a HOA with no active BOD to accept/execute new management contract?
-JC
-JC
JC
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New Management for HOA with no BOD?
Started by JcC • 13 replies • 1954 views
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TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
JC,
Is there no active BOD or no active BOD that you know of?
Is the Association under control of the Declarant (developer) or the membership?
Did someone petition the courts for receivership and the court appoint the management company?
Tim
Is there no active BOD or no active BOD that you know of?
Is the Association under control of the Declarant (developer) or the membership?
Did someone petition the courts for receivership and the court appoint the management company?
Tim
JeanneK3 (Maryland)
Posts: 562
Posts: 562
Posted:
JcC:
Tim is right. You need to have the court appoint a receiver for your association and then the receiver can hire a management company. Receivership is going to cost you a fortune however so you should try to get people to run for the board first.
Jeanne
Tim is right. You need to have the court appoint a receiver for your association and then the receiver can hire a management company. Receivership is going to cost you a fortune however so you should try to get people to run for the board first.
Jeanne
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
JcC, stated "no active BOD". Another possibility could be that there is an "inactive BOD" who signed a management agreement which allows the Managing Agent to perform all of the duties for the Association. Meanwhile the BOD would still be responsible for all actions and monitoring of the Manager, i.e.,active in the background unbeknownst to the poster. This might work better than a Court appointed Receivership.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Quote:
Posted By JeanneK3 on 06/18/2012 7:15 AM
JcC:
Tim is right. You need to have the court appoint a receiver
JcC:
Tim is right. You need to have the court appoint a receiver
I was asking questions not making a suggestion.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Our CC&r's had a caveat that if we were to disband our HOA it had to be turned over to a management company. It isn't in all HOa's but you may find it in yours. It really depends on the setup and design of the property. The design of ours did not lend itself to NOT be managed somehow as the property lines intermingled too much.
Former HOA President
JcC (Indiana)
Posts: 5
Posts: 5
Posted:
There is not a BOD at this time ... i am certain of that.
Who has to petition the courts? Can the new property management or EXISTING management petition the courts to accept the new management contract?
In a nut-shell, there is no BOD ... noone wants to step and nominate themselves to be on the BOD. Existing management contract is due to expire in November of 2012. There is a new management company willing to take on the HOA management, but there is not a BOD to execute the new management contract! Suggestions?
-JC
Who has to petition the courts? Can the new property management or EXISTING management petition the courts to accept the new management contract?
In a nut-shell, there is no BOD ... noone wants to step and nominate themselves to be on the BOD. Existing management contract is due to expire in November of 2012. There is a new management company willing to take on the HOA management, but there is not a BOD to execute the new management contract! Suggestions?
-JC
JC
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
JC,
Anyone may petition the courts for receivership. You will likely not make any friends if you do this as a court appointed receiver works for the courts and not the membership. The membership, via court order, will pay the receivers salary - so expect a hefty increase in assessments.
Why don't you volunteer to serve on the board?
Whomever was elected to the Board last would technically still be on the board.
If you are incorporated, check your States corporation commission website, as many sites will provide access to documents that identify who the Officers/Directors are.
You should also check the existing contract as it might have an automatic renewal clause unless notice if given x days in advance.
Tim
Anyone may petition the courts for receivership. You will likely not make any friends if you do this as a court appointed receiver works for the courts and not the membership. The membership, via court order, will pay the receivers salary - so expect a hefty increase in assessments.
Why don't you volunteer to serve on the board?
Whomever was elected to the Board last would technically still be on the board.
If you are incorporated, check your States corporation commission website, as many sites will provide access to documents that identify who the Officers/Directors are.
You should also check the existing contract as it might have an automatic renewal clause unless notice if given x days in advance.
Tim
JcC (Indiana)
Posts: 5
Posts: 5
Posted:
Quote:
Posted By TimB4 on 06/21/2012 6:02 PM
JC,
Why don't you volunteer to serve on the board?
Whomever was elected to the Board last would technically still be on the board.
If you are incorporated, check your States corporation commission website, as many sites will provide access to documents that identify who the Officers/Directors are.
You should also check the existing contract as it might have an automatic renewal clause unless notice if given x days in advance.
Tim
JC,
Why don't you volunteer to serve on the board?
Whomever was elected to the Board last would technically still be on the board.
If you are incorporated, check your States corporation commission website, as many sites will provide access to documents that identify who the Officers/Directors are.
You should also check the existing contract as it might have an automatic renewal clause unless notice if given x days in advance.
Tim
I cannot be on the BOD because i do not own a home in the community. I work for the current management company and am starting my own HOA property management and wish to succeed when the current contract is up in November. And to be clear, there is not a BOD .... there hasn't been for a few years. No one wants to step up and serve. The contracts with the current management stipulates that in the event here is no BOD, it defaults to the Property Management to act as the BOD for decisions on behalf of the community. There is nothing in Indiana state law for this situation and there is nothing outlined in the Bylaws either ....
JC
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
JC,
If your not a member of the Association, I would expect that you have zero say in how it is ran.
I seriously doubt the current property management company who, per your post, will have the authority of the Board, will award the contract to someone other than themselves.
Am I correct in expecting that a member informed you of all of this?
If I am, I would suggest you talk them into taking action and be on the board.
If your not a member of the Association, I would expect that you have zero say in how it is ran.
I seriously doubt the current property management company who, per your post, will have the authority of the Board, will award the contract to someone other than themselves.
Am I correct in expecting that a member informed you of all of this?
If I am, I would suggest you talk them into taking action and be on the board.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
JC,
When I offered advice about petitioning the court for receivership, I was of the expectation that you were a member of the Association. Now that I know you are not a member I need to amend my earlier statement.
Anyone who is a member of the Association may petition the court for receivership.
Tim
When I offered advice about petitioning the court for receivership, I was of the expectation that you were a member of the Association. Now that I know you are not a member I need to amend my earlier statement.
Anyone who is a member of the Association may petition the court for receivership.
Tim
JcC (Indiana)
Posts: 5
Posts: 5
Posted:
Quote:
Posted By TimB4 on 06/21/2012 7:03 PM
JC,
If your not a member of the Association, I would expect that you have zero say in how it is ran.
I seriously doubt the current property management company who, per your post, will have the authority of the Board, will award the contract to someone other than themselves.
Am I correct in expecting that a member informed you of all of this?
If I am, I would suggest you talk them into taking action and be on the board.
JC,
If your not a member of the Association, I would expect that you have zero say in how it is ran.
I seriously doubt the current property management company who, per your post, will have the authority of the Board, will award the contract to someone other than themselves.
Am I correct in expecting that a member informed you of all of this?
If I am, I would suggest you talk them into taking action and be on the board.
No, a member did not come to me with this. The last BOD member left the community (moved) nearly 3 years ago. There has not been a BOD since. The current management contract is legally binding and the Property Management IS acting BOD at this time, per Indiana law ... Come November 2012, the contract ends. They will then have no management to pay their bills and oversee vendors, collect HOA dues, and enforce convenant violations ...
How does a new management company take over in this situation?
JC
JcC (Indiana)
Posts: 5
Posts: 5
Posted:
Quote:
Posted By TimB4 on 06/21/2012 7:09 PM
JC,
When I offered advice about petitioning the court for receivership, I was of the expectation that you were a member of the Association. Now that I know you are not a member I need to amend my earlier statement.
Anyone who is a member of the Association may petition the court for receivership.
Tim
JC,
When I offered advice about petitioning the court for receivership, I was of the expectation that you were a member of the Association. Now that I know you are not a member I need to amend my earlier statement.
Anyone who is a member of the Association may petition the court for receivership.
Tim
I do not think we are on the same page with this .... but thank you for your insight anyways!
-JC
JC
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
How does a new management company take over in this situation?
They probably do not.
As you specified, the current management company is legally acting as, and exercising the powers of the Board of Directors.
As the Board, they likely can legally renew the contract.
The only way to have a new management company take over would be for the existing company, who is acting as the Board, award it to a different company or get the membership active in being on the Board.
They probably do not.
As you specified, the current management company is legally acting as, and exercising the powers of the Board of Directors.
As the Board, they likely can legally renew the contract.
The only way to have a new management company take over would be for the existing company, who is acting as the Board, award it to a different company or get the membership active in being on the Board.
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