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CynthiaL3 (Florida)
Posts: 20
Posted:
Appropriate Board Communication Regarding Emails

As most these days, our 5 member board communicates by emails. We had been meeting once a month, which is my preference. Now, we are meeting once a quarter. We are 90 modest condo units, at about a 50% rental rate now. Three of the 5 board members live out of town. Other important factors, right now we have roughly $10,000.00 in our working fund, which fluxuates each quarter. With this very limited budget, great care has to be taken to monitor the spending. Our reserves are OK, however, this board President has talked of using these funds for routine projects, which was one of the many red flags that set me on fire. I'm sure most of us know and understand the importance of maintaining our reserve funds.

The President and Vice President, (close friends)send private emails to the MC/PM for requests of spending, on items around the complex. We have a clause on spending under $500.00, which states, this does not need board knowledge or approval, if under the $500.00 amount. This one clause has allowed much spending abuse by these two officers. I tried to change this, by lowering the $500.00 amount to $250.00, it was voted down. However, the MC/PM promised to advise the rest of the board members on this kind of spending, of course, she has not done this.

So, NONE of the other board members gets all of the emails sent back and forth between the President and Vice President and the MC/PM. Which is a breeding ground for abuse, as I described above.

At the end of the month when our financial's are sent to us, I then get to see all this extra spending, and the violations sent out. This leaves me with no voice in many matters, and allows the abuse to continue.

This may be a point most are not concerned with, that's fine, which is the opinion of one board member. Since there have been a number of instances of abuse with our funds in this complex, I want to monitor this situation, by being notified and included in these emails, so I can speak up and stop any further potential abuse of our funds. As I'm describing, this has been denied me.

What I want, and have asked for by emails, by face to face conversations, in our board meetings, is to be included in ALL emails having to do with this complex at all times, as they occur. Getting the reports at the end of the month is fine, but leaves me with little knowledge of the historical facts of how and why certain monies were spent, or in one instance last week, I believe I was able to stop the spending by the board President, for upgrades in her condo, paid for by our condo funds. This would have been an upgrade to insulation at the cost of, I'm guessing maybe, $2,000.00 TO $4,000.00 in her 3 bedroom condo, which is the owners responsibility.

On all the larger projects, we get 3 bids and then vote on a vendor, this is fine. It's all the other day to day occurrences in this complex that I feel is appropriate for all the board members to be kept up to date and in the loop. They tell me "yes" to my face, they will do this, and in practice it's still not being done.

QUESTION: Do other HOA's include ALL board members when emailing information back and forth? Do you consistently email ALL board members throughout the month so everyone stays on top and current, with the information needed to manage a complex, and especially the spending of monies? Or, are some board members satisfied with getting the end of month reports, and voting on vendors for the larger projects?

I have been advised, by a senior in a previous MC, that I had a legal right to ALL information pertaining to my complex, as a board member, and to be included in the weekly emails that go back and forth for notification purposes and decision making purposes. The only reason, this is so important to me right now, as I've stated, is a result of pervasive abuse of funds as well as abuse of power issues done by these two officers. And to impliment some monitoring tactics to discourage this continued abuse. I'm going to pick up my CC&R's and see if I can find anything there that would also help with this.

Cindy Low

"All that is necessary for the triumph of evil is that good men do nothing." (Edmund Burke)
SheliaH (Indiana)
Posts: 6,964
Posted:
Emails between HOA board members seem to be a work in progress and I know some states have enacted some rules - you may need to check what's going on in your state. As to your question on emails between board members, here's how I do it in my HOA (all but one board member has email and I'm trying to persuade everyone to set up a formal policy so we're all doing the same thing the same way)

1. I have a eperate email address that will only be used for Association business. This way, it's easy to copy everyone, and if litigation ever becomes an issue, it's quicker to wade through old messages here as opposed to looking among whatever's in your personal email. In fact, I've heard if there is a lawsuit, a court can order ALL the contents of an email account to be provided to the other side, meaning if you have personal stuff in there, it would be included with the HOA items.

2. If I send or receive an email on association business, everyone gets a copy. For the board member without email, property manager runs off whatever we've sent and gives it to him when we meet.

3. We never make decisions on spending money via email, but address it in an open board meeting. We might discuss the pros and cons of a proposal or working with a contractor via email, but we usually try to attach those to the minutes when the matter comes up during the meeting.

As far as your association is concerned, it appears it's high time to rein in these two - quickly. You may want to have an executive session and have the president and vice president explain themselves. Remind everyone of what your Bylaws and CCRs say about spending, and remind them that in some cases, board members have been held PERSONALLY liable for inappropriate behavior. The spending may be under $500 a pop, but little expenditures can add up, especially if there's an indication the money's being spent inappropriately. Finally, I'd seriously consider removing them from their positions and voting in others.

You should also notify the property manager that she shouldn't be spending ANY money if the expense wasn't previously authorized by the board, and to stop it right now. If she refuses, tell her you may have no choice but to consult legal counsel. Check your contracts to see what she is and isn't authorized to do and remind her thusly (along with the president and vice president).

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RachelV (Georgia)
Posts: 4
Posted:
In our association everyone is copied on board correspondence. This is mainly enacted through the use of a group email address ([email protected]). This way it is VERY easy for a board member to send an email and make sure everyone is copied on it.

Some of our board members use their personal address as the delivery for these emails. I on the other hand use a separate email [email protected] in order to keep all HOA matters separate (I am also the Secretary of the board).

We also will not approve any purchases without a vote of everyone on the board either via meeting or email. Usually email votes are used when the topic was already discussed at the meeting but we did not have all quotes / financial information available.

Finally, we have passed a bylaw in our association that requires all board members to have the means to send and receive emails as a position requirement. We are actually having issues currently with one of our previous board members who wants to run again but does not know how to use a computer. She feels the requirement is unfair but the membership passed the requirement so there is not really anything she can do about it.
LawrenceC1 (Georgia)
Posts: 480
Posted:
In most states, communications between board members, or communications from a homeowner to a board member, which deal with Association business are part of the corporate records that are open for examination. For a discussion of the legal ramifications to email communication please read the article here.

You may be within your rights to demand to see all communications between board members discussing business both past and in the future.
JeanneK3 (Maryland)
Posts: 562
Posted:
In Maryland e-mail decisions are forbidden and e-mail discussions are on the edge. Any homeowner would have a right to demand access to the e-mails so it is a good idea to avoid this.

However, since you have board members who are out of town, an announced teleconference where you have a speakerphone located somewhere where any homeowner can attend and listen to the discussion is legal and could work for you.

I hope this is helpful to you.
Jeanne
TimB4 (Tennessee)
Posts: 21,059
Posted:
Cynthia,

Having a legal right and exercising are different things. You can only exercise that right one of two ways: all parties agree to comply with the law or you go to court.

If your MC requires licensing, you might approach the MC and calmly state that unless they start including all board members on the e-mails the send out or respond to that you will file a complaint with the licensing board and the issue of failing to comply with State laws will be remembered when contract renewal is up.

For the long term, start drumming up support with the membership for others to serve on the board so changes can be made. Then start soliciting proxies from the non-resident owners.

Hope this helps,

Tim
LawrenceC1 (Georgia)
Posts: 480
Posted:
Quote:
Posted By TimB4 on 07/30/2012 1:14 PM
Having a legal right and exercising are different things. You can only exercise that right one of two ways: all parties agree to comply with the law or you go to court.

This is the best that I have seen this concept expressed. Succinct and to the point.

Many HOA problems down come to this.

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