HOA's Out of Control?

Started by RogerM • 5 replies • 2108 views

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RogerM (Florida)
Posts: 18

Posted:

I live in Florida. My community has existed for 16 years, I have lived here for five. We have a 5 member Board which has never been elected in the history of the community, when a vacacy arises the existing Board members appoint another of their cronies, the latest appointments being the wife of one director and his friend.

The reasons for this situation are many (a) poorly written Articles /By Laws (b) apathy - homeowners can't make a difference so they don't participate (c)quorum rules - no quorum = no change. Our HOA requires 90 persons / proxies for an election (d)no time limits on Board status (e)the high cost of litigation etc etc

The result of this situation is the Association overpays for various services and most homeowners have no effective voice in the decision making process. Recently a $10000 contract for the installation of security cameras was awarded to a member of the Board's family business.

I could go on but that would make this posting intolerably long. Surfice to say that I live in a community where the HOA is not controlled by the homeowners. It is controlled by a few people who frankly see the HOA as a little profit making enterprise. Everybody will be fully aware how this is done and everyone will also know that it is almost impossible to prove any wrong doing. The amounts of money involved are relatively small.

Does anyone have any suggestions or experiences which could help here. I am very happy to correspond privately if further details are desired - [email protected].

BrianB (California)
Posts: 2,820

Posted:

unfortunately, it sounds like many people have invested a fortune in a badly run company, and don't care.

The one sure way to break this cycle is the proxy: That may mean you need to personally campaign, talk to people, hand them a proxy, and get it back. You need to know the by laws better than the board, and work to get that proxy quorum in your hands (or in the hands of other concerned owners), and get an election. In all honesty, it is easy to "change" a board, all it takes is a vote. The hard work comes in convincing apathetic owners that their single vote can do it, if it's cast.

RonaldW (South Carolina)
Posts: 901

Posted:

Posted By BrianB on 02/10/2007 8:58 AM

unfortunately, it sounds like many people have invested a fortune in a badly run company, and don't care.

The one sure way to break this cycle is the proxy: That may mean you need to personally campaign, talk to people, hand them a proxy, and get it back. You need to know the by laws better than the board, and work to get that proxy quorum in your hands (or in the hands of other concerned owners), and get an election. In all honesty, it is easy to "change" a board, all it takes is a vote. The hard work comes in convincing apathetic owners that their single vote can do it, if it's cast.

Yes, get out the vote. Get them to attend meetings. Get them to elect new directors. If they won't do it, they are apparently satisfied with the way things are being run and you are in the minority.

Ron
SC

JM2 (Oregon)
Posts: 439

Posted:

Hi Roger:

check out your state laws for non-profit corporations and condos/HOA's regarding dealing with conflict of interest (what your board may be into with the security contract). If the board member who is related did not disclose this, you may have grounds for a lawsuit (also if there was not competitive bidding involved). Check out the law, and if you think there are grounds to proceed, consult a lawyer.

An alternative, if there is no reasonable way to make a change in the community, is to simply sell and move. Yes, it's costly, both monetarily as well as in the emotional letting go, but it may be the best way to proceed. Ultimately, you might be saving money if you believe that the Board is wasting your HOA dues.

J. Patrick Moore, CMCA
Compliance Coordinator
Forest Heights Homeowners Association
Portland, Oregon

ThomasC5 (Maryland)
Posts: 7

Posted:

Often the covenants hold harmless the board.

But in this case with collusion, and willing neglagence, if not outright fraud you would have a case for the removal of the board.

Boards are supposed to act in the best intrests of the community and not to line their own pocketbooks.

If you feel this upset do a walk around. (I bet your not the only one)
with enough proxies in hand depending on your covenent you may be able to wrestle control as well as change the covenants that are being exploited.

Learn the books and knock on doors. Thats the only way to make a change.

BessieB (Hawaii)
Posts: 1

Posted:

I find it interesting that anyone on the board or a managing agent always tell the owner who wants things done according to the declaration, bylaws, etc.,to move. Wouldn't it be easier if those in power just followed the rules as they expect the other homeowners to do? It's the old do as I say not as I do attitude. Get very familiar with your rules and regulations and try to get other homeowner's who are afraid of the retaliation that usually happens to give you their proxies if they are too afraid to stand up for what is right. Little by little we as a country are giving up our civil rights. Stand up people and be counted! Our homes are supposed to be a safe haven not a war zone because we stand up for our rights!

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