Board members delinquent on assessments

Started by KimiM • 4 replies • 1459 views

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KimiM (Texas)
Posts: 2

Posted:

I am a part of a small struggling HOA that currently dent even have an acting board. We had our meeting in over two years last night and voted in a new board. With the exception of myself, every one elected is delinquent in their assessments. If the bylaws say that no members should be delinquent, is this lawful?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Kim,

Without checking TX HOA or Corporate law, there are Associations that specify qualifications for serving as Director. Being current in assessments could be one of those qualifications.

Can you provide the actual language used in your governing documents?

I ask because there is a world of difference between the word "should" and the word "shall" or "may".

Tim

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Tim's correct in your rules language. But, ethically, any board member should be in good standing as they represent the community and agree to uphold the integrity of the HOA. Common sense applies here.

However, if your board is majority delinquent, your problems are systemic or structural.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Generally Bylaws will say that to be a member of the BOD, one must be a member in good standing. Generally the Bylaws will also one is not a member in good standing if they are deliquent in their dues and/or assessments.

Generally BOD Rules and Regulations will define when one is deliquent as in a specific time. Our dues are paid quarterly. We do not consider a person deliquent until 30 days after the next billing.

Example:

Bill on Jan 1, due within 15 days for Jan, Feb, Mar.
Bill on Apr 1, due within 15 days for Apr, May, June plus notice that Jan is past due.
No payment by Apr 16, we consider you deliquent on the Jan bill and at this time we try to open up communication about why late and how can we get you caught up. The next billing cycle (July ) we start late fees if nothing paid nor a payment schedule arranged.

Kelly also raised a valid point. If the entire BOD (less you) is deliquent, you have some major issues that need looking into like why are they deliquent?

Granted they might be elligible to serve on the BOD but maybe these are the only cards you have to play the hand with.

Hope this helps.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Here is the rub on this...Many HOA's say that only members in good standing have the right to vote. (Ours didn't have that rule). However, it doesn't say that a member can't be elected if they are not in good standing. It's just a matter of would you vote for someone who is behind on their dues? Most people would not but considering the lack of pool of candidates that may become a mute point.

One thing that will probably happen is the realization of the real effect them being behind in dues effects the HOA. It will be an eye opener.

BTW...What do you consider behind in assessments? A month or two isn't that far behind. We had a 6 month policy in place that we would lien. So being delinquent time frame needs to be established before saying they are truly delinquent.

Former HOA President

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