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DonP4 (Florida)
Posts: 6
Posted:
We currently have a member of a 900 home HOA who was a past president, and treasurer, who was could no longer run for the BOD because of a prior felony conviction.

The public reasons stated for the resignation was that the member no longer had the time to dedicate to the HOA (possibly because some did not know of the felony conviction).

Since the resignation, and with the aid of some other members on the BOD, the member was asked to become the bookkeeper (the elected treasurer didn't have time to perform the duties and another BOD member volunteered but was not allowed by a majority vote. As a result the member was hired as the bookkeeper (at a substantial fee) and since has added new responsibilities as Registered Agent (paid for extra), Telephone answering machine respondent (paid for extra), lawn maintenance contractor (without contract, month to month, higher fee than past contractors plus additional expenses for hauling debris, not charged by any previous contractors).

The Landscape committee had received 3 competitive bids for the lawn services (7 miles of perimeter) but the officers of the BOD never allowed the committee to present them. In fact a BOD Packet was given to the person in question and magically she bid after that less than the other bids.

Has since added the paid routine of picking up official mail. Has keys to the HOA records repository while some Directors on the BOD were not allowed to enter upon several requests. Was able to get proxies for the new 2013 election pre-approved before any other members (this swung the election) while other members were chastised for holding up the line.

Since there an no laws in Florida other than arbitration we would have to pay for a lawyer directly for representation and again indirectly for the representation of the HOA!

Several records reviews were requested and after many months of going through many disorganized documents it has been revealed that there are quite a few expenses that were paid without submission to the BOD nor approved. Some of these are quite expensive. Contracts were signed without the BOD even being aware of them!

What can be done to curtail some of these actions without exposing ourselves to an expensive and drawn out affair. Where have the rights of homeowners gone? We are at the mercy of some control individual that will stoop to any means to maintain the grip on the association?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
You do have a District Attorney's office do you not? Your board needs to pick up the pieces where it can and prove this person doesn't have signature rights to the HOA account. Keep in mind I don't believe having a felony conviction prevents anyone from serving in their HOA. It means most likely you won't get voted for as you are a convicted felon. Doesn't mean people won't vote for you.

I would suggest seeing what powers you can reduce by changing up the signature records at the bank. Finding and hiring another bookeeper. Having a 2 signature system where it has to be 2 board members and the bookkeeper writing the checks of the HOA BEFORE they checks can be cashed. There are specialized checks for this but are kind of expensive.

I had to deal with someone similar to this in my HOA. Crooked in every way (even in THAT department...LOL). So you just have to learn to be one step in front of them and carry a smile on your face like your clueless about what is going on. But it is time to get your HOA's board power back by changing up how it does business. Plus get more Homeowner participation to help wouldn't hurt.

Former HOA President
CarolF (Florida)
Posts: 435
Posted:
Do I understand correctly that you do not have a licensed "Community Association Manager (CAM)" managing your 900 home HOA? I am not questioning if this person is a CAM - what I mean is, are you self managed by your board, and have hired this person to take on the duties you mentioned. Or, do you have a CAM in addition to this person?
DonP4 (Florida)
Posts: 6
Posted:
Thank you for your response. It helps to quell the queasy feelings we experience from this. We do have a signature cards at the bank and last year the bookkeeper only had reports access to the accounts. Not so with the new BOD. The bookkeeper now has authorization from the new BOD to change the signature cards and is maintaining the checkbook!

We don't really need to find another bookkeeper, we need to get someone on the BOD that would do the job but we couldn't get enough proxies (unlike the present bookkeeper) to get them elected. In fact we couldn't even get items onto the agenda (if there was one) last year. We were outnumbered and all actions we tried were just sidetracked. Needless to say we weren't reelected because we fought the system. In fact quite a few Monthly Minutes never did get submitted for approval and the ones that were contained omissions and additions that were not on our tapes and did not get approved! They are still in limbo!

We have a BOD consisting of 8 members, 4 of which are officers. We have never paid for a bookkeeper in the past and that duty was always performed by the elected treasurer. The registered agent for the past 27 years has always been a BOD member as was the mail pickup. If a new BOD elects a treasurer knowing that they can't do the job it creates the position we are describing.

As far as the investigation into possible misuse of public funds we are not quite finished yet. We need a few more records to substantiate our findings but we do currently have enough to warrant some type of legal action. But the economy being what it is kind of leaves us at wits end because the state apparently has more interest in protecting HOA's than owners.

But thanks again for the pointers and we will keep them in mind.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Don,

Are you currently serving on the Board?

If not, there is little that a member can do other than provide checks and balances by reviewing the paperwork and asking questions of the Board (hopefully the Board will listen and get things corrected).
DonP4 (Florida)
Posts: 6
Posted:
Thank you CarolF for your response.

We are self managed now. We had a CAM previously but they only did inspections. The bookkeeper was only appointed after the member resigned from the Treasurer position. Basically the member went from a volunteer that could no longer by virtue of our FSS 720's concerning felons being able to serve on HOA BOD's to a paid position performing basically the same duties. The newly appointed Treasurer just signed checks.

The jobs just escalated after that because now the member has the time apparently (and is well paid for it). This person now has quite a bit of influence in anything the BOD does, or doesn't, do and is non-elected!

We have been labeled as disgruntled homeowners and that just may be true. But we see and find things that prove that isn't the case but diversion from facts. We can provide documentation to prove our case but just don't have funds to pursue a remedy. I reported the crime to the Florida State Attorney General and was told to take it to arbitration. I wrote to our local state representatives and got basically the same answer.

Homeowners do not have the same rights as HOA's and must pay double!
DonP4 (Florida)
Posts: 6
Posted:
No I was not reelected. I will continue to pursue our investigation and hope for the best, Thanks
EllieD (Vermont)
Posts: 446
Posted:
DonP4,

You titled your post “bonding”. What sort of Master Policy Insurance coverage does your Association carry? Do you have both Fidelity Insurance and Fidelity Bond coverage?
DonP4 (Florida)
Posts: 6
Posted:
We have both insurance policies.

I guess what I am really trying to find out is if the bookkeeper not being an elected member of the BOD must, or should be, bonded?
EllieD (Vermont)
Posts: 446
Posted:
DonP4,

Is the Bookkeeper hired as an employee of the Association, or hired as an Independent Contractor?

Ditto for that same person acting as “lawn maintenance contractor”, an employee of the Association or an Independent Contractor?

As I interpret your posts - “money is changing hands”.
DonP4 (Florida)
Posts: 6
Posted:
We do not have any employees and are not authorized to have them per existing documents.

Yes that it is my belief that in some instances the odds are stacked in favor of certain individuals and has been well documented.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Well if they are hiring independent contractors you should ask if 1099 forms are being issued.

You should also request to see a copy of the liability insurance the landscape contractor carries.

Basically a way to try and make the Board wake up that certain things must done in order to comply with State and Federal laws.

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