homeowners not interested in running for Board

Started by JulieW • 4 replies • 1878 views

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JulieW (California)
Posts: 1

Posted:

Need help. New community ready to transition. Developer is the current Board with no homeowners having an interest. What can be done if no homeowners are willing to step forward? Can the developer just walk away?

Should a special meeting be held with the hopes that owners show up? Do we need to have an official election?

Thanks for any help

Julie83

HaroldS (Arizona)
Posts: 906

Posted:

Jules - inform the members if no one takes over the board, the courts will appoint a receiver and they will pay thru the nose for that. Might shake up some interest. Check previous posts here for recent discussion about this same issue. Harold

PaulM (Pennsylvania)
Posts: 1,347

Posted:

JulieW:
It is an awesome responsibility to be in the line of fire! Think a meeting is in order and again, an explanation of how a management company can be your ally here. Not to alleviate the Board's responsibility but one who can oversee and advise. Check out RogerB's posts on management companies and tasks for which they can be responsible--all at a cost to the community, of course.
Good Luck!
PaulM

JoeW1 (New York)
Posts: 728

Posted:

JulieW - Traditionally what happens is that owner elected board members are elected by the residents to fill developer board positions as units are occupied. These events are called Transition Elections. Your Declaration of Incorporation in your by-laws should detail the process.

For example, in my hoa within 30 days after the initial conveyance (closings) by the developer of 25% of the total number of proposed Homes, the President (Developer) shall call a special meeting of the Membership of the Association for the purpose of holding the first election of Owners to the Board of Directors. At this special meeting, Owners other than the Developer shall be entitled to vote for and elect Directors A and B from among such owners. Within 30 days after the initial conveyance of 75% of the total number of homes a Second Transition Election is held to elect another 2 Directors C and D. Within 30 days after all homes have been conveyed a 5th and final owner is eclected to be Director E in a Third Transition Election.

Based upon what you are explaining, it does not sound like this process occurred? Yes you need to have an official election.

There are two types of Transition by the way. One is a Transition Election, another is a Transition of the elements by the Developer to the Owners. A long process that involves Transition Engineers, and attorneys hired by the Owner elected Board at the Association's expense after the Developer is completely off the Board. This Transition process will produce reports and capital reserve replacement analysis that uncover an defects (latent, and obvious) in the construction. Usually, a savvy and strong Association will seek reimbursement from the Developer to fix or pay for the fix of defects and contribute towards the underfunded reserver accounts.

JM2 (Oregon)
Posts: 439

Posted:

Hi Julie:

1) You sound interested - will you run for the board?
2) Talk to people you know and trust in the community whom you think would make good board members; encourage them to run for the Board.

When I did portfolio management of HOA's, there was one community where many of the owners were angry with the builder. It took three attempts in order to reach a quorum and thereby have a turnover meeting. Once the meeting is scheduled, talk to people about either sending in their proxy or showing up for the meeting.

Also - if you are really interested in being on the board, talk to the developer about casting any votes they have, for you. Some developers attend and vote, some don't attend but give proxy to the HOA manager, some attend but don't vote, and some don't attend or give proxy. It's worthwhile to utilize the votes the builder may have, in order to ensure that you end up with a good board.

Best of luck,

J. Patrick Moore, CMCA

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