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PamS10 (California)
Posts: 11
Posted:
I sent a letter to my Condo BOD. The problem is I only sent it to one Board member. I also did not send to management co. I did not want them to read letter as contained derogatory statements about them. This letter however stated why our Board should not be increasing monthly HOA's along with a special assessment for 2013. I cited CC&R's along with civil code. Our BOD are extremely out of control and are showing no fiduciary relationship to members whatsoever. I did not hear back within 15 day time period. What I did receive is new billing for 2013 which includes both new increases. My question is ??? Shall I resubmit letter to management, highlighted "do not open" send to BOD. Or shall I proceed to an Attorneys office for further review. My HOA's have made it impossible for me to sell condo. I believe BOD can be personally liable. Any thoughts?? Thank you.....
PWS
TimB4 (Tennessee)
Posts: 21,059
Posted:
Pam,

From what you posted, it sounded like you sent them an opinion letter. If you didn't ask for any specific documentation, I don't think a time limit for a response would have been initiated. Additionally, if it was an opinion letter, a response would be the proper thing for the board to have done but I could find no legal requirement for a response from the Board. However, I could have missed it.

As for Assessments, unless your governing documents specify a different amount, per Davis-Stirling a Board may increase assessments up to 20% without membership approval. Is the increase your Board did outside the limitations established in Davis-Stirling or your Governing Documents?

As for Special Assessments, Davis-Stirling allows a Board to adopt 5% of the annual budget gross expenses for a special assessment without membership approval. This statute supersedes your governing documents. Is the increase your Board did outside the limitations established in Davis-Stirling?

I know it can be frustrating when assessments are raised and a special assessment is levied. I know that this frustration is amplified when you are trying to sell the property and/or are on a fixed income. Since you didn't provide your Boards reasoning behind the increase or the special assessment, I cannot offer an opinion if the decision was a good or bad decision.

I wish you luck in selling your property. Perhaps you can have the annual and special assessment completely paid as an enticement to purchase.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Listen to Tim as he gives good advice. I just want to build on it by clarifying something. Your letters whether it goes to the MC or the BOD are OPEN to EVERYONE! How else do you think it's going to get resolved? You want it to be resolved behind closed doors? Then you will have you and the rest of the membership claiming the BOD operates business behind closed doors. Exactly the thing you don't want your HOA BOD to do.

I don't know what the raise in dues or special assessment is about to say it's not needed. I am sure it's NOT your MC that is raising the dues. The MC works FOR the HOA. The BOD is to instruct what the MC does. However, most of the time that line gets blurred and the MC does a majority of the work due to the inability for a HOA to have a complete understanding of that relationship.

A HOA is ONLY funded by it's members FOR it's members. If you want your HOA to take care of it's property better, then it has to have the money to do that. That means raising dues or having a special assessment from it's membership. Which to me sounds like what is going on here. The HOA needs more money to operate and to get things fixed up to attract more buyers.

So don't expect your letters to the BOD NOT to be discussed in front of the BOD. If you have open meetings, then that means expect your opinion in those letters to go to everybody in the room and possibly the records. If your not willing to attend a meeting to speak your words in person, then expect your written words to do it for you.

Former HOA President
PamS10 (California)
Posts: 11
Posted:
Thank you for reply. I do understand Davis-Sterling. Yes, they were within this regs. They were not within time constraints, nor were they within guidelines of needing to provide certain budget docs. Another item i failed to disclose is the Management Co. is currently under indictment for of embezzlement of 1M. I felt it necessary to proceed with audit before doing any increases whatsoever. Actually, I like your idea of paying ahead and in full and would have done this if it wasn't for indictment. Management does not do audits annually they only do reviews. We did have an assessment of $45,000. in 05 and every year since. This appears to be mismanagement !!
PWS
PamS10 (California)
Posts: 11
Posted:
Tim,

In answer to the question what was increase for? In regards to monthly HOA"s , and I quote"Despite the board;s best efforts it is deemed neccessary to make the increase". As it applies to Special assessment, to repair, replace or restore any major component and to provide adequate reserves therefore. Browning reserve Study included states reserves are adequately funded as the reserve funding balances remain positive throughout the replacement of all major components during the next 30 years. There are also no emergencies pending at this point.
The value of my condo is now maybe at $175,000. with HOA's at $465.00. No one in their right mind will purchase a condo for that value with those HOA's!!!!
Yes, it is beautiful here. I do understand it takes money. I have been a homeowner for a very long time. I also understand when there is a need to cut back.
PWS
LauraR5 (Tennessee)
Posts: 220
Posted:
If the management company embezzled money, why are they still doing business with them? If you don't know, as a homeowner, you should probably find out. Also, I know this sucks, but if the money is gone, then it has to be made up somewhere. Of course, I would assume your HOA is insured for these kinds of situations.

PamS10 (California)
Posts: 11
Posted:
Believe me !! That was in my letter as well!! We need a new management co.....Guess what???? Do we have one?? Of course not!! This BOD does exactly what they want , when they want. They are still with same Management Co., Go figure!! I am truly at a loss????????
PWS
TimB4 (Tennessee)
Posts: 21,059
Posted:
Pam,

Being under investigation is certainly a warning flag but it's also not the same as being convicted of embezzlement. It's possible that your Board would like out of the contract they have with the MC but may be stuck with the terms of the contract until it ends.

You may want to request to speak to the board directly rather than through letters. Be cordial and bring any proof you have of allegations.

When you send a letter for documents, you may want to send it via certified mail directly to the registered agent (which is typically the Associations attorney) with a copy to all board members. If your concerned that the management company isn't forwarding those letters to the board members, send the letters to the Directors home or via e-mail.

Hope this helps,

Tim

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