Can a HOA exist without a BOD?

Started by AlmaC • 6 replies • 1595 views

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AlmaC (Mississippi)
Posts: 5

Posted:

I was told by the lawyer for our association that the developer/declarant had selected a new board since one of the three of the "First Board" resigned, BUT he will not tell me who they are and they have not been registered with the Secretary of State in Louisiana. Also, this lawyer is refusing to allow me to see documents of the HOA, including copies of invoices paid to his firm by our HOA. We have not had an accounting of our dues in almost two years. He has handed over maintenance for individual condos, but wants to retain control of the HOA even though all of the units have been sold. His ground floor commercial space has not been leased/purchased. Can a HOA function without a board of directors on file? I believe the "first board" was never really an acting board but just one on paper. Can this be true?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By AlmaC on 03/05/2013 10:47 AM
Can a HOA function without a board of directors on file?

If no common area, amenities or services have to be provided or maintained it may or may not be possible to have an Association with no governing board. However, if there are services, etc. that must be done, then someone has to pay those bills and make the decisions.

Quote:

Posted By AlmaC on 03/05/2013 10:47 AM
I believe the "first board" was never really an acting board but just one on paper. Can this be true?

When the Declarant is in control of the Association it is typical for them to appoint or elect individuals who will effectively rubber stamp the decalarants decisions. Depending on the language in your governing documents, it may even be possible to have only one person serving on the Board (the declarant) until the Association is turned over to the membership.

You should check your governing documents and States property law to determine when control must be turned over to the membership.

AlmaC (Mississippi)
Posts: 5

Posted:

Thank you. Yes, we have common areas and a hot tub. We have a budget that the supposed board "approved". The approved budget shows no income but lists our expenses as $155,874.63 -- $860.16 for legal fees. Our monthly dues have increased as well.

The documents say there should be five (5) members on the Board. There have only been three. The lawyer told me a new board had been selected but won't tell me who. One of the previous board members told me the new members of the board are homeowners, but no members of the Association have been notified nor has the Secretary of State.

How can the lawyer for the association deny me access to documents that are provided for in the Act of Declaration and the By-laws that he wrote himself? It seems we have a big ole mess on our hands.

AlmaC (Mississippi)
Posts: 5

Posted:

Addendum: I just checked our income which is miraculously $155,874.60 from our dues. We pay for janitorial service, landscape, insurance, taxes, etc. The residential area is less than 2/3 of the commercial space but our share is more than 2/3 of the expenses.

JeanI (Louisiana)
Posts: 112

Posted:

Not in Louisiana. The non-profit corporation act requires all corporations to have a board of directors to conduct the affairs of the corporation. check your state law. JMI

AlmaC (Mississippi)
Posts: 5

Posted:

Thank you, thank you, thank you!

AlmaC (Mississippi)
Posts: 5

Posted:

Thank you, thank you, thank you!

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