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MichaelL17 (Pennsylvania)
Posts: 2
Posted:
I am a member of a condo association in Pennsylvania. A group of homeowner and I have been concerned with actions of the long-time members of the board's ability to control elections to maintain their positions, change by-laws without HOA consent and manipulate monies to relatives, hide charges in financial statements and give themselves un-authorized health benefits and bogus salaries These proven issues spurred serious concern of all their activities. Why would anyone go through so much trouble to maintain their supposed non-paying positions on the council? We were informed that they made a change to our by-laws so they would only need 15% of the HOA votes to approve and change the condo by-laws and code of regulations. These members have taken the condo association out of the β€œright of first refusal" to purchase any condo coming up for sale. Three of the members have purchased several units and used the HOA monies to repair the units for their own sales. What makes matters worse is that the superintendent is one of the long-term members of the board and therefore approves his own actions and salary. Needless to say, his salary has changed dramatically over the past few years.

After repeated inquiries to obtain financial information, the superintendent's job description and the responsibility of the member of the board, our group got together to pursue this in numbers. Through continuous action, we were able to put one of our group members on the board. We thought we had two positions from our election but we found out afterwards, a member who was part of our group was discovered to be a close friend of one the longest held long term council members.

The position our colleague was approved for was the Treasurer position. He's been on the board for several months trying diligently to take over his responsibilities as treasurer to no avail; the other members would not relinquish the books. We are now documenting all activities and requesting all information in writing of which he has yet to obtain. The other board members have threatened to have him removed from his position if he pursues this useless issue.

Through aggressive interrogations and some forensic work we have uncovered unscrupulous check writing and lies to reason for the unapproved spending on personal accounts to the tune of over $40,000.00. We feel very confident if we could get the information we need, we will uncover much more.

Their muscle and their ability to refuse the information has made it quite difficult to uncover more dirt.

Obviously there is much more that I could elaborate on but I'm sure you understand my concerns.

Do you know how would be the best way to proceed to remove them immediately and then to bring their actions to justice?

Can you give me some direction?
TimB4 (Tennessee)
Posts: 21,060
Posted:
Quote:
Posted By MichaelL17 on 04/26/2013 8:16 AM

Through aggressive interrogations and some forensic work we have uncovered unscrupulous check writing and lies to reason for the unapproved spending on personal accounts to the tune of over $40,000.00. We feel very confident if we could get the information we need, we will uncover much more.

If you believe that this is an issue of embezzlement, contact the local district attorney's office with your proof.

If the books are not being turned over, and you can't work it out amongst yourselves, you might need to seek a legal injunction to force the turn-over of records.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
It sounds like you do not have a non-profit HOA. If your board members are getting a salary and health benefits, you have a For-Profit corporation. Which could mean you may not have much rights as a non-profit. A HOA also can not interfere with the sales of a unit/home. So would need more information on your HOA setup. Your rights to records may not be what you think it is. If your mind is thinking this is a non-profit situation and your HOA is run by it's members. It could be run by a management company/corporation of which members can be considered "board members/members at large" and just be representing the HOA TO the company.

Former HOA President
JonD1
Posts: 2,350
Posted:
Seems to me the OP has lots of work to do IF they decide to move forward with this crusade.

You must read your documents inside and out and understand them don't read them to your liking. That is where you will find out how to recal a Board and replace them.

State laws same goes.

You must build up support of homeowners that will back your efforts.

You have to find qualified people to replace the Board members you wish to replace.

You have to be willing to take on the challenge and cost of a long, hard, difficult fight and all that might go with it to come out on the other end with more responsibility than perhaps YOU ever wanted.

And finally before you head to the DA you need to understand the criminal code and what exactly consitutes a crime. Not what you or others THINK but what took place that violates the law and having proff positive this in fact occured. If not you are wasting everyone's time.

Sounds to me like the OP has a long way to go. My advice understand what effrot will be needed, the cost to you personally, and in the end what benefit will you get from all of this.

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