HOA Complacency

Hi Folks,
I joined this forum a couple of years ago after noticing a post by PetunkaM on the community websites string, which referenced my weblog located at http://www.foxwoodglenhoa.blogspot.com

I started this blog because our board operates in secret and has not provided financial reports to our members since 2006. Around 2008, the board stopped holding open meetings and instructed their property manager to withhold information from the homeowners. After filing a complaint with Florida DBPR the property manager began providing HOA records when requested, but all HOA business is still conducted in complete secrecy presumably by the current CAM and one “board member” who has not been properly elected since 2008.

Unfortunately there is very little interest among our 44 homeowners to demand compliance with the FL Statutes or our By-Laws. Additionally, over half of our homeowners are up to 4 years late in paying annual dues…We currently have over $12,000 in uncollected dues.

Does anyone have any advice regarding how to generate interest among our homeowners in restoring some level of functionality to our HOA?

Thanks,
Fox Glen

By the way, you should try not to mention your Association by name.
The posting rules explain the reason behind it.

Oh, and Welcome to the Forum.

Obviously you all don't have a lien policy in place. I put in a 6 month behind in dues and it was an automatic lien on your property. After a year or more, foreclosure options were discussed. Although foreclosing depends on the circumstances involved in each case. You never do a HOA foreclosure on a house a bank is already foreclosing on. However, it is always good to have an established policy and a time guideline in place just in case.

Doing this policy will help generate some interest as well. Believe me, you make a significant change or issue with this. People perk up..

Fox,

I took some time to look at your website. It seems informative but it also appears that it has some misinformation.
I refer to your opening page. You made a statement that the property manager works for the membership and not the President of your Association. This is an incorrect statement.

Similar to the Association attorney, the CAM works for the Association. Even though the Association is made up of it's members, it is a separate entity that has it's own responsibilities and authority. This responsibility and authority is exercised by the Board of Directors. Now the membership can decide, by amending the governing documents, how many responsibilities and how much authority the Association has. The membership can also decide how that responsibility and authority is exercised by who is voted onto the Board. However, do not make the mistake that the CAM, the Association attorney or any other contractor hired by the Association works for the membership. They work for the association as outlined in their contract and directed by the Board.

At the beginning of this thread you stated:


Based on information in your Blog the highlighted section of that statement is misleading. Your Blog points out that the Association has been unable to obtain a quorum at it's annual meetings. Based on your Blog, the Association appears to be trying to obtain a quorum by holding multiple meetings (at least for this last meeting). FL 617.0806 specifies that Directors serve until their "successor has been elected or appointed" or until they resign. Hence, that one individual might have been elected in 2008, but if the membership hasn't shown up to obtain a quorum at meetings so elections could be held, then that individual is still serving legally. In fact, even if you don't agree with how they are running things, the individuals willingness to stay and do the job should be commended.

As for the Board, per your governing documents on your Blog, your association requires 3 Directors. Therefore, a quorum of Directors would be 2. Your Blog identifies a President, a Treasurer and an individual who may or may not be serving as VP.

Since you have been on this site for two years you are aware that a Director and an Officer are two different positions. Even if filled by the same person, they are two different jobs with different authority and different responsibilities. Your governing documents specify that the President and VP are also to be Directors. However, the Treasurer and/or Secretary do not need to be held by a Director.

Is it possible that:

1) The Individual serving as Treasurer is just an Officer and not a Director?
2) There is no VP (your own Blog wasn't sure)?
3) There have been no open meetings of the Board because there hasn't been a enough Directors to form a quorum?

If the answers to 1 & 2 are yes, then this would only leave one Director. As was pointed out in a different thread, meetings of Officers do not have to be announced or open.

Granted, your governing documents require 3 but if nobody is willing to volunteer to serve on the Board the remaining Director can only a) do the best they can or b) file for receivership. This is why I asked if you had volunteered.

I'm not saying I'm right in this theory. I'm just asking if it is possible (as my theory is based on the info obtained from your blog). My suggestion would be to check with the FL Division of Corporations and see who is identified as Directors. This way you will know for sure and have proof who the Directors are. If there are enough for a quorum, then the meetings should have been in the open and if you can't get remedies from within the Association you can make a complaint with FL Department of Business and Professional Regulation like you did earlier to get documents released.

Actually, I just did a search. If I got the name of the Association correct, it appears you might have 5 directors (at least that's what was filed with the State).

Hope this helps,

Tim

Tim it seems clear to me Fox has a limited agenda they are pushing.

Seems their role is to find fault and place blame. The Board is acting improperly, the PM who is paid all of $150 per month is acting improperly, and Fox can't seem to figure out WHY 7 PMs have left the property willing to give up that vast sum of money for such a big account.

1/2 the folks don't pay their dues, which is the huge sum of $230 per year. And Fox is against them raising that amount because it is clear this Board will misuse any additional funds.

I have to wonder for someone claiming the Board operates in secret just how does the OP gather so much information. Who has not paid their dues. And then at the same time complaining about the lack of effort to collect that dues but arguing the Board needs no more money to engage in legal actions.

The PM cannot make collection efforts without the Board's authority to do so and the Board's willingness to do so. And with the owners support.

The Fox would rather sit back second guess whatever is done and stir things up for the "good" of the property.

Now after spending the time to put together this blog badmouthing everyone my guess this course of action has accomplished little. The Earth did not rumble, the owners did not rally, the world did not reshape in the vision this OP has decided is proper.

My guess the time taken to set up this blog could have been better spent. And more productive being part of a possible solution rather than a minor irritation.

Yes if you form a blog the world will change in the minds of some. That is of course not what happens.

I just have to wonder how many owners from this property have in fact bothered to view this blog and how little this effort has done.

Sounds like quite a mess all around owners, Board members, bloggers, each seems to play a role contributing to the success or failure of the property. Just who is acting in the best interest of the community????? Anyone????

Hi Fox,

I know it might not look like it, but I am trying to help.
I noticed on your site that you had made a statement that a conservative estimate for the roads would only be $10,000.

I took a look at Google maps of your area and, conservatively estimating 50 foot lots, determined that you had approx 1500 feet of roadways. Using a conservative estimate of the roads being 20 feet wide, this gives you approx 10,000 square yards (1500 multiplied by 20 divided by 3) of roads to be maintained.

My Association had estimates for milling and paving our roads last year and they ran around $14 per square yard. Granted, costs vary by region and price of oil, but using those numbers, I calculated a conservative estimate of $140,000 needed to mill and pave your roads. Milling and paving, depending on climate conditions and maintenance of the roads, typically need to be done every 20-30 years. Using the 30 year number, your Association, as a minimum, should be placing $4,700 into reserves every year or $106 per lot per year.

Per the budgets available on your blog, it appears that this has not been done. In fact, your 2003 Income and Expense report (the last one available) showed less than $30,000 in the Reserves. It's also likely that with the number of delinquencies you have, the reserves have been shrinking to cover operating costs.

Has a Reserve Study been done for your development? If not, you should have one done. When our Association did ours, we discovered that we needed a 20% increase in assessments to fund the reserves. You can learn more about Reserves in this thread.

As this calculation is only for the Roads. If you have other common elements to maintain (sidewalks, entrance sign, playground, street signs, etc.) this amount would increase. Only a reserve study will be able to tell you the real amount needed. If you personally are not financially ready for a special assessment in 10-15 years to pay for the road repairs or to raise assessments by $80-$100 per year (effective next year), you might want to consider selling and moving rather than fight the fight for an apathetic membership.

Math used to calculate 80-100 increase:

$140,000 (cost of milling and paving)
less 30,000 (amount in reserves based on 2003 I&E report)
divided by 15 (number of remaining years, development started in 1995)

This gives you amount needed to put away each year now vs. had it started in 1995)

less 3,600 (amount currently sent to reserves based on 2006 budget)
divided by 44 (number of lots)

result was actually $84.85 increase needed. An annual increase of $80-$100 allows (slightly) for the unknown - the actual amount in the reserves.

Like I said, I know it doesn't seem like I'm trying to help but I am. At least you have some numbers that may allow you to make a more informed decision.

Tim