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JackiA (Florida)
Posts: 4
Posted:
I belong to a Florida HOA... our Bylaws state that No Director shall receive compensation for any service he may render to the ASSOCIATION. We have been investigating the financials of the Association and recently uncovered payments to him for $1150 for setting up a website for the organization. This board has been very self serving. We have found out that the Treasurer has not been doing annual audits by an outsider since he took over(required in the bylaws) ., financials are messed up, he's been comingling our checking account with our road fund monies, and basically just doesn't know what he's doing. We have called for a special meeting on this and requested an audit by an outside firm, and in the meantime, the Board has provided the homeowners with a report and internal audit done by one of our Board Members, whcom has covered the Treasurers butt and has disclosed that he has not uncovered any missing funds and all is well. Why would they think we would accept this instead of going with an outside auditor when we don't trust them? Sadly, most of the association won't get involved. Do those of us that want answers have any recourse to them not abiding our request for an outside audit? Also, can the President pay himself for a service that our Association did not ask for or vote on? Aren't the monies limited to maintaining common areas, insurance etc?
SheliaH (Indiana)
Posts: 6,964
Posted:
It would help if you broke out some of this in paragraph form to make this easier to read, but let's see..

First, Board members usually don't get paid for serving on the board, which is what your bylaws are getting at, but they might be able to get reimbursed for expenses incurred on the association's behalf. However, that expense should be pre-approved by the board and there should be board meeting minutes noting a vote was taken on that issue.

The rest of your bylaws and CCRs should state what the Association is responsible for - there should be a budget for those items. The homeowners should have been provided with a budget, but if your treasurer is incompetent, that may or may not be of much help to you - nonetheless, get what you can.

Unfortunately, homeowner apathy is a big reason why a lot of association boards run amok - if the homeowners don't keep them honest by attending meetings and demanding answers, it's easy for someone or several people to get the notion they can do anything - and they will, unless homeowners like you stand up.

I believe Florida has some sort of ombudsman's office that assists people with HOA problems - check your state government website and file a complaint. If that doesn't work, you and your like-minded neighbors will have to work to fix this yourselves. In fact, while you're waiting to see what the ombudsman will do, start talking to your neighbors about what's goinjg on, educating them on your concerns and what you've found so far. Get them to come to the meetings and demand answers.

Better yet, call a special homeowner's meeting to have the board explain themselves - check your documents to see what you need to do. You may need to have a special election to recall these people - if it comes to that, be sure you have people (like you?) willing to step up and replace those board members. I wish I could say you won't need to pool your resourced together to hire an attorney, but in some cases, that's what it comes down to.

Once you have those people in place, get the audit done as soon as possible. If you have a property manager and he/she's not being cooperative with the new regime, you may have to get rid of them as well.

As you'll see from other people who post, none of this will be easy or happen overnight, and you may be in for some namecalling and worse, before it's over. But change is never easy, but since this is your home, you don't have any other choice. Good luck!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JackiA (Florida)
Posts: 4
Posted:
Thanks for your response Sheila, sorry for the form

Our president has been telling us he is setting up the website on his own time, and that there would be no expense involved. This is obviously payment for service and a conflict of interest. Being they have never been held accountable, they didn't expect us to ask for bank statements. This is a GOTCHA as we have called for a special meeting that is taking place this weekend. The board has scrambled to get all documents in order before this meeting.

I am prepared to pay for an attorney from my own pocket if necessary to remove these board members. I also, believe it can easily come to this as they are digging their heels in deep. I am putting a display board together with all of the evidence we have against them for the meeting, hopefully people will show up, and maybe with any luck, we can get them all voted off.

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