PhilG (Pennsylvania)
Posts: 1
Posts: 1
Posted:
Our 54 unit HOA in Pennsylvania is having some troubles and I just wanted to get an opinion on this from everyone. Our HOA was turned over to the residents last year and since then there have been no member meetings whatever. This is a small Association of single family homes who's only function to pay the street light bill, manage the storm water management ponds and cut grass. It's as simple as it could be. In July one of the board member moved and resigned. The board members that were left never had a meeting to replace the board member and instead began several landscaping improvements on property that has not even been turned over to the association. This was paid for from reserve funds and totaled about $10,000. The reserve fund had dwindled to $22,000 because of this. This was not even spent on property owned by the association, it's still owned by the declarant but they wanted to spruce it up.
In addition, the board had a decided to have a party this summer. In previous years the party was organized by a Unit Owner and each family had to kick in $40-50 to go. This year the party was paid for by the HOA. However, our bylaws don't have any mention of the ability to spend association funds on an expense like this. The residents received 4 days notice of the party held on a holiday weekend via a facebook post and flyers passed out 2 days before the party. As it was a holiday weekend, some residents were gone and otherwise could not attend. Some people were not even invited. There were lots of hurt feelings.
A resident recently found out that the party cost $1500. The president called the Management Company about 3 weeks before the party and just decided to have a check issued directly in his name for $1500 to pay for the party. The board would not tell anyone how much the party cost or any other details when asked after the party. What was discovered, is that the Board President gave $1200 of the associations money and gave it to the resident who previously organized the parties and now happens to own a party rental company. This resident literally rented the association tables, chairs, tents, snow cone machines, drink machines, bounce houses, inflatable slides and other things and set them up in his side yard. I don't know how he was paid if it was in cash or a check. The rest and a bit more was used for catering. Needless to say, there are now letters and e-mails flying all the neighborhood by residents and the boards attorney about this matter.
My main question here is, is this a civil or criminal matter? Obviously a suit could be filed as the bylaws were not followed, but would the misuse of HOA funds in this nature also be considered embezzlement? Some of my neighbors are furious and some don't care but now people are talking about this being a criminal matter, and we all live here so it's sort of tough to figure out who to believe.
In addition, the board had a decided to have a party this summer. In previous years the party was organized by a Unit Owner and each family had to kick in $40-50 to go. This year the party was paid for by the HOA. However, our bylaws don't have any mention of the ability to spend association funds on an expense like this. The residents received 4 days notice of the party held on a holiday weekend via a facebook post and flyers passed out 2 days before the party. As it was a holiday weekend, some residents were gone and otherwise could not attend. Some people were not even invited. There were lots of hurt feelings.
A resident recently found out that the party cost $1500. The president called the Management Company about 3 weeks before the party and just decided to have a check issued directly in his name for $1500 to pay for the party. The board would not tell anyone how much the party cost or any other details when asked after the party. What was discovered, is that the Board President gave $1200 of the associations money and gave it to the resident who previously organized the parties and now happens to own a party rental company. This resident literally rented the association tables, chairs, tents, snow cone machines, drink machines, bounce houses, inflatable slides and other things and set them up in his side yard. I don't know how he was paid if it was in cash or a check. The rest and a bit more was used for catering. Needless to say, there are now letters and e-mails flying all the neighborhood by residents and the boards attorney about this matter.
My main question here is, is this a civil or criminal matter? Obviously a suit could be filed as the bylaws were not followed, but would the misuse of HOA funds in this nature also be considered embezzlement? Some of my neighbors are furious and some don't care but now people are talking about this being a criminal matter, and we all live here so it's sort of tough to figure out who to believe.