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TraciS1 (California)
Posts: 5
Posted:
Back story: Appr. 2 years ago, our then (currently President) VP was indicted for felony real estate fraud. She is a real estate agent and during the economic downturn, worked with 4 or 5 other agents, creating "straw buyers" which bought distressed properties and then never made payments, causing them to go into foreclosure. This was a federal case, widely publicized in the industry. She plead guilty,somehow managing to put off sentencing four or five times. A homeowner brought this to the attention of a board member, who told me (board member also). We requested an ES and asked her to step off the board (duh!), she refused, and the other two BM's sided with her (she was listing their condos at that time). I, after two years on the board, start doing my homework, insist we join CAI, complete classes, go to legal seminars, all the while more and more appalled at our overall ignorance and disregard for the law. Recall ensues, large contingency in support, with a small group (me included) of potential new BM's meeting so we can "hit the ground running." Meanwhile other BM in support steps down in disgust and I, the newest member, am saddled with the almost entire responsibility of the recall election. Mgmt. co. states this doesn't involve them and only provides admin. support. During this time, I find out our current Pres. is delinquent by many months, this brought to my attn. by an owner that has solicited monthly financials and not seen their name listed as paying dues. Righteously indignant, I disclose this to my small group (yeah, really stupid). Recall misses quorum by four votes, and I don't know that, as chair, I can reconvene within 25 days to get enough votes to reach quorum. I adjourn meeting citing failure, finding out later my mistake, to this day wearing that albatross.

Current: Still only board member that has bothered to educate themselves, same inept mgmt. co., the two BM's listing are gone, real estate agent now President and appointed cadre of BM's who, like her, insist they don't need or can't find time for continuing board education. I have been told that my "book learning" really doesn't matter, because it's "intuitive." Prior to last year's election, I'm in San Francisco for a job interview, and the Pres. who's up for re-election, holds an ES and resigns, allow the other BM's to appoint her to an empty position, which is not up that year. No minutes ensue and I find this out because her name is not on the ballot two months later. Whatever.

Turns out my small group contained a member that is easily offended and apparently now supports the rest of the board. Has disclosed my mistake and now I, upon returning from another interview, find I have been censured. No notice of meeting, no chance for defense. Guess I'm screwed?
AllisonD (Florida)
Posts: 449
Posted:
Censured? Is this something that HOA's do?
GlenL (Ohio)
Posts: 5,491
Posted:
Allison it seems to be a California thing. Basically the Board says shame on you for doing X, it has absolutely no real effect except it goes on the Board members "permanent record". While expressing strong disapproval of a director's behavior, a censure does not remove a director from the board nor does it impair the director's ability to attend meetings, make and second motions or vote on motions, unless there is reason for recusing the director from a particular vote.


Studies show that 5 out of 4 people have problems with fractions
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Traci

Good for you for stepping forward. You have been out maneuvered but you learned some valuable lessons while being had. Your choices are keep up the good fight or give up. When the going gets tough, the tough get going.

I have no idea how censure works or if it evens exist. Exists or not, the same people will still be there.

Your goal should be "taking" the BOD over. This can be done either by recall (very difficult to do) or aligning your supporters and making changes to the BOD come election time. The last time I was involved in taking over the BOD it took us two election cycles to accomplish such but we did.

Keep things professional. Do not sink to personal attacks.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Sorry about your troubles, Traci.

I lost track of some topics: Do you know have any support on the Board? In your HOA community?

How did the (then) prez appoint directors? Only the Board may do that?

How was the newly resigned prez "appointed to an employ position that didn't exist (it seems).

What "mistake" did your former supporter disclose to the Board?

What is the consequence to you of this "censure"?? I can't grasp how you might be screwed. Do your bylaws say anything about censure?

What size is your board? Your HOA?

Take a look at davis-stirling.com, Censure for more about that process.

LarryB13 (Arizona)
Posts: 4,099
Posted:
An HOA board censure and twenty dollars will get you a cup of Starbucks. Considering that the person behind all this is an indicted felon, has pleaded guilty, and is awaiting sentencing, I would take this as a badge of honor rather than a scarlet letter.

I see nothing wrong with disclosing that the president, the same felon mentioned above, is months delinquent in paying her own dues.

My advice is to sell now and move out. You are surrounded by some really stupid neighbors and it is not likely to get any better.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
depending on your total # of homes to 'spread the cost' :

consider petitioning for a court appointed receiver to 'get y'all back on track'

OR

move
TraciS1 (California)
Posts: 5
Posted:
All current BM's are in her court. They have created a resolution and formed an Executive committee that will perform all the board duties expressly for the purpose of excluding me. Ironic that the first action they've taken that's been executed correctly is this one.

They will not, however, tell me what I have supposedly disclosed.
CarolR11 (Colorado)
Posts: 2,563
Posted:
Check davis-stirling.com, Executive Committees, Staci. It does not seem that the Board can strip you of all the duties of a director by forming an executive committee that includes every director but you. Basically they can keep you from voting on ES types of issues. Note that they cannot remove "nondelegable" director duties from you.

This appears to mean that you can contribute as usual to your regular board meetings. Also see CA Civil Code 1363.05(i) for the clearly stated rights of directors (and others) to speak at board meetings in CA. So, if your bylaws or other documents state that directors may not be convicted felons, and the ex-prez, still director, is one, state it out loud at a regular meeting. state that you want to be on record opposing the board's wish to ignore your governing documents (i.e, her qualifications).

If your docs are silent about convicted-felon status, take a look a CA corporations code, which may discuss it.

The main problem, though, seems to be that you have no or little support from others. Can you tell us what size your HOA is and how many are on the board?

TraciS1 (California)
Posts: 5
Posted:
There are five people on the board and we have 131 units. They have done everything correctly this time. Passed a resolution, posted notice 48 hrs. before meeting, as well as consulting with lawyer for final approval. I'll be stepping down instead of retaining a position that serves no purpose. Ironic that one of the few things that has been done properly is my censure. At least I've been a catalyst for something being done the way it's supposed to, hopefully this carries over into other things moving forward.

Happy New Year everyone and thank you for the support. I know when it's time to let go and that is now. On to bigger and better things...

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