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KevinK7 (Florida)
Posts: 1,343
Posted:
We all know my posts regarding my neighborhood, the expired covenants, and the HOA that claims to sort of have authority (they seem to be making up rules as they go, like telling some homeowners that they can only leave the HOA at the end of the year). A new year seems to bring new problems.

Last year there were elections that saw a new board president. It was also announced that there would be a change in office management. Now it had just been revealed that the new office management, run by a community management company, is... run by the board president! Apparently the lawyer signed off on this and said everything was kosher. I was anticipating a whole slew of new problems come January 1st and I cannot wait to see what this development brings.

I find having the president also run the management company and be the property manager for the association, AND have the HOA lawyer have no problem with it to be a very bad decision. While I am not a member to the club I am prepared. So far the new manager/president decided to ignore the fact that I have legal representation and continued to contact me directly.
FrankS10 (Kansas)
Posts: 276
Posted:
My own policy is it is in the best interests of not only the Board members, but for the membership as well, if Board members not only avoid actual conflicts of interests but just the appearance of them.

For example, some of the lots in our community have sold and have not been built on. We require lots to be maintained to a certain length. The Board finally contacted, after several complaints from adjacent neighbors, an absentee neighbor who has let their lot grow 3-4' tall. After being elected in November, I volunteered to cut this if we received permission from the lot owner. The owners agreed to allow us to cut it 2 times per year and pay $125 per cut. (approximately 3 acres)

I cut it and refused payment and sent an e-mail to the other Board members that we will announce this at our next meeting and anyone wanting to cut it should contact X at... I figured I would not have known about this opportunity unless I was a Board member and thus it would not be fair for me to take advantage of this. I left a message to the lot owner to just donate the $125 to the HOA.

Just the appearance of trying to be fair will win our Board more support, much more than criticizing anyone who offers up feedback. JMO, but much of the angst Board members receive is a result of not being sensitive enough to how our actions/decisions may be perceived.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Quote:
Posted By KevinK7 on 01/05/2014 4:14 PM
We all know my posts regarding my neighborhood, the expired covenants, and the HOA that claims to sort of have authority (they seem to be making up rules as they go, like telling some homeowners that they can only leave the HOA at the end of the year). A new year seems to bring new problems.

Last year there were elections that saw a new board president. It was also announced that there would be a change in office management. Now it had just been revealed that the new office management, run by a community management company, is... run by the board president! Apparently the lawyer signed off on this and said everything was kosher. I was anticipating a whole slew of new problems come January 1st and I cannot wait to see what this development brings.

I find having the president also run the management company and be the property manager for the association, AND have the HOA lawyer have no problem with it to be a very bad decision. While I am not a member to the club I am prepared. So far the new manager/president decided to ignore the fact that I have legal representation and continued to contact me directly.

It is definitely a conflict of interest and you're correct it doesn't pass the "smell test." The conflict occurs because the HOA president is financially gaining from serving on the HOA board with power over his own vendor contract, but I'm not sure that guarantees unethical board operations (though it creates all sorts of red flags just in the structure of the self-dealing business arrangement).

The only two options are the board president resigns OR he provides management services free-of-charge. The attorney's opinion might cover the legality of the HOA president/management contract relationship, not whether it's proper, risky or a conflict-of-interest. It probably is legal.....it's just not right and the HOA dues payers should not tolerate it.
KevinK7 (Florida)
Posts: 1,343
Posted:
There have been problems brewing and with declining membership over the years the HOA has been shooting itself in the foot left and right. That is pay off why I was so eager to get out. I think that is also why the HOA gas been ignoring MRTA and teeing every way to collect more money. They also have decided to undertake many projects during a time of economic hardship, both homeowners and association, instead of be more diligent h the budget.
KevinK7 (Florida)
Posts: 1,343
Posted:
I really am starting to think there is no help in them. Even when presented with logic they just wanna do their own thing.

Personally I saw no need for a management company. The neighborhood is 350 homes and they had run for nearly 30 years self managed. They pai d a PT office manager, maintenance guy, accountant and lawyer. All of a sudden a new ppresident and now they go through them for management?
MissyP (Alabama)
Posts: 63
Posted:
That was NOT self management if you had those people on a payroll. That's not what qualifies as self management in a HOA. We were self-managed but our Treasurer/accountant also owned a home in our HOA. Although an outside accounting firm is okay to go with even if self managed IMO. That way it's known third party without personal involvement.

I don't see a problem with that set up. The president's power is not all you may think it is. Read their job description. It's not like they get more voting powers than anyone else. They still have to act as the agent of the board. With so little participation with members, it may be easier and cheaper to have someone in place that can do all of it together.

I say unless your willing to do the job yourself, let the person who has the job do it their way. You can always recall them if you don't like the job they are doing NOT because you don't like the idea of what you perceive a conflict of interest.
RichardP13 (California)
Posts: 1,767
Posted:
Missy

Sorry, but Kevin scenario is self-management, even if it had employees, as they were under the direct supervision of the Board of Directors. A management company, on the other hand, compensates and control their employees who would perform services for the HOA.

Having the Board president as the managing agent is completely a conflict of interest and the attorney SHOULD have know that, or they did and looked the other way. If so, I would be looking for new legal counsel.
KevinK7 (Florida)
Posts: 1,343
Posted:
I don't think their attorney is that good. They ignored my legal representation and continued to send me enforcement letters and even after they were put on notice. And even being made aware of certain applicable statutes they have continued to ignore the law to continue business as usual.

Their may be a conflict of interest but I consider the neighborhood self run. The board operated out of a clubhouse and there was a budget for an part time office staff and a maintenance guy. I'm a bit confused. With declining membership and funds how can they afford hiring a management company to run the show? And I believe they still have the office staff. My thoughts are that they are going to push enforcement of the expired C&Rs and convince people to pay dues.

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