Breach of fiduciary duty

yes .... correct on both points

remember: you and your neighbors ELECTED the 'yokels'

you may consider petitioning the court to appoint a receiver if things are really really bad

I guess in a way we elected them..... no one participated in the election. Who is a receiver?

I offered my help recently to the management company and they told me to contact "the board". I then started reading about the role of the BOD and how it is not something I could just teach myself to do correctly by reading book after book. I do not see any D&O insurance documents and would be afraid of personal liability. I do not want to sue and am looking for the proper steps to take to cleaning this place up and restoring my property value. Not only do I have an ineffective HOA, but I also have super inconsiderate neighbors. I don't even know how to ask for help, as there are so many violations and issues. The neighbors to the left and across the street from me are very aggressive people. There is no chance I will approach them directly. I just ordered a video surveillance system, before I get this ball rolling, as I honestly fear them.

I'm willing to research anything, I'm just so confused at this point.

I speak of semi experience as that scenerio happened to a good friend and his community. If you have an ineffective or semi-defunct HOA, and the place is riddled with violations, read the writing on the wall if you are in fear of the "aggressive" neighbors. It can and will only go further down hill. Gated or not. You should sell now because it will be harder to do so as more aggressive neighbors move in or start hanging out or whatever it is they do that has you living in fear.

It should have you thinking of alternate living arrangements, surveillance systems are not going to help you if you decide to get the ball rolling to get the HOA organized, to then get the place cleaned up for your property values to go up.

I am sorry that your in this situation, just make sure of the fight your about to fight will give you the reward your looking for.

oh sorry, when you said you honestly fear "them", I thought you meant the aggressive neighbors. A lot of us can appreciate an upside down situation and I wish you luck in your endeavor.

If it were as easy as that, Tim. I would love to put my energy into positive things. Becoming educated on your rights, and in my case my risks, does not mean I'm automatically jumping to the idea of suing. Suing is the last thing I want to do and is why I'm still dealing with all of this 3 years after I purchased the place. Just assume I'm a smart girl and that I know the ramifications.

Jok, you are indeed correct in that I fear their aggressiveness. The camera is so I can catch them if they show their butts and disrespect my property. I have different "equipment" if they come onto my property and threaten me physically. ha ha.

There are 3 new neighbors in the community, so I am going to approach them with hopes of them not being tainted. The original owners that live here, they have no interest. I'm a very logical thinking person and if one neighbor was having problems with many neighbors, you would pretty much assume it was the common denominator that was the problem.... the one neighbor. But it's like I'm in a cocoon made of mean crazy people.

The oceans and rivers were not filled by God alone. He made the rain and filled them with one drop at a time. That is the lesson you have to learn when you make positive changes in your HOA. Nobody here that is on their board or made it to officer position did it overnight or without sacrifice. I can't even begin to tell you all the emotions, blood, sweat, and tears I went through to change my HOA. It was worth it but it took ALOT. If you don't want that, then keep up what your doing and let "Others" do their job. Sit back and accept it. If your not leading the cause, then let the cause lead you.

Suing your HOA is suing yourself and your neighbors. Your post is prime example of that. What slap are you sending except to your own behind? Do I agree that suing your HOA is suing yourself? Absolutely NOT. However, the FACTS are what they are. Can not change them. It is the EXACT risk and responsibility you take when you sue your HOA. Even if the HOA sues you, they are spending your money against you or one of your neighbors. That's why I don't recommend suing unless in extreme cases and in a large group. However, if you do have a large group of supporters then you have enough members to make a change in the rules or HOA board. You don't need a third party court system then.

My suggestion is to read your CC&R's, Articles of Incorporation, ACC documents (if exist), and by-laws. Know them backwards and forwards. Even practice writing violation letters that would include the reference the member is violating. You don't have any powers to serve them yet until your on the board and they are agreed upon. However, if you practice this technique you will learn your rules and how best to apply them. Plus you may learn a few things along the way in how best to write and serve such letters.

I started small projects around my HOA. One was a "community flower garden". Many of us liked to plant and share flowers. So we would often get together and swap flowers or plant the extras in the front entrance area or designated area. I also held a "volunteer day" that the HOA would provide the materials and the people the labor. I even let the kids get involved on some things.

You can organize things outside of the HOA as well. Neighborhood watches should NEVER EVER be mingled or part of your HOA. It should be it's own entity with no HOA funds involved. Neighborhood watches can include non-members like renters and live-ins. Get with your local police to find out how to do that and let your HOA know it is a volunteer only venture with NONE of their involvement. Just allowing you all to watch out for each other.

If your afraid of lawsuits. Get over it. 98% or higher of the time they are just empty threats. Just to get a knee jerk reaction out of you or the board. I never listened to them or even reacted unless they did have a point. Even if they had a valid point, I would just bring it up at the meeting to discuss a solution as it would most likely effect everyone else to. A HOA is better of counter-suing than bringing a lawsuit. A HOA that is incorporated should already have D&O insurance in place that is paid for out of the dues money. It is to protect the board members from being sued as an individual if they make a dumb decision. The lawsuit will still be filed and all. It's just the insurance company will resolve it or the court tosses it out. That's not to say that you can't be sued if you did something that the board did not approve. Then you did not act as a board member. You acted on your own then. So be careful and stay within your lane.

Make an effort and dance like no one is watching with a lawyer by their side. If you worry about every little lawsuit potential you ground yourself. Make educated decisions and ones you will stand behind regardless of a lawsuit. You do that, you may find yourself and others making positive changes in your HOA that fits into the rules.

Well, for me it was you initial post on this thread that gave me that impression [emphasis added]:


What I highlighted sounding like you were more concerned with using legal actions then correcting the issues from within.

However, now that I (and others) understand that you are willing to work from within to correct the issues you see, perhaps we can be more helpful in the future.

I'm looking at and trying to learn about EVERYTHING! It doesn't mean I want to utilize any of it. Maybe it shouldn't have been my starter question, it just seemed like a nice general place to start in light of everything in here being wrong.

Yes Carol, I think you're right. I was thinking of waiting until the summer elections so I can learn all I can from now until then. I now have a lovely bound copy of the CC&Rs. That site you listed is a God-sent.

Hi,

I agree with Carol. Learn your CC&R.

I can tell you what happens when someone sues.

First, you hope that the case goes to small claims court. Small claims court will list the HOA name but needs a real name of a real person and an address. This could be the person listed on the Secretary of State Business programs website as the agent of process. You might check this first. This is the person all legal documents should go to.

However, if the information is out of date (ours was and this was one reason we went to court), you might have time to get the two required forms in before your HOA gets suspended for fined. If you HOA has been suspended. you are in trouble. However with 69 units, I would expect you have a management company. Make sure that the agent of process is current and the address is correct.

Why is this important? Your HOA legal status determines how the HOA can be sued and if it is covered by insurance at all.

Next you need to see what your insurance documents say. Your HOA board is required to allow you to look at these documents. In the documents is usually a clause about when and how the insurance can be canceled.Usually there is a clause about doing illegal stuff that will make the contract void.

In the case of fiduciary duties, it depends upon the court. If it is something such as elections or the availability of documents, that will go to small claims court. In which case, the agent of process might be named or the secretary/president.

In the case of a higher court required, mediation/arbitration is required prior to appearance before the court.

The insurance will usually pay for some of the expenses and that will be passed on to the HOA members, including the directors. The cost of the HOA lawyer would be paid by the HOA and would require board members to act and vote on the expense.

If you have a board that isn't working effectively, then I suggest you begin by requesting financial documents. These are something that if the docs are not produced, you can go to small claims court to demand. Looking at the financial documents you can discern if this is benign neglect or something much worse.