Refuses to address broken access gate.

Renee

Where are you located in California?

Doesn't your Board make decisions in open meetings that you can attend, Renee? I'm also puzzled about why a less than unanimous decision means the gate wouldn't be fixed. The Board majority determines what does or does not happen.

Is the gate listed on your reserves schedule? Even so, if it's not a major repair, usually the expense would e paid out of your operating budget.

Carol, there are no meetings. My husband and I stood outside the presidents house waiting for the meeting. Forty-five minutes later and this guy goes by on his bike and does a circle around to come talk to us. Seems there hasn't been a meeting in years. We knocked on the door and there was no answer. I swear he was hiding behind the sofa wondering who the heck showed up after all this time and apathy.

Three new people have moved in and immediately replaced their fences, so I know they at least care. The original owners have their original fences... termite ridden and falling down.

Carol, there is nothing in the "reserve". There's also a document from 2012 states that a reserve study one has not been done.

Renee,

It appears that your Board is aware of the issue and is trying to save the Association money by doing the repairs themselves. This does save money but may require additional time.

Perhaps you can offer to assist in the maintenance and repair of the gate.

The board's job is to get the gate repaired; it is not their job to fix it (or anything else) themselves. They should have called a qualified and licensed repairman as soon as they became aware of the problem.

It is also not the board's job "to save the Association money" by engaging in half-assed repairs. People who purchase a home in a gated community have a reasonable expectation that the gate will work just as they have a reasonable expectation that they will have to foot the repair bills. The board's job is to raise the money needed to repair the gate.

Renee, based on this & your other posts, I think that you and other homeowners either need to recall the board of wait until the next election and vote in a new Board. It appears that your current Board is ignoring CA state law with their behavior.

To learn a lot more, visit davis-stirling.com, which was created by some HOA attorneys in CA. It has a lot about all sorts of issues that you've raised.

That is a wonderful resource. Thank you.

Renee,

I am curious too, if your only common area is the gate and a wall. My HOA is in about as bad shape as yours with one major difference, our CC&R's expired so they can't be enforced. Iowa has a 21 year time limit to renew them and this was not done so the HOA can't legally enforce the CC&R's. Iowa has no HOA laws on the books, just nonprofit code.

My suggestion is to really think about what is important to you and write them out and rank them in order. Systematically approach each item on your list one at a time.

If fixing the gate is the most important to you, tackle that first. Like was mentioned get your hands on the documents and study them. Start some conversations with your neighbors.

It may take a long time to make the desired changes and be prepared to make some enemies. I am known as the kook in the neighborhood because I keep on the board about following the bylaws, and getting meeting minutes, and the financial report.

If you hold new elections, run for the board. I ran last year and got 3 votes one of which was my own. I had to take a breath and step away for a bit because it was affecting my mental health. Only you can decide how and what is the most important and how much stamina you have to stay the course. Most of all, keep things in perspective and keep a sense of humor.

I am not a person who enjoys living in a neighborhood with a lot of rules but that is my personal preference. So you know if the HOA starts to enforce rules which haven't been enforced in many years, you will encounter a lot of resistance.

I am going to run for the board again sometime, but not right now. I have been in contact with my legislators about passing a bill that has been re-introduced in Iowa this year. It's called the Common Interest Ownership Act. That will be about the extent of my involvement this year.

Good luck to you.

I think we are in the negative overall!!!!

There is no money. On paper we are in the negative. How we are paying all our bills is by using the Reserve Fund and the Bad Debt Fund. I have bigger issues than the gate and once again I have no idea where to start. I should have bought property in Canada in the back woods!!!

I missed this response. Thank you very much.

So, I need to ask for the bank account statements and balance sheets?

There's no one to meet. It's just the president.

I requested all documents I have a right to under the Davis Stirling Act. They are going to wish they had just fixed the gate when this gnat starts exercising her rights!

Thank you everyone. The help is invaluable.

does California not-for-profit corporate law require a treasurer ?

do the corporate bylaws require said treasurer to sign all checks ?

DOH

We have a President and two members at large.

What should I do now? Or first?

Renee

Actually in California the hierarchy of documents are:
1. Federal Law
2. State Laws (Civil or Corporation, unless they defer to the governing documents
3. CCRs
4. Articles of Incorporation
5. Bylaws
6. Rules and Regulations (these are not of the BOD, these are rules derived from the CCRs, that are created and voted on by the BOD, these would also include Election Rules.

You need to find someone you trust to go over all of your governing documents. You need to find out the authority of the association, through its elected officials. You Bylaws will state how many directors there should be. For a complex of 69 homes, three should be plenty, but your Bylaws will have the exact number. If there are three, then you have a President, Treasurer and Secretary. If five, then President, Vice-President, Treasurer, Secretary and one at-large. You want to see if one needs to be an owner to be a director, and whether an officer needs to be a director. Individually, the Board votes as directors, not officers, and every director would attends a meeting, whether executive or open, is entitled to a vote.

The software that created the budget report also has a membership list. That membership list shows where the owner lives and it may be off site, which means they have renters living in their unit. ALL mail, unless specifically directed by the owner, goes to the mailing address.

If you haven't had annual meetings and elections, a member can create a petition and garner signatures from 5% of the membership, (that's 4 homeowners)to call a special meeting of the members to count the votes for the election of directors. You could use the same process and recall one or all the directors. Depending on the age of your complex and documents, because of cumulative voting, it may be easier to recall all directors.

The process is not short one, or done overnight. It takes about 4 months from start to finish. First, get the membership list, there is no charge for that. The minutes, if any, and the financials, they can charge you 10 cents a copy. Knowing the software, it would take 10 minutes to PDF the financials for the past years. If they give you a hard time, they have something to hide. If they don't comply, threaten with small claims.

Most important thing, go and get support from your fellow homeowners. You will need help, but it is possible. You don't need volunteers or board candidate, maybe a couple, but someone to watch your back. Get the documentation you need first to see what you are up against.

You need help, you know where to find me.

Good, Richard and I think Renee was given similar advice on a different thread. Their election is, I think she wrote, in the summer so she and others could wait till then instead of trying to do a recall. They need the time, in my opinion, to learn their docs & state laws.

That's a better way of saying it than I did earlier with the "pooch".

Our association is suppose to have a President, Vice President, Secretary and Treasurer. The treasurer is suppose to have "charge and custody of and be responsible for all funds and securities." But I don't see mention of check signing specifically. I do, however, see a lot of signing going on with the Secretary, but it doesn't specially mention checks.

So, indeed we are illegal

Here's what the Davis-Stirling acts says

Collapse of HOA

QUESTION: Most of the owners in our 12-unit association stopped paying their dues. The board is not holding meetings and the management company terminated the account. The insurance has not be paid, the landscape, trash, etc. are not serviced as the vendors haven't been paid. At this point I think the intent is for all the owners to stop paying dues. Do you know what happens next?

ANSWER: What you describe is quite serious. Corporations cannot operate without boards of directors.

•Personal Exposure. Without insurance, all owners are personally exposed if someone is injured in your common areas. Each member could be sued and there will be no insurance to defend them or to pay any judgment. Each owner would need to pay out of pocket for an attorney and each could be liable for the entire judgment (joint and several liability).

•Suspended Corporation. Your association has probably had its corporate status suspended, which means it cannot defend itself against lawsuits.

•Deferred Maintenance. Deferred maintenance will accumulate, leading to water damage and mold in the common areas (more potential litigation).

•Director Liability. In addition to owners being vulnerable to litigation, directors from the last board of record could be sued for breach of their fiduciary duties for resigning without appointing replacements.

•Market Values. Finally, the market values of your units will plummet to the point of being unsalable. Sellers must disclose to potential buyers the true state of your association's affairs, and who in their right mind would buy into your association?

And even better.....

RECOMMENDATION: You should immediately seek legal counsel to determine your best course of action. A court-appointed receiver may be the quickest way to limit your exposure, especially since the association has no insurance. If the membership were smart, they would promptly restart association operations.

Could I "rally" volunteers with using the Davis-Stirling quote as to what could happen to us if we don't volunteer? Drawing attention to that fact couldn't put us at greater risk, could it?

Renee,

If I recall correctly, the developer is still in the picture. Is this correct?

Typically the governing documents are worded to give the developer more than 1 vote per lot. This usually gives the developer control of the votes (often with only owning 1 or 2 lots). If my recall is correct and the developer is still involved, you may just have to be a watchdog and wait to change things after the developer has sold all the lots and control of the Association goes to the membership.

Oh, you Aunt lives in LA too? Than we MUST live in the same community because Los Angeles is so small and all..... O.o

Renee,

I suspect that Sam is one of those posters who get on forums and tries to cause problems and/or posts about irrelevant topics. It's typically best to ignore those type of posters.

If Sam is one of those posters, I suspect the moderators will intervene.

Figured they were a troll when I read the other thread.

I could be wrong about the developer. Let me recheck my words/definitions.

The developer is no longer in the picture.