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ReneeC2 (Florida)
Posts: 93
Posted:
A lot of you know that I have a nonfunctioning HOA. Evidently the president sucks, BUT he's been in the president seat forever. And although he's not doing what he should, I bet he knows what he's SUPPOSE to do. When we finally form a new board, do we leave him on and use his knowledge or kick him to the curb for allowing a defunct community?

In meetings, do y'all really go through all the "second that" "carried" type stuff? What about there's only a couple people in the room?

Do you recommend a class? There just seems like SO much stuff, how does one not make 10 million mistakes?

The CC&Rs are crazy when you really get into them. I swear it says something in one sentence, then there's a semi colon and then it takes back every it just said. They also weren't written for my community, but for all communities in general. Has anyone ever gotten them re-written? I saw a lawyer that will make our CC&Rs Davis-stirling compliant and will reword it so it makes sense to EVERYONE. Being that we are going to be all n00bs on the board, would you recommend this service?
ReneeC2 (Florida)
Posts: 93
Posted:
As soon as I ask the question BOOM, there's the answer as to whether or not I HAD to.

"There is no requirement that board and committee meetings be conducted under Robert's Rules or any other system of parliamentary procedure. Strict adherence to Robert's Rules in board meetings can be unwieldy. Boards are free to use more flexible procedures, unless the association's governing documents require otherwise. As provided for in Robert's Rules, board meetings where there are not more than a dozen directors present, "some of the formality that is necessary in a large assembly would hinder business."
MissyP (Alabama)
Posts: 63
Posted:
California is one of those states that goes by Davis-Sterling. Not every state or HOA does that. Robert Rules of order is indeed a FORM of meeting but NOT an requirement. It's more or less a guideline on how best to conduct a meeting. There are several other methods and your documents might even tell you what/how needs to be covered. Our Articles of Incorporation dictated what must be covered in each meeting and the duties of each officer. It's NOT all in your CC&R's.

As for rewriting your documents, I have gone through that. It's all dictated on how that is to be done and the vote needed to pass the changes. It will take a lawyer to help draft. It is also NOT cheap as it cost to file those documents besides hiring the lawyer to redline/file them. There are also costs involved in making copies after the rules have been changed and other processing costs. It cost us about 3K and 3 years of hard work to change ours. It at first required a special meeting and a 90% vote of ALL the members to change the CC&R's. It was a 75% vote of the ALL the members to change the by-laws and Articles of Incorporation. We were able to get out of the special meeting requirement which helped us gather votes door to door or at the regular meeting.

It is good to keep a former person so familiar with the HOA on good terms. When I stepped down, I stayed as a board member. That way I still had some voting rights and could give guidance to the new board. I no longer lived there but my house was rental. So I still had an interest in participating and had knowledge of much of the history for decisions. Don't throw the baby out because of the dirty bath water...
ReneeC2 (Florida)
Posts: 93
Posted:
Quote:
Posted By MissyP on 01/23/2014 9:14 AM

It is good to keep a former person so familiar with the HOA on good terms. When I stepped down, I stayed as a board member. That way I still had some voting rights and could give guidance to the new board. I no longer lived there but my house was rental. So I still had an interest in participating and had knowledge of much of the history for decisions. Don't throw the baby out because of the dirty bath water...

Even in light of the fact he is running the HOA illegally? I'm trying to debate if the things I'd learn are actually the things want to learn. I'd have to look up everything that came out of his mouth. Is that advantageous? Not sure yet.
ReneeC2 (Florida)
Posts: 93
Posted:
Quote:
Posted By SamD2 on 01/23/2014 9:33 AM
A lot of you know that I have a nonfunctioning HOA. Evidently the president sucks, BUT he's been in the president seat forever. And although he's not doing what he should, I bet he knows what he's SUPPOSE to do. When we finally form a new board, do we leave him on and use his knowledge or kick him to the curb for allowing a defunct community?

++++++++++++++++++++++++++++++++

If you think he "sucks" why would you want to keep him around,just doesn't seem right to me.Seems very dishonest and cowardly.

Actually, I'm not even considering him at all. Whatever is best for the community is the way I'm going to roll. He could of caused me to lose my house. It STILL could happen. So no, I don't feel bad about using him to the extent of what I'm allowed for the betterment of everyone, even HIM. If using him only includes letting him keep on keepin' on.... I'll be cool with that at the pearly gates.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Illegally in what perspective? The law of the land or the HOA? Remember the President and board members are ALL owners. Why would they make decisions that would effect them as owners or as officers? A HOA is ONLY run by it's members for it's members. It lives by the laws/rules it wants to have. If the rule does not make sense any more, the owners can change it.

So "illegal" may be against the HOA rules, but if a majority of owners view that rule inadequate or invalid it can be chosen to be ignored until it can be changed.

Former HOA President
ReneeC2 (Florida)
Posts: 93
Posted:
Pretty sure he's not allowed to be President, vice-president, secretary and treasurer all at the same time. Corporations are not allowed to function that way. All business activity is to stop until it's fixed.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Surprise... The ONLY position the President is NOT allowed to do? Act as Secretary. That is in many HOA's role definitions. Vice Presidents do NOT automatically take over if the President quits. the Secretary is to keep the Meeting notes and publish them The BOD approves them nest meeting.

If the President doe not have enough people participating or doing their duties, they may act as "ALL". A HOa has to keep running and someone has to do it. It won't run itself and checks have to be signed.

Former HOA President
ReneeC2 (Florida)
Posts: 93
Posted:
Just because it continues on, doesn't make it legal.

California:

Board Required. Corporations are required to have a board of directors:

Without a board, a corporation cannot conduct business, which means insurance coverage will lapse, maintenance ceases, rules enforcement ends, the association's corporate status lapses and lawsuits cannot be answered. This exposes each owner to potential liability. Resignations by all directors without appointing replacements may also be a breach of the resigning directors' fiduciary duties.

Management Companies. Managers are agents of the association and have no independent authority to oversee associations. Managers can try to persuade owners to volunteer, but managers have no authority to appoint directors. Without a board, the management company should immediately resign the account.

Receivers. If necessary, courts can appoint a receiver to oversee an association.

Less Than a Quorum. If the bylaws call for five directors but only one is willing to serve, that one director cannot conduct any business except to appoint additional directors. Once a quorum of directors has been appointed, the board may then conduct business. If the remaining directors fail or refuse to appoint directors to fill empty seats, the membership can call a special meeting to elect new directors.

Read more: Board Required http://www.davis-stirling.com/MainIndex/LosingEntireBoards/tabid/1365/Default.aspx#ixzz2rFX6Bd00
from Davis-Stirling.com by Adams Kessler PLC.
RichardP13 (California)
Posts: 1,767
Posted:
Quote:
Posted By MelissaP1 on 01/23/2014 10:33 AM
Surprise... The ONLY position the President is NOT allowed to do? Act as Secretary. That is in many HOA's role definitions. Vice Presidents do NOT automatically take over if the President quits. the Secretary is to keep the Meeting notes and publish them The BOD approves them nest meeting.

If the President doe not have enough people participating or doing their duties, they may act as "ALL". A HOa has to keep running and someone has to do it. It won't run itself and checks have to be signed.

Melissa

You need to get your story straight!
First, you state that the ONLY position the President is not allowed to do is ACT as Secretary, then later you say IF the President doesn't have enough people participating or doing their duties, they may act as ALL?

Officer position pretty much mean nothing. Officers do not vote at Board meeting, only directors, that's why it's called a Board of Directors meeting, not a Board of Officers meeting.

Melissa, this poster is from California, and we have laws and/or codes. The members, if they don't like them, can't just change them as you say. Your advice is why HOAs get sued. You just may the case for someone. If an association has one board member, when they should have three or five, and they conduct business, they are doing so illegally. If they continue to do so, they will and have been sued. A bad Board, no matter what size together with a bad management company are sometimes hard obstacles to overcome, because you are thwarted at every turn.

I don't like all the rules that we have to follow in California, some I think are a joke, but unless I change them, I have to follow them or potential pay the consequences. I recently joined California Legislature Support Committee. I decided to be a part of the solution instead of part of the problem.

So Melissa, while YOUR rules and advice might apply to your state and maybe a few others, they DO NOT apply here in the Sunshine State.
RichardP13 (California)
Posts: 1,767
Posted:
"Management Companies. Managers are agents of the association and have no independent authority to oversee associations. Managers can try to persuade owners to volunteer, but managers have no authority to appoint directors. Without a board, the management company should immediately resign the account."

A short story. In July of 2013, I went to work for a management company as a portfolio manager. On July 19th, I was handed 19 accounts after they fired one of their managers. During the next two weeks, I tried contacting the Boards of record of these 19 associations. I found out half didn't have Boards, three just conducted "illegal" elections. When I contacted the owners of the company, I was told we can't afford to lose any accounts and look the other way.

Thirty minutes later, I went out the same door I came in and didn't look back. Three days later, I started my own company.

There is a correct way to operate in this business and it isn't as difficult as people want to make it.

RichardP13 (California)
Posts: 1,767
Posted:
FYI, in California, Corporation Code would allow one person to hold multiple officer position, IF so allowed by the governing documents.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Renee,

When I had my issue with my Association I discovered that the issue was, in reality, one person on the Board. Even though I provided copies of State Statutes that backed my position, the Board wouldn't budge on their position.

Once that one individual finally chose not to run again, the Board approached me and said that the my position was correct and the Board would no longer take the position they had been taking. What I found out later was, since this person had served on the Board for 18 years, everyone expected that he knew what he was doing and when he spoke nobody challenged him. Problem was, since he had served so long, he quit looking at the applicable laws, which change every year.

The fact that he wasn't keeping up to date and the fact that nobody would challenge what he said (after all he had served for 18 years he must know what should be done), issues that could have been avoided became the focus of most meetings.

What I'm saying is that if your individual isn't re-elected, it very well could be the best thing that happens to your Association.

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