KathleenF (Illinois)
Posts: 19
Posts: 19
Posted:
I just read the recent posts on Douglas' HOA Boards topic, and I am moved to create a new "topic heading" for my response. . . .
With genuine respect to the folks who suggest using the letter of the Bylaws and organizing decent shareholders to oust the bad guys. . . I think it is high time for us to acknowledge that this approach often fails, that litigation is costly and draining, and that many of the millions of Americans living in COI's need SOMETHING ELSE.
I'm not yet clear exactly what that "Something Else" is, but I'm thinking it would start with legislation establishing low-cost arbitration and mediation, real sanctions against Rogue Boards (& Guerilla Shareholders?), and equal rights for cooperative owners and other non-condo forms of HOA's. A few states are already moving in this direction.
I for one am going "on the record" to say that it is NOT OK to tell every victim of a Rogue Board to just get busy and organize his neighbors to elect a better board--or to imply that anyone who can't restore order and decency with that method is a whiner, a slacker, or a whacko.
In some buildings, it is simply IMPOSSIBLE to educate and organize enough honest shareholders to vote out an incompetent or dishonest board. Rogue Boards can hold on to their power by deceit, intimidation, sleight of hand, character assassination, courting swing voters with attention and favors, and trading on personal loyalties. They can regain power--when they lose it--by becoming Guerilla Shareholders who lie, backstab, and harass new boards that are trying to play by the rules.
All of these strategies can be employed to "blacklist" the reformers and make it dangerous for other shareholders to even talk with them.
Rogue Boards and Guerrilla Shareholders learn who needs a carrot and who needs a stick and who just wants to be left alone. Sometimes, the more rules they break and lies they tell, the easier it is for them to get away with it. Bad news is unpleasant to hear; the truth can get complicated. Sometimes good people just shut down and wish the building "watchdogs" would stop barking, even if there are rats in the cellar.
I am a lawyer, with years of experience as a succesful organizer, author, administrator, and teacher. Although retired and quite ill, I have worked hard trying to clean up my little Dodge City. I joined the board of my 18-unit cooperative almost immediately , even serving as president for a while. I memorized our governing documents and invoked them to institute wide-ranging reforms--despite a truly vindictive backlash from the old guard.
At the best point, I had organized 9 out of 18 residents and we held a slight majority of shares. But it would have been a full time job to hold that coalition together in the face of so much manipulation. Then 2 of the 9 moved out--in complete disgust with the old guard--and new owners were immediately warned not to associate with me. The board issued defamatory letters and minutes, painting me as the bad guy. That last move will serve me well when I sue them, as their lies are rebutted by the record. But I cannot devote my life to educating new residents and maintainng alliances with the honest people who are, by this point, too stressed out, bought off, timid, ticked off, disinterested, or snowed to stand against the tide.
While board president, I had a Reserve Study done and tried to implement it--violating the old's guard's cardinal rule against spending money to maintain our common elements. And I led an effort to make the insiders pay dues on time and buy unit insurance (like everyone else). The backlash was so furious I could not get a quorum for board meetings or obtain board approval for even the most routine decisions. The old guard made it clear: cooperation with me was strictly forbidden.
Once I resigned, the old guard took over and, by its deeds, repealed my reforms--returning the building to closed meetings, hidden records, late budgets, missing financial reports, harassment of political "enemies," suppressed and inaccurate minutes, flagrant cronyism, conflict of interest, and bald disregard for our governing documents. The Reserve Study was buried and has stayed buried for 2 1/2 years. Whether or not the insiders are complying with our insurance rules remains a closely guarded secret.
My experience is not unique or even unusual. So--those of you who have found success with your efforts to reform from within--please realize that even with hard work and proven skills, this does not always work.
As we all know, much depends on the governing HOA documents and state law. For example, here in Illinois we have a comprehensive Condo Property Act which mandates the fundamentals of good business practice and open government. But I live in a cooperative, and coops are governed by the business corporation laws--which don't even address many fundamental issues. Unless you get lucky, your IL coop may resemble the Wild West. Even small efforts to extend some civil rights to coop owners get shot down in the legislature. For example, if your coop has less than 24 units, the board can close all of its meetings.
INVITATION: But I would love to invite a constructive discussion about just what "Something Else" would be. Do you live in one of the states that have started to deal with mediation, arbitration & enforcement issues? How's that working? Do you live in a state like Illinois that leaves coop owners in the dust? Or gives you no options besides costly litigation? What kind of help do you NEED?
REQUEST: I've heard there's a proposed Uniform Law on HOA's out there somewhere and will be taking a look at that, as well as the HOA laws in NJ, PA, and CA. If anyone has citations or text handy for these laws, that would be appreciated.
Kathleen
PS: I'm not personally interested in debating whether or not "Something Else" is needed in many states. If you do want to debate that, I'd consider it a courtesy if you would post a new topic.
With genuine respect to the folks who suggest using the letter of the Bylaws and organizing decent shareholders to oust the bad guys. . . I think it is high time for us to acknowledge that this approach often fails, that litigation is costly and draining, and that many of the millions of Americans living in COI's need SOMETHING ELSE.
I'm not yet clear exactly what that "Something Else" is, but I'm thinking it would start with legislation establishing low-cost arbitration and mediation, real sanctions against Rogue Boards (& Guerilla Shareholders?), and equal rights for cooperative owners and other non-condo forms of HOA's. A few states are already moving in this direction.
I for one am going "on the record" to say that it is NOT OK to tell every victim of a Rogue Board to just get busy and organize his neighbors to elect a better board--or to imply that anyone who can't restore order and decency with that method is a whiner, a slacker, or a whacko.
In some buildings, it is simply IMPOSSIBLE to educate and organize enough honest shareholders to vote out an incompetent or dishonest board. Rogue Boards can hold on to their power by deceit, intimidation, sleight of hand, character assassination, courting swing voters with attention and favors, and trading on personal loyalties. They can regain power--when they lose it--by becoming Guerilla Shareholders who lie, backstab, and harass new boards that are trying to play by the rules.
All of these strategies can be employed to "blacklist" the reformers and make it dangerous for other shareholders to even talk with them.
Rogue Boards and Guerrilla Shareholders learn who needs a carrot and who needs a stick and who just wants to be left alone. Sometimes, the more rules they break and lies they tell, the easier it is for them to get away with it. Bad news is unpleasant to hear; the truth can get complicated. Sometimes good people just shut down and wish the building "watchdogs" would stop barking, even if there are rats in the cellar.
I am a lawyer, with years of experience as a succesful organizer, author, administrator, and teacher. Although retired and quite ill, I have worked hard trying to clean up my little Dodge City. I joined the board of my 18-unit cooperative almost immediately , even serving as president for a while. I memorized our governing documents and invoked them to institute wide-ranging reforms--despite a truly vindictive backlash from the old guard.
At the best point, I had organized 9 out of 18 residents and we held a slight majority of shares. But it would have been a full time job to hold that coalition together in the face of so much manipulation. Then 2 of the 9 moved out--in complete disgust with the old guard--and new owners were immediately warned not to associate with me. The board issued defamatory letters and minutes, painting me as the bad guy. That last move will serve me well when I sue them, as their lies are rebutted by the record. But I cannot devote my life to educating new residents and maintainng alliances with the honest people who are, by this point, too stressed out, bought off, timid, ticked off, disinterested, or snowed to stand against the tide.
While board president, I had a Reserve Study done and tried to implement it--violating the old's guard's cardinal rule against spending money to maintain our common elements. And I led an effort to make the insiders pay dues on time and buy unit insurance (like everyone else). The backlash was so furious I could not get a quorum for board meetings or obtain board approval for even the most routine decisions. The old guard made it clear: cooperation with me was strictly forbidden.
Once I resigned, the old guard took over and, by its deeds, repealed my reforms--returning the building to closed meetings, hidden records, late budgets, missing financial reports, harassment of political "enemies," suppressed and inaccurate minutes, flagrant cronyism, conflict of interest, and bald disregard for our governing documents. The Reserve Study was buried and has stayed buried for 2 1/2 years. Whether or not the insiders are complying with our insurance rules remains a closely guarded secret.
My experience is not unique or even unusual. So--those of you who have found success with your efforts to reform from within--please realize that even with hard work and proven skills, this does not always work.
As we all know, much depends on the governing HOA documents and state law. For example, here in Illinois we have a comprehensive Condo Property Act which mandates the fundamentals of good business practice and open government. But I live in a cooperative, and coops are governed by the business corporation laws--which don't even address many fundamental issues. Unless you get lucky, your IL coop may resemble the Wild West. Even small efforts to extend some civil rights to coop owners get shot down in the legislature. For example, if your coop has less than 24 units, the board can close all of its meetings.
INVITATION: But I would love to invite a constructive discussion about just what "Something Else" would be. Do you live in one of the states that have started to deal with mediation, arbitration & enforcement issues? How's that working? Do you live in a state like Illinois that leaves coop owners in the dust? Or gives you no options besides costly litigation? What kind of help do you NEED?
REQUEST: I've heard there's a proposed Uniform Law on HOA's out there somewhere and will be taking a look at that, as well as the HOA laws in NJ, PA, and CA. If anyone has citations or text handy for these laws, that would be appreciated.
Kathleen
PS: I'm not personally interested in debating whether or not "Something Else" is needed in many states. If you do want to debate that, I'd consider it a courtesy if you would post a new topic.