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KH (Maryland)
Posts: 2
Posted:
We've got a doozy of a problem that I haven't seen addressed anywhere in these forums.

We have a vacation condo in a six unit building at a resort area in Maryland. Two years ago, one of our residents was taken away by the State. The following year we heard that the unit was sold, privately, to the son-in-law of the Condo Assoc. President.

Over the last year we have been assessed special assessment to do major renovations on the 30 year old building. The homeowners approved a number of renovations and put a priority on their completion.

Well, the new homeowner has decided that "other" priorities should be included and paid for by the Association. These other priorities include windows and the facade of the building. We, and two other unit owners, said that the priorities that we approved must be completed before we considered any additional renovations. We also noted that windows, including the work he proposed for the facade, were not the responsibility of the Association but the individual homeowners.

The new homeowner kept pressing, going so far as to have a proposal submitted to the Board for consideration. Again, we insisted that the other priorities took precedence and we would not consider his pet projects. We also believed that in order to do anything that would alter the appearance of the building, they would need the consent of the entire building.

I just found out today that the SOB went ahead, with his Father-in-Law (the Assoc. President) and had the work completed. They insist that the work was paid for out of their own pockets but I don't believe them. Now one side of the building looks completely different from the other!

What recourse do we have if any? Anyone?
JM2 (Oregon)
Posts: 439
Posted:
Hello KH:

Read through your documents (CC&R's/Master deed, and Bylaws) to see specifically what is the responsibility of the HOA and of the owners; to see what the architectural approval process is; and if any homeowner can sue to enforce the covenants. This should give you a good sense of what kinds of actions you could then take, if things have not been done correctly.

If anybody knows who the contractor was who did the work (ask around?), that might be helpful as well, as a source of information. You may be able to access financial documents (checks, invoices, etc.) which would then let you know if association funds were used to pay for the work. You might have to research building permits at the city or county offices.

It sounds at the very least that you have a situation where the Board President may have a conflict of interest (at the very least, if things were approved with his vote and he didn't recuse himself from discussion and voting) and possibly a situation where funds have been used improperly (maybe even embezzlement?).

At some point in this, you may want to involve your lawyer; it may be prudent to talk to your lawyer before proceeding, to make sure that everything you do is legal, avoid any issues of slander/libel, etc.; also, if your lawyer is writing to request copies of documents on your behalf, you may end up with a bit better cooperation (then again, you might end up getting it all through the discovery process). Your lawyer would also be able to advise if and when this should go to the legal authorities for investigation and/or prosecution, if that's called for.

Best of luck!

J. Patrick Moore, CMCA
HaroldS1 (Arizona)
Posts: 314
Posted:
Seems like you have more problems than who paid for it. How can just one part of the unit be changed, even if paid for by the owners, leaving the other portion looking different? Do you have an AC committee? Why would they allow a change that would not retain a uniform look? Who are the other members of your board beside this president? And where were they when this was going on? Is the son-in-law also on the board?
Any recourse you might have would be only if the ACC and your HOA is run correctly. I can't fathom any competent committee allowing this to happen. Does your president also control the ACC? This seems an overt act to force the rest of you to make the same changes to regain uniformity. I'll get stoned, but if they have such absolute control of your HOA, the only recourse you have is to sue them.
You mentioned this unit was sold privately to the son-in-law. Is this a breach of your documents? Is everyone or a committee supposed to review and approve prospective owners? Otherwise I don't see the problem in his buying the unit. Harold
KentS (Maryland)
Posts: 12
Posted:
State of Maryland has a set of statutes that give Homeowners access to HOA financial records. Those statutes are on the internet; read them and know your rights. Make a proper request for the information. If you don't receive cooperation from the board, complain to the Maryland Consumer Protection office in Salsbury MD; they report to the Maryland Attorney General.

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