💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

DW10 (Colorado)
Posts: 4
Posted:
We have an annual meeting-budget ratification meeting next week. The management company sent the Board members (I am one) a pdf file with the notice of annual meeting, proxy, agenda and proposed new budget. The copies that were sent out are different than the one's that were mailed to the Members.
President of the Board changed all of them to fit her desires.
Things like "Annual & Budget Ratification Meeting Notice" to "Annual Meeting Notice"
"Ratify the 2014\2015 budget" to "2014\2015 Budget" on the items to be discussed.
Who the proxies are granted to (the President instead of Vice President).
Proposed budget printed on the back side of the last page, where hopefully no on will see it.

Our Bylaws state that '...unless a majority of all Members reject the proposed budget, the proposed budget is ratified and becomes the approved budget of the Association'. It's pretty obvious that the Pres and Secretary are attempting to hide the fact that the Members CAN REJECT the proposed budget. Virtually all past annual meetings have been an 'Annual & Budget Ratification Meeting' boldly appearing on the Notices to the Members.

There is a small increase to the proposed budget which will try to be sold to the Membership as going all into Reserves. Our dues are already high for what we get from the BOD. Some are the same members that barely avoided recall in 2012 due to a $1000 special assesment (also defeated) due to the BOD rampantly spending nearly all Reserve funds on major items. None of them bothered to seek cheaper contractors or even knew they were spending more than double the cost for some major replacements until we were "broke".

Our President has no idea of the Bylaws, CCIOA act, non-profit corporation laws etc. and thinks that she can do anything she wants to without Board approval. Rarely any communication with most of the Board, no sharing of information with the rest, approval of repairs over $500 (management contract says anything over $500 must have Board approval), and many other things. Think Dictator.

Here is my question...if the proxies are not the exact, LEGAL NAME of our association, would that invalidate them?
Bylaws, Articles of Inorporation legal name of association is:
'The Palmtrees Townhomes'("Association")
'Palmtree Townhome Association' is on the Proxies & Notice (of course it's fake)

It seems minor but if it's a legal document that people will be using to elect Directors, approve budgets etc, I'd think the name would be exact. If what I am asking is correct, I plan to bring it up at the Annual meeting. Any thoughts?

Thanks, apologize for the long post.

RogerB (Colorado)
Posts: 5,067
Posted:
DW10, it appears you are looking for a means to not increase the amount of he annual assessment. The only item you listed which I think is wrong is that proxies should leave blank the name of the person to whom the owner wants to specify as their proxy. The spending habits of the Board are certainly subject to consideration when electing Board members at the Annual Meeting. But until the Board tells their basis for decisions on spending noone can not make reasoned judgements.
DW10 (Colorado)
Posts: 4
Posted:
RogerB
Thanks for your opinion. You have much good advice and I thank you. I particularly like some of your posts on proxies on this forum.

It goes much deeper than that. Promise, this is the last long response.

I AM looking for a way not to increase dues, it cannot be justified when ther are other ways. I am the only one that has looked EVERY MONTH at ALL of the expenditures\income. Wiser choices spending the HOA's funds are what is needed. Financials, delinquencies etc. have been discussed twice in the last year, always tabled.

The bigger picture here is that I would like to compel the 3 longtime Board members to actually read, know and follow the CCIOA laws, our Bylaws etc., and be aware of where the HOA is fiscally. Or, GET OUT OF THE WAY.
Their attitude has ALWAYS been "gotta raise the dues".

President has been on and off the BOD since at least 1989, been removed from office before, entire Board was removed, and still has no idea of most of the laws or regulations that govern our HOA. Was also recalled in 2012, 4 resigned, recall was dropped since there were no other volunteers. I stood up for all 3 remaining Board members then.....had I only known!

A former President, on the BOD since 2005, one of those that resigned in 2012, incognito for a year, slid back on the Board last year as Secretary since there were no other volunteers for the open Directors. Never gets the Minutes out for reveiw the same month they were taken. Most of the time, the Minutes get altered to add or remove what was done or approved, omit many of the facts. President and Secretary meet together and REWRITE the Minutes to reflect whatever they want. When they are "approved" at a Board meeting, many times they are approved by Directors that weren't at the meeeting to begin with. Never signs them before posting to the Mangement Co website. It's pathetic or comical, take your pick.

A third member also part of the recall in 2012, brings NOTHING to the monthly Board meetings other than a bad attitude, never reads the Board packet beforehand, arrives late and leaves early, and constantly iterrupts anyone and everyone during the meetings.

All 3 now and have always been the first to motion and second and approve every item of business that involves spending. All 3 have cost the HOA many thousands in fudiciary irresponsibility and have learned nothing from their past. None ever look at the financial picture and have said they don't want to look at numbers, painfully obvious. Same old Board doing the same old things, proper or not, status qou.

The 4 new BOD members that were voted in in 2012, all resigned in less than 6 months for the same reasons I am stating. No Treasurer for 10 months, no secretary for 8 months etc.

Since our Bylaws say only if rejected by majority at the meeting, budget is ratified, they are hoping nobody is aware or paying attention and the proposed budget will stand. There is no requirement to VOTE on the proposed budget.

The only item to be voted on will be the election of 2 Directors whose terms are expiring, can you guess who?That is why I asked the question to begin with. They want to stay on the Board at any cost and hope enough people turn their proxies in to them to vote how "the Board" sees fit. If the proxies are not valid since the name of the Association isn't the same, I just wanted to know.

Yeah, we got problemz!

EricH8 (Virginia)
Posts: 116
Posted:
I think the slight variation of the association name is trivial when you have so many really important laws that your dictator directors violate, such as
all meetings of the association and board of directors are open to every unit owner of the association.
You could send out your own proxy forms to let the homeowners know that the president is not their only proxy choice. Educate the homeowners about what they can vote about.

The $500 spending limit for the management company is interesting because I have wondered: If the board itself is not allowed to spend money without openly discussing it in a meeting, does the board have the authority to allow a management company to do what the board itself cannot?
RogerB (Colorado)
Posts: 5,067
Posted:
DW 10,
It appears that you have a bad Board of Directors; a management company which is not effective on advising the Board on proper (and required) procedures; plus (the common problem of) apethic members. Unfortunately, those problems may each be difficult to change. I suggest starting with getting members involved. Stir up the members and get them to meetings; create legal proxies to help get better Board members elected; consider a special members meeting to remove bad Board members; try to get the Board to distribute detailed financial info; and whatever else you can do to improve the situtation.

If we were your management company the Board would either comply with all rules of the association, CCIOA, and the Non Profit Act; and act in accordance their fiduciary duty including all spending; or else we would terminate our management agreement.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
DW

Typically it is near impossible to get a quorum for most anything especially rejecting a budget. If a budget is rejected and a new one is not immediately accepted, the association operates under the last year's budget.

Many Covenants allow the BOD to raise dues a specific amount each year, ours is 5%, without owner approval.

As far as proxies go, remember the last ones collected (dated) are the valid ones. You could go around and get fellow owners to sign proxies dated later then the ones the BOD sent and your proxies would be the valid ones. A proxy dated 06/06/2104 overrides one dated 06/05/2014.

Good luck.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here