update to 3 board members resign

This is an update to my earlier post. After two board members were asked to resign after an altercation in the neighborhood over a sign but neither would, the remaining three BOD members resigned.This did not leave enough BOD members to conduct business. The membership has now been notified of an upcoming election to elect all 5 new Board members. What is the best way to go about getting enough interest to get more people to run for the board so that we can have a fresh start and get our community back on track?

And don't forget to tell the members what might happen if no one steps up: without a board, the Association would have to file for receivership, where a court would appoint someone to run the Association's affairs. The receiver only answers to the court, not the members - meaning the members would have NO SAY in how the community is run. Receivers are primarily concerned with getting the bills paid, so expect your assessments to go up A LOT to pay the bills, the court costs and the receiver's fees (which can start at $250 a day, depending on your area.)

Without a board, the members are also setting themselves up to becoming PERSONALLY liable for any accidents that occur on association-owned property or lawsuits against the association for whatever reason because there's no board to oversee Association operations.

Your homeowners have a choice - do the recall and put new QUALIFIED people on the board to begin cleaning things up (if they don't know the ins and outs of running a homeowners association, they need to be willing to find out by attending seminars, talking to other HOAs, etc.) or do nothing and pay through the nose (THAT'LL be great for property values!) You'll soon see who's willing to put or shut up - and I hope you're thinking about running. Good luck!

The association doesn't run itself - that's why you have a board of directors. If there's no board, who hires the contractors, signs contracts, sets up budgets and all that stuff? And no, the property manager doesn't count - he or she also takes direction from the Board and can't do anything without the board's authorization (yes I know some have done otherwise and caused a lot of problems - another you need a board for necessary checks and balances!) I'm also sure there's some fine print buried somewhere in those liability policies that kicks out claims if there is no Board.

To wit - last year, our association finally got rid of our swimming pool after 3 years of it being closed, thus becoming an eyesore and it was too expensive to operate anyway. We hired a contractor who began digging up the pool but for some reason, thought he could do an end run around us and the county health department by not getting a permit - contrary to what he wrote in the contract! The health department stopped the work and we were facing a very stiff fine for this nonsense (the man actually said we didn't need a permit until after the job was completed). We fired him and got someone else to finish the job.

This bozo then came back and tried to charge us for the work, first by trying to file a lien against the association and when our attorney got involved, he then threatened to file a lien against EVERY townhouse in our community to get paid. Our attorney got nastier, threatening a countersuit, noting the health department was aware of his shenanigans (they said the guy had tried this before with other customers). He backed down, removed the lien against the association and only got paid for digging up the pool - we were going to ask for a refund of the one day's fine we had to pay, but at that point, we wanted the thing over with.

We've put a few procedures in place to ensure this won't happen again, but the part that really concerned me and got me angry was the notion that the guy would lien everyone's home, including mine. And if that had happened, our liability insurance wouldn't help us because, as our attorney also pointed out, we have language in the policy stating repairs have to be done to code (meaning if a permit is required, that's what we're supposed to get).

And what happens if the insurance which is supposed to cover all the things you mention doesn't get paid because THERE IS NO BOARD TO AUTHORIZE EXPENSES SUCH AS INSURANCE PREMIUMS??? Methinks it gets cancelled and then what?

Or

There is insurance, but for whatever reason the payout isn't enough to cover a judgment - where will the rest of the money come from? A special assessment usually. But wait, the CCRs/Bylaws require the Board to call a meeting where homeowners can discuss the matter and take a vote on whether or not to have a special assessment.

There ain't no board and no homeowner will step up and call a special meeting (which requires a petition of, say 10?% of the homeowners). Who do they give the petition to?

If there's a meeting and the homeowners vote no on the special assessment, then what? The association could declare bankruptcy, I guess, but you need someone to spearhead that too - nope, can't look at the property manager.

This entire conversation started because 3 out of five board members resigned and it appears the two who are left are people no one wants on the board, so there needs to be an election to replace everyone. Go ahead and try to run a HOA without a board if you want to - from what I've seen and been told, things are a little easier when you have a few cooks in the kitchen.

Natalie

If there is still at least one person on the BOD (you say two left) then they can appoint people to fill the 3 vacancies. Why would there be an election to fill all 5 spots when two are filled?

My understanding is it was recommended,(possibly the assoc. attorney)because of the remaining two members behavior and discourse that an election for all 5 positions take place. The two current remaining board members could choose to run again. I am not sure they would agree on appointments!

I agree. I think Natalie's supporters could be in for a rude/legal awakening.

I agree Tim. It would be my understanding that they have agreed to the election of all five positions as that is what was stated in the special meeting notice to the members.