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MichaelF7 (Georgia)
Posts: 12
Posted:
Hello all. Your help with this will be invaluable.

Background: I've posted here a few times about the effort several of us in our small subdivision went through to try and make our HOA viable, compliant and responsive to our homeowners. While elected to be Treasurer, I've actually performed all the duties (President, VP, Board member, Secretary and Treasure) since even the full Board is less than proactive on most issues. Please don't think I'm trying to pat myself on the back but I've basically done it all in the past 1 1/2 years. I do the financials, administer contracts, take all the flack from residents etc... I'm getting little to no help. Most in the community of 51 homes could care less and are apathetic towards the HOA except when assessments roll around. I've organized cookouts to try and get the community to meet and greet each other but turn out is poor. At our recent HOA meeting, besides the three Board members that were present, two other properties were represented for a 10% turn-out. I'm not sure what else I can do.

My dilemma: I have pretty much had it with the apathy and non-participation. My wife is frustrated with me because I continue to put the time in to try and keep things going. Honestly I'm getting worn out but I don't want all of the accomplishments from the past 1 1/2 years to go to waste. I'm not looking for gratitude or "atta boys". I want to turn this over to someone else now that our financial position has been solidified (liens and small claims court were necessary for some) by a factor of 500%. I've given it almost two years of my time and I'm tired. The problem is, no one else will stand up and volunteer to take over from me. What do I do? I've toyed with the idea of hiring a management company to take over but that won't last but a year, maybe two, before our funds would run dry. Anybody have any suggestions, or if you have gone through a similar situation, what did you do? Your help would be greatly appreciated.

I'm probably leaving some tings out so if I can clarify anything, please ask. Thanks.

Mike
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I like to call it creating a "Bigger fish" situation. That means it's time to create and empower the other members in the HOA. Once they see you doing things and making it look kind of "easy", they will want to participate. Rope a few members into doing small things. Like have one help you get bids for the HOA on a project. Start doing a little "delegating" here and there. No reason you have to do it all if you want others to participate. You have to feed the little fish to get them to grow big.

When I took over my HOA we had little participation, a crooked president, and barely could get a board together. When I left... we had too many people volunteering to be on the board, got rid of the ex-president, and people participated. It took ALOT of work on my part but eventually it worked out. I made the job look a bit "easy" and always said "It was a thankless job I was THANKFUL for having". I got our HOA back to basics and following the rules. Brought the rules to each meeting and referenced them for answers. Even sending out violation letters referencing the rule violation and where to find it.

We had an accounting office. The owner of it happened to be a member. Which meant we just assigned her "Treasurer" position. I would suggest looking into that option. Not a full blown management company but one who will collect, record, and do taxes. It's not that expensive and people may like that option.

I took some VERY BIG steps and changes. I fired our lawncare even though the guy was a member and lived there. I put con artist president out of business for a bit. I made rules such as 6 months we liened, 3 bids per contract, and brought copies of the rules to each meeting. Plus at the meetings, it was truly open. Although the collections report was between the board members (ONLY stated Lot#) we kept the expense report open. We made copies for people who requested them. Hardest thing to do as a board is to give up "control" when it comes to finances. However, the money is NOT just yours but the ENTIRE HOA's money. You can't spend someone else's money without explaining it.

Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posted:
Michael,

I went through that myself a few years ago. My name was the only one on the ballot.
What I did was an information campaign. I informed the membership what happens if there isn't a quorum (lack of authority to enter into contracts, etc.) and what happens if the Association is placed in receivership (which is the correct procedure over hiring a management company if you don't have a Board).

People finally stepped forward.

Sometimes, nobody will step up because they know that you will. Once they learn that you won't, things will likely change.
AnnH5 (Florida)
Posts: 304
Posted:
Tim is correct, the next step is receivership. It will cost the owners much more for a receivership. If you have that kind of community apathy, maybe it needs to happen.

As far as cookouts and social events, it could be that your fellow owners are not interested in social activities. It is not a HOA's responsibility to provide social activities. It is a nice gesture, but it doesn't sound like your fellow owners want to have that kind of relationship with you or with their neighbors.

You have obviously done a lot of work (which was kind of you to do so) and you shouldn't feel like it was a waste of time. But if you no longer want to volunteer, then you shouldn't feel forced to do so. The only bad thing is that there is going to be the possibility that you might end up with someone who isn't as well suited for the job. The good thing is that your spouse is going to enjoy having you around more.
GenoS (Florida)
Posts: 4,276
Posted:
Do you have the option of terminating the covenants and dissolving the Association? Just proposing such a drastic measure may be enough to shake some of your members out of their apathy. When the choices are a. Receivership, b. Dissolution, and c. Step up to the plate, maybe the stark reality of two really awful choices will be enough to jar some people out of their slumber.
KimR4 (Florida)
Posts: 33
Posted:
My 2 cents: Interview property management companies and hire one. The cost per month per home owner ($10-$15/mo) is worth it. You have done a lot of work getting your hoa in good shape. The transition should go well. A good property manager is a good investment.
MichaelF7 (Georgia)
Posts: 12
Posted:
Thanks for all the great replies. I'd like to address some of your comments in hopes of furthering the conversation.

Thought I should give you some information on our community. We are a small rural 51 property, single family home community. The only common areas within the community are the two landscaped main entrances. We have no pool, clubhouse, playground or other amenities. Our dues are $150/year.

Melissa: I would love to empower some people to take some responsibility. My only problem is nobody wants to be empowered. They could care less. Like you, I basically rebuilt our HOA from the ground back up. I spent months rebuilding our financials just so we could get five years of un-filed tax returns completed. I got contracts for entry maintenance, liability insurance, created the collection policy for the HOA, started the process, that's still ongoing, of collecting unpaid assessments (making me the most despised resident in the community) etc... Our financials are open to any HOA member to review as we have nothing to hide (minus any debt info). Thanks for you input.

TimB4, AnnH5, GenoS: Can you explain what would happen under receivership? Who would take control in this instance? Not sure about dissolution as an option. I'll have to check if that's possible in Georgia. I'm assuming a dissolution wipes out the HOA as an entity and then anyone within the community can do anything they want with their property. If that happens my home would probably be on the market the next day. What would happen to any balance left over in the HOA fund?

KimR4: One of the first things I did when I got involved was look into management companies. Our small budget wouldn't allow this option without raising dues. Personally, I'd gladly pay a little more for this option but some won't even pay their $150/year assessments without threat of some kind of legal action.

I can assure you that I have gone out of my way to try and get residents interested in the HOA. That's why I tried the BBQ route. I've mailed letters. All to know avail. At this point, if I knew more about dissolution and receivership, I might be able to use these actions to motivate some people to volunteer given the future prospects if they didn't.

I truly appreciate everyone for taking the time to provide the feedback I'm going to need to move forward.

Mike

DaveD3 (Michigan)
Posts: 796
Posted:
Quote:
Posted By MelissaP1 on 07/28/2014 12:55 PM
I like to call it creating a "Bigger fish" situation. That means it's time to create and empower the other members in the HOA. Once they see you doing things and making it look kind of "easy", they will want to participate. Rope a few members into doing small things. Like have one help you get bids for the HOA on a project. Start doing a little "delegating" here and there. No reason you have to do it all if you want others to participate. You have to feed the little fish to get them to grow big.

I've found that if you're doing a good job, people just take it for granted and apathy ensues. Why bother lifting a finger when it's all being handled by someone else?

When the entire membership is invited to participate in things like neighborhood beautification, yet the same handful of people are the only ones that do a thing, it gets old.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The lack of interest in my HOA was so bad... I could hold meetings IN the swimming pool!!! I'd put my bathing suit on and talk to the members. It is HOT in Alabama and most people were at the pool anyways. So I just went to where the people were.

I did the whole party thing a few times. I even did the "Volunteer day" for members to come and volunteer to clean up the place. I would even get the kids involved. We cleaned the pool furniture or planted flowers. The HOA provided the supplies and the owners the labor. It was not always the best turn out but any turn out was good enough for me.

Here is a strange suggestion... Do you have dogs? That was my saving grace. What I did was walk my dogs around the neighborhood. This allowed me many things. Good exercise and able to keep an eye on things. Plus neighbors could feel free to stop and talk to me. People respond to dogs and are more sociable.

Yes, the problem was that I did end up doing such a good job, that people stopped going to meetings. They trusted me to do the right thing. Eventually after spreading the word around that I was going to quit... people stepped up. They thought the job was going to be easy by then cause I made it look so easy. LOL!

Former HOA President
MichaelF7 (Georgia)
Posts: 12
Posted:
Melissa,

I too tried the community approach for helping get our front entrances looking like they should. Other than myself, no one showed up and I spent the next two weekends by myself finishing the project. Seeing me out there slaving away motivated absolutely on one. The people in our subdivision are truly apathetic. I remember last year when I was having some correspondence with two of the women who live here. Both complained non-stop about the lack of holiday decorations at each of our entrances. We have nice structures at both entrances that can accommodate decorations in an aesthetically pleasing way. I agreed with them and asked them if they would be willing to be part of a holiday decorating committee and guaranteed the board would supply the decorations. All we needed was a few people for an hour or two to help place the decorations. I never heard another word from either of them. Several board member's wives stepped up and decorated.

My wife and I walk our dogs daily. Problem is, no one is ever out when we do. I'm retired and everybody else works. Some houses are far enough off of the road you're lucky to get a wave if they are out. Due to the need for aggressive actions on back dues recovery, for some, I'm probably not the most well-liked person in the community right now. I very seldom get a wave if someone drives by me on the street. That could be a book all by itself. I have been the utmost professional when dealing with any one here; on dues or any other issues (many times biting my tongue in the process even when being treated like I was some type of disease). I'm just at my wits end.

It's totally frustrating when adults act like little children concerning the HOA. Every one in here signed documents stating they understood the community was governed by an HOA and agreed to abide by the covenants. I'd be absolutely embarrassed to be the child of some here in our community. Rant over. As always, thanks for your input.

Mike
BanksS
Posts: 403
Posted:
Quote:
Posted By MichaelF7 on 07/29/2014 9:08 AM
Melissa,

I too tried the community approach for helping get our front entrances looking like they should. Other than myself, no one showed up and I spent the next two weekends by myself finishing the project. Seeing me out there slaving away motivated absolutely on one. The people in our subdivision are truly apathetic. I remember last year when I was having some correspondence with two of the women who live here. Both complained non-stop about the lack of holiday decorations at each of our entrances. We have nice structures at both entrances that can accommodate decorations in an aesthetically pleasing way. I agreed with them and asked them if they would be willing to be part of a holiday decorating committee and guaranteed the board would supply the decorations. All we needed was a few people for an hour or two to help place the decorations. I never heard another word from either of them. Several board member's wives stepped up and decorated.

My wife and I walk our dogs daily. Problem is, no one is ever out when we do. I'm retired and everybody else works. Some houses are far enough off of the road you're lucky to get a wave if they are out. Due to the need for aggressive actions on back dues recovery, for some, I'm probably not the most well-liked person in the community right now. I very seldom get a wave if someone drives by me on the street. That could be a book all by itself. I have been the utmost professional when dealing with any one here; on dues or any other issues (many times biting my tongue in the process even when being treated like I was some type of disease). I'm just at my wits end.

It's totally frustrating when adults act like little children concerning the HOA. Every one in here signed documents stating they understood the community was governed by an HOA and agreed to abide by the covenants. I'd be absolutely embarrassed to be the child of some here in our community. Rant over. As always, thanks for your input.

Mike

Sad isn't it that people can't come together to benefit their communities. People in my neighborhood are apathetic as well and IMO my BOD likes it that way. They don't want participation or input. They just want to govern behind closed doors so no one knows what they are doing. I live in a state with no open meetings laws so the board meetings are closed to the members. Getting information out of them is difficult. They have an attitude of "how dare you ask questions, or ask for board minutes." They don't wave at me either and the last thing I want to do is socialize with any of them. With that being said, I would come to their aid if needed. I would be the first one to volunteer to help a neighbor in need. Now my rant is over and my post wasn't very helpful. Ah, living the good life in an HOA!!!
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MichaelF7 on 07/29/2014 5:32 AM

TimB4, AnnH5, GenoS: Can you explain what would happen under receivership?

Receivership is something that should be done as a last resort.

As I understand it, The process is that the Board petitions the court to place the Association under receivership. You would explain and show documentation that you have solicited volunteers to serve on the Board and no one stepped forward. You would show documentation that you held an election and nobody (or just you) was elected.

If the court agrees, they will place the Association under receivership and assign an individual or company to be the Receiver.

The Receiver now has full authority to do what is needed as the Receiver acts in place of the Board. However, the Receiver does not answer to the membership, they answer to the court. Assessments will be raised to pay the Receiver (expect to have to cover $50,000 or more per year).

The goal of the receiver would typically be to gather support to place a proper Board in place. However, even when that happens, it will be the decision of the court, based on the input of the Receiver, if receivership ends.

Note, receivership typically happens when an Association isn't solvent. Therefore, that would likely be the message sent to potential buyers. This can (and likely will) have an impact on sales which may end up lowering property values.

For more info see: HOA Financial Matters: What's Receivership, and When Do Condo and Homeowner Associations Need It?

Is an HOA Receiver a Benefit to An Association?

Getting receiver for homeowners association typically is bad idea

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