Help, all board members resigned.

Here’s the situation. On Monday, one of the three board members resigned. Today (after a 48 hour posting) I was supposed to be voted in as the third member. One hour prior to the scheduled meeting, the other two members resigned (very good thing).

The owner of the PM called me and said that I will not be on the board because there are no members left to make the vote. He said the PM would act as the board until the next annual meeting. That meeting is scheduled for 7 weeks from now. When I asked, if we don’t meet the ¾ quorum, how is a new board elected? The owner couldn’t answer until he consults with the association’s attorney. Further, I can’t relate this situation to anything in my bylaws or CC&R’s to help guide me.

I think the reason for the members resigning is because on Monday’s meeting, they motioned and accepted to place a special meeting to impose a $1400 assessment for our pool and streets. This board has been known to spend nearly $14,000 in unnecessary items over this last year (which put us deeper into the $$ hole). I’m sure they are realizing that once homeowners get wind, there is going to be some frustration. So I’m thinking this ex-board (as of today) is bailing before that heat wave hits!

Has anyone ever been in this circumstance? If there are volunteers, can the PM not appoint them? Should I be concerned about the PM in control?

Any ideas or suggestions would be wonderful.

Also, after the membership regains control (and again a slight bias here), I would recommend that you have a full audit conducted on the HOA books. Might be an unecessary expense, but well worth the comfort of knowledge that the HOA's funds, and previous board actions are transparent.

Tara, what State?

Thanks for all your posts.

My association is in Arizona. In our documents, it does state a min. of 3 board members at odd number can serve. It also says that the board has the right to hire a management company, but nothing in regards of them controlling if all board members resign.

At this time, I'm not concerned about fraud. Each month when financials are approved, I request a copy. I'm an accountant and have been keeping a close eye for 8 months now. The board has been spending money on our community. Our documents allow them, they just run up a balance or take a loan exceeding $5,000. But needless to say, they have the right to drain our funds.

Would it be going to far if I contacted the association’s attorney? Our last two board meetings have been in their office, which I attended. The attorney did give me his business card.

Tara, if I were you I would contact the two Board members and request they hold off their resignation until they hold a special Board meeting to appoint you to fill the open position and 1 or 2 other members to fill their positions upon resignation. Then they can resign and the appointees can elect officers and conduct the association's business. The new Board can decide if the $1400 assessment is needed prior to the annual meeting. If not, they can vote to cancel or modify it prior to the annual meeting.

So if you can not get the Board members to rescend their resignation then ask them to provide in writing appointment of you to fill the open Board position with a date preceding their date of resignation. Then you can appoint 1 or 2 other members to fill their open positions. If neither of them is willing to do this then contact the association attorney for advice.

The management company does not have the authority to run the association. They should be working with you to resolve this situation without putting themselves at risk.

I'm wondering: If a resignation has to be accepted by someone, who accepted these last two resignations? Seems like at least one of them is still in office. So no need to backdate anything (shame on you Roger) Sounds like this PM is full of themselves. Where is it stated anywhere that the PM can run the association in lieu of a board? If these last two refuse to do anything, and so your HOA ends up being without any board members, the court could be petitioned to supply a receiver. Then you'll begin to see the expenses. If you get elected or appointed to the board, first order of business should be to find another PM. Harold

I am a former Board member who has moved from the area and is renting my unit. I have just received an email from the present Board stating that elections were not held because of lack of attendance. Board members then resigned. The email also stated that no HOA bills would be paid because there was no one to pay them. What now?

This is an old post. Please make a new topic. Thank you.