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MarionR (California)
Posts: 16
Posted:
Just a quickie here - the answer I am sure should be very obvious but we are at a loss. A Board member resigned in a huff after less than two months because she was asked to signed a Code of Ethics she did not like. That was in March 2014. Six months later she is still acting contrary to the Board's actions by sending demanding letters to the Board and demands to the Maintenance Company - while claiming to have a 'constituency' of owners that SHE represents. She will not say who she represents and currently claims to have sent a letter to the person who sets the HOA fees and is expecting a reply shortly - with the insinuation the Board itself is inept. This is a complicated situation with the property being out of the country. Nevertheless, she is acting totally against the Board and the Board has no idea what she has done... any ideas?
LarryB13 (Arizona)
Posts: 4,099
Posted:
The board needs to put the kabosh on this before any real damage is done.

Start by informing the members, preferably in writing, that the former director resigned in March 2014 and is no longer a member of the board. Therefore, she has no authority to speak for or act on behalf of the board. If she has contacted any other parties claiming to be acting under the board's authority, send each of them the same letter.

I am confused, though, by the part about "the person who sets the HOA fees." Normally the board would be the "person" who sets the fees; that is one of the functions of a board.

Likewise, I am confused about "the property being out of the country." Could you clarify this?

Are you a member of the board of directors?

JohnB26 (South Carolina)
Posts: 1,001
Posted:
verbal or written resignation ?

verbal - make it a part of the approved meeting minutes, distribute same minutes to all members

written - record resignation in minutes and distribute same

notify your corporate attorney and insurance company and bank in case of future need

send certified mail to resigner and inform same that they are no longer a director and abdicated ALL power upon resignation, please cease and desist - include copies of ALL above
actions

relax, don't worry, be happy
MarionR (California)
Posts: 16
Posted:
As I said this is extremely confusing. The property is in Tahiti. The developer was/is the management co. and lives there. He has been on the BOD for 30+ years... and he rents out properties when owners are not there. He was the one who set the HOA fees and they were always reasonable until the end of 2013 when he announced a drastic increase by 20% without supportive documents requested by owners. Owners found out the HOA (originated in CA) had been suspended due to lack of tax filing and a new election for full 5 member Board was held in Jan 2014. He was re-elected to one of the positions along with me and three others. One of the other three had a falling out with one director and then another and then another. She eventually resigned in writing after a Code of Ethics was adopted by the remaining four and she refused to sign it. The HOA sent out notice to all owners that she had resigned and a letter of acceptance was sent to her.
Shortly thereafter, the management co. (we'll call him J) refused to communicate with the remaining Board members (3) and referred us to his legal representative in CA. We have been promised documents and financial statements ad nausuem and have received nothing. The HOA fees have been changed no less than 4 times since first notice Dec. 2013 - owners do not know which way is up.
The resigned director (we'll call her L)has what she claims is a "constituency" and has vowed to "assist" them as she claims the Board is not performing adequately. What she has done is divide the HOA members/owners and given J the perceived power that he does not need to respond to any requests at this point. She has established a new facebook group claiming to be the HOA and Owners discussion group... she has invited 11 people out of perhaps as many as 250 to be members - most do not want to have anything to do with her.
Since I am one of her members (for the purpose of monitoring what she is doing)I found out that she has now claimed to have been in contact with J and his attorney and is expecting a communication very shortly.
The obvious route is to hire an attorney but the owners are not willing to put up $$$ for a lawsuit in Tahiti (where he is very well known as one of the Bali Hai Boys) and a CA jurisdiction is very questionable.
We are currently without any funding whatsoever as J controls all HOA fees. The remaining Board members simply pay out of their own pockets to send out notices, etc. We are preparing another mass mailing to the owners... in the meantime, is there anything we should be doing with L?
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
in the meantime, is there anything we should be doing with L?


Nothing you can do. L is free to start her own facebook group and talk as much as she wants. Its not like you can stop her.

As for everything else, its in Tahiti. So their laws and legal system would apply. Not spending any money to fix this is your decision and your investment.

If it were me, I'd sell now before it gets really crazy.
NpS (Pennsylvania)
Posts: 4,216
Posted:
What communications have you exchanged with J's California attorney?

Sikubali jukumu. Read all posts at your own risk.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Even if you take "L" out of the picture, this is a strange situation as you have real estate in a foreign country supposedly being administered under California law. On top of that, the property owners are unwilling to enter into litigation to protect their investments. This sounds nuts to me.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Marion,

From what I'm understanding from your posting:

1) An elected Director resigned.
2) That individual is disgruntled and claims to represent other homeowners and complains about the existing Board.

Unfortunately, that is life. The best thing I can suggest is for the Board to:

1) Keep the membership informed of the Boards actions and the reasons for those actions. This can be done by newsletters, website, etc. This way, those who want to listen to the disgruntled individual will have info to make an informed decision.

2) Address any complaints the individual might have - just as you should for any member who brings complaints. However, to avoid misinterpretation, ask that those complaints be written and the Association should respond in writing.

Since the property and Association is outside the United States, and you didn't mention where that property is, make sure that you understand that Countries laws and legal system and work to keep the Association compliant with the applicable laws as you understand them.
MarionR (California)
Posts: 16
Posted:
The property is in Tahiti - the land is leased, so the owners are truly at the mercy of the govt and the land owners. The people who bought in, knew this from the beginning - so yes, you are right, it is a bit nutty. The HOA was incorporated in CA but currently in suspension (the owners never knew). The owners bought in when airfares were very low and they planned to visit many times per year for extended periods of time. The flights are now at least 3X what they were a few years ago - so many were thrilled to be able to have the units rented out while they were not there... snowball effect. J basically took over, as the owners grew older. J then hired a gal in CA to collect the dues and assist in flight arrangements. She swindled travelers out of life savings for flights and accommodations in other places in Tahiti as well as the dues she collected for our place. She did this over a one year period - collecting the money and then provided nothing for the travelers, who did not find out until the day before the vacation was to begin... some even got to Tahiti on a ticket but found nothing there for their month in paradise. They had to repurchase everything once they got off the plane. This went on all thru the summer of 2013 until she files bankruptcy in Oct. I personally collected all the stories from Trip Advisor and when the numbers reached about 100 and the conversation got very heated, Trip Advisor banned me from the site. I attended the BK hearings and was able to get her attempt thrown out but the police department in the city she worked has until today refused to prosecute her intentional fraud. (Another story altogether). She admitted in the hearings to have absconded with well over $100K from the dues while J looked the other way.
So you ask, why did the travelers not band together to drag her into court? Most of them had used credit cards and were reimbursed... once that happened, life was good again.
The BOD has demanded the financial documents to assess fair dues, but has been ignored - the BOD does not want to be unreasonable. L spent 6 weeks over there and claims that she only found out there was 'accounting' available for review the day before she left...
As we speak, the BOD has sent the last demand for info in the past week and are waiting one more time to see what becomes of this whole thing... L has announced that she too has sent some demand to J - the problem is that we have no idea what she has demanded.
I agree with most of the comments given here - we got ourselves into this mess, most of the owners are elderly now with little fight left, feel as though they have gotten their value out of this place, don't want to throw good money after bad, realize there is only 18 years left on the lease, know that there is little market to sell (and would feel criminal to sell to someone else) - hence, no interest in filing suit in a foreign country at an exorbitant price - with little hope to succeed. The only hope is to try to stop L from making it worse for the next several years and try to deal with J... I will be there in a few weeks myself and will try to reason with him to view the books, such as they are. To be honest, I am hoping they show that his current dues are substantiated and can give owners my opinion of taken it or leave it. Thanks to all for advice and I welcome anything more you can offer.
NpS (Pennsylvania)
Posts: 4,216
Posted:
The best recommendation I can offer is here:

http://tahitinoa.com/Pricing/Rum,-Vodka,-Spirits-Pricing-Enquiry

Enjoy what you can while you can.

Sikubali jukumu. Read all posts at your own risk.

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