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MarciaP3 (Virginia)
Posts: 1
Posted:
Hello All ~ I am a recent "volunteer" for a small community of cabins on a Virginia mountain that's in dire need of some guidance. There is an "active" HOA with a working Board. Over the years the unpaved mountain roads went from bad to horrid. During that time owners stopped paying their yearly HOA dues ($190 - $200) for years at a time resulting in approximately 22 of the 69ish owners in arrears, two years ago. The Annual Board meeting of 2012 saw the most participation it had ever seen with much yelling, finger pointing and the entire board (two married couples) resigning prior to it even beginning. I luckily was unable to attend. At that same Board meeting individuals stepped up to take over the positions temporarily. Shortly thereafter a new board was voted into place via mailed votes/proxies. Since that time, two annual meetings have been held with a max of 12 owners represented at each. I represented three and two respectively of the voting members due to owning three properties in 2013 and two this year, and the president representing an additional two.

The annual meetings, once held at a small restaraunt with sandwich makings provided, are now held in the town park due to lack of funds for anything greater. There are no community facilities or even open unowned space within the HOA. The meetings are basically a front porch chat session -- no Roberts Rules of Order, no agenda, no treasurer's report, no secretarial minute taking, etc., etc. The meeting of 2013 ended with a mutual agreement to raise the HOA fees to $225.00 (having not been raised in the nine preceeding years) and have the President send a letter asking if people would be willing to pay a $100.00 per OWNER, not property, special assessment to start a three phase road renovation project that had been researched. It seems the answer was yes since the special assessment was included with the yearly HOA bill. The monies were spent on the roads this past year and they are MUCH improved but still have work to be completed.

The recent annual meeting met in the same park, with the same amount of people, and the same "agenda". When asked where the board members were, the President, the only board member present, stated that they were either unable to attend or ....... He has pretty much been the soul individual to handle anything and everything that has been accomplished since the mutiny. He has done an excellent job but is exhausted. When conversation turned to the roads, there was a happy report that all but three owners had paid all past due amounts and the $100.00 assessment allowing for Phase I to be paid in full. The downside is that there is now only $500.00 remaining in the budget - which is not enough to even plow the winter roads should that be necessary. The immediate response was to "ask everyone to send another $100.00 but this time per developed propety (with a driveway)" via a mailed poll. The president thought that was a good idea.

This is when I and another woman volunteered to try and help the poor man. Silly us! He asked if we would put together a poll asking for a "blessing" to assess everyone another $100.00 before the year is out. As we have perused the old (70s - 80s) HOA documents we have found bi-laws stating a meeting is required for the vote with a letter to have been sent 30 days prior notifying the owners of the need/desire/intent/etc. We, the two volunteers, are at a loss as where to even begin. We want to help but....

In summary, this is a small country community mde up of mostly absentee owners (Washington, D.C. workers living elsewhere with a getaway cabin), a few renters and very few on-property owners. The combination of the three results in a good-ol'-boy-hand shaking mentality meets D.C politician that really doesn't want to be bothered with anything more than the deer and the bear that roam the property. Past attempts to get owners to show up to help cut and clean the sides of the entry road, with a barbeque provided by an owner afterwards, netted approximately 10 people. This is not a community of participants.

So can you help? Where do we even begin? We've been asked to keep the letter "friendly and not so business-like". While you think about it, we'll continue to prompt the President to put together the five line Expense Report that's usually prepared. Oh... before you even think of it -- there is no Management Company! That's funny!

I hope we've given you chuckle but still... HELP!

Thank you in advance.

MP
BobD4 (up north)
Posts: 1,002
Posted:
Well you can begin by getting competent legal review of whether or not your HOA has "vires" or governnace authority under your state's laws and possibly under whatever CCRs/restrictive covenants on legal titles if any.

If you are just a group of tenant-in-common owners of a dominant easement over roads etc instead of a HOA with "vires", things will not be getting easier. Incorporation is usually irrelevant to "vires" because it does not transfer ownership, but just try telling that to some people.
BobD4 (up north)
Posts: 1,002
Posted:
sorry misspelled "governance"
BobD4 (up north)
Posts: 1,002
Posted:
sorry misspelled "governance" above
TimB4 (Tennessee)
Posts: 21,059
Posted:
Marcia,

Welcome to the forum and thank you for being willing to serve on your Association.

When you say that there is an HOA, it would be good to know if you are operating under a private road agreement or under covenants. I ask because if you are operating only under a private road agreement, then the Virginia Property Owners' Association Act would likely not be applicable (as it applies to developments that are subject to a Declaration of Covenants, Conditions and Restrictions - aka the CC&Rs)

I would also ask if your Association is incorporated (as being incorporated would make corporate laws applicable as well).

If I understand the issue correctly, the immediate concern is the conditions of the Roads and the amount of money to pay for them that is available. The future concern is how not to be in this position again.

Contrary to what you have been told about keeping it friendly, an Association is a business and needs to be ran like a business. Otherwise, things get put aside, procedures aren't properly followed and issues can arise that, if ran as a business, could likely have been avoided.

Immediate concern My suggestion for the immediate concern is to get copies of all the Associations governing documents and read them. You are looking for the following:

1) Who can approve a special assessment (the membership or the Board)?
2) What can special assessments be used for? You might not be able to assess a special assessment for snow clearing but you could to fix the roads.
3) What procedures are needed (notice requirements, quorum, etc.)

Once you know this, the Association can make better decisions.

Future concern To keep this from happening in the future, I'd suggest the following:

1) Get copies of your governing documents (Deed Restrictions, Articles of Incorporation, Bylaws, etc.)
2) Gather and organize the Association files (need to know what you have and don't have
3) Formalize procedures (use agendas, take minutes, notice requirements, etc.)
4) Prepare a budget to determine what 2015 assessments should be (the basic process is to add up all expected expenses for the year and divide by the number of members).
5) Consider having a Reserve Study done for the roads and other capital components (lights, signs, trails, etc.) See Subject: Reserve Studies/Funds 101, a thread on this forum, to learn more about Reserve Studies.

Here is a good source of information about Associations in VA (even if you are not in Fairfax County):

Fairfax County Community Association Manual (click link)

Hope this helps,

Tim

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