Out of State Board Members

BratikA (Nevada)
Posts: 8

Posted:

Hi HOATalk!

I'm a board member of a HOA community in Nevada and would like some advice as how to get an out of state board member to be active and in tune with the needs of the community that they were elected to.

The BOD of our community has been strained by this new board member since her election into the board and I have found them highly incompetent, missing dialins to scheduled BOD meetings, not aware of issues of what is happening at the community, and now trying to revert board decisions by interacting one on one with other board members as if its a conspiracy.

The problem has been escalated since this and one other board member are non-resident out of state owners who have only one thing on their mind and that is to lower the HOA assessment fees at the expense of neglecting the community property as well as ignoring health and safety issues on the property.

Thanks in advance

MarkM31 (Washington)
Posts: 556

Posted:

Vote them out?

BratikA (Nevada)
Posts: 8

Posted:

Quote:

Posted By MarkM31 on 01/05/2015 10:30 AM
Vote them out?

We have an election where 4 of the 5 board places are up for election this month.

The president having served over 4 years has had enough of the stalemate situation over the last 12 months and is deciding to not be reelected. However, this non-resident out of state board member is going to be on the board and unfortunately thinks they can positively contribute to community.

MarkM31 (Washington)
Posts: 556

Posted:

We're going around in circles. All you can do is vote them out.

Run for office yourself.

BratikA (Nevada)
Posts: 8

Posted:

Quote:

Posted By MarkM31 on 01/05/2015 10:52 AM
We're going around in circles. All you can do is vote them out.

Run for office yourself.

I am a candidate once again. I have been on the board for 4 years.

The election process will be interesting.
There are 256 units in the association. 25% of the units are distressed or in default. The community started out being more owners than renters. However after the economic downturn in 2007 the ration shifted as owners found them selves with properties not worth the mortgage they had.

The dynamics have changed and the community has been in survival mode since.

NpS (Pennsylvania)
Posts: 4,216

Posted:

How many units are owner occupied? How many of them are willing to run?

Sikubali jukumu. Read all posts at your own risk.

BratikA (Nevada)
Posts: 8

Posted:

Quote:

Posted By NpS on 01/05/2015 11:09 AM
How many units are owner occupied? How many of them are willing to run?

I would say that 20% are owner occupied.

There are over 4 candidates on the January ballot. I have not seen the ballot as of yet but I know of at least one of the candidates is an owner resident and former board member.

KerryL1 (California)
Posts: 14,550

Posted:

How many votes does your HOA require for you to have a quorum? Ours, for instance, is 25% of eligible voters? How many of your 256 are legible? In other wars have voting privileges been removed from those in default?

You need to figure our how many vote are needed for quorum/ and how many qualified households you have. Then, go after these potential voter with letters and requests for proxies (if permitted).

Is it a Board of five? If so, don't worry too much about the out-of-state owner. Now if your bylaws say so, she may be out of compliance concerning, say, numbers of meetings that may be missed.

I think that most boards have some one or two directors who are worthless--whether they live in the prmises or not.

NpS (Pennsylvania)
Posts: 4,216

Posted:

250 units
only 50 units owner occupied
60 units financially under water
5 board seats
prez stepping down after 4 years of stalemate
out-of-state board member stepping up to hold down fees
rest of board incompetent
january vote on 4 seats
you want to see money put into community

Sad to say - momentum is overwhelmingly against you. Unless you can get 3 of the 5 seats filled this month with like-minded people, I think you're going to be overrun by absentee investor thinking. You don't have the numbers to vote out the out-of-state board member or get her to change course. Best advice if you can't get 3 seats is to pare down your expectations to bare minimum and try to work out a deal.

Sikubali jukumu. Read all posts at your own risk.

BratikA (Nevada)
Posts: 8

Posted:

Quote:

Posted By KerryL1 on 01/05/2015 1:17 PM
How many votes does your HOA require for you to have a quorum? Ours, for instance, is 25% of eligible voters? How many of your 256 are legible? In other wars have voting privileges been removed from those in default?

You need to figure our how many vote are needed for quorum/ and how many qualified households you have. Then, go after these potential voter with letters and requests for proxies (if permitted).

Is it a Board of five? If so, don't worry too much about the out-of-state owner. Now if your bylaws say so, she may be out of compliance concerning, say, numbers of meetings that may be missed.

I think that most boards have some one or two directors who are worthless--whether they live in the prmises or not.

For the election of the directors it will be a straight count of valid votes. The board has 5 directors.
With regards to noncompliance as to their presence in meeting. This has been raised several times with both of these directors absent from Executive meeting several times.

Worthless directors are what we are trying to remove.

It is a challenge!

BratikA (Nevada)
Posts: 8

Posted:

Quote:

Posted By NpS on 01/05/2015 1:24 PM
250 units
only 50 units owner occupied
60 units financially under water
5 board seats
prez stepping down after 4 years of stalemate
out-of-state board member stepping up to hold down fees
rest of board incompetent
january vote on 4 seats
you want to see money put into community

Sad to say - momentum is overwhelmingly against you. Unless you can get 3 of the 5 seats filled this month with like-minded people, I think you're going to be overrun by absentee investor thinking. You don't have the numbers to vote out the out-of-state board member or get her to change course. Best advice if you can't get 3 seats is to pare down your expectations to bare minimum and try to work out a deal.

While the momentum has changed in the last 18 months a non active board or one in stalemate may have to face legal action if their incompetence is beyond trivial. There are issues of Health and Safety, security and non compliance with regard to not showing up at board meetings and not voting which BOD need to face.

If complaints to the Ombudsman of the Nevada Department of Real Estate don't help then it might be better to dissolve and let the State of Nevada run the association. At least the folks in charge will be in state residents.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By BratikA on 01/05/2015 4:08 PM

Posted By NpS on 01/05/2015 1:24 PM
250 units
only 50 units owner occupied
60 units financially under water
5 board seats
prez stepping down after 4 years of stalemate
out-of-state board member stepping up to hold down fees
rest of board incompetent
january vote on 4 seats
you want to see money put into community

Sad to say - momentum is overwhelmingly against you. Unless you can get 3 of the 5 seats filled this month with like-minded people, I think you're going to be overrun by absentee investor thinking. You don't have the numbers to vote out the out-of-state board member or get her to change course. Best advice if you can't get 3 seats is to pare down your expectations to bare minimum and try to work out a deal.

While the momentum has changed in the last 18 months a non active board or one in stalemate may have to face legal action if their incompetence is beyond trivial. There are issues of Health and Safety, security and non compliance with regard to not showing up at board meetings and not voting which BOD need to face.

If complaints to the Ombudsman of the Nevada Department of Real Estate don't help then it might be better to dissolve and let the State of Nevada run the association. At least the folks in charge will be in state residents.

1. If HOA is collecting only 80% of dues because so many properties are financially under water (have no idea whether this number is close to accurate), not likely that legal action will be successful against BOD. Can't spend what you don't bring in.

2. Have things deteriorated to the point where local Board of Health will take action? Is this an option for you?

3. Any idea how long it takes for NV ombudsman to work through a complaint? Has complaint been filed?

4. Is the State running many associations in your area? Is this some kind of receivership? What is process for getting it turned over?

Sikubali jukumu. Read all posts at your own risk.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By NpS on 01/05/2015 1:24 PM
250 units
only 50 units owner occupied
60 units financially under water
5 board seats
prez stepping down after 4 years of stalemate
out-of-state board member stepping up to hold down fees
rest of board incompetent
january vote on 4 seats
you want to see money put into community

Sad to say - momentum is overwhelmingly against you. Unless you can get 3 of the 5 seats filled this month with like-minded people, I think you're going to be overrun by absentee investor thinking. You don't have the numbers to vote out the out-of-state board member or get her to change course. Best advice if you can't get 3 seats is to pare down your expectations to bare minimum and try to work out a deal.

Sorry to say, but NPS called it as it is. Take control of the BOD and "force" people or get out of there.

Even with only 20% residents and many behind, I am not sure taking control of the BOD will work. My advice, is get out of there.

BratikA (Nevada)
Posts: 8

Posted:

Quote:

Posted By NpS on 01/05/2015 4:28 PM

Posted By BratikA on 01/05/2015 4:08 PM

Posted By NpS on 01/05/2015 1:24 PM
250 units
only 50 units owner occupied
60 units financially under water
5 board seats
prez stepping down after 4 years of stalemate
out-of-state board member stepping up to hold down fees
rest of board incompetent
january vote on 4 seats
you want to see money put into community

Sad to say - momentum is overwhelmingly against you. Unless you can get 3 of the 5 seats filled this month with like-minded people, I think you're going to be overrun by absentee investor thinking. You don't have the numbers to vote out the out-of-state board member or get her to change course. Best advice if you can't get 3 seats is to pare down your expectations to bare minimum and try to work out a deal.

While the momentum has changed in the last 18 months a non active board or one in stalemate may have to face legal action if their incompetence is beyond trivial. There are issues of Health and Safety, security and non compliance with regard to not showing up at board meetings and not voting which BOD need to face.

If complaints to the Ombudsman of the Nevada Department of Real Estate don't help then it might be better to dissolve and let the State of Nevada run the association. At least the folks in charge will be in state residents.

1. If HOA is collecting only 80% of dues because so many properties are financially under water (have no idea whether this number is close to accurate), not likely that legal action will be successful against BOD. Can't spend what you don't bring in.

Our HOA has curb spending to a minimum since 2008. We have implemented cost saving xeriscaping, tried to main infrastructure to a reasonable level i.e. pools, jacuzzi, gym and have stabilized our budgetary needs. Our assessments are high than comparative HOAs in the area. We have brought the assessment down slightly for 2015.

2. Have things deteriorated to the point where local Board of Health will take action? Is this an option for you?

During a period in 2009 when the board was dysfunctional due to 3 board members becoming foreclosed the property became deteriorated and the NV Board of Health shutdown the pools and jacuzzis. The current issues deal with owners not picking their dog's excrement and pigeon explosion. They are considered flying rodents and are also a health concern.

3. Any idea how long it takes for NV ombudsman to work through a complaint? Has complaint been filed?

I'm not sure how long it takes but we have had owners file complaints against the BOD and our management company
Today had an email from the out of state director that had tinges of inappropriate sexual innuendos which I would consider harassment and with guidance I will probably file a complaint.

4. Is the State running many associations in your area? Is this some kind of receivership? What is process for getting it turned over?

I have no idea of whats going on in NV and would really like to hear from any HOA that has gone down this path.

BratikA (Nevada)
Posts: 8

Posted:

Quote:

Posted By JohnC46 on 01/05/2015 4:37 PM

Posted By NpS on 01/05/2015 1:24 PM
250 units
only 50 units owner occupied
60 units financially under water
5 board seats
prez stepping down after 4 years of stalemate
out-of-state board member stepping up to hold down fees
rest of board incompetent
january vote on 4 seats
you want to see money put into community

Sad to say - momentum is overwhelmingly against you. Unless you can get 3 of the 5 seats filled this month with like-minded people, I think you're going to be overrun by absentee investor thinking. You don't have the numbers to vote out the out-of-state board member or get her to change course. Best advice if you can't get 3 seats is to pare down your expectations to bare minimum and try to work out a deal.

Sorry to say, but NPS called it as it is. Take control of the BOD and "force" people or get out of there.

Even with only 20% residents and many behind, I am not sure taking control of the BOD will work. My advice, is get out of there.

I do appreciate the way has NPS has interrogated the background.

Definitely how the BOD forms after the elections on Jan. 20 will determine the fate of this community and how it evolves or dissolves.

I do have my apprehensions on my position, because it is a volunteering and time consuming as well.

As to the advice - get out of there

There are several variations on this theme. As far as getting off the board. If I don't get elected then I'll side with complaining home owners. Their could by several. If I do get elected that also is not a given. If I'm in the minority with my views then I may opt to resign right then and there. I could continue in pull the wagon if there is 3-2 majority.

I could leave this community. However, I do have nice amenities on site. A jacuzzi outside my window. The pools and gym are good enough for me. I'm also not a year round resident as I have 2 properties in NJ which I reside in when working and during summer. Finding another community is an option, but I would be leaving this community with a loss. Not drastic but nonetheless a black star. Staying in NV has its positives in terms of tax and cost of living. So I'm not prepared to leave while I'm employed. Come retirement that is another question. I also a couple of properties outside the US which also are plausible options when I come to that decision.

My concerns have been this community which I committed myself to but your points of separation are worthy as well. This would give me ample time to concentrate on my real job.

Thanks,
AS

NpS (Pennsylvania)
Posts: 4,216

Posted:

IMO 2 options. Hold on to your seat - start working on next year's elections. Sell - take the hit - find a less stressed circumstance in NV.

Sikubali jukumu. Read all posts at your own risk.

JohnB26 (South Carolina)
Posts: 1,001

Posted:

When you sell and move along:

CAVEAT EMPTOR