HOA Nightmare

I have lived in my home for almost 20 years under an hoa. When we built we liked the idea of everything in its place. That was fine with us. Started out by going to the annual meetings every year. Until about 5 years ago we stopped going. It was a circus . Most of the time it ended up in shouting matches, bickering until one by one members would leave. So for the last 5 years myself among others didn't attend. No newsletters, no proposed budget no nothing. So fast forward to 2014. I had one of those feelings, you know in your gut kind of feeling. So I attended. And, I'm glad I did. It was so out of control I volunteered myself as Vic president and won.

We are a small limited liabiltity community. 50 homes. We own our own roads and small common area that's about it. We have generic written ccr's and bylaws. No fine schedules just plain basic English.Our state statues limits the amounts on raising assessments. I have researched both the ccr's and bylaws. I know these documents like the back of my hand.

Here's my problem, the pres could care less. On top of that they are a magistrate judge. So you would think they would know the laws and what we can and can't do. Now, the chairman of the board and his wife the secretary are married and their next door neighbor is treasure.

So we had our first bod meeting. it was instructed by the prez. for chairman to deliver treasury records, ie, check book, financials, etc. to my home to hold. You c everyone was going on vacation and the prez said that the records should be available. Well, chairman dropped records off and said "The 2013 files r missing. I said what? He said it again. I didn't think much of it because I wasn't the treasure. He went on with small talk about downing prior boards and said this year will b different.

So, that same feeling came over me like I had in my gut before. I went back to the file boxes and started looking. Well, guess what? He was right! I sat down for a week and went through every folder year by year. It was like 2013 never existed. I called the ole treasurer asking her if the complet files were given to chairman. She said yes. She said chairman was in her living room looking at one file box and file was marked 2013. So who do you believe?I found payments with no receipts, budgets not followed, basically money spent on donations, flowers, charities, court costs for individual pet peeves with loose dogs etc... using the associations money for individual problems. Our ccr's were amended years ago by sending out ballots to homeowners and if the ballot was NOT returned it would be counted as a yes vote.

So I did my homework made copies, studied our states laws, And even wrote the agenda for our next meeting. The only difference now is in that meeting I was well versed, I discussed legally what we could and couldn't do. I brought up examples of the misuse of money in past boards and even caught some of them in white lies. You see, the prez and the chairman have been in and out of our associations affairs for years. Their signatures have been on many, many checks in the past.

Questions: how can u limit the board with spending? Should you just vote to replace bod members? What steps would homeowners have to take to replace bod. Does a non returned ballot mean a yes vote?

Sorry this is so scattered. Has anyone ever had a bod who's spending habits were limitless.

Have you informed your fellow board members that they are missing? An audit is one solution, however an audit can be costly and if you just want to find the missing year, an audit will only show that it's missing. If it's gone, it's gone.

You need to call for a special BOD meeting and discuss this issue so that it can be recorded in minutes as to what the board members know of it. Start your paper trail now.

Who was the board member in the living room looking at those specific files that she is referring to?

Yes it was brought up at the bod meeting. Everything was. Their wasn't much response but deny, deny, deny.... Until I showed proof of canceled checks, invoices etc... We most definitely need new bod members. The amended ccr's were done years ago. That's where the pres at the time used his own judgement about " non returned vote is a yes vote. Our ccr's anf bylaws states only by a majority of vote of its members at annual or special meeting. So I kinda figured it was absention. When I challenged the new pres ( the judge) about where are these ballots that amended the ccrs . They all said I don't know. Judge said, listen, that was years ago it's already signed and sealed at court house so let it go. Let's start fresh. Can u believe that?

That's why for months I have turned to other associations to try to educate myself on hoa law so to speak.

i have learned a lot here and I thank each one of you.

Help me understand this, Tammy: You wrote (I think!) that the chairman and the president are two different people. But most bylaws say that the President is the chairman of the meetings. What do yours say?

How many are on your Board?
Don't your bylaws say you must have a board secretary? Does any director keep minutes of your meetings?
Are board meetings open to homeowners?
How often are there board meetings (vs. membership meetings)

Even in CA, ballots are not required to be kept for one year. So to see the number of votes, you should try to read old meeting minutes.

Tim's advice looks good. And since it appears you won't have another election for several months, you may want to take the recall approach. Along with following that procedure to the letter, you all need other homeowners who are willing to serve on the Board

Sorry but I'm confused now. At a BOD meeting that you mention, who brought it up and what do you mean by cancelled checks etc? YOu said the files were missing. but they all denied what exactly?

KerryL1:

We have 5 on our board.
President, VP, Secretary, Treasure. The BODs may elect or appoint a Chairman of the Board. So every year they do. The bylaws read that the Chairman of the Board, if any, shall preside at all meetings of the BOD. We each have our own responsibilities outlined. There is no mention of Chairman of the Board any where else in the bylaws. There is nothing about the Chairman of the Board responsibilities. In WV, meetings are to be open to homeowners but the only meetings made public is the annual meeting. Officers meetings are normally held every three months.

I guess I really don't understand the role of our Chairman of the Board?

Please cite exactly any reference to chairman of the board in your bylaws. Chairman means the person chairs or presides at board meetings. I have not heard of the chair being a different person than the president since I began following this forum a long time ago.

And are you saying that in WV, BOARD meetings should be open to H/Os? But are not?? Only the annual meeting of members (H/Os) is open to all? "Open" means public o open to all H/Os. Find your state law that says that (if your bylaws do not) BOARD meetings must be open, take it to your next meeting and ask the board to do just that. If board meetings are open, owners will attend and you can raise the issue of spending in front of them.

and look again at your bylaws. I haven't heard of "officers meetings," only meetings of the board, i.e., all directors.

Kerry

There are states where only the Annual Meeting has to be open to owners. Meaning BOD Meetings do not have to be open to owners.

In some states owners are allowed to attend BOD Meetings but cannot speak nor comment unless asked to do such. Other wise, all they can do is listen.

Kerry,

What I meant was in WV we have open meetings which include board and annual meetings. The only meeting that is offered to our members is the annual meeting with the date time and place. So "members" have no idea what is being deceided or voted on until they are handed at the annual meeting the dispursements for the year. The previous boards have made decisions and spent money outside budgets, added supplemental declarations to our CCR's and the list goes on. The members are outraged that the boards have used their authority to spend the associations money.

In the land of HOAs, there are states that require "open" meetings of the Board. "Open" meetings mean that all homeowners may attend these board meetings..

Minutes also should be taken at those meetings that are available for homeowners to review--usually 30 days after an open meeting. what documents are you taking door to door, Tammy?

If the governing documents don't prohibit it from happening, then it's likely allowed.

I'm not saying it's a good thing to do and would recommend against doing it. However, if circumstances (lack of volunteers, etc.) leave that to be the only choice, then that is what may need to be done.