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RobertN7 (Florida)
Posts: 1
Posted:
My HOA went into receivership last week. For some reason, there was a single board member that schedule meetings for weekdays when people were working, sent mailings that she was trying to get people on the board but whoever applied she would send a following mailing stating that they are under-qualified, and some how she managed to get a judge to put the community into receivership. There is a HOA meeting scheduled for this weekend (1 week after entering receivership) and there were a total of 5 people that were being elected to the board and we were expecting over 200 people at the meeting, which is well over the required amount for a quorum.

I am speechless as to how the happened, but it did. A rogue board member for a reason unknown made it her objective to have our community put into receivership without allowing additional board members to join. Seems criminal but I am far from a lawyer.

My question is this, there are community members willing and able to perform the duties of the board and there is already a management company retained that performs most, if not all the administrative duties. How can we get a board reinstated and take the community out of receivership?

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Remove the current board member, institute your own new board, and then have them remove the receivership.

Former HOA President
NpS (Pennsylvania)
Posts: 4,216
Posted:
You have said nothing about the financial status of your association - receivership usually involves an inability to meet financial obligations.

Sikubali jukumu. Read all posts at your own risk.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MelissaP1 on 04/09/2015 8:15 AM
Remove the current board member, institute your own new board, and then have them remove the receivership.

It doesn't work that way (at least how I understand it). The Receiver was appointed by and works for the Court. Only the court can remove the receiver and that will be when the goal is achieved.

If the issue is to seat a Board, great. Receivership shouldn't last too long.

If the issue is to seat a Board and get them up to speed/ability to run the Association - that would be subjective and documented in reports by the Receiver to the Court.

If the issue is financial, the Receiver will likely stay until the finances are considered healthy (again, subjective to the court).

See:

Getting receiver for homeowners association typically is bad idea

HOA Financial Matters: What's Receivership, and When Do Condo and Homeowner Associations Need It?

Receivership for failure of homeowners association to fill vacancies on board of directors an Oregon Statute, ยง 94.642

Homeowner Association Receivership: Hard Choices Must Be Made a youtube video made by a court appointed receiver

MelissaP1 (Alabama)
Posts: 13,836
Posted:
I know it's not that easy... The person/entity assigned to be the "Receiver" needs to be contacted about the interest of the people to take over the board. Ask for a meeting from the group and talk to the Receiver. Express your interest and plans on what you all want to do to get out of the Receivership. The Receivership may work with you all to make that plan into action.

I am sure they are even looking for a group of people to step up and take up the cause. Receivership shouldn't be forever. Plus you all need to educate yourself on what a HOA is and how it should work. Having your MC control everything isn't the way it should be. The MC is to take instruction from the HOA. Not the other way around.

Simply see if the Receiver will have a meeting with all of the members and find out your real situation. Read your documents. It may be that the people were NOT qualified if they were behind in dues. You have to be on the deed as well. So make sure the denials and qualifications are what you think they are and NOT assume....

Former HOA President
JohnB26 (South Carolina)
Posts: 1,001
Posted:
Quote:
Posted By MelissaP1 on 04/09/2015 8:15 AM
Remove the current board member, institute your own new board, and then have them remove the receivership.

YOU HAVE OUTDONE YOURSELF

JonD1
Posts: 2,350
Posted:
More than likely the receiver was appointed by the court.

Best to read the court's decisioon in doing so and determine on what grounds the court decided this action was warranted.

How one person who WAS on the board was allowed to accomplish this is beyond me. Guess everyone else including the MC was comatose.

It would be best get legal guidance as any effort to place the owners back in power will have to pass court muster.

I doubt as others have suggested you can simply remove the receiver or talk them into removing themselves.

I would guess the owners would need to petition the court to retunr governance over to them if and when that gets into place.

Until you know WHY receivership was granted you can't solve the issues.

But it would be my opinion someone beter get off their collective rumps and do something fast because the meter is running and your comunity is paying the bill!

Somebody had better wake up real soon.....

RichardP13 (California)
Posts: 163
Posted:
Quote:
Posted By JohnB26 on 04/09/2015 12:15 PM
Posted By MelissaP1 on 04/09/2015 8:15 AM
Remove the current board member, institute your own new board, and then have them remove the receivership.


YOU HAVE OUTDONE YOURSELF


AMEN
RichardP13 (California)
Posts: 163
Posted:
Quote:
Posted By JohnB26 on 04/09/2015 12:15 PM
Posted By MelissaP1 on 04/09/2015 8:15 AM
Remove the current board member, institute your own new board, and then have them remove the receivership.


YOU HAVE OUTDONE YOURSELF


As they say in basketball, NOTHING BUT AIR.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By JonD1 on 04/09/2015 3:42 PM
More than likely the receiver was appointed by the court.

Best to read the court's decision in doing so and determine on what grounds the court decided this action was warranted.

How one person who WAS on the board was allowed to accomplish this is beyond me. Guess everyone else including the MC was comatose.

It would be best get legal guidance as any effort to place the owners back in power will have to pass court muster.

I doubt as others have suggested you can simply remove the receiver or talk them into removing themselves.

I would guess the owners would need to petition the court to retunr governance over to them if and when that gets into place.

Until you know WHY receivership was granted you can't solve the issues.

But it would be my opinion someone better get off their collective rumps and do something fast because the meter is running and your comunity is paying the bill!

Somebody had better wake up real soon.....


Jon,

It pains me to say this but I agree completely.

This sounds like a condo complex where every owner expected someone else to do everything for him. The OP seems so surprised that a receiver was appointed but these things do not happen without notice and an opportunity to respond before a receiver is appointed.

JonD1
Posts: 2,350
Posted:
Quote:
Posted By LarryB13 on 04/09/2015 5:02 PM
Posted By JonD1 on 04/09/2015 3:42 PM
More than likely the receiver was appointed by the court.

Best to read the court's decision in doing so and determine on what grounds the court decided this action was warranted.

How one person who WAS on the board was allowed to accomplish this is beyond me. Guess everyone else including the MC was comatose.

It would be best get legal guidance as any effort to place the owners back in power will have to pass court muster.

I doubt as others have suggested you can simply remove the receiver or talk them into removing themselves.

I would guess the owners would need to petition the court to retunr governance over to them if and when that gets into place.

Until you know WHY receivership was granted you can't solve the issues.

But it would be my opinion someone better get off their collective rumps and do something fast because the meter is running and your comunity is paying the bill!

Somebody had better wake up real soon.....



Jon,

It pains me to say this but I agree completely.

This sounds like a condo complex where every owner expected someone else to do everything for him. The OP seems so surprised that a receiver was appointed but these things do not happen without notice and an opportunity to respond before a receiver is appointed.


Well Larry there may be hope for you yet....

My concern where was the MC during this process?

MIA????

Allowing the property to go down this road is in part on the MCs shoulders.

After the dust clears might be time for them to go.

Live and learn Larry!

NpS (Pennsylvania)
Posts: 4,216
Posted:
WHAT IF: The OP's rogue board member held the joint positions of Sec/Treas.

I could see this happening and being hidden from the other board members.

Sikubali jukumu. Read all posts at your own risk.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Jon,

The management company works for the board and would have no say in a petition for receivership. They are just employees without any property interest in the real estate or the association. The real blame for this mess lies on the shoulders of the owners who took no interest in the affairs of the association.

The OP is of the opinion that the lone board member was the person who petitioned for receivership but in reality any owner would have had the standing to do so. It is also possible that one or more mortgage holders petitioned the court to protect their investments.

Regardless of who filed the petition, the court found sufficient cause to appoint a receiver.

JonD1
Posts: 2,350
Posted:
Quote:
Posted By LarryB13 on 04/09/2015 7:28 PM
Jon,

The management company works for the board and would have no say in a petition for receivership. They are just employees without any property interest in the real estate or the association. The real blame for this mess lies on the shoulders of the owners who took no interest in the affairs of the association.

The OP is of the opinion that the lone board member was the person who petitioned for receivership but in reality any owner would have had the standing to do so. It is also possible that one or more mortgage holders petitioned the court to protect their investments.

Regardless of who filed the petition, the court found sufficient cause to appoint a receiver.


Any MC worth their salt would understand the damaging affect going into receivership would have on this property. HERE our MC would raise that point with the board and any other owner willing to listen.

HERE we always ask What's best for the property?

The MC was more than likely aware of what was occurring. I would be interested to know their role if any. Perhaps supportive of the efforts for receivership?

Only way to determine was has occurred and what role each party played is to read the documents and court papers.

This hole will take more effort to dig out of than the lack of effort and interest that allowed it .

Just WHY would someone push to have the court take over governance? Could there be a rational motive?

Quite an interesting matter without enough details with which to form an opinion.

Let's hope the OP continues to post more details.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By LarryB13 on 04/09/2015 5:02 PM

This sounds like a condo complex where every owner expected someone else to do everything for him.

Keep in mind that the OP did say that there were volunteers willing to serve on the Board but they were disqualified to serve for reasons unknown to us.
FredS7 (Arizona)
Posts: 927
Posted:
> Keep in mind that the OP did say that there were volunteers willing to serve on the Board but they were disqualified to serve for reasons unknown to us.

That is perhaps the strangest thing in the posting and suggests that there is a fair amount more to the story.
JohnB26 (South Carolina)
Posts: 1,001
Posted:
ergo:

receivership

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