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RikiR (Nevada)
Posts: 4
Posted:
I live in a neighborhood that has three separate HOA's. First we have the master Association which has it's own Master declaration . Second is Association " B" which fall under the Master and over Association "C" where I own my home. My question is can the same person hold the position of President in Association "B" and "C" at the same time? I feel that a conflict of interest could be present as the the President of "B" has control of creating and enforcing the CC&R's over "C" where he like wise has control over Association.

many times when I have approached the President of "C" I get a response that either directly or indirectly related to "B" . A specific case involves security of association "C" after several break ins. In a discussion I had with the President ( about C) he made mention that he his problems within association "B", which I at that point wasn't addressing.

has any one know if !. the holding of two President seats is legal? 2. Can a reference on this issue be provided?

A second issue in association "C" was that the Management Company which was a part of a large Management conglomerate was bought out and a second company under that same conglomerate took over? No notice to the Association Owners was provided till after the change had already taken place? No financial audits or reviews took place , basicly only thing that changed were the employees. And the contract that was in effect was just carried over the new company with out and modifications? Shouldn't the Owners have been able at that time to seek out a Management Company ? If not during the change over( cause the same contract was not expired) but when the contract is to expire? Again this goes back to my concern about the same president being in control of the two Associations?

Ask for comments and any reference or document dealing with these two issues.
DouglasK1 (Florida)
Posts: 2,046
Posted:
I doubt that Nevada law precludes one person serving in both president roles, but I can't say for sure.

I assume you are not on the board, is that correct?

Have you read your governing documents (by-laws, CCRs, Deed Restrictions, etc.) to see if they address this? If not, then I would guess it is allowed, but maybe someone else can chime in. In any case, while the president is often the "face" of the board, HOAs are not supposed to be dictatorships, any decisions should be made by the boards, not the prez.

Normally the management company is hired by the board, the homeowners don't have any role except for electing the board. If the board feels that the management company changes are detrimental, they can change to a new one at (probably annual) contract renewal, or look for some loophole to get out of the contract earlier.

If you are unhappy about how the HOA is being governed, the best solution is to find like minded owners and get yourselves elected to the board.

Escaped former treasurer and director of a self managed association.
TimB4 (Tennessee)
Posts: 21,059
Posted:
I see it as the guy having two different jobs.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Both of your issues are contract issues.

If your HOA docs don't allow someone to sit in both positions, then someone who sits on A and B is in violation. If there is no such restriction, then he can sit in both positions. On the other hand, if your docs require someone to be an owner within the individual association to be on that board, then I can't see where someone can sit on B and C unless he owns units in each.

If there were no conditions in your contract with the MC in the event that the MC got bought out, then the new owner stepped into the shoes of the old company without limitation.


Sikubali jukumu. Read all posts at your own risk.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
RIKI

NPS raised a good point. Many docs do say one must be an owner to be on the BOD. Start looking at your docs for this.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By NpS on 07/01/2015 12:51 PM
On the other hand, if your docs require someone to be an owner within the individual association to be on that board, then I can't see where someone can sit on B and C unless he owns units in each.

The OP is a bit fuzzy, but I read it as C is an HOA, B is a Master HOA that includes C, and then there is a top level master association that contains B. Personally, I've heard of Master associations, but not two levels of master, but that's how I read Riki's post.

Escaped former treasurer and director of a self managed association.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
What I am familiar with is a Master Association with sub-associations and the Master Association is made up of the Presidents of the sub-associations thus no one votes for the BOD of the Master Association. The Master elects its own officers (as do most associations) thus the President of the Master Association will also be the President of a sub-association.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By JohnC46 on 07/01/2015 7:17 PM
What I am familiar with is a Master Association with sub-associations and the Master Association is made up of the Presidents of the sub-associations thus no one votes for the BOD of the Master Association. The Master elects its own officers (as do most associations) thus the President of the Master Association will also be the President of a sub-association.


Perhaps the OP can clarify the structure. As I understand it, this is a 3 tier system with C being a sub-association to B which is a sub-association to A. I have never heard of a 3 tier setup. Prez is pres of B and C but apparently not A. So Prez is not pres of the Master Assn (A) ???

Sikubali jukumu. Read all posts at your own risk.
RikiR (Nevada)
Posts: 4
Posted:
HI,
AND THANKS FOR ALL YOUR REPLIES. fIRST LET ME ATTEMPT TO CLARIFY THE "THREE" ASSOCIATIONS. YES I HAVE THREE HOA'S . FIRST IS THE MASTER HOA WHICH HAS A ELECTED BOARD OF DIRECTORS FROM THE THOUSANDS OF HOMEOWNERS WHICH LIVE IN " OUR MASTER PLANNED COMMUNITY. THEN WE HAVE A SECOND HOA, WHICH HAS IT'S OWN SEPARATE BOD, ELECTED BUY THE OWNERS OF THE HOME WITHIN THE 4 DEVELOPMENTS WHICH COMPRISE THE COMMUNITY WHICH I LIVE. THEN THE THIRD IS THE COMMUNITY MADE UP OF 185 HOMES AND HAS IT'S ELECTED BOD.

THOSE ARE THE THREE SEPARATE HOA'S THAT ALL HAVE A SEPARATE DECLARATION,OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS. FOR THOSE OF YOU THAT ASKED IF I WAS ON THE BOD OF MY HOA, WELL IN FACT I WAS ON THE BOD FOR EXACTLY 98 DAYS BEFORE I RESIGNED. I WAS THE TREASURER FOR THE HOA AND BELIEVE ME WHEN I SAY I WORKED ALL OF THOSE 98 DAYS ATTEMPTING TO STRAIGHTEN OUT THE FINANCIALS. I DISCOVERED THE BOD PRESIDENT WITH MANAGEMENT'S OK, HAD DECIDED TO RENOVATE $36,000.00 WORTH OF LANDSCAPING THAT THE BUILDER HAD ONLY PLANTED 3 YEARS AGO. IT DIDN'T NEED REPLACEMENT , AND NOT ONLY DID THEY REPLACE THE PLANT LIFE THEY REMOVED AND REPLACED ALL THE STONE, BECAUSE THEY DIDN'T LIKE THE SIZE!!! IF THAT ISN'T ENOUGH, THEY PAID FOR THIS FROM THE RESERVE FUND, WHICH HAD IT TO BE ATTENDED TO AT THE 8 YEAR POINT.(MEANING IT HAD 5 YEARS OF LIFE LEFT)

ANY WAY,BACK TO THE PRESIDENT OF ONE ASSOCIATION BEING ABLE TO BE A SITTING PRESIDENT ON ANOTHER HOA WHICH FALLS UNDER EACH OTHER. ONE OF YOUR COMMENTS SAID THAT THE OWNERS ELECT THE PRESIDENT, AND THEN HE OR SHE HAS THE CONTROL BASICALLY OF THE HOA.I FEEL THAT HAVING THE SAME PERSON WHICH SITS ON ONE HOA BOD AS PRESIDENT AND THEN ALSO SITS AS PRESIDENT ON A SECOND HOA BOD(WHICH FALLS UNDER THE CC&R'S OF THE FIRST) SEEMS TO ME TO BE A MAJOR CONFLICT OF INTERESTS? I HAVE READ THE ENTIRE CC&R'S FOR ALL THREE HOA'S AND NONE ADDRESS THE ISSUE OF A PERSON SITTING AS ANY POSITION ON MORE THAN ONE BOD. IF ONE LIVES IN THE LOWEST HOA HE THEN IS ELIGIBLE TO BE A BOD OF ANY ONE OF THE THREE !! I FEEL THAT THERE IS A MAJOR CONFLICT OF INTEREST FOR ANY ONE PERSON TO HAVE BASICLY CONTROL OF TWO OR MAYBE EVEN THREE BUDGETS EQUALLING MILLIONS OF DOLLARS!!

tHAT IS MY QUESTION, AND THE ONLY THING THAT STOPS THIS , I FEEL, IS THE CONFLICT OF INTEREST CLAUSE??

ONCE AGAIN , THANKS FOR ALL YOUR INPUT , I AM SERIOUSLY CONSIDERING FILING A COMPLAINT WITH THE STATE OF NEVADA DEPARTMENT OF BUSINESS AND INDUSTRY - REAL ESTATE DIVISION OFFICE OF THE OMBUDSMAN.FOR COMMON-INTEREST COMMUNITIES. JUST NOT SURE IF I'M OPENING A "PANDORA'S BOX"

RICK NEVER SAID WHY I RESIGNED! I BEGAN TO HAVE HEALTH ISSUES WHICH WERE WORSENED BY ALL THE "POOP" I HAD TO DEAL WITH DAILY!!

RikiR (Nevada)
Posts: 4
Posted:
yES, YOU HAVE GOT IT!!!
NpS (Pennsylvania)
Posts: 4,216
Posted:
Is it your belief that a person should not sit on the boards of both association B and C
or that a person should not be prez of both association b and c

Sikubali jukumu. Read all posts at your own risk.
RikiR (Nevada)
Posts: 4
Posted:
At first it was that not being able to sit as President on both Boards. But after some further thought, and reading of what exactly the BOD are to perform and what Nevada NRS 116 directs as their functions I now believe that no one person should be able to sit on a BOD that has control of the other via the CC&R's !!
NpS (Pennsylvania)
Posts: 4,216
Posted:
While I have never heard of a 3-tier system, I am familiar with several 2-tier systems where the master assn is made up mostly from representatives of the sub-associations. For them, this arrangement works because the people who sit on both boards act as go-betweens who can help both the sub-association and the master association to understand what the other board has to deal and what the expectations are.


Sikubali jukumu. Read all posts at your own risk.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By RikiR on 07/07/2015 12:24 PM
At first it was that not being able to sit as President on both Boards. But after some further thought, and reading of what exactly the BOD are to perform and what Nevada NRS 116 directs as their functions I now believe that no one person should be able to sit on a BOD that has control of the other via the CC&R's !!

Since no law or document seems to preclude it, there seems to be nothing that would stop one person from being on multiple boards or holding multiple officer positions. If you think this is a problem, your best bet is probably to try to convince enough others of the same before the next election. If most others don't think this is problem, then majority rules and you're out of luck.

Escaped former treasurer and director of a self managed association.

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