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JohnC46 (South Carolina)
Posts: 14,265
Posted:
As some of you remember I was an incumbent on our BOD that finished 6th in a 5 person election. I finished 6th by one vote and the Property Manager and President said they could do a recount and most certainly find a way of disqualifying some votes and get me elected. I said no and was not unhappy to be off the BOD. Understand I was also the one not afraid to confront owners when they need confronting. I have pi$$ed off a few owners.

Well since then, the President resigned due to selling and one other BOD Member also resigned do to his professional life work overload. Leaving 3 of 5. The new President is a good person but listens to much to a faction that has never been happy and are the largest vocal complainers in our association. \

I have been "unofficially" approached about accepting a BOD appointment to the BOD. I have replied that if I accept it is going to pi$$ some people off as I did when I was on the BOD and the BOD will have to realize this. I also replied it would have to be a unanimous BOD vote so all be on record as backing my appointment. I have said that if the BOD is not willing to announce a 10% or higher dues (not been one in 7 years and I suggest a 15% increase) prior to 12/01/2015 (as per our docs), then I will resign at that time. I was the Treasurer and have a better understanding of our budget then many, if not all on the BOD.

Word has gotten back that the President thinks I am demanding to much. I replied so be it.

I know it sounds like my way or the highway but so be it.

Opinions and suggestions please.

Thanks.

GenoS (Florida)
Posts: 4,276
Posted:
My first reaction was the board can select your for an empty seat by simple majority and you wanted to be a special snowflake by insising on a unanimous vote. But then I read the rest of your post.

If you honestly believe that your HOA is headed for fiscal turbulence unless dues are increased, and you have had no increase at all for 7 years (!), then I think you're right to be concerned about just wasting your time.

How much time between now and when the budget is set for next year (including any increases in assessments)? Enough for you to try and convince others on the board to go along with an increase? That might be worth it, but again, if it gets voted down you could step down then.

I think your reasoning is sound.
DouglasK1 (Florida)
Posts: 2,046
Posted:
I think asking for unanimous approval is fine to make sure you have the support of the other members.

As far as the dues increase, if I were a current board member I wouldn't agree to any new dues amount until budget time came around and we analyzed the financial requirements for the coming year.

Personally, if I were you, I would just accept the appointment without conditions, under the assumption that it is more effective to try to effect change from within, than from outside the board.

Escaped former treasurer and director of a self managed association.
GenoS (Florida)
Posts: 4,276
Posted:
I'll just add that the question of how much to set aside for the reserves can drive the assessments just as much as the yearly operating budget, and that question is not always so easy to answer.
KerryL1 (California)
Posts: 14,550
Posted:
I think, JohnC, that if you believe you can be of benefit to your HOA, then accept the board's invitation (if it comes). Then, you'll be a voice to appoint someone to fill the other vacancy.

If you're unable to persuade the others to raise dues, resign at that time.

Meanwhile, why do you think dues should go up 10 or 15%? Are there another topics that interest you in your HOA?

I know yo've said that some are annoyed with you because off fines. But doesn't the whole board vote on whether to levy fines?

As I recall, one reason you bought in this HOA was because it has few amenities so reserves is not a big factor in your budget.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Geno

My overall concern is we are short changing the Reserves. We had a Reserve Study done a few years back and we have a fairly good idea how much we need to contribute every year which is about 25% of our dues which we had budgeted for and had been doing.

My association pays for all landscaping and individual home exterior shell maintenance such as roof replacement. Time is taking its toll (we are from 7 years to one year old) and we are facing some needed landscape repairs such as erosion, sodding, bush replacement, tree trimming/removal, etc. There is no way the budget can handle it except short changing the Reserves. My last forecast was we would be shortchanging the Reserves by about 50% (from 25% of dues to about 10-12%). They are basically robbing Peter to pay Paul.

I am 73 and were I was selfish/short sighted, I would say who the hell cares about Reserves but I cannot do that with a clear conscious.

Even those that use to scream for dues reduction are now screaming no new dues. We are making progress....LOL

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Kerry

I do not think I ever said they were annoyed at me because of fines. Fines were never an issue as we only commenced doing such this year and we had a real just fix the problem attitude versus pay us. Some are annoyed with me as I had no problem informing they were in violation and needed to clean up their act. I would also confront them on budget issues when the topic came up. I was one to pass issue back to the owner as not a BOD issue. Candidly, many did not like what I had to say. My social circle does not include my neighbors (my social circle is hard drinking, golfers....LOL) thus I have more that do not like me then do like me. Of course, most do not even know me but at least 50 % have heard me speak at owner/Annual meetings so more know me then I know them.

Yes we have no amenities and one of the main reasons I bought here but we do all outside maintenance (landscape, exterior home shell maintenance, etc.). Landscaping is about 45% of our budget and our #1 source of complaints/issues.

KimR4 (Florida)
Posts: 33
Posted:
John, you have said it has to be a unanimous BOD vote. If that's your line in the sand then you will know soon enough if you will accept.

My question: if not you, then who? Even if your participation on the BOD were as a member-at-large and an advisor, I would welcome you. If one person on our board knew more and had more experience than I did I would be thrilled. There may be people on your board that feel the same way despite what the pres has said.
GenoS (Florida)
Posts: 4,276
Posted:
Your HOA sounds a lot like mine. The HOA here also pays for all landscaping and exterior shell maintenance, including roofs. We also do sodding, bush replacement, tree trimming and (when necessary) removal and replacement. Substitute drainage for erosion issues and it really does sound similar. Being in Florida, those are regular monthly recurring expenses and that's why they're in our operating budget. If you have a need to take care of large landscape issues less frequently, I can see how those expenses could be included in the reserves if they only had to be done every 5 or 10 years. Between all our landscaping vendors, it's our highest monthly spending category by far.

We have been putting significant sums into the reserve accounts, but it's very haphazard. The money is kept in a separate bank account and well-accounted for. We've never had a proper reserve study done. I've been on the finance committee for a year and a director for 6 months and no discussion of our reserves has ever lasted more than 30 seconds. It's a situation that is ripe for abuse and the fact that it hasn't been abused yet is pure luck.

I made a spreadsheet last year that started from the reserve categories and numbers that were available at the beginning of 2014. I modeled it after some professional reserve studies I had seen done for other HOAs. I showed that an increase of $10 per month per parcel for 3 years, and then reverting to annual 3% increases would get us into fully-funded territory in 4 years. The overwhelming response was, "Ten dollars a year increase for three years! Ha! And what's this percent fully funded business anyway? Let's move on."

Good luck to you. Maybe a hypothetical projection of how you'll need a special assessment in X years to cover something that will need to be replaced when there's not enough in the reserves will get some people's attention.
KerryL1 (California)
Posts: 14,550
Posted:
I simply think, JohnC, that you should serve if you believe your experience and temperament will benefit your HOA.

AS Kim put it, if not you, who?
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By KerryL1 on 07/13/2015 6:23 PM
I simply think, JohnC, that you should serve if you believe your experience and temperament will benefit your HOA.

AS Kim put it, if not you, who?

EZ choice. And when they frustrate you, you can keep your golf buddies and us old Fs entertained.

Sikubali jukumu. Read all posts at your own risk.
AnnH5 (Florida)
Posts: 304
Posted:
Why not allow the Board to put it out there that they are seeking appointees, see who responds, and then allow the Board to make the appointments? That keeps it fair in case there are other owners who would like to serve their community. If nobody else steps up and you accept an appointment then at least it was done fairly and there will be no accusations of the appointments being biased or behind the scenes. Don't give a disgruntled community more ammo.

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