SPECIAL DEALS by BOD

I should also note that this same owner has been in violation of an item in the CC&R's for over two yrs....24 months...which has generated much anger and discontent in the community. The BOD apparently is taking no action to remedy the violation other than notices. I wonder why the BOD did not make the owner come in compliance before making any special financial arrangement on the loan?
Thanks again.

Did you check your documents for more details on what prompts an executive session? Generally, very sensitive information is exchanged during executive sessions (such as lawsuits), so the Board needs an avenue to discuss them without worrying that information that's protected by privacy laws doesn't get disclosed to people who don't have any right to it. Improper disclosure of information that's protected by attorney-client privilege or state/federal laws can result in legal action that can cost the Association (you and your neighbors) VERY HEAVY FINES and damages.

In this case, it sounds like the board has told the owner he/she is in danger of the account being turned over to the association attorney for collection if he/she doesn't comply with the payment plan as agreed, and so the owner requested the meeting to explain what's going on. It sounds like you're responding to rumors and you didn't say if you've asked the board to clarify when executive sessions are held and what information other homeowners are privy to.

When it comes to things like payment plans, it's none of your business to obtain the details of what's going on with specific homeowners. You should only be concerned that the Board is taking the appropriate steps in a timely manner to collect money owed the Association or that community rules are being enforced consistently and fairly.

How do you know that's happening? Look around you - read the financial reports to see if delinquency amounts are decreasing. Take note of inconsistent CCR enforcement. If you have specific proof things aren't happening or need clarification, go to a Board meeting and speak up during the resident forum. If you're being stonewalled, rally your neighbors to DEMAND answers and/or force a recall. While you're at it, you may want to take a look at your CCRS and talk to the association attorney to see what should be changed to promote transparency - and then sell that to the homeowners, who will have to vote to approve the amendments. Good luck!

Joanne,

I will weigh in with my .02

As a past Board president and currently owner of a management company, I would entertain such an idea.

So, one day the Board wakes up and mandates that all owner re-paint their homes. In 2007, a number of people were started to enter into some very tough times, especially in the housing market. WHAT is wrong with setting up a couple of homeowners on a payment plan, for courtesy sake. It is discussed and approved in ES and THEN noted in the Open Session minutes. If you have a management company, they could create a separate invoice paying over, say, 12 months. I would imagine it could be treated as a individual special assessment and therefore if they default, a lien could be placed against the property. If it sold, the lien would be satisfied. Obviously, this can work in healthy HOA's, but not HOA's would be in the financial condition to accommodate.

OR, you could fine the owner and create bad blood. OR, if you don't like their decisions, elected a new Board.

As far as knowing what is being done with your money, you have your financial reports.

The sad reality is that people spend more time and energy on what may happen in November 2016, than what happens in their own neighbor, day in and day out.

I can't change the government, but I sure as hell can change what happens in my own community.

I like your sincere replies, ND & Sheila. As you can see below, though, Joanne has much bigger problems in her HOA, which she has discussed before.

Meantime, I agree with you two that so far as I know arrangements for payment schedules and how to deal with violations are executive session matters and boards aren't required to share those with other Owners.

Thanks for the replies and when a BOD is in constant BREACH of FIDUCIARY DUTY on many items and a PM that has no clue of statutes or language in documents,,,,,,I agree John, I will never be accepting of substandard performances...nor should anyone! If "negotiations" or "settlements" are acceptable by law that is fine HOWEVER, we do have a right to know something about them.....like where the money goes and does it come back. They don't even tell us the total of amount of that the delinquencies are from month to month! I have to ask every damn month.

Some radical changes occurred between 2007 and 2014. People found that, through no fault of their own, all the equity in their home was gone. HOAs found that, through no fault of their own, the RE market crash had put a tremendous strain on a homeowner's ability to sink more money into their homes.

The hardship you speak about is probably real. The board's payment plan was a best effort offer to bring everyone in compliance. In your shoes, I would be happy that there is only one house involved.

As a direct result of the market crash, we now have 3 houses out of 81 that don't make any payments at all. I'd take a delinquent painting repayment plan that can be recovered when the property is sold any day over what we have now.

That's great.
Not everyone has that amount of time or desire to stay informed on what is occurring within their Association.

At the same time, those who serve on a Board typically only have x amount of time to provide and if the job takes more then that, they do what they can and what they don't have time to do gets placed on the back burner for a future board. Typically, enforcement is one of those things that gets put on the back burner.


The documents are there for 2 reasons.

1) The CC&Rs are there because this is what everyone agreed to live by when they purchased.
2) The other governing documents are simply to set out how the Association will operate.


Ideally, no enforcement is needed. People agreed to live a certain way and will comply of their own accord. Unfortunately, some individuals feel that the laws/rules should apply to others but not apply to them.

Selective enforcement doesn't mean failure to enforce. A Board can choose to enforce one covenant and not another (it's not a great idea but it's allowed). They simply must enforce equally. For example, they enforced the paint rule equally - everyone had to paint. How that painting was done is a different issue.


Keep in mind that your Board members are also your neighbors. They also have to live there. Hence, some board members are just as reluctant to enforce as you are.


Understood. Sometimes a learning curve is expensive.
Apparently the majority of the membership has little or no problem with the cost of that learning curve, as those individuals have been elected to office.


We being the membership or the Board?

Sometimes, for privacy reasons, certain information is withheld from the membership. This withholding is typically supported by Statute.


Perhaps, that is one reason why the Board worked out the deal for painting the property. They, in your words, gave a damn and cared enough to help work out a solution to the issue.


As Treasurer of my Association, I have some insight to this from the Boards position.

Sometimes, it's due, as you initially pointed out, to the fact that the individual lives there as well and doesn't want to create issues (as many can not separate a friendship and the job).

Sometimes, it's because the owner (for whatever reason) refuses to respond to any Association communications.

Sometimes, it's because the Board is concerned of how any deals may be seen by the membership. Someone may see a settlement as a "making deals with our (the memberships) money".

Sometimes, it's because the Association can't afford the costs of collection. Yes, the delinquent member is supposed to reimburse those costs. However, the Association must initially pay them.

Sometimes, it's the fact that the owner simply has no money (can't get blood from a turnip) and nobody wants to go through the process of foreclosing to stop the bleeding.


I am truly sorry to hear that. What should be done is not always whats required to be done.

The only real way to fix that is to get enough change on the board and start doing things the way it should be done so that way becomes the "way we always did things"


That is great to hear. Gathering support is the first step to making change.

I agree on working out a plan. We have 3 owners under delinquent payment plans. One trying to work one out and one that totally ignores all communications.