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RonS16 (Florida)
Posts: 1
Posted:
What happens if no one runs in the election for the board Officer's seats?
RichardP13 (California)
Posts: 3,868
Posted:
As a generally rule, Directors stay in office until someone takes their place either through an election or resignation.

I have an issue when a sitting director doesn't put their name in to run for re-election. If that is the case, I feel their term should end at the annual meeting.
KerryL1 (California)
Posts: 14,550
Posted:
Please clarify, Ron. Is it that no one running to be a director? How many directors are there? How many board slots are available?

What do your bylaws say happens if no one seeks to be elected to fill director slots. If silent, perhaps FL statutes can help.

But you also mention "officers." In most HOAs the directors appoint the officers. what a officers are required on your Board? Usually this is in your bylaws.
GenoS (Florida)
Posts: 4,276
Posted:
As an FYI, there is going to be a bill introduced in the Florida legislature next month that repeals the Florida Homeowners Law (F.S. 720) in its entirety. In its place, the existing condo law, F.S. 718, would be substantially modified to include governance and authority over HOAs. The election rules would change significantly.

Richard's concern is addressed in the proposed changes as well. Whether or not it passes this year it's pretty clear that over the last several years the legislature's intent is to harmonize and unify Florida's statutes that govern condos, HOAs, timeshares and mobile home community associations.

Ron, your association's bylaws should contain the answers you seek. If they are silent on certain points then FS 720 provisions would apply, and if FS 720 is silent then FS 617 would apply.
PitA
Posts: 1,416
Posted:
If no BOD -> Receivership

The best way to form a rogue board is via apathy

No new blood

Old blood stays on UNELECTED but unreplaced

Some old bloods resign, move away, etc

Remaining old bloods get to personally pick new directors W/O an election

Cycle begins

If no volunteers, your BEST defense is to petition for a receiver

or

move BEFORE the cycle starts
RichardP13 (California)
Posts: 3,868
Posted:
Such brilliant ideas from you.

Thank you so much for the helpful contributions!
PitA
Posts: 1,416
Posted:
? how else to answer someone who can not / did not / will not read their own documents ?

? by guessing at their ACTUAL situation and VENTURING answers ?

? what specific section of my answer was not accurate ?

! pray tell, please SOLVE her problem !
PitA
Posts: 1,416
Posted:
What happens if no one runs in the election for the board Officer's seats?

As a generally rule, Directors stay in office until someone takes their place either through an election or resignation.


However, YOUR reply was much much much more helpful than mine>



JohnC46 (South Carolina)
Posts: 14,265
Posted:
Let us not play lightly with receivership.

Yes if no one runs for or is on the BOD, the corporation (the association) can apply for receivership. Basically the court will appoint a receiver to run the corporation. Generally the Receiver will be a lawyer/company that specializes in such. Generally they will charge so much that the corporation will soon have no resources. Generally they can also spend the Reserves to pay themselves leaving the corporation with nothing.

Do not play lightly with receivership.

CynthiaL4 (Florida)
Posts: 1
Posted:
We have an election problem also. Florida HOA Homeowner's took over HOA from builder in Nov 2014. Annual meeting held Nov 2015. The Board is 3 members. 4 people ran for office, 3 of these were members of the existing board plus 1 new person. There was not a member quorum at the meeting. Members were told that the existing board "rolls over" since all 3 board members from the 2014 elections expressed a desire to continue. There is nothing in the covenants regarding a roll over. Another meeting could have been called for in an attempt to get a member quorum of 30%. The existing board let it be known they had no intention of holding another meeting. Has anyone heard of a "roll over" in FL statutes?
SheliaH (Indiana)
Posts: 6,964
Posted:
Roll over is probably another way of saying the directors stay on until they resign or are voted out (or recalled). In your case, you didn't have a quorum at the annual meeting and so you still have the folks who are current sitting because the HOMEOWNERS didn't show up to vote!

It's always best to refer to your documents first - most times you'll find your answers instead of looking for something in a state statue (go that route if your documents are ambiguous). In your case, your documents say a 30% homeowner quorum is required, so it would have been best to call another meeting to have an election. Since your current board has said they don't want to call a meeting, what's stopping you and like minded homeowners (30% of you, that is) to sign a petition calling for a special homeowner's meeting on the subject? Your documents may have instructions on how such meetings are to be called, so read them and go from there.

But remember, if no one's interested in the petition, attending the meeting or even voting, you got bigger problems. The association can't run itself, so if no one steps up you're left with the ones who did.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
SheilaW5 (Maryland)
Posts: 3
Posted:
I am having this issue. No one wants to be President. I am the current President and do not want this position for life. There are 3 other Board members but no one wants to be top banana. Plus, 2 of the three others will be moving in the near future. No one else comes to the meetings or participates unless they have an issue. I'd like to threaten receivership and see what happens.
SheliaH (Indiana)
Posts: 6,964
Posted:
That might work - when I was on the Board, that's exactly what we did about 5 years ago by writing a VERY POINTED letter about what would happen. 5 people came forward to volunteer, including a board member who'd left earlier that year.

Today, two of the five remain, but our president will be stepping down at the end of this month, so there may be a repeat because we're coming close to missing a quorum (I left the board after 10 years over a year ago and I really don't want to return!)

When you talk about receivership, get a few numbers as to what this might cost homeowners - the receiver's fee, court costs, attorney's fees, plus funding reserves AND paying routine expenses will add up very quickly. And there won't be a damned thing the homeowners can do because the receiver answers to the court and if he/she feels assessments need to go up, that's what will happen and homeowners won't have a say.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
LarryB13 (Arizona)
Posts: 4,099
Posted:
I found an Arizona case where the court appointed a receiver for a condo complex. The receiver was on the job for about a year until the case was dismissed on procedural grounds. The receiver did make at least one report to the court. What he had to say was scary. The following is from the unpublished memorandum decision from the AZ Court of Appeals:

By February 2006, the Receiver reported [to the trial court] the Association needed over $1.5 million to finance repairs to the roofs, decks, and awnings; was facing over $80,000 in outstanding debts; and had been threatened with condemnation by the City of [****]. On March 8, 2006, the Receiver requested the court to “circumvent the Association’s governing documents with respect to levying special assessments for capital improvements” and to impose a uniform special assessment against each condominium unit. The Receiver asked the court to levy the assessment because the Association did not have the funds to cover the expenses of the pre-levy special meeting mandated by the Association’s Declaration of Covenants, Conditions, and Restrictions (“CC&Rs”). In addition, he advised the court that, based on his experience, he believed “[f]ollowing the Association’s internal procedures for . . . a special assessment . . . [would be] futile” because a quorum could not be achieved due to owner apathy.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By LarryB13 on 12/08/2015 1:52 PM
based on his experience, he believed “[f]ollowing the Association’s internal procedures for . . . a special assessment . . . [would be] futile” because a quorum could not be achieved due to owner apathy.

What a clusterf. Can't assess themselves because they can't get a quorum together - As Pita would say, D'oh.

Sikubali jukumu. Read all posts at your own risk.
PitA
Posts: 1,416
Posted:
Receivers tend to state the actual, albeit unpleasant, facts.

They ARE 'officers of the court'.

Not every system is perfect.

Not even Hammurabi's Code was perfect.

BUT

One is free to suggest a better system by writing the codes and laws themselves.

Good Luck with that.

Seasons Greetings

and

Merry Christmas
DaveD3 (Michigan)
Posts: 796
Posted:
Quote:
Posted By RichardP13 on 12/04/2015 9:30 AM
As a generally rule, Directors stay in office until someone takes their place either through an election or resignation.

I have an issue when a sitting director doesn't put their name in to run for re-election. If that is the case, I feel their term should end at the annual meeting.

Under what authority do they continue as board members?
If their term is stated as being for 2 years, are they not automatically off the board after those 2 years expire?
I would expect that if nobody was running for a board position, that position would become vacant, not the permanent home of the previous board member.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By DaveD3 on 12/11/2015 5:00 PM
Posted By RichardP13 on 12/04/2015 9:30 AM
As a generally rule, Directors stay in office until someone takes their place either through an election or resignation.

I have an issue when a sitting director doesn't put their name in to run for re-election. If that is the case, I feel their term should end at the annual meeting.


Under what authority do they continue as board members?
If their term is stated as being for 2 years, are they not automatically off the board after those 2 years expire?
I would expect that if nobody was running for a board position, that position would become vacant, not the permanent home of the previous board member.

Actually Dave, the governing documents give them the authority. My original Bylaws stated "All Directors shall hold office unless their successors are elected."

In looking through the records of my old association, they hadn't had an election in over eight years. So eight years no ballots were ever opened. Some years, they tried twice to achieve quorum, with no luck. The last year we would have, but the association's attorney wrongly put an end to the election. The next year we eliminated quorum and have had elections for the past years years with no problem. What a concept! and everyone is afraid of doing the same. Quorum only allows Boards to hand pick their replacements, sometimes so they can take a break for a year or two.

The records over the years showed the incumbent directors never bothered to mail a nomination form in. They name was automatically put on a ballot. I found nomination forms turned in that names never got unto the ballot.

The nonsense I have witnessed in 7 years is unbelievable. Most posters here have only lived in one HOA, some a couple. Manage over a 100 HOA's, youthink you heard of everything, but quite haven't.
GenoS (Florida)
Posts: 4,276
Posted:
Good points, Richard. So many times I've said to myself, "Well now I've seen everything," but soon after something happens that proves me wrong. And not just in HOA situations. This is my first HOA and while I haven't experienced a "now I've seen everything" moment here it terrifies me to know that any number of other HOAs are run worse than this one.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By GenoS on 12/11/2015 8:18 PM
Good points, Richard. So many times I've said to myself, "Well now I've seen everything," but soon after something happens that proves me wrong. And not just in HOA situations. This is my first HOA and while I haven't experienced a "now I've seen everything" moment here it terrifies me to know that any number of other HOAs are run worse than this one.

Many of the topics brought up here, I have experienced first hand. I have seen bad management companies trying to hold onto accounts, at whatever cost. The worst though, is the attorneys, who know better, allowing the nonsense to go on.

I have seen states that want to regulate management companies, yet have no regulations for the Board who self manage, multi million corporations.

If your association is still looking for a management company at $100.00 a door, I am willing to relocate, (jk). Matter of fact, California Dept of Real Estate has a Operating Cost Manual for HOA's and they per unit base fee up to $50.00 a door. We have companies bidding at $8.75 a door, but the extras will eat you alive.

TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By DaveD3 on 12/11/2015 5:00 PM
Posted By RichardP13 on 12/04/2015 9:30 AM
As a generally rule, Directors stay in office until someone takes their place either through an election or resignation.

I have an issue when a sitting director doesn't put their name in to run for re-election. If that is the case, I feel their term should end at the annual meeting.


Under what authority do they continue as board members?
If their term is stated as being for 2 years, are they not automatically off the board after those 2 years expire?
I would expect that if nobody was running for a board position, that position would become vacant, not the permanent home of the previous board member.

There is also language stating that within Corporate law (applicable if your Association is incorporated - and most are).

For examples, see:

Virginia § 13.1-857:

despite the expiration of a director's term, a director continues to serve until his successor is elected and qualifies or until there is a decrease in the number of directors, if any.

Michigan 450.2505 (4)

A director shall hold office for the term for which he or she is elected or appointed and until his or her successor is elected or appointed and qualified, or until his or her resignation or removal.

Florida 617.0806:

Each director shall hold office for the term to which he or she is elected or appointed and until his or her successor has been elected or appointed and qualified or until his or her earlier resignation, removal from office, or death.

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