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SusanB26 (Florida)
Posts: 12
Posted:
My Florida Master HOA is comprised of over 1,000 homes and 13 subassociations. The subassociations have their own boards of directors, and the subassociations pay dues both to their respective subassociation and to the master association. Each subassociation has their own governing documents, and the master association also has governing documents which pretty much overlap with the subassociation documents.

Two of my fellow master board members live in the same subassociation. Their subassociation is self-managed, unlike the other subassociations who each employ a property manager for day-to-day affairs. These two master board members have a nuisance house in their subassociation, and they want the Master Association to hire a lawyer to enforce the master association documents, even though enforcement of the subassociation documents has always been done by the sub-associations. As far as I know, these two individuals are not on their subassociation board of directors.

I have been asked to approve legal fees to have the master association address the issues in their subassociation by email. I have requested that their board of directors write a letter to the master association with this request, and come to our next meeting to make their case so the entire board can vote in the open and any action taken would be recorded in the meeting minutes for all to see but I'm being pressured to vote by email.

I know these two master association board members are acting in the self-interest of their own community to save their self-managed community legal expenses, but I'm not sure what I can do.

Any insight others can provide would be very much appreciated.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By SusanB26 on 12/30/2015 5:12 PM
As far as I know, these two individuals are not on their subassociation board of directors.

I thought master association boards were typically composed of representatives from each of the subassociation boards. To have non-board members of the subassociations serve on the master board seems wrong. I'd have a close look at all the documents to see if that's really working as designed. How many sit on the master association's board? With 13 subassociations it seems really strange that there aren't enough board members willing to serve on the master board.

My other thought is that the master and sub association rights and responsibilities shouldn't overlap to the extent yours seem to. If the subassociation docs give it the authority to deal with a nuiscance then asking the other 12 subs to foot part of the bill for you seems wrong, too. There should be a clear line dividing the responsibilities of the subs from those of the master.

The governing documents form a contract. Do the governing documents between the master and the subs also form a contract? Are all these contracts self-contradictory? It sounds like they might be. As a homeowner there I would want to know exactly what contractual rights existed between myself, my subassociation, and the master association. I'd be damned if I owed the same duty under more than one contract and, likewise, if I had to seek redress for something I would want it clear that there was one - and only one - party that I needed to pursue for that redress.

So to answer your question, I would tell the subassociation to handle their own problems and pay for their own legal expenses and keep your hands out of my pockets, thank you very much. Then get to work changing the master association covenants and other documents that delineate who is exactly responsible for what.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Some questions:
1. How many board members on master assoc? How did it come about that there are 2 from 1 sub-association?
2. Has master assoc ever enforced these nuisance issues against an owner? Or has that always been left to the sub-associations?
3. Do the individual sub-associations hire their own lawyers or do all use the same firm?
4. Who is pressuring you to vote by email?

Sikubali jukumu. Read all posts at your own risk.
SusanB26 (Florida)
Posts: 12
Posted:
There are 5 board members on the master assoc. board, voted in by the greater community of 1,000+ homeowners. The fact that there are two board members from the same community is only because those board members were voted in at the last annual meeting.

The master association has enforced the CC&R's once regarding political signs, but only after the sub association wrote and asked that their issue be included on the master association agenda. Otherwise, compliance has always been left up to the sub associations.

Each sub association uses their own lawyer. The master association has been very careful to pick independent legal council that does not represent any of the subassociation.

The pressure is coming from the master board president and vice president. They both live in the same sub association community and want the master board to spend money to enforce deed restrictions on a foreclosed home. There are 5 on the master board; 3 live in the same community - and 2 of them want to go forward with a vote to engage a lawyer at the master association expense via a vote by email.

NpS (Pennsylvania)
Posts: 4,216
Posted:
More questions:
5. What is the infraction that they want enforced? Foreclosure? I'm guessing that it's a lot more involved than a political sign. Any idea what the expected legal fees and costs will be?
6. Last para unclear re # of master assoc members from 1 sub-assoc. Is it 2 or 3? Amazing if 3 of 5 come from one sub-assoc.
7. Has the master assoc consulted with their lawyer re enforcement without written request from sub-assoc?

Sikubali jukumu. Read all posts at your own risk.

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