LynnP (California)
Posts: 1
Posts: 1
Posted:
Can anyone tell me what the consequences are when there are no association members who want to participate on the board of directors? What if nobody volunteers for the available positions?
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Board of Directors
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MicheleD (Kentucky)
Posts: 4,491
Posts: 4,491
Posted:
Then the business of the association does not get done and the association becomes defunct. Without anyone to enforce the CC&Rs, they would become invalidated. Not sure what the time-frame on all that would be, however.
BradP (Kansas)
Posts: 2,640
Posts: 2,640
Posted:
Actually Michelle if there are common areas it would not become defunct and dissolve. I am not sure exactly what happens, there are many topics on here about it. Essentially a caretaker is named to oversee the common areas and it is paid for out of your dues.
MicheleD (Kentucky)
Posts: 4,491
Posts: 4,491
Posted:
Brad, it probably depends on what type of HOA you are.
We are a subdivision with 275 homeowners. We have 5 common areas, including one that has a retention basin, but none that have any "amenities" or common buildings of any sort, outside of a stone wall that stands at our signature entrance.
If no one were step forward and fulfill the duties of the board, the street lights would eventually be handled by the local electric company and they would charge the individual homeowners for their costs on a house-by-house basis. The common area that does not get maintained would end up being maintained (mowed at least, not landscaped) by the county, probably at some additional fee in taxes, but not sure.
Of course, no one would be there to collect the assessments, so . . .
In Kentucky, the state or local government does not step in and appoint any specific oversight of any portion of a deed restricted community such as ours if the board disbands. A board would not doubt be considered "disbanded" if no homeowners were to step forward and step up to the plate. The annual report would fail to be filed, insurance would lapse, that sort of thing. If the annual report is not filed, the HOA corporate status would become "inactive." But again, not sure of the timeline on that.
We are a subdivision with 275 homeowners. We have 5 common areas, including one that has a retention basin, but none that have any "amenities" or common buildings of any sort, outside of a stone wall that stands at our signature entrance.
If no one were step forward and fulfill the duties of the board, the street lights would eventually be handled by the local electric company and they would charge the individual homeowners for their costs on a house-by-house basis. The common area that does not get maintained would end up being maintained (mowed at least, not landscaped) by the county, probably at some additional fee in taxes, but not sure.
Of course, no one would be there to collect the assessments, so . . .
In Kentucky, the state or local government does not step in and appoint any specific oversight of any portion of a deed restricted community such as ours if the board disbands. A board would not doubt be considered "disbanded" if no homeowners were to step forward and step up to the plate. The annual report would fail to be filed, insurance would lapse, that sort of thing. If the annual report is not filed, the HOA corporate status would become "inactive." But again, not sure of the timeline on that.
GloriaM (North Carolina)
Posts: 829
Posts: 829
Posted:
I would recommend a letter encouraging Owners to become involved, stressing the importance of a board and their duties. Communicate with the Owners and hold another election meeting. A nomination committee can also be used in trying to muster up volunteers. Use newsletters to encourage community involvement. Apathy is a difficult thing to over come, but “Never doubt that a small group of thoughtful committed citizens can change the world. Indeed it is the only thing that ever has." - Margaret Mead
KevinK5 (California)
Posts: 64
Posts: 64
Posted:
It must depend on the state. In Florida, the state will appoint a receiver to manage the affairs of the association. Actually a state-hired management company. I heard that the neighborhoods that have let this happen usually end up paying exorbitant fees to whatever management company the state hires.
KevinK5 (California)
Posts: 64
Posts: 64
Posted:
From Florida Statutes. Doesn't this sound like something that would scare the residents into forming a BOD?
(4) If an association fails to fill vacancies on the board of directors sufficient to constitute a quorum in accordance with the bylaws, any member may apply to the circuit court that has jurisdiction over the community served by the association for the appointment of a receiver to manage the affairs of the association. At least 30 days before applying to the circuit court, the member shall mail to the association, by certified or registered mail, and post, in a conspicuous place on the property of the community served by the association, a notice describing the intended action, giving the association 30 days to fill the vacancies. If during such time the association fails to fill a sufficient number of vacancies so that a quorum can be assembled, the member may proceed with the petition. If a receiver is appointed, the homeowners' association shall be responsible for the salary of the receiver, court costs, attorney's fees, and all other expenses of the receivership. The receiver has all the powers and duties of a duly constituted board of directors and shall serve until the association fills a sufficient number of vacancies on the board so that a quorum can be assembled.
(4) If an association fails to fill vacancies on the board of directors sufficient to constitute a quorum in accordance with the bylaws, any member may apply to the circuit court that has jurisdiction over the community served by the association for the appointment of a receiver to manage the affairs of the association. At least 30 days before applying to the circuit court, the member shall mail to the association, by certified or registered mail, and post, in a conspicuous place on the property of the community served by the association, a notice describing the intended action, giving the association 30 days to fill the vacancies. If during such time the association fails to fill a sufficient number of vacancies so that a quorum can be assembled, the member may proceed with the petition. If a receiver is appointed, the homeowners' association shall be responsible for the salary of the receiver, court costs, attorney's fees, and all other expenses of the receivership. The receiver has all the powers and duties of a duly constituted board of directors and shall serve until the association fills a sufficient number of vacancies on the board so that a quorum can be assembled.
EdieL (Virginia)
Posts: 86
Posts: 86
Posted:
If no property owners want to serve, if your Covenants and By laws allow,
Hire a Management Company.
Hire a Management Company.
JeanneK3 (Maryland)
Posts: 562
Posts: 562
Posted:
Maryland has just passed a law that homeowners can petition the court for a receiver to run the condo/HOA if there are not enough board members.
Synopsis:
Authorizing not less than three unit owners to petition a specified circuit court to appoint a receiver if a council of unit owners fails to fill specified vacancies on the board of directors under the Maryland Condominium Act; requiring the unit owners to mail a specified notice; requiring the unit owners to post a notice in a specified manner; providing that unit owners may proceed with the petition under specified circumstances; etc.
Synopsis:
Authorizing not less than three unit owners to petition a specified circuit court to appoint a receiver if a council of unit owners fails to fill specified vacancies on the board of directors under the Maryland Condominium Act; requiring the unit owners to mail a specified notice; requiring the unit owners to post a notice in a specified manner; providing that unit owners may proceed with the petition under specified circumstances; etc.
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