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Started by NadiaB • 11 replies • 1583 views

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NadiaB (Illinois)
Posts: 3

Posted:

I am a new Board member for a Homeowner's Association of 243 homeowners in Illinois, The PMC has been working (not really) for the association for 10 yrs or so, they are unwilling to help with issues i.e deliquent accounts (over 25%) , liens ( on a few houses and the PMC charges us outrageous charges to place liens) , violations of the indentures ( the Board members have to notify the PMC many times to ge leters sent and then they charge us crazy amounts to send these letters). I want to post on our website a list of all homeowners by address only their account balances as to current, past due is there any legal ramifications if I do this? Also I would LOVE to remove the PMC I have requested a copy of our contract with them and they have failed to produce one, I would like to know if I hire a accounting firm and have a "as needed lawyer" on staff is this all I really need to replace the PMC? Help we have had a "changing of the guard" with the Board and we are ready to make changes but are unsure how to accomplsh it when it comes to our PMC.

HaroldS1 (Arizona)
Posts: 314

Posted:

Who did you ask for a copy of the contract? As a board member you are entitled to see it. Doesn't someone on your board have a copy of the current contract? You'll need to read it before you can do anything about replacing them since it is usually spelled out in the contract the termination terms. Good luck. Harold

RogerB (Colorado)
Posts: 5,067

Posted:

Nadia, you accomplish changing MC's by first reading the existing Management Agreement which should state how it can be terminated. Next you send out RFPs to potential MCs which you plan to consider. Make sure to list the size of your HOA, how often assessments are collected, how often meetings are held, and each and every service you want them to perform. Then request interviews with the Board for the top 2 or 3 MCs selected. Make sure to interview with the Agent who would be assigned to your association. After the interviews if you have found a satisfactory company at a satisfactory price then it is time to write and execute a Management Agreement. Then schedule termination of the current MC and employment of the new MC.

JoeW1 (New York)
Posts: 728

Posted:

NadiaB - As for posting account balances on your website, bad idea, not sure what you expect the end result to be. If it's to expose owners who are not current, there is a more tactful way to achieve payment which is to keep it private, ban use of common elements (pool, tennis, etc.), continue to place liens on the property, and send the past due accounts to a collection agency. God help you if your website is open source, without secure password protection.

As for your other goals, what are the goals of your fellow Board members? One Board members displeasure with any one matter needs the concurrence of the team of members to effectuate change.

RobertG (Arizona)
Posts: 505

Posted:

Nadia - Please check other posts recently on posting delinquent items on websites.

Also, you can get other companies to do the collections for you, you don't have to just use your PMC.

GeorgeS8 (Maryland)
Posts: 1

Posted:

I have the same problem that are mentioned in the original question but our Property Management Co will not return ANY calls made to her. I am the only board member left, as everyone else has moved away or quit. I have called at least eight times with no response since the first of April. She has not sent out the Homeowners Yearly Dues bills yet and they were spose to be in the mail the second week of April. She has given herself a raise and now refuses any communication. She was sent a certified letter that notice was put in her PO Box on Monday (today is Friday) and she has not yet signed for it. Since I have no way of "speaking" to her, I am not able to get a copy of her contract with the Homeowners Association. Any more suggestions? Is she in "breach of contract" with her refusal to return any calls and her refusal to mail out the bills for the homeowner dues? It is alarming to us as I have found information thru our State Judical site that she has some money problems and is being sued for a rather large bill. Please let me know what you think and I appreciate any advice you can pass on. Thanks.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

GeorgeS8: Don't see why you can't get a copy of the contract from the assn. since you are a Board member. Someone from the Board must have the contract and would have had to sign the contract with her. You need to check back with those B.Members who have quit/left to see if the contract has been renewed or is it up for renewal; also review the contract with the Board Member who signed off on it.

As far as giving herself a raise, she can't arbitrarily do that if the contract has been signed for $x.xx. She must abide by the contract price as it stands--unless, of course, the contract states she will receive an increase/raise on a certain date.

Check also with the post office to learn if they are delivering mail to the address of record and/or if she has left a forwarding address. Is this person the entire 'company' or is she one of many other agents there?

Something sounds rotten...

JoeW1 (New York)
Posts: 728

Posted:

GeorgeS8 - As the only remaining Board member you must take the bull by the horns and head up your reconstruction of governance, even though you are acting solo and probably not in compliance with quorum of a Board. Your investment is at stake so honestly to hell with formalities. You are a fiduciary and acting in good faith. How many dwellings are their in your HOA?
1) Get a copy of the by-laws, cc&r's
2) Get all the previous Board members to meet with you and get all the information they have.
3) Begin interviewing Property Management Companies. Insist that you and another Board member (once you get another elected) to be signatories on the bank account.
4) Get a letter certified mail return receipt requested and another one regular mail informing the PM her services are officially terminated and to hand over all information relating to the HOA.

Good Luck

RogerB (Colorado)
Posts: 5,067

Posted:

George, hold a special members meeting immediately to establish approved motions on actions to take. Invite all members to attend and provide input. If prompt action is needed prior the the members meeting hold a special Board meeting with invitation to members to attend(since you are currently the only Board member you represent a quorum). You, by a majority vote of one can establish approved motions on actions to take.
1) contact the financial institutions where your HOA funds are on deposit and discuss the situation with an officer. Try to withdraw all funds if possible; otherwise try to freeze all accounts.
2) There should be a copy of the Management Agreement maintained by some Board member independent of the MC. Contact old Board members and try to get a copy.
3) Send a certified letter to the MC terminating there service effect immediately for failure to perform contracted services including failure to return phone calls for the past two months.
4) Try to contact her, you may need to have the HOA hire a PI, and get the HOA files.
5) If all else fails hire an attorney and take her to court.

NadiaB (Illinois)
Posts: 3

Posted:

I asked the PMC and they wont give me anything. As for the other Board Members they haven't gotten anything either. Thanks

NadiaB (Illinois)
Posts: 3

Posted:

Thank you

JM2 (Oregon)
Posts: 439

Posted:

Nadia and George:

You can check out the website for the Community Associations Instutitue (www.caionline.org) and find both the national service provider listing, as well as links to your local chapters, who will likely have websites with local service provider links. Other good references would be through the association's vendors - attorney, landscaper, etc., who usually know a lot of the HOA management firms in the area; if none found, look at property or real estate management firms that may have some HOA experience.

Nadia, the last thing you should do is to post in any way the delinquencies.

J. Patrick Moore, CMCA

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