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MichelleM4 (Michigan)
Posts: 19
Posted:
We have a very small association - 12 homes. Four homes sit on the BoD; 4 homes "care" and 4 homes don't really get involved. We have had the same president / board for about 5 years. In short, the BoD does not follow the by-laws. As a home who "cares," what are my rights? The straw that broke the camel's back happened this weekend: our president hired a company to do $1K of maintenance in a detention pond. This item was never approved as part of the 2016 budget (which is only $3k, so spending this amount without approval is a bit concerning). At our annual meeting last year, the association agreed NO CLEANUP would happen. But, the president went out and hired it done anyway, only informing us yesterday afternoon, and not giving any specifics. Her email just stated that the area would be cleaned. She would not respond to emails / requests for details. When we found out the cost, we called for a Special Meeting, as written in our by-laws. The president refuses to acknowledge the request and no meeting has been scheduled.

The work began this morning, so clearly the $$ has been spent.

What are our rights as homeowner's? Since we are not on the board, it is hard to enforce bylaws, particularly when the BoD does not recognize them. We have been trying for years to get on the board, but are unable, as we never have the numbers or there are never positions available. We are tired of having to pay dues, but having no rights as to how money is spent.

What are our alternatives?

PitA
Posts: 1,416
Posted:
...our president hired a company to do $1K of maintenance in a detention pond.


The correct nomenclature would be: Engineered Storm-water Retention Pond

Said 'pond' being both necessary and required to operate at its rated design capacity.

Said pond may very well be included in your Reserve Fund.

? If not, why not ?

Would you rather the work was NOT performed and risk flooding your home?

MichelleM4 (Michigan)
Posts: 19
Posted:
Clarification: It is considered a "detention pond," however, in the 14 years we have lived there, there have never been any water in so-called "pond." Whether or not maintenance needs to be conducted is not the concern - the concern is with a board that does not follow by-laws and spends money without approval / homeowner input. Everything is ram-rodded through and homeowners are threatened that if they do not pay dues, a lien will be on their property. There are no voting rights.
SheliaH (Indiana)
Posts: 6,964
Posted:
If there are 4 homeowners on the board, what were the other three doing when the president decided to spend the money? Also keep in mind that emergencies do happen - was there some sort of blockage or something that made the cleaning necessary? Did you talk to the other board members about any of this? If so, what did they say? Just because the president didn't want a special meeting, that doesn't mean you can't have one - she can easily be outvoted by the remaining three - how did the rest of the board respond to that?

Look all over this website and you will see what you have to do - the question is are you willing to do it and do others feel the same as you? You didn't say if there's beef between you and the president - if so, that could explain why you haven't gotten anywhere. If you want to change what's going on, you'll need the other homeowners to help you, meaning you need to take the time and effort to rally them - or at least all show up at the next board meeting and demand answers. It's simple math -8 of you vs. 4 board members, so who has the advantage.

However, if you manage to dump the president, you will still need to find someone to replace her (you, perhaps?) The board usually selects office among themselves, so you'll have to get someone else to serve if you don't want the job (if you've never been on the board, you should refrain from being president until you find out what's going on).

In the meantime, if you're thinking about withholding your assessments for whatever reason, I suggest you stop that right now - you'll only get sued and end up with more aggravation and money out of picket. Besides, paying assessments is a legal obligation and you have to pay it as long as you own your home. Which leads to option 3 - sell your house and watch the ship sink for a distance. Option 4 was to suck it up and live with it, but that doesn't sound like you (which is a good thing!) Unfortunately, it would appear that's the tactic the inactive homeowners seem to be taking, and they may be the ones who will move this issue in one direction or another. Talk to them anyway - it may be they really do care, but didn't think there were other options.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The board does not need to consult the owners on each and every purchase it needs to be made. You ALL voted the board to do that on your behalf. You do have voting rights to elect/remove those on the board. You and your fellow members/owners have the right to also call special meetings to change laws and make special assessments if needed. So yes you do have "voting rights". The board has it's own rights as it is acting on the OVERALL of the HOA.

There may never be water in the detention pond. It's purpose does not mean it's to retain water ALL the time. It's most likely for those times when rain is too much for the drainage to handle in a short period of time. A clogged or dirty detention pond can cause some issues. All the stuff in there has to go somewhere. Do you want it in your yards or stuck in the drainage system? Creating even more issues?

By-laws of the HOA are INTERNAL rules of the HOA. They can be changed more fluid than CC&R's or Article of Incorporation documents. A lawyer even told me one time just putting something in the meeting notes could be considered a change in the by-laws. By-laws don't require to be filed in most cases except with the HOA. CC&R's and Articles of Incorporation are required to be filed PUBLICLY. They are more of the rules you should be familiar with following.

A HOA is ONLY funded by it's members for it's members. I think your HOA should be able to have measures in place to collect from those who don't pay their fair share. Liens and foreclosures are part of that legal process to collect from non-payers. Why knock it unless your willing to pay more to cover non-payers...

Former HOA President
MichelleM4 (Michigan)
Posts: 19
Posted:
One of the board members quit last night after finding out the President went through with the expense (apparently, at an executive meeting, they discussed not to do it). We did call for a special meeting, but the President will not acknowledge. I assume we can just meet without her and as you said, rally others to ask her to step down.

We have not, nor will we, entertain the idea of forgoing dues, for the issues you mentioned. As for having a beef, we try to keep out of everything and don't say much, if anything. However, we are tired of watching this individual ignore by-laws, slander other neighbors, and make life miserable for the few homes that do speak their view.

A president simply cannot ignore by-laws.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The President position is voted on by the fellow board members. The members vote for the board and then the board votes amongst itself for the office positions. Your board has the right to remove the President and appoint someone new if the President is not doing the will of the people.

I am a former President. My job I viewed as a "Facilitator". If my members wanted to paint the roads "red", my job was to make that happen. If your President isn't listening to the board or it's members, then it's time to do what ya need to do to remove. Which should be in the CC&R's.

BTW: I ALWAYS brought a copy of the by-laws, CC&R's, and Articles of Incorporation to each and every meeting. Why not? Decisions we made had to directly quote them. Maybe something your HOA may want to consider...

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
That board member is a wuss - they have an executive session where they decided not to do it, but the president did it anyway? And they just sat there and let it happen?? Why the hell didn't the others remove her as president during an open meeting (I'm sure your documents require the homeowners take a vote to remove her from the board itself). If your association does decide to give the board the heave ho, I hope no one considers voting him/her back on because that person has no backbone.

As Melissa said homeowners do have to the right to vote board members in and out, so if you and the other homeowners have an issue with the president's conduct, you need to talk to the apathetic ones about getting her out. At least now, there's a spot that needs to be filled - perhaps you can volunteer for that one (she might not vote for you, but there are at least two others who might, unless they're as cowardly as the one who up and quit).

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MichelleM4 (Michigan)
Posts: 19
Posted:
As mentioned before, I say very little, however, I do bring the by-laws to our meetings. Over the years, there have been a few occasions where I have spoken up because something has not been in line with a by-law (and President has stated otherwise). When I attempted to recite the passage, the President told me to shut up. Rather than get into a blow out in front of neighbors, I simply stopped talking and on one occasion, walked out because I was tired of being disrespected.

Lots of drama in this little association, which is rather sad. I don't mind paying for things and doing what we need to do, however, we should be following some type of process as outlined in the by-laws, not just a person's personal whims. (I should also mention that the President likes to fund projects which have a direct relation to her property, but other projects are simply not undertaken / ignored). I have reached a breaking point and am tired of the "Wild West" mentality.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Again... What are all your documents for your HOA? By laws are NOT the same as Convenants and Restrictions. (CC&R's). Which CC&R's go with the deed of the property. By-laws are just guidelines within the HOA. They aren't as subjected to follow as strictly and CC&R's.

You can't make people listen to you if your not willing to do the job. Are you willing to run for an office position? Just out of curiousity. If not, why? Then that is the reason why you and others may not being listened to...

Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MelissaP1 on 09/12/2016 1:51 PM

By-laws are just guidelines within the HOA.

Melissa,

Bylaws are not just guidelines. In fact, they are not guidelines at all.

A guideline, per Blacks Law Dictionary, is A practice that allows leeway in its interpretation.

Bylaws are regulations established by the corporation to control the actions of members or the Board. Also see The Definition of Corporation Bylaws

Guidelines are suggestive, can be waived if needed and, per the definition, allows leeway.

Regulations are requirements and can not be waived.

MichelleM4 (Michigan)
Posts: 19
Posted:
Melissa, we do not have CC&R's in Michigan (at least in the 3 homeowner associations I have been a part of). All we have are by-laws and the Master Deed (which essentially outlines the property boundaries, easements, and who owns the road / right of way). The by-laws give the guidance as to how to call meetings, manage a budget, and other rules (e.g. keeping garage doors closed).

FYI, I have been in various positions on a homeowner's board - secretary, VP, President. That is why I am having issues watching the behavior of this President. She is clearly acting on her own behalf, not considering the "general good" of the association, maintaining neutrality, or following the by-laws as set forth. As for becoming a member of this board, I have witnessed too many bad decisions being made, a lot of "the rules don't apply," and a very exclusive BoD who tend to bad-mouth and slander the other neighbors. Quite frankly, I don't want the drama, and I do not want to be associated with them. The board member who quit, quit because she tried to bring integrity to the discussions, but was continuously bullied and over-ruled, 3-1. Things will not change if another person gets on the board. It is all about the numbers (majority v. minority).
SheliaH (Indiana)
Posts: 6,964
Posted:
You don't like what's going on, yet won't get up and try to change things because you don't want the drama? Sounds like you're more intimidated of the president than what you'll admit.

You either want things to change or you don't. To do that requires work, and you know that if you've served on HOA board before. If this president is as bad as you say, wishing or hoping someone else will call her out or that the president will have an epiphany and change her tune won't work. Someone has to speak truth to power and since you have a small HOA, it's even more critical that you band together with like minded neighbors. Maybe if you and the other "concerned" homeowners had backed up the former board member, she'd still be there and the president might have been tossed at some point.

Now, make up your mind. You don't like what this president is doing, you may need some "drama" to change things, and I still say you need to get the other homeowners behind you, otherwise this impasse will remain. If you're not willing to do that, you can move. Or sit down, keep quiet and fume, raising your blood pressure at the same time. Not doing anything is also a choice, as is standing up and either way, you have to be prepared to take responsibility for whatever happens.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MichelleM4 (Michigan)
Posts: 19
Posted:
I am looking for constructive advice - not a bunch of bullying and character assassination. Hope you feel better by putting others down.
ND (PA)
Posts: 792
Posted:
As an aside, there are REtention ponds and DEtention ponds. REtention ponds are supposed to hold some water indefinitely and have capacity to collect excess stormwater, and drain that excess off slowly. DEtention ponds are not intended to hold water for any extended period, but will collect excess stormwater until such time that it drains away (per design of the pond).

On to the point of the OP's post. If my math is correct, you now have 3 homes currently on the BoD, 5 homes that "care" (including the 1 home who just quit the BoD), and 4 other homes that don't want to get involved.

As others have said or hinted at, it doesn't appear that the 3 current BoD members are going to change the way they act. Your decision is to either give up fighting, fight harder, or move. You say your budget is about $3,000 which means you likely pay about $250 annually. You have to decide how much that $250 is worth to you. It's within your power to remove the current BoD or replace the BoD over time, but both take time and effort. Your docs should explain how you go about doing anything that needs to be done.

And not sure about MI rules or your by-laws, but multiple owners of a home may be able to also serve on the BoD. Perhaps this increases the potential pool of interested BoD members.

It would also behoove you to convince those other 4 disinterested members to be on your side. Any fight would be easiest with the majority on your side.

Once you control the BoD, you control the decision-making. Or even if you control half of the BoD, you can kill any motions to do work that doesn't obtain majority vote. Until that time, the majority BoD vote will make the decisions. And who knows, once you get one or two on the BoD who agree with your views, perhaps you will start convincing the other BoD members to do things properly.

Good luck.
DaveD3 (Michigan)
Posts: 796
Posted:
I would ask the president for the approved minutes from the board meeting at which the maintenance was approved. Naturally, there won't be any unless the other 2 board members sided with the president rather than the member who resigned.

The immediate "solution" would be having the remaining board members remove the president from that position and elect someone else from the board to that position. That leaves this person on the board though.

Alternately, those who care could push for a recall through whatever process your documents specify for such.

What are your requirements for payments? Are two signatures on a check necessary (i.e. the President and Secretary) or only one? And who has the checkbook?

Now... if someone in your association.. ANYONE in your association contracts with an outside company for services that have NOT been approved by the board I would expect that to be a personal decision and the expenses to be paid personally by that person, NOT from the association coffers. For example, you as a non-board member could have contacted the company and had them do the same thing. The association has no more of a duty to pay in that case than they do if a rogue board member calls them, imho.

btw, if the board/president ignores requests for special meetings that have been requested per your documents, your legal means of forcing such a meeting is through a court order. I would send each person on the board a certified letter, notifying them that they received a proper request per your documents (including a copy of such paperwork) also citing the entirety of the section from your bylaws that address special meetings, and notifying them that if such meeting isn't held according to the bylaws that a court order will be sought to force the meeting. Just as they can file suit to compel you to mow your lawn or otherwise uphold your responsibilities in the documents, you can file suit to compel them to uphold their responsibilities.
MichelleM4 (Michigan)
Posts: 19
Posted:
Thank you Dave, this is excellent direction - exactly what I am looking for. The work occurred Monday. A homeowner tried to stop it (telling the contractor it was not approved), but the President and her husband stood there and told the contractor to continue. Still no response to any of our emails or request for the special meeting. I have been able to rally 1 home (in addition to the 4 that care) to our side. So, we now have 5 who want the President removed, 3 who probably do not (as they sit on the board) and another 4 that have not been contacted yet (they typically stay quiet).

I appreciate your advice.
DaveD3 (Michigan)
Posts: 796
Posted:
Michelle, I assume your association is a condominium development (even if detached site-condos). This is a helpful link to the Michigan Condominium Act and the associated rules:
http://www.michigan.gov/lara/0,4601,7-154-10573_45007_45038-160301--,00.html

Could come in handy since this is the law that governs Condo Associations.
SueW6 (Michigan)
Posts: 814
Posted:
What is stated in your bylaws about calling a Special Meeting?

What is the threshold for removing a president.

I find it odd that 4 have "not been contacted." The will HAVE to be contacted if you want to do what it looks like.
MichelleM4 (Michigan)
Posts: 19
Posted:
Our by-laws state the following re: Special Meetings:

***
It shall be the duty of the President to call a special meeting of the co-owners as directed by resolution of the BoD or UPON PETITION SIGNED BY ONE-THIRD OF THE CO-OWNERS PRESENTED TO THE SECRETARY OF THE ASSOCIATION. Notice of any special meeting shall state the time and place of such meeting and purposes thereof. No business shall be transacted at a special meeting except as stated in the notice.
***

At noon on Sunday, we received the following email:

**
Our detention pond is going to be cleared tomorrow. Once this work is performed it is important that nothing is dumped into the pond and also that leaves are not blown or raked into the pond. If any homeowner does deposit anything into the pond the cleaning of the pond will be at the expense of the homeowner. Thank you for your cooperation.
**

Five people sent emails asking for details (all homes copied on note, including President and BoD). By 9PM, there was still no response, so four of us (who were physically home) sent a note requesting a special meeting.

We sent an email to the President, siting the 4 petitioners (1/3 of our homes), copied the remaining BoD members (since the Secretary just quit) and also copied all home owners. The note said that the four undersigned requested a special meeting to discuss details of the cleaning, including: why the work is being done, who is doing the work, the cost, and details on what work specific work was to be done. After the note came out, all four petitioners then "replied all" that they were in favor of the meeting.

The email was never acknowledged. Four days later, and the President will not answer her door (hides when the doorbell is rung) and will not answer her phone.

In terms of removing a President - our by-laws are weak - there is nothing about asking someone to rescind their position.

Your question about why "four have not been contacted": these particular 4 homes are immigrants and there is an acknowledged language barrier. They prefer to stay out of matters, but when the time is taken to get them to understand the issue, they do get involved to vote. In any case, by "contacting people," I meant that I have verbally had an alignment discussion with the others about next steps / how to proceed / how to remove the President. If a meeting is ever called, you are correct that all 12 homes will need to be notified.

However, as you can see, even by utilizing the by-laws and issuing a special petition, we cannot get the President or remaining BoD to acknowledge our presence. And like I said, no BoD members are answering their doors...
ND (PA)
Posts: 792
Posted:
I don't know if 4 separate emails constitute a legitimate petition, if I understand correctly what you did. I would create a formal petition (google it), perhaps going as far as having all the signers produce individually-notarized signed sheets or all meet at the local bank to sign/notarize together.

One important point is that your bylaws state "1/3rd of the co-owners" are required to sign the petition. This sounds awkward to me, so you need to carefully analyze how your docs define owners, co-owners, and members.

Depending on definitions, while you have 12 units, you likely have more owners than that (since both a husband and wife in a single unit may each be owners of that unit). For voting and other matters, separate owners of a single property are typically considered one owner . . . but they may not. Bylaws should define.

Either way, you need to figure out what your petition now needs to be about . . . Removal of a single Board Member? Removal of all Board Members? Something else? And who plans to step up and replace the outgoing Board Member(s)?

DaveD3 (Michigan)
Posts: 796
Posted:
Michelle,

A petition should be a physical document actually signed by the petitioning parties. So the 4 of you would need to draft some statement about WHY you want to have a meeting "The undersigned are requesting a special meeting of the association, per the Bylaws of XXX Association Section 4 Paragraph 3 (or whatever) for the purpose of ________" If that's to recall the president, or discuss financials, or whatever, state explicitly why you want the meeting. A special meeting is for that purpose, and that purpose only. If you say it's a recall, then it's not about discussing the common areas. If you say it's about finances, then you can't discuss something else. Think of it this way... a notice will need to go out with the reason for the meeting stated. If someone says "meh, I'm not concerned about that topic" and skips the meeting, they should have no reason after the fact to complain because you didn't tell them something else was going to be discussed.

Then actually sign the document and personally deliver it to the secretary as your documents require. I would inform the board and perhaps send a scanned copy of the petition to the entire board via email.

I would interpret "co-owners" to be synonymous with "an owner of each unit". Your documents might contain language that requires each unit to designate a specific person that has the right to cast votes. essentially, each household nominates their own spokesperson, husband or wife, or whatever. So if you have Tom & Sue, and they say Tom is the official person, Sue can't show up at a meeting and vote. Tom should also be the petition signer in that case. If you don't have such a requirement, it's a safer bet to have all of the co-owners of each unit sign if possible.

If you submit a properly signed petition, the board is compelled to act on it and call that meeting, no matter if they agree or not.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Dave hit the nail on the head. The purpose of a Special Meeting must be clearly defined for when being called. It is not a general bytching/action session. If an action was not defined (such as a recall of the President), one cannot call for that action even if all in attendance want it.
MichelleM4 (Michigan)
Posts: 19
Posted:
Thanks again Dave. We structured our request pretty much word for word as you had described. Our desired purpose was "to discuss the impending work to be done on the detetion pond, specifically: 1. Why the work was required, 2. What work would be performed, 3. Who would be doing the work, 4. The cost of the work, and 5. Voting by the co-owners on whether the work should proceed."

We did not do a hand-signed petition, because in the past, she honored the email requests. Since the original request came off one person's email (but cited the 4 petitioners), the remaining 3 simply "replied all" to say they were in agreement with the original requester and wanted the call for a special meeting honored. We also did it that way, because 2 of the 4 homeowners were physically out of town, so we could not get a signature. We wanted to get the note / special meeting called prior to the work being done.

The original request was specific to the detention pond only - nothing about a recall.

Since the work / spent money occurred Monday and we are unable to change the past, we are now moving on to recalling her (especially in light of her still refusing to respond to anyone - physically or via email). We are in the process of gathering all of our evidence so that we can communicate a compelling story to the others who may not realize what is actually going on.

As you suggested, we did obtain the meeting minutes from the BoD meeting where they decided they needed to do maintenance on the detention pond. The meeting minutes stated that they agreed work was probably necessary, but they would obtain 3 quotes and meet with the city to determine exactly what needed to be done before conducting any work. According to the member who quit, these next steps never occurred - the President just hired someone to go in and raze the area. (This was why the board member quit - because they were not following their own processes / next steps - just going rogue - an she did not feel that was right).

As I stated much earlier, it is a lot of drama for such a little association.
PitA
Posts: 1,416
Posted:
? was the required work performed ?

if so, 1g sounds quite a bargain

or, you may continue to micro-manage and spend MORE
SueW6 (Michigan)
Posts: 814
Posted:
What do your bylaws say about recalling a board member?

Usually, it takes a 2/3 vote of the members to recall a board member.

If you can get 9 of the 12 voters to vote for recall, you can get rid of this president.

There should also be something in the bylaws about the Board's right to remove a member from the Board.

You might want to look at Michigan Non-Profit law for guidelines, if your bylaws don't cover these things.
LetA (Nevada)
Posts: 2,679
Posted:
Does your CM come to each meeting? Seems your CM should take some lead or advise the BOD, especially if they are new or inept on issues.

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