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ArvaF
Posts: 21
Posted:
I live in a small community of less than 50 homes. We are managed by a professional property management company along with five Board members elected by the homeowners. Our By Laws clearly define the roles and responsibilities of each officer elected to the Board. The President recently resigned, but there has been no communication from anyone about which Board members are taking on new roles, if any. I asked the Property Management Company to clarify the new roles of the Board members based on the resignation, and I was told that when a community is managed by a property management company, the roles of the Board members become insignificant so it's unimportant. They added that the roles and responsibilities defined in the By Laws apply only if a community is self-managed without a property management company. Is this true, and if so, could someone help explain this? Thank you.
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By ArvaF on 10/10/2016 11:28 AM
I live in a small community of less than 50 homes. We are managed by a professional property management company along with five Board members elected by the homeowners. Our By Laws clearly define the roles and responsibilities of each officer elected to the Board. The President recently resigned, but there has been no communication from anyone about which Board members are taking on new roles, if any. I asked the Property Management Company to clarify the new roles of the Board members based on the resignation, and I was told that when a community is managed by a property management company, the roles of the Board members become insignificant so it's unimportant. They added that the roles and responsibilities defined in the By Laws apply only if a community is self-managed without a property management company. Is this true, and if so, could someone help explain this? Thank you.

As the owner of a management company in California, my strong suggestion is find another management company.

The management company's roles is to assist the Board and the Association on a day-to -day basis, not take over the operation of the HOA. Management companies have no legal authority to act on behalf of the Association unless explicitly written into a contract. That will generally entail handling emergency situations up to an agreed upon dollar amount.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Arva,

Welcome to the forum.

The answer to your question will actually depend on the individuals who serve on the Board and in the Officer positions. The Officers are always responsible and accountable for the duties outlined within the Bylaws or State statutes. However, the actual execution of those duties can be delegated to an MC, PM or independent contractor (bookkeeper for example).

Some individuals will associate responsibility of the task/duty to whomever is performing the task/duty. However, that would be inappropriate. The responsibility of making sure the task is done correctly belongs to the Officer assigned that task. Unfortunately, some Officers will shirk their responsibility and not take the time to verify that a task is being done properly once it's assigned to an MC, PM, etc.

I expect, since everyone is human, that some MC, PM or contractors may feel slighted and offended if an Officer of the corporation checked their work (or simply asked to check their work). Therefore, a relationship of respect and understanding needs to be built between both parties so they can work together to accomplish the tasks assigned to both of them.

Sometimes when individuals trust but fail to verify things occur that wouldn't occur if the checks and balances were in place.

As far as the resignation, that is simple. As outlined within (I expect) your Bylaws, when the president resigns or is unavailable, the VP performs those duties until the Board appoints someone to fill that office.

As for your PMs comment, my personal opinion is that someone needs to set that PM down and have a meeting so the PM understands that they work for the Board and not the other way around.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By RichardP13 on 10/10/2016 11:40 AM

As the owner of a management company in California, my strong suggestion is find another management company.

It sounds like replacing the entire board wouldn't be a bad idea either.

Escaped former treasurer and director of a self managed association.
KerryL1 (California)
Posts: 14,550
Posted:
Welcome to the forum, Arva.

Are you on the Board? It sounds like you are not.

To find out more about what duties are delegated to the Mgmt. Co. (MC) or Prop. Mgr (PM), read your contract with that firm. Also take another look at your Bylaws, which may state that the Board can delegate a lot duties to the PM. Is you PM on your premises full-time?

Why didn't the Board select a new President, by the way?

Our HOA is a complicated high rise twin towers so we do have a full-time PM, who has a Mgr. Assistant. The board president, per our contract with the MC is the Board liaison with the PM. In other words, all four officers do not interact with our PM constantly. When the monthly financials come to our PM, she meets with the treasurer and they discuss any anomalies. As secretary, I don't write meeting notes at our Board meetings, the managers do. I do not check every communication with Owners or residents, but do, working with our PM, help compose significant communication.

But to say the role of theBoard is "insignificant" is overstated. After all, the board still makes all of the decisions about policy matters in our HOA, and choosing contracts, etc.

Are there particular duties in your Bylaws that concern you Arva?
ArvaF
Posts: 21
Posted:
Thank you for the response.

I am not a Board member. I also don't have easy access to the contract with our Property Management Company. Our MC is located in a different state. I can never tell if it's the fault of the Board or the fault of the management company, but my requests for information are typically ignored. Maybe I'm TOO interested in how our community is managed.

I don't know why the Board did not select a new President. Perhaps they're satisfied with the Vice President assuming that responsibility. I'm disappointed they haven't communicated any of that to residents.

I don't have any concerns about our By Laws. I was mostly trying to get clarification on whether our MC was conveying accurate information, and I think the answer is "they were not."
KerryL1 (California)
Posts: 14,550
Posted:
So there's no PM onsite at all, right?

Still I believe your state laws give Owners the right to get a copy of the contract with the MC. You probably have to request it i writing.

Does the Board have board meetings that'r open to owners? That way, you can ask at a meeting what th plans are for a new president.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By ArvaF on 10/10/2016 3:16 PM

I don't know why the Board did not select a new President. Perhaps they're satisfied with the Vice President assuming that responsibility."

Perhaps nobody stepped forward and volunteered (as it's typical that a Board may appoint individuals to fill vacancies on the Board as well as vacancies of Office).

Quote:
Posted By ArvaF on 10/10/2016 3:16 PM

I'm disappointed they haven't communicated any of that to residents.

Has anyone volunteered to put together a newsletter (perhaps the previous president was doing that as well)?

Quote:
Posted By ArvaF on 10/10/2016 3:16 PM

I was mostly trying to get clarification on whether our MC was conveying accurate information, and I think the answer is "they were not."

Well, depending on your Boards actions/inaction/attitude and the MC's attitude you relayed, it very well may be that the Board positions are insignificant (as the MC described) within your Association.

If that is the case, you may want to gather support and replace the board at the next election or simply get yourself voted onto the Board to see why things are done the way they are.

ArvaF
Posts: 21
Posted:
Thanks, everyone, for taking time to respond. You've helped a lot and have given me some great suggestions. I'm glad this forum is available.

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