Entire BoD Resigned - Attempts at Transition to new BoD Failing

We had 3 members on our BoD. I was not present at the annual meeting, but prior to it, the President sent out an email stating that BoD positions were open. I sent an email expressing interest in being considered for the BoD. I had a meeting come up at work, and was unable to attend the meeting.

From the meeting minutes I received, they went through the normal agenda items, which included approving 2017 dues. After this, the meeting minutes state that the entire BoD resigned. It also states that I put my name forward. However, the minutes do not reflect a vote / outcome. (My neighbor was there and said they all agreed I would be on the Bod.)

The outgoing BoD believes I am the new President, even though I have never officially accepted anything. In any case, I have attempted to contact the old BoD for a transition meeting and an exchange of the association books, as well as to update the bank account signature card. Every member of the old BoD refuses to meet with me. All they have agreed to do is to take their names off the bank account. These people have been on the board for 5+ years. I have no idea what I may be inheriting, and wanted a transition meeting so that I could ask questions.

I am concerned that I will receive binders that have no information in them, or will inherit financial issues (e.g. bills never paid), as this BoD has not been transparent at all (which is why I originally considered being part of the BoD.) Again, a meeting could ease these concerns, but without it, who knows what I might inherit.

Do I just walk away at this point? Suggestions appreciated.

(Our HOA is comprised of 12 co-owners and is located in Michigan.)

Michelle,

Ask for the records from the individuals.
Appoint those who you believe will be as transparent as you expected your last board to be and move on with the work.

Every new Board member has the potential to inherit issues (known and unknown).
All they can do is work through them.

My advice, do the best you can.

The first thing for the Board will be to look at the finances and make sure that they are in order as taxes, Form 1120-H by the 15th day of the
3rd month after the end of its tax year. Expecting your Association uses a Calendar Year, that means that taxes will need to be filed by March 15th.

Tim and AugustinD's suggestions are great places to start. Since this sounds like your first go round on a HOA board, I'd also suggest going to the community associations institute (CAI) website and take a look at some of their materials you might order - lots of good stuff for new HOA boards, budgeting, rules enforcement and other stuff you'll have to deal with. If you get other people to serve on the board with you, all of you should review the material. Better yet, the website also has on demand webinars on various subjects you can all review and there may be a local chapter in your area that sponsors them.

I don't know why the previous board isn't being cooperative, but you also said they haven't been very transparent, so who knows what they've been doing. A sit down with the property manager may provide some insight - and you might also need to have the financial books audited to ensure the money isn't funny (if it is, the association attorney may have another task in going after the previous board).

Sending a letter to all homeowners asking for volunteers may also bring out some people - tell this this is great opportunity to play a role in making the community whatever the homeowners want it to be. Even if people don't want to be on the board, they might be interested in serving on some sort of advisory committee that can do some research for the board while you're getting your feet wet. Good luck!

Thank you all for the advice. I have taken many of your suggestions into consideration. Unfortunately, the State of Michigan, nor my local City have any jurisdiction over our association, and told me they are unable to help. That being said, I was able to convince my neighbor to step up as Treasurer. We have transferred the account into our names. Although the outgoing BoD refuses to answer any questions and literally dropped the Treasury binder into my lap (the Secretary's binder is MIA) and took off, we are looking into the finances. Our initial investigation has revealed we don't have the reserve the old BoD always touted ($$ was spent on discretionary items, thus draining the reserve). We have also noticed the budget they approved does not consider maintenance of certain common elements, of which we are responsible. We will be looking into the existing contracts, trying to build back the reserve, and addressing issues that have been lingering for up to 7 years (with the old BoD). Although we have some large work ahead, it will probably be easier with a small BoD, who will focus on issues one at a time and work to resolve them. As one poster suggested, we have a blank slate. Thanks again for the advice!

I calculated incorrectly . . .

If you can get the other 8 (or at least a majority of them) in your corner, that will go a long way toward helping you (and the HOA for that matter) be successful.

Good luck.

I say she can appoint one person and then the two of them can appoint another thus a BOD of 3.