Budgets

Is there any way to confirm the validty of budgets the send out and want you to approve ?

I was going over mine and was wondering how we would know if the money they say is needed is legitimate .
Like say they say we need x amount of money for say water retention pond ?

I am just wondering how we would know if they get multiple quotes or just use who they always use ?

Lori,

I suspect that your MC is acting as the Treasurer.
Not something I would want done, but it happens.

The only way to know for sure is to review what the Board used to establish the budget. When we present our budget for the following year, we explain the reasons for the increase or decrease (one short sentence per change). We also provide a budget summary spreadsheet showing the last two years actual, this years budgeted, this years actual to date and the proposed next year budget. This way the membership can see if things are out of line.

Budgets are guidelines/goals. They are not absolutes.

To be honest, how does one know for sure - be part of the process or attend every board meeting to observe. Otherwise, you simply have to use what is provided.

How about you step up to the plate and take on the position. You will then be in the loop on everything.

Lori,

In my opinion, you are starting to sound like you have a personal vedeta or, at least, a personality conflict with the MC. This perception of mine may or may not be correct. In reality, it doesn't matter what my perception is.

However, I warn you against intentionally or unintentionally say things that may give those within your development that perspective. This is because it's much harder to gather support for changes when others perceive the whole thing is personal vs. professional.

That said, Officer positions are assigned/appointed by the Board. Typically, the Board appoints Officers from amongst themselves. How it is done varies from Association to Association and from board to board.

In my first board meeting as a Director, I sat to the right of the outgoing president. When it came to assigning officers, he stated that he did not want to be President but would be secretary and it went around the room clockwise (to the right). I literally became President because nobody else wanted it and I was in the last chair.

Personally, I take whats on a forum that has no independently verifiable proof with a grain of salt. People like to complain - they rarely compliment. That isn't to say that one should ignore complaints, simply look at them from different perspectives.

This is also not saying that your perceptions are wrong. I don't know. Since they don't work in our area, to be honest, I don't care. I'm certainly willing to discuss what should and shouldn't happen when using a MC. There are individuals on this forum who run MC that have excellent advice as well. However, discussing the pros and cons of an individual MC or PM isn't that productive for most and, fortunately, is against the posting rules of this forum.

Lori

I understand how your feel. Let me give you the short version of my first experience with an HOA. I had an original developer and new developer who behind our backs and without our knowledge change CCR's drastically lowering home standards. They then hoped that the owners would not find out about the change and lot sales until the one year lapsed under our State Law regarding amendments. Unfortunately for them we did find out and World War III started. I then spent almost 7 years dealing with first a lawsuit against the two developers and the HOA ... and then dealing with the new developer who everytime I turned around was pulling some kind of garbage until they finallly somehow potentially found their brains and understood that they could not literally take a shit without me knowing who, what, where, when, and why. After a while it actually became quite hilarious hammering their attorneys and after they went through 3 to 4 attorneys they realized it was easier to abide by the CCR's and State Statutes ... LOL ... I could always came at them with FACTS they could not dispute regarding any of their trash.

When this first happened I admit I was struggling to understand everything. YEP I had never before lived in an HOA and I had just moved to a new State and was not familiar with the new states statutes. I made every effort to learn anything and everything I could to better help in searching for an attorney. I consulted potentially 5-6 attorney's until we finally found one us homeowners hired. Most of the prior ones were very pro developer can do as wanted.

The point is KNOWLEDGE is POWER!!! The more YOU know your CCR's and STATE HOA LAWS the better you can control situations. I printed and put into a binder all my HOA documents AND a copy of my State Statutes. I then read them, I read them and some parts of them potentially 100 times or more. I also took highlighters and read highlighting the word Declarant, than I took another color and again read highlighting the word Owner, then another color and read highlighting Board of Directors. I did this for not only the CCR's but also my copy of the State Statutes.

You have not stated if you are Condo or Single Family homes so here is links to both:

North Carolina Planned Community Act: http://www.ncleg.net/gascripts/statutes/StatutesTOC.pl?Chapter=0047F

North Carolina Condominium Act: http://www.ncleg.net/gascripts/statutes/StatutesTOC.pl?Chapter=0047C

Personally your PMC if full of dung ... the association via above statutes plus potentially the HOA is registered as a Non-Profit Corporation require proper BOD members. For example the Planned Community Act states:

§ 47F-3-103. Executive board members and officers.
(a) Except as provided in the declaration, in the bylaws, in subsection (b) of this section, or in other provisions of this Chapter, the executive board may act in all instances on behalf of the association. In the performance of their duties, officers and members of the executive board shall discharge their duties in good faith. Officers shall act according to the standards for officers of a nonprofit corporation set forth in G.S. 55A-8-42, and members shall act according to the standards for directors of a nonprofit corporation set forth in G.S. 55A-8-30.
(b) The executive board may not act unilaterally on behalf of the association to amend the declaration (G.S. 47F-2-117), to terminate the planned community (G.S. 47F-2-118), or to elect members of the executive board or determine the qualifications, powers and duties, or terms of office of executive board members (G.S. 47F-3-103(e)), but the executive board may unilaterally fill vacancies in its membership for the unexpired portion of any term. Notwithstanding any provision of the declaration or bylaws to the contrary, the lot owners, by a majority vote of all persons present and entitled to vote at any meeting of the lot owners at which a quorum is present, may remove any member of the executive board with or without cause, other than a member appointed by the declarant.
(c) Within 30 days after adoption of any proposed budget for the planned community, the executive board shall provide to all the lot owners a summary of the budget and a notice of the meeting to consider ratification of the budget, including a statement that the budget may be ratified without a quorum. The executive board shall set a date for a meeting of the lot owners to consider ratification of the budget, such meeting to be held not less than 10 nor more than 60 days after mailing of the summary and notice. There shall be no requirement that a quorum be present at the meeting. The budget is ratified unless at that meeting a majority of all the lot owners in the association or any larger vote specified in the declaration rejects the budget. In the event the proposed budget is rejected, the periodic budget last ratified by the lot owners shall be continued until such time as the lot owners ratify a subsequent budget proposed by the executive board.
(d) The declaration may provide for a period of declarant control of the association, during which period a declarant, or persons designated by the declarant, may appoint and remove the officers and members of the executive board.
(e) Not later than the termination of any period of declarant control, the lot owners shall elect an executive board of at least three members, at least a majority of whom shall be lot owners. The executive board shall elect the officers. The executive board members and officers shall take office upon election.
(f) The association shall publish the names and addresses of all officers and board members of the association within 30 days of their election. (1998-199, s. 1; 2005-422, ss. 2, 3.)

What I have noted in BOLD above is why I stated you should ask to fill the unexpired term which is currently open. It will get your foot in the door and I would recommend not making any big waves initially so you can get elected at the upcoming meeting as needed. Get your foot in the door to LEARN what is going on and get your proxies along with like minded individuals who are willing to be on the BOD ready for the upcoming annual election.

LOL ... Patience is a virtue. There were times in past the Developer would try to call a meeting for turnover and us owners did not yet want due to issues developer had not yet addressed. So when they called a meeting and did not follow the CCR's or State Statutes ... I was patient seeing if what they did violated anything ... guess what it was null and void and they had to do it again. Sometimes it is better to be patient and pick your battles wisely.

Thank you both for the information we are single family houses .

Now the only question I have is how would I go about asking to fill a vacancy?

I was told by the hoa secretary that 2 stepped down ,but not from the president or vice president .
I mentioned to her that I was willing to come aboard and help .Not sure what else I could do since they never made the vacancies public .
I don't wish to break the tie I have with the secretary she is all I have to find out what is going on ( and she never tells me everything just some things ).

Even though I am not on the hoa I have been dilligent to try and find out things people want to know .Its getting to be if there is a problem they automatically message me to find out for them .

Plus the papers sent out from the pmc says elections are going to be held soon .I am not sure when but I certainly hope its before Thanksgiving .

There is a lot of things which I think we need to work on .

I just do not know how I could get in on the hoa before the elections .

Lori

It seems people keep telling/advising you and it does not seem to stick.

There are two ways to get on an HOA BOD:

1. Be elected by fellow owners during the Annual BOD Election typically held at the Annual Meeting. Most Bylaws allow for nominations from the floor meaning someone at the Annual Meeting can nominate you to run for the BOD at that time. Some others may have announced they are running prior to the Annual Meeting.

2. Be appointed by the existing BOD to fill a BOD vacancy. Typically a vacancy exists when a BOD Member resigns, sells, dies, etc.

Officers of the BOD/HOA are elected by the BOD from among the existing BOD Members. Typically there will be an BOD Officer election right after the Annual Meeting. The BOD Members can call for Election of Officers anytime they desire to. Typically done when the BOD is not happy with a officers performance. Not all BOD Members are Officers.

One can resign from their BOD Officer position but they are still on the BOD unless they resign from the BOD.

It will help if you keep all these things straight.

This is exactly what I've started doing in my developer controlled HOA. Sound advice.