In Absence of Executive Board

Started by MaggieM1 • 5 replies • 1420 views

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MaggieM1 (Pennsylvania)
Posts: 9

Posted:

We manage a small condominium association and at this juncture, no one is interested in running for the Board. In addition, the current board members have relocated. So, if I need to increase condo fees, and the documents for the association do not address direction without an existing board, what does one do?

Many thanks!

Maggie McLaughlin
Property Manager

Maggie McLaughlin
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RogerB (Colorado)
Posts: 5,067

Posted:

Maggie, I would call a special meeting of the owners and explain their options.
1) Either they find volunteers to serve on the Board; or
2) They go to court and have a judge appoint a receiver to run the association.

Explain to them why the second option will significantly increase their assessments.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I agree with Roger. However, you may want to talk to the owner's to see if they would be willing to disband the HOA altogether and turn over control to your Management company. In our CC&R's, if our HOA did disband, we would have to hire a management company to maintain us. It wouldn't be under the owner's control anymore. It would be controlled entirely by the Management company. Hence, all the CC&R's and by-laws can be tossed out the door. The dues can be adjusted to support the salary of the management company and rates raised to meet whatever improvements the management company deems needed.

This may be an option the homeowner's may not have thought of and may get them to get their acts together. Seems they have forgotten that a HOA empowers them to participate in maintaining their property instead of the other way around.

I don't know your HOA's set up. Ours was setup where the owner's own the lot and the houses it sits on. Everything outside that lot was the HOA's or called "common property". If the HOA your dealing with has no "common areas" or just an entry way, they may just decide to fire the PM. (Sorry). Although you may be shooting yourself in the foot, someone does have to pick up the bootstraps and get things re-organized.

Former HOA President

PaulM (Pennsylvania)
Posts: 1,347

Posted:

MaggieM1: IMO, the increase in condo fees needs to be substantiated by the areas that have escalated in dollars: whether it's landscaping, snow removal, etc. Further, does the fact that the condo assn. now being managed (by you), and you are acting in lieu of a Board, add an increase to the mgmt. fees as well?

If all the above is enforcing the increase in fees, then it is the responsibility of the one in the managing role, in absence of a Board, to communicate to the membership. If you feel a special meeting would allow you to give a 'personal' edge to presenting your concerns (no volunteers for Board), then go for it. However, you will want to present an itemized list of exactly where and why an increase is necessary. Also, for record purposes, all members should receive the financial info and notice of increase in the mail.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Paul, Maggie isn't a member of the HOA. She's the hired PM of the HOA. She has no real voting rights. The voting for increases or decreases are up to the majority of the homeowners. NOT the PM. She can just inform the remaining members of the HOA of their situation and hope they take action. She works for them.

Former HOA President

PaulJ (South Carolina)
Posts: 54

Posted:

Quote:

Posted By MaggieM1 on 08/02/2007 11:43 AM
We manage a small condominium association and at this juncture, no one is interested in running for the Board. In addition, the current board members have relocated. So, if I need to increase condo fees, and the documents for the association do not address direction without an existing board, what does one do?

Many thanks!

Maggie McLaughlin
Property Manager

Tell them a developer wants the whole place for a golf course and you've accepted their offer so they'll all have to move. That will stir them up.

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