Manager of HOAs

Started by AlexM1 • 10 replies • 919 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

AlexM1 (Oklahoma)
Posts: 287

Posted:

We have, as most HOAs have, a paid service that looks after our affairs, etc. Each of those managing entities has a person that they refer to as the Manager. That assigned manager is to help the HOAs in various affairs.

My questions.. (example)

the HOA wants to hire a roofing contractor to work on roofs. The manager(from the managing entity that the HOA pays) is saying that.. at our HOA meeting, the Board discusses the issues and then decides on contractor "B". The manager is saying that the board cannot make that decision arbitrarily and that is must be discussed with the 3 or 4 owners that attended the meeting that evening. The final decision would be made after the visiting 2-3 owners that happened to be attending the meeting. , make their decision.

RichardP13 (California)
Posts: 3,868

Posted:

Have them site that authority.

BenA2 (Texas)
Posts: 1,273

Posted:

I may be missing something but that makes no sense. The owners at the meeting should have an opportunity to comment but the decision lies with the board.

If you were going to talk to owners after the meeting, why would you limit it to those that happened to attend the meeting. I agree with the manager that no decision should be arbitrary but making a decision without consulting the membership does not make it arbitrary.

The manager advises the board, he or she does not tell the board what they can and cannot do.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Alex,

Does your governing documents or applicable statutes require open meeting (members may attend all meetings of the board except executive session)?

If you are required to have open meetings, you are required to make decisions in those open meetings. This would include awarding contracts.

If the Board is making decisions arbitrarily and not doing their due diligence in requesting bids, comparing offers, checking references and checking licenses then, in my honest opinion, they should not be on the Board.

KerryL1 (California)
Posts: 14,550

Posted:

I have a feeling that Alex's use of "arbitrarily" is the problem. Can you use a different word, Alex?

AlexM1 (Oklahoma)
Posts: 287

Posted:

yes... I think that word arbitrarily is fitting in this case. We usually do not have more than 3 or 4 homeowners attending the regular HOA meetings

The manager is saying that the Board can discuss it in their regular session but if the visiting 2or 4 owners attending do not agree, then the board has no recourse but to go with the wishes of the 2or 4 homeowners attending the meeting. personally, I do not think this is right.

KerryL1 (California)
Posts: 14,550

Posted:

I think what you're saying Alex, is the manager argues that the Board may not make the decision by itself (unilaterally?), but must include the owners' votes or opinions.

That MIGHT BE true is it's a meeting of the Members (Owners). but if it's a meeting of the board, the board is who decides (votes). As Richard advises, ask the manager to show you the citation in writing where it says the owners must vote, too.

Remind us--you're on the Board, right?

AlexM1 (Oklahoma)
Posts: 287

Posted:

Yes... I am on the Board.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By AlexM1 on 02/18/2018 1:00 PM

The manager is saying that the Board can discuss it in their regular session but if the visiting 2or 4 owners attending do not agree, then the board has no recourse but to go with the wishes of the 2or 4 homeowners attending the meeting.

Unless your governing documents are not typical, I agree with you that the PM is way off the mark.

Typically, awarding contracts is a Board decision and not a general membership decision.
Even if members attend board meetings, they are there as observers and not participants (except during the open forum session when they can address the board). Members have zero vote in Board meetings (only Directors have a vote).

Tell your PM that what is being said simply doesn't sound correct and ask that they show you the basis (statute, governing documents, etc) for their opinion.

By the way, that is all it is an opinion. They work for the Board, the Board does not work for the PM/MC.

BobL10 (Texas)
Posts: 1

Posted:

As a BOD President in Texas, I am missing something here - that is that it would be very problematic to me for the Directors to hire a contractor to build or maintenance/repair anything unless it is for community owned property only - not privately owned property. Most, if not all, Texas HOAs require property owners to submit requests for all outside repair, or changes, to the outsides of their property, with few exceptions. The owner can hire the contractor of their choice, at any cost that they want to spend, but the work, or changes, will have to meet the specs that was approved by the Board, and dictated by their governing documents.
The Board has the sole authority to accept bids and accept contracts for maintenance and repair to association owned properties without a required acceptance or legal requirement for approval from property owners. Building 'NEW' projects on the public owned properties generally require a majority approval of the HOA owners.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Bob,

This may be a condo complex or a townhome complex where the HOA is responsible for the roofs.

Regarding new construction, it really depends on the governing documents. My Virginia documents place those decisions at the board level. Funding, however, may require membership approval due to higher then normal increase in assessments or special assessments.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here