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JennyG4 (California)
Posts: 2
Posted:
Hi! I resigned as Pres of our HOA a couple of weeks ago due to ongoing issues with our "Treasurer" and while I'm glad to be relieved of the burden personally, I'm feeling uneasy about the whole thing and am seeking advice on whether anything additional needs to happen on behalf of protecting the homeowners. I suppose I'd also like to feel reassured that my decision makes sense. For reference, I am in CA in a 54 unit condo building with three board members. I apologize for the length - there is a brief summary at the bottom

Background: In late 2016, an all new board was elected at the same time that (unbeknownst to us) a contract has been signed with a new management co by the old board, who all resigned at once. The transition was rocky and during this time, we discovered that the new Treasurer should not have been allowed to run (per CC&Rs) as he was not on the deed to his unit, which is owned by a trust in his absentee wife's name. This should have been caught by the old management company, but wasn't. He stated that this was "bull$shit" and that he should be allowed to serve if he wanted to. Looking back, I should have chosen to pursue further but we had no other candidates who had run and I figured this was a bit of a grey area. Treasurer is retired 70-80 year old man with a lot of time on his hands, and it seemed that it would be beneficial to have someone who was available to meet with vendors,. etc. It became apparent quickly that I was the only one concerned with complying with the open meeting law and proposed frequent meetings every 1-2 months until we could get things on track but I could get no response from either board member. Secretary has been very checked out through this whole process and rarely participates, to the point he refused to take minutes until I told him I wasn't going to do it again. I was the only board member ever to contribute agenda items for meetings and did a ton of work to prepare.

The Elevator: We had a pesky elevator that has been breaking off and on for years and our contracted repair company was not able to solve. I discovered that Treasurer had been going into the elevator room and "resetting" the elevator. I voiced liability and elevator maintenance contract concerns and asked him not to touch any of the equipment. The property manager agreed with me. Treasurer ignored my request and continued to mess with it on his own until he eventually did work with the elevator company to figure out the problem. This was a huge win and everyone was thrilled. This was very early on so I let it go, though his enthusiasm for working on the building's systems after being asked not to was concerning.

Plumbing and rewiring lights : Building has been having plumbing issues and we had asked the property manager to set up meetings with plumbers to get quotes/advice on how to proceed. Shortly after, Treasurer take me down to the basement and reveals that he has already purchased equipment and scaffolding (on his own dime) to open up all of the pipes in the underground parking garage and snake them himself. He also revealed that he had been rewiring common area lights. This caught me totally off guard and I told him that it was the Board's responsibility to make responsible decisions on behalf of everyone in the building and to use licensed, insured vendors to perform work like this. His response was that liability was not an issue, that he was an owner, and therefore he was entitled to work on the building. I tried again to explain my point and he condescendingly implied that I am young and don't understand (I am probably less than half his age and female, for what it's worth). I stopped the conversation at that point and told him that he needed to call a meeting to discuss anything further. I relayed the info to Secretary (who is an attorney) who was also concerned and also asked Treasurer to stop performing electrical/plumbing common area work. At this point, Treasurer starts refusing to communicate any information about his vendor meetings to anyone. I often didn't know they were happening at all.

Less serious weird stuff: I learned through the grapevine that Treasurer had "given permission" to a resident to park their third car in our Guest parking (which is strictly prohibited) and that he was letting someone store old tires in the building's fan room, "because the people were nice". I find out that he is dropping off lists of questions and requests for quotes at the property manager's office and never bringing them up in meetings.

Actual finances: A bit after the management switchover was complete, I discovered a 100k bank account that had completely "gone missing" during the change. Treasurer had not ever noticed it and declines to give financial update at the meetings.

The last straw: Treasurer constantly wanders the building, sometimes with ladders and I find myself at a loss. I don't want to try to reason with him further after his previous treatment of me. I'm unable get him to communicate with us. I have no support from the other board member. I resigned myself to thinking that as long as it's not electrical work he's doing it's probably not worth the fight. On the morning of our meeting a couple weeks ago, I left for work and Treasurer was in the hallway right outside my unit rewiring a light. I calmly said "hey, what's up?" and he said he was changing a lightbulb. The wires hanging out of the wall said otherwise. At the meeting that evening, when the topic of lighting came up, and I learn that he has rewired 40 lights. I politely asked our property manager if we were ok to be doing this rewiring work ourselves, saying once again that I was concerned about liability and protecting the best interest of the homeowners. Property manager does not want to commit to an answer and says he can ask the insurance company. Treasurer got quite angry and continued to mutter rude comments and roll his eyes at me throughout the rest of the meeting, again reiterating that it was his building to work on. I'm grateful that other residents were present to hear this, but I don't know if they truly understand the extent of the issues that have been happening. After the meeting, I approached Treasurer and asked if I could speak to him. He immediately lashed out at me before I said another word and I told him that his behavior was making me feel disrespected. In addition to the frustration of doing most of the actual board work myself, I am truly worried that something will happen due to this person's actions, whether it's a fall from a ladder, an electrical fire, or consequences from something else I don't even know he's doing and I don't want to be associated with the Board if and when it does. I decided that as much as I wanted to help do good things for my building, it was no longer worth it to me and I sent in my resignation later that night.

It should be noted that I think his constant presence in the building and skills for advisement and small jobs could have been hugely beneficial for us if things were handled in a different manner, but it just didn't work out that way. In my recent interactions with other residents, I've been left feeling like he has been speaking about me to anyone who will listen as he wanders around the building, and I highly doubt that he has anything kind to say. That's neither here nor there, but I am concerned about what will happen with my departure as it often seemed I was the only one trying to play by the rules. I'm even more concerned that he will declare himself President. Our property manager just wants to make sure they give as little advice as possible to stay out of trouble themselves. Knowing what I know, is there anything else I can do to try and protect our residents or should I just lay low and hope nothing bad happens?

TL;DR : I resigned as President after liability concerns (and honestly from negative effects on my health and happiness) stemming from disrespectful Treasurer who wants only to act as a non communicative handyman (including things like plumbing and electrical work), makes up rules as he sees fit, and does nothing with the financials. Is there anything I can do going forward to try to protect my building?

Thank you so much to anyone who made it all the way through that! I appreciate your time.

KerryL1 (California)
Posts: 14,550
Posted:
It's too bad that someone as interested in her HOA as you are, had to resign.

But you're right to be worried about Mr. X doing work on the premises, especially, but not just electrical work. Read your insurance policy for the building. Given that he's gone so rogue, you should feel OK about speaking to your insurance agent. Is Mr. X's handyman work covered? Is he insured to do such work? Is he licensed? Does he have workers comp?

It's shocking that your PM is not advising the Board on all the potential problems this man could cause. Is your PM certified??? I actually think you should write to the Management company with your concerns.

I think others will have better advice, but I'm very unsure if many will be willing to wade through your original post.
JennyG4 (California)
Posts: 2
Posted:
Thank you so much for replying and reading through my novel (I totally see your point ;)). Our PM is certified as far as I'm aware, and is sadly much better than the one they replaced. I can still reach out to them and ask them to check with the insurance. They seem pretty unwilling to offer any advice, which was very frustrating and added to the feeling that I was working totally on my own.

Thanks again!
MarkM31 (Washington)
Posts: 494
Posted:
Not a very bright PM company. Rewiring and replacing fixtures in anything other than a duplex or SFR will likely require an electrical and contractors license, and insurance. Even if he isn't getting paid, he would need to be a journeyman electrician and the condo would need an electrical contractors license.
MarkM31 (Washington)
Posts: 494
Posted:
Not a very bright PM company. Rewiring and replacing fixtures in anything other than a duplex or SFR will likely require an electrical and contractors license, and insurance. Even if he isn't getting paid, he would need to be a journeyman electrician and the condo would need an electrical contractors license.
GenoS (Florida)
Posts: 4,276
Posted:
You're complaining about one individual where the other 2 board members could decisively deal with the problematic Treasurer who shouldn't even be on the board. Whose fault was that? Hint: not the management company. Not a "grey area" at all.

Elevator company not able to effect needed repairs? You need a new elevator maintenance company.

Treasure purchased equipment on his own dime without anyone else knowing what he was doing? Goodye, Treasurer. He was doing electrical repair work as well? And your Secretary is an attorney?

TL;DR... you and the other director are the problem, not your Treasurer.

DouglasM6 (Arizona)
Posts: 724
Posted:
I agree with Geno.

Instead of sitting back and complaining, offer up a different solution. It sounds like the treasurer is doing what needs to be done. Get D&O insurance, as well as O&E insurance quickly!

RichardP13 (California)
Posts: 3,868
Posted:
During management changes, some companies won't check to see if the owner's list given to them is up-to-date. There is a way to check and it is what I always do during a transition. As far as the treasurer being eligible, I would have to see the governing documents.

Sorry Geno and Douglas, you NEVER allow a owner to do the things this individual is doing, NEVER. You want a light bulb change or a sprinkler head, fine! But, re-wiring multiple units, snaking multiple unit lines, not in this lifetime. Insurance company finds out and you'll be dropped like a hot potato and in a New York minute.

Instead of resigning, you should have removed an ineligible director. A competent PM would have be able to advise you properly.
KerryL1 (California)
Posts: 14,550
Posted:
I'm with Richard. And in our condo HOA, our insurance agent has made it very clear that no residents may climb ladders let alone to plumbing and electrical work.
WinonyaD (Texas)
Posts: 1
Posted:
Jenny, I'm not sure how many people are in your community, but as the president you have to be able to more than one thing a time. It seems like you're very focused on the Rules and the Treasurer.

It's not your job to "police" or control any other person. Vendors, but not people. You do your part, by pointing out that the Treasurer is breaking the rules, and then let that be it. You can't control him. He's going to do him no matter what.

Your secretary not being available is actually a bigger issue, as you can't really function with 2 members. There should be rules on members missing meetings and your ability to get the removed from the board (if they aren't willing to resign).

Honestly, being on a HOA board requires a lot of passion that's not linked to money and titles. There is no way in H--- that I would quit my board, if I knew other board members where not acting in the best interest of my community. Period. For you to quit because...the Treasurer didn't like you...shows that maybe you shouldn't have been the president of the board. Thick skin is a must.
DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By RichardP13 on 02/26/2018 9:23 AM
During management changes, some companies won't check to see if the owner's list given to them is up-to-date. There is a way to check and it is what I always do during a transition. As far as the treasurer being eligible, I would have to see the governing documents.

Sorry Geno and Douglas, you NEVER allow a owner to do the things this individual is doing, NEVER. You want a light bulb change or a sprinkler head, fine! But, re-wiring multiple units, snaking multiple unit lines, not in this lifetime. Insurance company finds out and you'll be dropped like a hot potato and in a New York minute.

Instead of resigning, you should have removed an ineligible director. A competent PM would have be able to advise you properly.

With all due respect, you (and I) are getting one side of the story. This treasurer may be a skilled contractor (retired) with full knowledge of building and NEC codes. He saved multiple trips by the elevator company, if I’m reading it correctly and making the right assumptions, and achieved the proper repair. Every case is different. This HOA may not be able to afford to pay licensed contractors at this point. A retired guy with the skills would probably be better than the low wage earning workers the licensed contractors send out nowadays anyway.
Anyway, if it bothers you that much, have his work checked. If it doesn’t pass the exam, pay to have it redone. It’s not that difficult to put wired together, and if you follow code you’re okay.
Unless! The CC&R’s say the work MUST be done by a licensed contractor. If that’s the case, then I digress. But I didn’t see that mentioned in the OP.

I do agree the OP should not have quit. A lot of good it does to come on here and ask questions after you've quit. Stay involved!
KerryL1 (California)
Posts: 14,550
Posted:
I too agree that Jenny should not have quit, but she did. As a director, it was, in fact, her primary task to protect her HOA's assets. So I completely disagree with Winonya. Any director must try to protect the HOA's finances.

Even as a non-director, she still should try to protect her HOA by meeting with the insurance agent to see if they'll cover Mr. X when he causes damage to the common areas or himself.

I'd also lean hard on the PM or its management company re: their knowledge of this unlicensed man doing work that could damage their client (your HOA). You can do these things without being on the board, Jenny. Read your contract with the MC to see what it's supposed to do.

I may be wrong, but since you were on the Board and did nothing to challenge the rogue's behavior--no censor, nothing in the minutes to discipline him or tell him to stop, you, too, may be liable for his actions (I'm not in the legal professions).

I doubt, Douglas, that Jenny's CC&Rs say electrical, plumbing & elevator work must be done by licensed & insured vendors, I'll bet, though, the insurance policy for the condo building does. In addition, when owners want to do electrical or plumbing work in their condo units, I'll bet the ARC approval requires licensed, insured vendors for in-unit work. And that may very well be in the CC&Rs.

Condo HOAs are very different than HOA homes on desert acreage.

DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By KerryL1 on 02/26/2018 5:11 PM
I too agree that Jenny should not have quit, but she did. As a director, it was, in fact, her primary task to protect her HOA's assets. So I completely disagree with Winonya. Any director must try to protect the HOA's finances.

Even as a non-director, she still should try to protect her HOA by meeting with the insurance agent to see if they'll cover Mr. X when he causes damage to the common areas or himself.

I'd also lean hard on the PM or its management company re: their knowledge of this unlicensed man doing work that could damage their client (your HOA). You can do these things without being on the board, Jenny. Read your contract with the MC to see what it's supposed to do.

I may be wrong, but since you were on the Board and did nothing to challenge the rogue's behavior--no censor, nothing in the minutes to discipline him or tell him to stop, you, too, may be liable for his actions (I'm not in the legal professions).

I doubt, Douglas, that Jenny's CC&Rs say electrical, plumbing & elevator work must be done by licensed & insured vendors, I'll bet, though, the insurance policy for the condo building does. In addition, when owners want to do electrical or plumbing work in their condo units, I'll bet the ARC approval requires licensed, insured vendors for in-unit work. And that may very well be in the CC&Rs.

Condo HOAs are very different than HOA homes on desert acreage.


I should probably refrain from condo discussions. Thanks.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Someone replacing a lamp bulb, versus climb a ladder and replace a ceiling bulb, versus do something to the elevator controller are on way different scales especially when it come to insurance and liability issues.

Yes Your Honor, we have this retired guy that "messed" with the elevator controller a few days before it crushed someone but he knew what he was doing.......

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