Treasurer is Delinquent in HOA dues

Started by CathyT1 • 8 replies • 1410 views

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CathyT1 (Washington)
Posts: 68

Posted:

The Board recently approved a homeowner to take over the position of treasurer (as the last one had moved). Unbeknowst to the homeowners at our last meeting held on Aug. 14, this new treasurer is deliquent in paying his annual dues and fines totalling close to $1,000.00. (The new treasurer did not show, nor did the president - for the Aug. 14 mtg). I find in our CC&R's that if you are not current and/or in good standing, your vote may be restricted by the Board. Shouldn't the new treasurer be completely removed immediately?

MicheleD (Kentucky)
Posts: 4,491

Posted:

In our association, one must be a "member in good standing" to be eligible for any board position, or officer position.

If it were discovered "after the fact," we would indeed remove the new treasurer. However, any new board member would also have been "vetted" prior to placing on the board to begin with. We have had to deny several people in the past eligibility for board until they bring their account to "good standing" position.

JoeW1 (New York)
Posts: 728

Posted:

CathyT1 - The cc&r states if you are not current and/or in good standing... The treasurer is not current but is still probably in good standing. Not a good example mind you but sounds like a technicality.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Joe:

In our HOA, "in good standing" MEANS that you must be "paid in full." You can also not have outstanding violations.

JoeW1 (New York)
Posts: 728

Posted:

Quote:

Posted By MicheleD on 08/16/2007 11:08 AM
Joe:

In our HOA, "in good standing" MEANS that you must be "paid in full." You can also not have outstanding violations.

Not according to the cc&r you quoted.

CharlesW1 (Georgia)
Posts: 826

Posted:

CathyT1,

I would have to agree with the advice MicheleD had posted “In our association, one must be a "member in good standing" to be eligible for any board position, or officer position.

If it were discovered "after the fact," we would indeed remove the new treasurer. However, any new board member would also have been "vetted" prior to placing on the board to begin with. We have had to deny several people in the past eligibility for board until they bring their account to "good standing" position.”

I would think that same rule would be pretty much standard as well!

In our community all elected board members and committee directory’s, must also be a member in good standings.

We have confronted these individuals to relieve them of their obligation. Many of whom were well aware and were just waiting for the board to ask them to resign, so the majority of the time it is too be expected.

I would have the President speak to the Treasure, quoting(from your documents) exactly where it lists the requirements and at which point ask him/her if they can make payment in full or ask them to resign. PERIOD!

You couldn’t possibly have the treasure looking at financial records, questioning their financial statues when he/she is a part of the delinquencies.

Unfortunately that sounds like a NO-BRAIN\ER to me.

That’s what I personally would do and I would think the majority of the members that post on this discussion forum would advice of you of the same thing. That is moreless, “calling the kettle black”

Then you must appoint another eligible member (that does fit the requirements specified) to fulfill the position.

Best of luck
Chuck W.

Charles E. Wafer Jr.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By JoeW1 on 08/16/2007 11:29 AM

Posted By MicheleD on 08/16/2007 11:08 AM
Joe:

In our HOA, "in good standing" MEANS that you must be "paid in full." You can also not have outstanding violations.

Not according to the cc&r you quoted.

Joe, I didn't quote a CC&R. The original poster did.

and if it says and/or, then a good argument can be made that not being paid up satisfies that cc&r as not eligible.

another portion of our by-laws allows the board to make determinations on interpretation and that determination is then binding.

This is especially helpful in cases where there is some ambiguity.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

JoeW1: Would you explain how one can be NOT CURRENT and still in good standing?

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Appears to me the Board made the decision to appoint. Therefore wouldn't the board have the obligation to un-appoint. They made a mistake, correct it. I fail to see the need for any rules justification.

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