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MarkB22 (Florida)
Posts: 5
Posted:
We live in a 288 lot community on Merritt Island Florida. There is a golf course here that was given to the county to run, they have done so for 38 years. The agreement between the county and developer has an agreement stating the course must be maintained in championship condition this has not been done,and the county agrees. When the county found out what it would cost to comply they simply refuse to fund the course after July 1 2018. The tax millage for rec&parks stands as the county was still funding the golf course. Now the problems start, several homeowners who identify themselves as HOA board members begin talks with the county to take over operations of the golf course. The first thing they do is have a ballot to vote on securing a loan for 1.2 million, they get a legal number of votes for the loan but than realize the HOA can not borrow money. They then come up with the idea of forming a CDD and use the votes that were cast for MSTBU loan and then pick there own CDD members, Now not one homeowner is told of any of this. A HOA meeting was held and the self appointed board states the county forced them to form a CDD with out holding a vote in the community. Homeowners are in a fury, the HOA attorney states that she knew about vote switching but she can not tell board members what to do.

The mess gets deeper, the county transfers the golf course property, a land deed is signed by a person who is not the elected HOA president and notarized by the attorney. We have by-laws and the golf course take over is never mentioned, we have not held a voting election of HOA board members in more than 5 years and the people sitting as board members say that this is all legal as per the attorney.

This is really what I need to know.

1) by transferring the votes from a MSTBU to a non voted on CDD was any law broken in Florida

2) by having a land deed signed by a person who was never elected to HOA president was a fraud committed

3) if the county officials knew that the people representing themselves as elected, will any of this fly in a court of law.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Welcome to the Forum ...

I would recommend you consult with 2–3 attorneys on this issue. Many attorneys will offer a no cost or low cost 20-30 minute consultation and if you stick to your questions here should be short. I would contend myself (not being an attorney) that votes on one issue cannot be used for a slightly different issue and should have gone back to the members for review and to again vote.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Sounds like the HOA was so loose that no one paid attention - bad on the HOA and it's members.

You have a mess and will need lots of attorney time to fix it - frankly, a lot of it sounds potentially criminal.

Good lesson for communities that aren't paying attention - pay attention!
GenoS (Florida)
Posts: 4,276
Posted:
What kind of HOA can't borrow money? Is it one without assessment authority? No election in 5 years? What about annual meetings? Sounds like a lot of people asleep at the switch. I think you're going to need attorneys ASAP.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Mark

Not to take defend but it is possible for the same BOD to have been in office for many years. One way this happens (and quite common) is there is not a Quorum at the Annual Meeting thus no business, including an election, can be held thus the existing BOD stays in place.

I have seen HOA's borrow money. It can be done but would probably take a large % of owners (in excess of 66%) approving the borrowing. I know one HOA that borrowed over $2 Million on a 5 year pay back plan.
ArtL1 (Florida)
Posts: 140
Posted:
You've left out some details. It's entirely possible for your current board and president to have "never been elected" but still be 100% legit. Assuming your bylaws call for 1 year terms, and assuming you generally don't make quorum for your annual meeting, it could have been quite some time since you've "elected" directors. Over the years, directors resign and replacements are appointed by the remaining board members. Over enough years, it's conceivable that you'd have an entire board of appointed people who were never elected. Each year, at the board's organizational meeting, they decide which board members are going to be which HOA officers.

Is that what's happened? Or do you really have an HOA that's so dormant that a handful of members just decided to represent themselves to the county as the board, and nobody said otherwise?
MarkB22 (Florida)
Posts: 5
Posted:
We have not had an election in 5 years because the board does not follow the by-laws as written. If a quorum is not established the election meeting is to be adjourned until such time as a quorum can be met. When ask at the meeting of how many votes are present the reply is not enough. It is possible that only a handful of votes are needed but it is the same every year, no quorum so we will have an informal meeting.
MarkB22 (Florida)
Posts: 5
Posted:
John, We had a vote on a MSTBU line of credit. Our bylaws do not allow the board to borrow money, so to get around that the board decides to establish a CDD and transfer the votes collected for the MSTBU to approve a CDD. Not one homeowner was told of this until after filing was finished for the CDD which hopes to get a line of credit for 1.2 million.
MarkB22 (Florida)
Posts: 5
Posted:
Geno, Our bylaws state the board does not have the power to borrow money
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By JohnC46 on 07/16/2018 2:54 AM
Mark

Not to take defend but it is possible for the same BOD to have been in office for many years. One way this happens (and quite common) is there is not a Quorum at the Annual Meeting thus no business, including an election, can be held thus the existing BOD stays in place.

I have seen HOA's borrow money. It can be done but would probably take a large % of owners (in excess of 66%) approving the borrowing. I know one HOA that borrowed over $2 Million on a 5 year pay back plan.

Depending on the Bylaws, the Board of Directors may be able to borrow money without the approval of the homeowners. Financial institutions are often favorably disposed to lend money to an HOA. The ability to lien properties is very powerful. Every home can be thought of as collateral.

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