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MichelleR10 (North Carolina)
Posts: 8
Posted:
For the past 2 years, we have had a 1 member board ... originally there were 2 or 3 members, but one moved away, and the other stepped down, as best I am aware ..... therein lies the problem ... homeowners are not apprised of what the board is doing, and the "board" hired a property mgmt company, without consensus, and is running things however she sees fit. The last annual meeting was held in october 2017 .... there were not enough homeowners in attendance to take a vote, or satisfy a quorum, neither in person, nor by proxy. At least one other homeowner expressed interest in joining the board, so I assume he joined -- but i have not been updated with any info regarding the board ... no membership info, no financial accounting of our funds, no nothing! At the october meeting, it was agreed to have an interim meeting in march 2018, but it was subsequently cancelled shortly before the (march) date .... if there have been other meetings since then, i have not been notified.

By way of giving the benefit of the doubt, the current president is working alone largely because there has been constant discord and apathy among homeowners and board members for the entire 8 years I have lived here .... so she is at least making the effort .... on the flip side of that, however, she is known as someone you don't want to cross swords with, for fear of retribution.

So now we have this illegal board, and an illegally hired property management company, no financial accounting to see how our funds are being spent.... and they are enforcing dues collection!!! If they can do this, while wantonly ignoring the bylaws and state laws, then I guess ANYBODY can make a demand for payment!!!

The community is very apathetic, and easily scared into compliance, but I have an issue with this ... it's not a lot of money - and maybe that contributes to the fact that most residents don't think it's worth a fight --- but it is the principal, for me ... So how can an illegal board demand payment??

And, yes, I have tried to "rally the troops" for a special meeting on several occasions, but the interest is lukewarm at best ....

Seeking suggestions/solutions, if possible .... Many Thanks!

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Your issue is APATHY. Quite frankly you have too much of it. Reality check. Your asking people who VOLUNTEER to provide you information or do the work you think they should do. Guess what? Not happening because no one is perfect. No one knows exactly what they are doing. With little or no support, you get what you have now.

So my suggestion is start with yourself to stop the apathy. It starts with you. If your apathetic or you refuse to pay dues, then it ALL falls apart. Paying your dues is paying your fair share. NOT paying them out of "Protest" till such and such gets done is just selfish and hurts EVERYONE. Why not get out of the mindset your in, and get into the one that is helpful and positive? Like "Hey I am willing to help organize a meeting". That may be a start...

Former HOA President
MichelleR10 (North Carolina)
Posts: 8
Posted:
I have done the "Hey, let's have a meeting" several times over the years, and I am also a former board member ... I have also organized neighborhood mixers, researched and helped to obtain grants, etc .... as I said, it's not a lot of money, but I just cant imagine how someone who does not have the legal right to collect funds can do so ... but perhaps it's because, at the end of the day, the law doesn't matter, and anyone who dares to question it is labeled "selfish" - really? Why do you think bylaws and state laws were created in the first place? And, for the record, since it is sometimes hard to detect "tone of voice" in a written post, please know that I am not angry -- this situation will not vastly change the quality of my life -- but I am quite disappointed with your "solution" ... and the judgments that precipitated it.
JenniferG11 (Texas)
Posts: 667
Posted:
I'm not following how the MC was 'illegally' hired or how they are 'illegally' collecting dues. Also, have you asked for the information you say has not been distributed? I get they are supposed to provide it, but I am just asking have you taken any steps to address anything with her?
RichardP13 (California)
Posts: 3,868
Posted:
Michelle

I don't think Melissa even read your post because I can't see where anything she said makes any sense at all.

I did read your post and here is what I understand.

Your last annual meeting was October 2017, that is only 9 months ago?

You don't say how big a community you have or how many Board members there are. So let's start with a three person Board. At the last annual meeting someone was interested and you assumed he joined. Now that is two or enough for a quorum to do business like hiring a management company. You might be under the assumption that homeowners have a say in who a Board hires to manages them. They don't. That is what an elected Board does.

How is it an illegal Board? Because you didn't have enough people at the meeting, either in person or by proxy? WELCOME to the U.S.A. This is commonplace, sad to say.

The sad part, and this is rampant in HOA's. If you have an issue, but can't get support, you are SOL. That is reality. What did someone say recently, " I could shoot someone on Fifth Avenue and I wouldn't lose any votes." Applies to HOA's also.
MichelleR10 (North Carolina)
Posts: 8
Posted:
To: Jennifer & Melissa:

The decision to hire the MC should have been made by a vote, or quorum, according to the bylaws, and at the very least, by the minimum required number of board members -- which has been (legally & properly) the case with every previous significant expenditure that the homeowners pay for ... also the board should have been suspended if it could not be maintained in compliance with the bylaws -- specifying the minimum number of board members, and specifying that there needs to be 2 signatories on the bank account at all times, and of course specifying the required percentages for a vote or quorum.... so, again, ONE individual did not have the authority to make and execute such a decision on her own....

Side note: I think the reason the bylaws were written this way is because we are a small HOA which requires very little by way of expenditures or recordkeeping or maintenance --- since we have a tiny "common area", and the homeowners are required to maintain their own properties. That said, we could function under a suspension, if need be, with negligible impact until proper compliance is met....and we certainly don't have anywhere near the amount of monthly payables and receivables to justify bringing on a property management company.... yes, I know because my last role on the board was that of treasurer - requiring less than 2 hours of my time every week (& sometimes every other week).

And to answer your question: of course I have requested fiduciary and general decision/activity updates periodically - not only from the solitary board member, but from the MC representative as well.

However, despite my best efforts, it seems that the only person at fault here, based on the responses so far, is me ... so I will continue to seek additional info, solutions & support as it becomes available.

Lastly, I do get the (perhaps misguided) spirit of the viewpoints presented, as I am generally the person who reaches out when no one else will, and often "takes the hit for the team".... so in this instance, continuing to "shoot the messenger" is hurtful, disheartening, and non-productive - when all I wanted was a bit of support & perhaps some fresh, helpful insights (within the confines of the law) .... but I thank you nonetheless.
MichelleR10 (North Carolina)
Posts: 8
Posted:
You know what, Richard? I am sadly coming to that conclusion ... but thanks anyway.

And just for giggles, more info ... we are required to have 4 officers at minimum, plus up to 5 additional board members ... precisely so that we don't end up in a dictatorship .... and yes last meeting was 9 months ago - no business was actually conducted, but we did receive a dollar figure that was supposedly in the bank account at that time ... no log of what was spent, or taken in - just a total ... and the "one person board" had been in office since the previous year - and wasn't even voted in to begin with!

But hey, I'm over it ... and taking into consideration the "I could shoot someone on Fifth Avenue and I wouldn't lose any votes" quote, I guess this is pretty minor, since it doesn't constitute high treason ... smh
MelissaP1 (Alabama)
Posts: 13,836
Posted:
You may be asking too much. My HOA we had such apathy, you know how you were elected? If you showed up to the 1st meeting of the year and raised your hand. It was the only meeting we ever had with more than 5 people. We had 107 homes! We had to reduce the number of board members down to 5 (Including 3 officers) from 7. We couldn't even get 7 people to attend a meeting! Never the less be on the board.

Some HOA's aren't professional caliber. It's just basically ran by people who volunteer to do the job. Someone has to do it. The reason MC's are even hired is because those people don't want to deal with running a HOA. They rather pay someone to handle much of the HOA's business. Board members can just be figure heads of the HOA if they just want to hire a MC. I see nothing wrong with hiring a MC if that is what you and your neighbors are comfortable with. Our HOA, we only had an accountant company who collected the dues and forwarded issues to us. We self managed.

So I wouldn't be calling it an "Illegal board" as much as I would, those are the people who volunteered to take on the responsibility of running the HOA. Until you encourage enough people to make everything up to par, you have to deal with those who are there cause they want to be. Not necessarily because you do.

Former HOA President
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Michelle,

I think you need to quote your docs if you are going to say things like "illegal" and "required to have," etc. Illegal means more than the Board isn't in compliance with the By-laws.

The documents, their wording, state law, etc are what form the basis of your future actions.

I'm thinking it's a bit odd that you are so outspoken, but are not on the board, and others aren't either - apathy? None of these things happened overnight, right?

Time for some of that democratic action, I think - based on your governing documents!
KimberlyW2 (Tennessee)
Posts: 38
Posted:
Whew! Honestly, with all the energy, time and thought put into the word salad I have read on your few posts my advice would be to just re-join the " illegal " board already. If you are that agitated and exasperated by the whole situation and have actually spent the time and effort rallying the troops- then re-up and rally those troops to join you in maintaining a healthy HOA. I'm not sure what answer you are looking for on this forum.

Seems your time would be better spent working with the poor soul that is doing her best to run a board of directors by her dang self. Poor thing. I don't blame her for hiring a management company. Just my thoughts.

Good luck to you.
MichelleR10 (North Carolina)
Posts: 8
Posted:
Melissa, George & Kimberly .... duly noted! I'm exasperated .... I have done all those things you "suggested", and so much more .... tough to distill the chronology of the actions, non-actions and results of an 8-year span into a few paragraphs, no matter how well-prepared the "word salad" may seem -- there is always something to shoot down, unfortunately .... Thanks to all ... take care ...
JenniferG11 (Texas)
Posts: 667
Posted:
With the exception of one poster, I don't think anyone is trying to shoot you down, but things have to be isolated and taken one or three at a time to discuss in any meaningful way.

For instance, you say that hiring the MC should have been owner approved, or at least a majority of directors, but I doubt your docs say that. I think it would be one or the other. So just taking that as an example it would need to be known which to comment with any intelligence.
KerryL1 (California)
Posts: 14,550
Posted:
So sorry, Michelle to see that your hard work hasn't been fruitful.

I think Kimberley's on the right track. Get yourself back on the board. Then you'll have a voice in keeping or dumping the property mgr. See if you can find ONE other person to join with you and/or support you. For now, read the contract with the Mnagement co (MC) and your HOA. Do your bylaws actually say a quorum of owners hire an MC? Or a quorum of the board??

What size is your HOA? It could be that it's so small and the dues so low that it's hard to get folks interested.
MichelleR10 (North Carolina)
Posts: 8
Posted:
but at the end of the day, I am now feeling utterly insane for daring to question how a self appointed resident can legally enforce a demand for money with no regard to the rights, laws, and responsibilities set forth to govern that ... silly me! If that's the case we could all do that to one another, and be viewed as equally "sane" - but hey, isn't that how "government" really works?? Mission accomplished -- Sleep well, your work here is done
MichelleR10 (North Carolina)
Posts: 8
Posted:
Thank you Kerry for offering something other than criticism .... our community is slightly less than 100 homes ... board is set forth in the bylaws as being 4 officers, plus up to 5 additional members ... and like Melissa described, a lot of community apathy ... which is what drove me to not renew my position on the board in the first place .... and yes, dues are (comparatively speaking) dirt cheap ... and as I have said, it's not about the money -- its about having someone with no authority demand your funds....imagine if we did this in other areas of our lives - without even questioning it??? I guess that's what blows my mind about this .... Anyway, we have an extremely low maintenance community because we have to maintain our properties ourselves, and as I already mentioned, when I was treasurer, it took less than 2 hours per week (or every other week) to collect dues and pay a handful of "bills" -- hardly a demanding job for a 4-person (or even 1-person) board to "tackle", and certainly not worth hiring a corporate entity to handle for us .... and to answer your questions, the bylaws say the board votes on any pivotal item, and once agreed, gets a quorum vote at the next quarterly meeting ... all of which has gone the way of the wild goose .... sorry for sounding so exasperated and wiped out, but this is where the communiques have left me, at the moment .... anyway, Kerry, your willingness to troubleshoot this with me means a lot ... will rethink all ... Many thanks!
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Michelle,

Ive reread your posts a few times - frankly, since we are here to help, I have to note that you sound both exasperated with your situation - and, defensive.

As many have noted here, being angry and defensive usually means you won't be as successful as if you were cold blooded and technically accurate in your dealings with potential runaways HOA Boards.

It is important that you quote those sections of your By-laws and CC&Rs that govern the issues of which you speak.

Please try and methodically take the issue apart, piece by piece, then determine what can and should be done with each piece.
KerryL1 (California)
Posts: 14,550
Posted:
Well said, George.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Michelle

You said you assume there is only one person on the BOD. You had better verify this.

When there is not a Quorum at the Annual Meeting, no business can be done including BOD elections. If no election the present BOD stays in place thus they are not a illegal BOD.

Most Covenants allow the BOD to hire a management committee without an owner vote. You are assuming there is not a BOD in place thus the hiring was improper.As I said earlier, you should verify if there is a BOD in place.

Bottom line, I doubt your BOD is illegal and worst case it should be brought up to its minimum by appointments even if only one person left to make the appointments.
MichelleR10 (North Carolina)
Posts: 8
Posted:
duly noted, all ... again, many thanks
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By MichelleR10 on 07/27/2018 10:07 PM
... also the board should have been suspended if it could not be maintained in compliance with the bylaws ....

Says who? Do your Bylaws or other governing documents, or state law perhaps, say that a board which doesn't meet the minimum requirements for a quorum of directors must be "suspended"?
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By MichelleR10 on 07/27/2018 8:19 PM
For the past 2 years, we have had a 1 member board ... originally there were 2 or 3 members, but one moved away, and the other stepped down, as best I am aware ..... therein lies the problem ... homeowners are not apprised of what the board is doing, and the "board" hired a property mgmt company, without consensus, and is running things however she sees fit. The last annual meeting was held in october 2017 .... there were not enough homeowners in attendance to take a vote, or satisfy a quorum, neither in person, nor by proxy. At least one other homeowner expressed interest in joining the board, so I assume he joined -- but i have not been updated with any info regarding the board ... no membership info, no financial accounting of our funds, no nothing! At the october meeting, it was agreed to have an interim meeting in march 2018, but it was subsequently cancelled shortly before the (march) date .... if there have been other meetings since then, i have not been notified.

As soon as other BOD members moved or stepped down the remaining BOD members should have advertised the opening to see who was interested and the BOD appoint someone to fill the positions “until your next annual meeting and election”. If this has not been done ... it can now be done for moving forward. Potentially the Management Company should have known this and helped to insure the proper steps were taken to fill the vacant positions.

By way of giving the benefit of the doubt, the current president is working alone largely because there has been constant discord and apathy among homeowners and board members for the entire 8 years I have lived here .... so she is at least making the effort .... on the flip side of that, however, she is known as someone you don't want to cross swords with, for fear of retribution.

Apathy is a huge issue in many HOA’s. Owner’s who purchase within an HOA need to keep in mind that at some point you need to step up to the plate and take “your turn” for running the HOA. Potentially your current President has had a huge load on her shoulders alone and possibly the attitude of not being someone to cross swords with, is due to being sick and tired of the only individual who gets all the complaints and trash heaped on her shoulders ... because everyone else who purchased are being selfish and self centered vs helping out and stepping up!!!

So now we have this illegal board, and an illegally hired property management company, no financial accounting to see how our funds are being spent.... and they are enforcing dues collection!!! If they can do this, while wantonly ignoring the bylaws and state laws, then I guess ANYBODY can make a demand for payment!!!

The community is very apathetic, and easily scared into compliance, but I have an issue with this ... it's not a lot of money - and maybe that contributes to the fact that most residents don't think it's worth a fight --- but it is the principal, for me ... So how can an illegal board demand payment??

First of all I would contend is not a potential illegal board. If others such as yourself or other owners have not stepped up to the plate to fill the empty positions ... then it is SHAME ONE YOU! The HOA has to operate and in order to operate will need the funds as noted in your CCR’s to be paid. The BOD is not demanding the assessments ... that would be your CCR’s which will dictate. The best thing you can do right now to get back on the right track is for yourself and others to volunteer to fill the empty positions until your next annual meeting. Then at that time there can be an election held if quorum is met for members to again vote. Also ... you need to have an ODD number of BOD members. I read one of your comments where you stated 4 directors and which should not be the case if possible to avoid a tie vote for items being considered by the BOD.

And, yes, I have tried to "rally the troops" for a special meeting on several occasions, but the interest is lukewarm at best ....

Seeking suggestions/solutions, if possible .... Many Thanks!


SueW6 (Michigan)
Posts: 814
Posted:
Most likely, the president has the power to fill empty board positions until the next election. You might ask why this hasn't been done.

The MC is probably doing what you did - billing, paying bills, etc. If this bothers you, volunteer for the two hour a week job again.

The president should not have to do everything, just make sure that everything gets done. Sounds like - for such a small complex - not more than 3 people is necessary anyway.

Also check what can be done at the annual meeting without a quorum. Oftentimes, an election CAN be held, even without a quorum in attendance.

Time to re-write the bylaws.

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