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GigiL (Nevada)
Posts: 3
Posted:
We recently had a Board Recall election. We lost by only 2 votes of the 114 total voting power. Out of 59 ballots, 38 voted for board recall, 21 voted not to recall.
What should we do to remove this Board?
The recall came about because the Board prepared a Reserve Study with ridiculous costs, plus creating unnecessary expenses to come up with a high Reserve Study total. We had a meeting with this Board together with the HOA Lawyer, our Management company & the Reserve Study specialist. The Board refused to do a redo of the Reserve Study. So we came up with this recall election.

Another thing, we lost by 2 votes because this Board sent out an intimidating letter to selected unit owners giving false info like scaring them that if the Board is recalled, the government will take over and we end up paying higher fees. This is not true because after a board recall, an interim board will be elected. As a result, about 2 unit owners who wantes a board recall voted not to recall because of this intimidation letter sent by the board to them prior to the recall election.

I'm also wondering why this Board refuses to resign knowing that a mJority of the unit owners want them recalled. We have 3 Board members (President, Treasurer, Secretary)
TimB4 (Tennessee)
Posts: 21,059
Posted:
Gigi,

Welcome to the forum.

The other option is to wait for the general election and have enough votes in hand to vote them out of office.

You also stated that "I'm also wondering why this Board refuses to resign knowing that a majority of the unit owners want them recalled."

The fact is, using your own numbers, that the majority doesn't want them recalled. 38 out of 114 is only 1/3 of the membership. The majority of those voting wanted them out. However, the majority of the membership, almost 52%, chose not to participate. When it comes time for the election, those are the people you need to reach out to and encourage them to participate or gain their proxy.
SheliaH (Indiana)
Posts: 6,964
Posted:
What Tim said.

In the meantime, you and other like-minded homeowners need to continue attending board meetings. Listen to the proceedings and keep asking questions. Don't stop until you get answers, but understand that just because you don't like what you're hearing doesn't necessarily mean it's inaccurate.

Keep emotion out of it - for example, you say the reserve study had "ridiculous costs" and "unnecessary expenses" that came up with a high reserve study total. Words like "ridiculous and unnecessary" can cloud the issue. It's said figures don't lie, but liars figure, so if you're concerned about the way the study was done, keep pushing for a do-over with another reserve studies company. Be sure to educate everyone on what a reserve study is and how it's done, but be realistic about your operations and reserves budget. Could it be you feel the costs are ridiculous because the reserves really are underfunded, but you don't want to pay higher assessments? If so, you may be in for a nasty smackdown to your wallet down the road when something major needs to be done, but there isn't enough money in reserves. That could mean a special assessment and the fight over THAT may make this recall vote look like a garden variety playground spat.

People have a right to vote however they want, so if you feel the board's letter was "intimidating", talk to those homeowners and provide accurate information. For example, it sounds like the board was thinking of the association going into receivership, but may have left some things out and misinterpreted others and that's what scared people. You need to work harder and make your case as to what would happen if this board were to be sacked, emphasizing that something like receivership would be a last resort if NO ONE stepped up to serve.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RichardP13 (California)
Posts: 3,868
Posted:
Quote:
Posted By GigiL on 08/24/2018 2:21 AM
I'm also wondering why this Board refuses to resign knowing that a mJority of the unit owners want them recalled. We have 3 Board members (President, Treasurer, Secretary)

I just heard the same thing yesterday, something like if they were recalled, the stock market would crash and everyone would be poor.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
I'll jump on ...

You lost.

Regroup and go for the votes of those that didn't vote.

Bide your time and be ready for the annual meeting - or, call for another special meeting with additional votes.

However, taking the other angle - I have been a Board member in a couple of neighborhoods where some simply hated reserve studies because they didn't understand the concept, refused to accept the state requirement for them, or were simply too cheap to live in the kind of neighborhood the costs dictated.

While the team here will offer advice, we always have to be aware there are unexpected back stories.
GigiL (Nevada)
Posts: 3
Posted:
Thank you Tim & Shiela. This enlightened us. There's a suggestion that we write a letter to the Board to ask them to resign. Another suggestion is to file another Recall appeal. What do you think?

About the Reserve Study... we tried our best to convince the Board, the lawyer, Reserve specialist & management company during a board meeting, to make changes in the study but they were very firm not to change it. They already sent out a statement of what we need to pay and that not paying is not an option. The items in question under the reserve study were change of elevator ( we only need to maintain, our elevator still works fine) and change to a key card system (we think the present use of a key is still the best). Another issue is tcomplete change of pipes. We learned that the owner of our management company is a contractor and there's a conflict of interest here. This board refuse to negotiate, they were even very rude and antagonistic during the meeting, when some unit owners were presenting their ideas.

Gigi
GigiL (Nevada)
Posts: 3
Posted:
In addition, in all our past reserve studies we do have enough money for the repair, replacement and maintenance for all our major components. Even in the latest December  2018 ratified reserve budget statement it stated that reserve account is 88.76% funded that is well within the required State of NV Reserve Account"Adequate Reserve" requirement.
KerryL1 (California)
Posts: 14,550
Posted:
Boards need to pay attention to experts. IF the reserves analyst is certified as such, s/he should know what they're talking about and the board should listen to them.

What role , if any, did the HOA attorney play at the meeting?

It sounds like you might be a or some condo buildings. If so, how old is your piping? What are they made out of? Are you starting to get leaks?? How much longer does your reserves specialist say in the study that they'll last ("remaining useful life" or RUL).

How old is your elevator? Is it traction or hydraulic? How much life does your reserves specialist say it has left?

Boards are permitted to make decisions about things like changing from one key system to another. I guess the existing locks are in your reserve study, right? If the cost is a LOT more than your existing system, an upgrade to a key card system might be a capital expense in NV and the board should permit you to vote on it though they may or may not be required.

I don't think it's a good idea to assume your board president has a conflict of interest just because he is a contractor. Is he a plumbing contractor who works on multiple story buildings? Even if so, I'd only worry about him if his firm gets the bid.

So, yes, the HOA sent out statements about how much your dues are increasing and when that will start. How much a month will it be?

The final question is very important. What ratio or percent fully funded were your reserves before the dues increase? What will it be after? Over 50% before would maybe be sorta OK. 70% would be better. And, of course, 100% would be best.
SheliaH (Indiana)
Posts: 6,964
Posted:
You should need Kerry's advice about the reserve study. You should also remember there's a thing called inflation - perhaps the numbers you saw seemed high because that was factored in - did you ask the reserve study specialist?

And don't forget, shit happens. It's great that you're 88% funded in your reserves (a lot of communities, including mine, unfortunately, are not). However, floods, tornados earthquakes and whatever else Mother Nature can think of might hit you when you least expect it and you'll need the money a lot sooner than later. Finally, remember another little thing call building codes - they've changed since your community was built and might change some more by the time your major components need to be replaced. That will impact the price, along with the cost of labor that continues to go up.

Now, as for your questions - writing a letter to the board asking them to resign is a waste of time, in my opinion. You tried the recall and it didn't work, so it's time for plan B - continue to attend meetings and encourage others to do so. Separate the people from the problem and concentrate on what they do and how they do it - if you have a better idea, bring it up and offer your assistance (sometimes people will bark and bark about what's wrong, but when it comes to THEM rolling up their sleeves and helping out, the response is...crickets). You think the current key system is fine - how research have you done on the topic? Maybe there should be an advisory committee that could be set up to explore the issue in more detail - you might consider volunteering and see what you can find out - the results may surprise you.

Right now, emotions are raw - serving on a HOA board isn't easy and sometimes people make mistakes. It's one thing if they're honest about the mistake, fix it and learn from it, but most times, people don't bother to listen or give them a chance to make things right. For all you know, this recall has put the fear of God, man and the Devil in these folks and they might be more willing to do more research and perhaps accept the suggestions and help of other homeowners (starting with you). You lost this round, so pull back a bit and give them some time to see how they respond from here on out.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JenniferG11 (Texas)
Posts: 667
Posted:
Write a letter asking them to resign? You just tried to vote them off and lost. They don't want to resign. What would the point of a letter be?

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