Should I run for my HOA board?

Looking for advice about what you would do in this situation: would you (1) run for the board, (2) not run for the board but raise issues to HOA owners generally or (3) just be silent?

OVERVIEW OF HOA

I live in a HOA that has a 7 member board. 2 members of the board are not residents; they are business partners, one of whom owns about 15% of the condominiums in the HOA and rents them out. Those 2 members of the board also own the HOA's management company. Those 2 members of the board somehow control the election process each year and thus have say-so over who's on the board.

Result: the HOA has used their management company for over 30 years. Some neighbors and I have caught the HOA doing things that were blatantly favorable to the management company, such as using our HOA property as collateral for some of the 2 non-resident directors' business dealings. Our HOA dues are also about 15%-20% higher than other HOAs nearby, and owners don't have much visibility over the HOA's finances or the total payments that go to the 2 non-resident directors' management company. Board meetings are pretty secretive.

SPECIFIC AREAS OF CONCERN

I just now learned that local law requires that HOAs disclose "related party transactions" between the HOA and any company in which a director has an interest. So if that law applies to our HOA, the HOA should be disclosing details to us, as owners, about its dealings with the 2 non-resident directors' management company.

In addition, the board has failed to keep records that local law requires be kept, such as basic owner and financial records.

Finally, last year the board agreed that this year's election would be handled using transparent procedures that were requested by owners and were clearly described in a community-wide communication that some disgruntled owners sent out (with the approval of the management company). However, that agreement was ignored.

RECENT ACTIONS

I let a few other owners know of these specific areas of concern. I also teamed up with a friend to get proxies for this year's annual meeting. I need about (as an example only) 100 votes to be elected to the board, and I have proxies for 50. I've gotten verbal support from people with about 25 votes. So I'm a few votes short, although I haven't contacted most owners. If I send out a community-wide email and speak at this year's annual meeting, I think I can get 25 more votes, although I know that the 2 non-resident directors and the management company will get mad, and victory isn't assured.

QUESTION

In this case, would you run for the board?

If so, would you make the specific areas of concern known to other owners when you announce your candidacy (in a soft, non-confrontational way)?

Or would you just let other owners know of the specific areas of concern (in a soft, non-confrontational way) and tell that owners generally need to raise them if they want change?

Or would you stay silent?

POSSIBLE CONSEQUENCES

If I win, then I'm just 1 vote out of 7 on the board, although I could press the board to "behave".

If I lose, I'll have a livid management company that would surely retaliate. All I'm doing, though, is pointing out my legal rights.

Thanks.

In your place, I would thoroughly evaluate all of the pros and cons of the situation, and come up with a realistic idea of how likely it is that you would be able to affect the status quo, assuming you'd be elected in the first place.

It can be very frustrating to be the lone voice of reason on a board that isn't functioning as it should. Deliberate misbehavior or cluelessness - it doesn't matter why the current board isn't doing a good job, the result is the same. The clueless folks may be open to some gentle education, but maybe not. Directors are often skeptical of the new guy coming in and trying to tell them what to do. Aside from personality issues, a new board member has A LOT to learn. It looks very easy to be a director until you find yourself on the board and confronted with all of issues and competing priorities that boards have to sort through. If you're not overwhelmed during your first year, then you're probably missing the point.

If you truly do want to right the ship, then I recommend finding a number of like-minded neighbors and get enough of you elected so that you form a majority and can vote to do things properly. Be prepared for a lot of work during the election seasons, and then even more work when you're actually on the board. And be prepared from blow back on all sides. You will receive little, if any, gratitude from those you are serving by volunteering your time and brain power. And - most frustrating - is the speed at which things fall apart the minute you leave the board. Makes ya wonder why you bothered...

And walking away from the mess is a perfectly reasonable thing to do.

I'm not a lawyer, but unless there is a lot more to that situation that somehow makes it ok, I have a hard time seeing how that would be legal.

If you have evidence of that, I would suggest contacting your state attorney general, or state bureau of investigation.

You should assume you only know about a fraction of what's going on. If you have evidence of criminal misconduct, I would simply inform the appropriate authorities and let the situation run its course.

Go for it if you're serious. Talking is fine but if push comes to shove they will clam up and if you're not on the board you'll have to guess what they're doing. It's harder to paint the windows black when there's someone on the board clamoring for more transparency.

Paul

I stay on my BOD so as to be sure we do not get any "weirdos" running our association. Guess you could say I do it for self protection. I always preferred to be on the inside looking out.

When you first get on board, it's not about the number of votes, it's about visibility on what's going on from the inside. Maybe your presumptions are correct, maybe not. See for yourself. Every board member has the right to see every document and to participate in every decision. The 2 in control have no right to say you can't see this or that. You have a right to see it all. You should stand your ground on this issue before all others.


If they retaliate against you personally, then they are providing justification for getting rid of them somewhere down the line when you have more board members who think like you. Do you prefer hiding things from you to being angry at you? I wouldn't.

Choose your battles carefully. Your stated goals seem realistic and demonstrate a willingness to play for the long term. I like that.

Run for the board and see if you win. Once you win, make sure you know the rules inside and out. Bring a copy to each meeting. If someone asks a question, say that need to refer to the rules first to provide an answer. Which may not be immediate. It will take conferring or referring.

I think you being on the board will be a bit of an eye opener. You will be one of "Them/They" now. Remember the HOA's money is NOT your money but ALL the member' money. Those people who got you elected is whom you represent. So listen to them as well. Otherwise, you will be on their list of removal...

Local laws isn't your HOA laws. It's best to start studying your CC&R's, by-laws, and Articles of Incorporation. Plus any ACC rules if you have them. Your HOA tends to go by their rules not local. Although they should be compliant with. With you deciding to follow and reference the rules is the way of CHANGE. You lead by example and that example is by referencing the rules.

You want "transparency". That's not necessarily an "utopia" idea. I give this analogy. Imagine your checkbook/bank statement left on your dining room table wide open. (Full transparency). Your wife and kids can see it. They also contribute but depend on you to disperse the funds. (Your the board and they are members). How do you comfortably feel about transparency when your kids want a new x-box, the wife a new purse, but the driveway has a crack in it? (Individual wants vs HOA common area). The account only has enough to maintain/fix the crack. (Non-profit set up to meet expenses). The kids still need a new x-box and the wife really needs a new purse... (The squeeky wheels whom elected you).

It's hard to be open with your income and bank statements is it not? It's a change of mentality to ask not only yourself but of others to think this way. We are taught NOT to be open about income/spending. So it's a hard concept to employ "transparency" across the board. You will find that out as well.

Not that I am saying anything is bad about this. It's just a different way of thinking that not easily adjusted to. Can't really blame anyone for not acting or being "transparent" because it's not taught or accepted in our culture readily.

My HOA when I took over ran as transparent as one can get. We reviewed collections/expending reports. I answered questions and referred to the rules. Was up front with everyone and would let anyone view records upon request. If you wanted something, you had to put it in writing or present it to the board. If you wrote it, then I read it aloud at the board meeting. You had to accept the decision of the members not just the board.

Did this work? Yes and no. Still got accused of all sort of things. People are people and going to think what they want. No amount of "transparency" is going to fix things. What does fix things? Following and understanding the rules. Stick with them and the people who got you on the board.

Think you need to know the rules, the CCRs and all the governing docs BEFORE you run. Generally, we require this of people running for political office,although 2016 was not your typical year.

That was meant for someone else.