💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

LisaS11 (California)
Posts: 38
Posted:
Hi everyone,

I have been a Director for 2 months now. I knew the "rabbit hole" was deep, but I had no idea how deep and twisted it was. The more I dig, the more I find, and the more I find, the more fearful I am that there are forces larger than I can take on. Our General Manager is privately employed by us. She has been there for 15 years. Her "contract" doesn't expire until 2013. If she stays until her retirement, she gets the "golden parachute". She does not serve the Board, the Board serves her, and she reigns supreme.

Through her careful and calculated actions, she has managed over the years to create a culture within our 35 yr old HOA that is totally dependent upon her and her staff. She has the "old guard" convinced that were she to leave, this HOA would not survive.

I, along with three other candidates worked hard to reach quorum this year, and we did, and it looked as if finally we would be able to bring down this regime, but one of our ranks was weak and easily influenced, and this Manager was able to "leak" bits of a confidential conversation to this Director and convinced her to "flip". Her excuse for leaking confidential information was that her office door was so thin that she could only speak above a whisper. Well, the information that was "leaked" was said by the person on the phone, so her explanation doesn't make sense, does it? Either one of her staff members was listening in, or she blabbed, or maybe the caller was on speaker phone!

Anyhow, now this Manager is back in control. The former President, who voluntarily stepped down from office this year, is still enraptured by her, and she controls him, and in turn, he disseminates the marching orders to the 4 directors that are in lockstep. I had mentioned about a month ago that I was upset because a director that I helped get elected threw me under the bus for an important vote. Well, this is all a part of it. Am I upset I lost the board Majority? You bet. If it were just a struggle between homeowners who felt passionately about their HOA, well, I would just have to accept it, but I REFUSE to sit back and let my HOA be controlled by a Manager whose motives are not driven by making our HOA the best it can be, rather making it the best situation and jobs for her and her staff.

Am I wrong to point out that this woman and her staff have the best health insurance benefits I have seen in years, and they pay hardly anything for it AND they didn't even send their policy renewal out to bid- just kept it with their same broker of 10 years because "He's soooo nice"?

Am I wrong to point out that they violated the DAvis-Sterling Act by refusing to publish the tabulated election results within 15 days, and here we are past day 60 and it still hasn't been done?

Am I wrong to point out that it is wrong to tell families that their kids aren't allowed inside the club house building, can't use the microwave (it's supposed to be for everyone), tell kids they can't play volleyball because they're not 18 (no rules state that), and try to cancel a Pilates class for senior women because "they stink the building up"? The truth is that the staff doesn't want to be disturbed while they work- well, I guess they should get a regular office job then because they work inside a building intended for recreational use by the people who pay their salaries!

Am I wrong to defend homeowners who have been bullied, harassed and intimidated by unfair CC&R enforcement because people who are in the "in crowd" can pick up the phone, complain about their neighbor, and all of a sudden their enemy is on the black list? Over and over, I have witnessed retaliation by the staff like this. One homeowner can get away with doing anything they please- they can chop down all the trees on their property, paint their house an unapproved color, leave their trash cans out all day, every day, park their cars all catywampus, let their lawn go unmowed for weeks at a time, and nothing is asked of them. Next door, a house is scrutinized by the CC&R inspectors, looking for any little offense, and there is glee written all over the inspector's face when a paint chip the size of a quarter is discovered on the mailbox post.

I am so disappointed that this will continue for another year. I don't know what the future holds. I could try again to get another person on board who can think for themselves. The old guard might be able to pull something off and get myself and some of the "out crowd" out of there- who knows?
PauG (Maryland)
Posts: 53
Posted:
I know how you feel. We had a manager since 81 that squandered our money, made terrible decisions, raked up $10,000 in legal fees for nothing significant, and allowed all the common grounds and trash bins to go into disrepair. I was so frustrated that I got on my board a year ago. Another board member and I stood up to him and told him he worked for the association not the other way around. We got a lot done, and even though he complained that we didn't have the money, which was a lie, we got things repaired and made significant changes.

Then in June we fired him and hired a new management company that is just great. Our new manager serves the board and the community.

You might want to read over your manager's contract and see if there is a clause that says the board can give her a 30-day written notice of complaints and that you can nullify the contract. I would aggressively seek to break the contract and get a new management company.

Also you could send out letters to all your homeowners voicing your concerns and call a meeting. Have your homeowners vote her out.
AllenP1 (Oregon)
Posts: 10
Posted:
Time to take this person for a drive. lol.
LisaS11 (California)
Posts: 38
Posted:
If we terminate her contract, she gets one year severance pay- imagine that!

I've thought of sending out a letter, but I'd have to pay for it myself- there's no way the board majority would vote to spend the money. We have over 3,400 homes. Besides, how can a little letter stack up to the 20 page glossy monthly magazine/newsletter that the Manager controls? She can smear whomever she chooses in the newsletter- it's amazing how she can twist the truth around and get away with it- even to the point where she can keep "accidentally forgetting" to publish the tabulated results of the election because the directors that work for her slid in with only a few votes to spare, and the I won by a margin of over 1,000 votes. She doesn't want the fact that the people's voices have been heard and that "we" won by a landslide in print!

She's even managed to drag her feet as far as getting the new director's photographs taken. There are framed 8x10 headshots of the directors that are mounted on the wall behind the front desk. Here we are- day 60 and I have not been scheduled to have my portrait taken. Not that I care about having my picture on the wall- I think it's a silly ego-stroking bunch of hoo-haw, but my point is that had it been a board of directors that the Manager LIKED, she would have had the photos taken pronto.

She runs the show- anyone who crosses her path quickly discovers that it might be more than it's worth to stand up to her. Now that I am a director, the retaliation has stopped against me, so now, they have turned their attention on my parents. They own a home in my Association. They keep their property neat as a pin- my dad is an avid gardener, and they have gorgeous hardscaping. Well, my parent's neighbor said he caught one of the CC&R inspectors sneaking around in my parent's back yard. Two days later, my parents received a notice to paint their house. They harassed them while the work was being done- permits were checked and re-checked. Oh- and did I mention the same CC&R inspector strongly encourages homeowners who are asked to paint to use the contractor that he recommends, even going so far as to giving the homeowner a business card of the contractor with his name on it, telling them to tell them he sent them? Turns out this contractor buddy of his is a full $2000 higher than your average quote out there. Makes one wonder, doesn't it? Oh- and he also runs a part-time personal business out of our Association offices.

The logical thing to do is report all of this to our Association Attorney- well I can't! I'm not allowed to contact the Attorney- all communication is done via the Manager, and she is therefore able to put whatever spin she wishes on the responses, or even whether to respond at all. She is personal friends with him.

Just running for the Board took a great deal of courage- I was contacted by the ex-board president, and he threatened me- telling me I had no idea what I was getting myself into, and was I prepared to lose my home if there was ever a lawsuit brought up against me. He yelled at me on the phone, sent me threatening emails, and now that I sit on the board, he attends each meeting and sits right in front of me, staring me down. Yesterday, he insulted my intelligence, and my ability to serve as a director BECAUSE I am a stay-at-home mom.

I can handle the threats and the personal attacks, but what I am afraid of is what they could do to my finances. We bought our house two years ago, here in South Orange County. Our mortgage is $3,500 a month. We bought a 35 year old dump that had been a neglected rental for many years and had even been vacant for a few years. How it was allowed to fall into such disrepair in an HOA is amazing, but as I have said before, their CC&R enforcement is quite random. Anyhow, we have put a great deal of money and time and effort into fixing the place up, and it looks like a totally different house. From the street, it looks great, but if you were to scrutinize it, you'd be able to tell it needs new trim and fascia boards, parts of the stucco need repair, the fences are 50% wood and 50% termite doo-doo. As I speak, we are replacing one fence with a cinderblock wall, we put new sod in on the parkway, we plan to paint this fall- but if they chose to start going after us, they could really hurt us.
RogerB (Colorado)
Posts: 5,067
Posted:
Lisa, I would have a good attorney who specializes in contracts review your Management Agreement. The Board always has the authority to hire or terminate an attorney. I have never seen a management agreement where the Board toally abrogated their authority to any manager. Have the attorney look for the best way to terminate this agreement. There is probably a "legal loophole" somewhere.

Also, look at the CC&Rs; some require no contract be executed with a term greater than 1 year. This would not supercede the management agreement but might provide some leverage the attorney could utilize. If necessary look for functional duties required in the management agreement which can be utilized to make the management company want to terminate early at no cost to the association.

Finally, if there are no budgeted funds the manager can not charge for that service. The Board controls the budget and can cutoff funds for such things as the 20 page glossy newsletter. Just because the management agreement states the manager will perform certain services does not mean the Board must allow them to provide each specified service. Take away all the managers power which is feasible and all authority which is allowed within the agreement.
RogerB (Colorado)
Posts: 5,067
Posted:
Lisa, in regard to protecting yourself for actions you take as a Board member I would do the following:
1) Make sure the HOA has sufficient D&O Liability insurance.
2) Make sure the HOA is incorporated and has language in the Articles of Incorporation which protect the Board members from being individually sued.
3) All actions taking as a Board member should be in good faith. Never take actions which KNOWINGLY violate existing rules.
4) Always use good business judgement (Homemakers do this every day )

Finally, I would make a motion at a Board meeting for the Board to officially sanction the manager in writting for each of the several items you listed (and any others), including tresspassing on an owner's property. The sanction could state that if any of these discretions occur again that the contract shall be terminated "for cause" - such as improper conduct, breaking the law, etc.
NancyD1 (Florida)
Posts: 447
Posted:
Lisa you spoke of the other BOD members being on the managers side so some of the proposed (although good) ideas may not work. The cost for a letter from you to the homeowners may be prohibitive, but why can't you print something up, and distribute yourself with some friends who feel the way you do. If the manager starts to pick on your home, point to several homes you know that have not complied with the doc's. Preferably one of the other BOD homes.

She is the only one who contacts the association lawyer? The BOD usually deals with an attorney. You have every right to call him as a BOD member. He may report back to her but who cares, you have the right. He may not be aware of what she is doing and he may surprize you.

You can also take each one of the board members aside and have a little talk with them. Tell them there is a grass roots effort underway to get rid of the manager. Cite all your reasons then throw in that if homeowners see that they are supporting her and her misdeeds, they can be caught in the crossfire when it comes to election time or sooner. This may straighten the board members out.

Good luck!!
LisaS11 (California)
Posts: 38
Posted:
Hi Roger,

I would love to have an Attorney review her contract, but when I received a copy of her contact, it was marked "Confidential". Can I get in trouble if I share it with an Attorney? I have a friend that would be more than enthusiastic to help me out, but I don't want to do anything that could get me in trouble. Last year, the Board Majority had a "special meeting of six" and decided to ban the 7th director from all executive sessions citing "breach of confidentiality". Oddly enough, it was during one of those executive sessions that the other six negotiated the contract with the Manager. Now, that banned director is the President of the HOA, and I support him. We have one other director on our side- I don't like saying "side", but it just seems as if EVERY item aside from day-to-day operations put on the Agenda is put on the Agenda for reasons other the good of the HOA when it comes from one of the directors on the "other side". I am trying to keep my head clear, stay objective, and always ask the question "is this the RIGHT thing to do for the homeowners?", before I vote. When I ask questions, it isn't to dig at or attack Management- I ask questions because I believe it is RIGHT to ask them. When I asked about the Health Insurance Policy for this year and asked if they put it out to bid with other brokers, the "other side" jumped all over me- why? Why would they be angry for me asking what I think is a totally run of the mill question that any responsible person would ask? It's not rocket science- I've had my car insurance with the same company for 8 years, but I still check around once a year to make sure I'm still getting the most coverage for the best price.

I will look at the CC&Rs regarding the contract limitations- that's great advice.

As far as budgeted funds, once again I am just one of seven and if nobody else thinks there's a problem, I'm the Lone Ranger.
RogerB (Colorado)
Posts: 5,067
Posted:
Lisa, as a member of the HOA you have a right to a copy of the contract and have the right to show it to your legal council. I would not allow the attorney to show it to others.

"the "other side" jumped all over me- why?" Tell them it is a responsibility of the Board to use good business judgement and you are only trying to protect them from any possible law suit
LisaS11 (California)
Posts: 38
Posted:
Thanks for the response Nancy,
So, does this mean then that it's just a "policy" that the BOD uses the Manager as a conduit to the Attorney? Can I get in trouble for going against Policy?

I'm sorry if my questions sound silly or obvious, but I am a new director battling an old HOA and a VERY experienced General Manager, and I cannot afford to do something stupid if I want to be of any use to the people I promised to fight for...

There have been some people in the HOA that are ready to band together and start a grassroots campaign. I guess I can't stop them if they want to distribute their own newsletter...
RobertR1 (South Carolina)
Posts: 5,164
Posted:
LisaS11,
All your posts present a picture of you fighting a lonesome battle against the Illegal banding together of an out of control manager and a few supportive Board members. You say you support your president. Our By-laws says the Board President shall act as the CEO of a company and his office comes with some power. For one thing he can control the Board Meeting and he sets the agenda and has the power to say yea and nay about what else is discussed at the Board Meetings. He can table motions, appoint committes and do all sorts of stuff. He could appoint a select committe of home owners (some of your supporters) to investigate the management of the association and bring to the board their recommendations for consideration. He could enpower this committee to discuss any management topics with the associations attorney. Now the above may not be right in total under your circumstanes. What I am saying is the President of you board can go a long way in structuring the board. He certainly (alone) has more legal authority than the manager. Talk to him about stepping up and doing his job or else when your activist group does go tto battle they will be fighting the president also.
LisaS11 (California)
Posts: 38
Posted:
To quote you Robert..

"He could appoint a select committe of home owners (some of your supporters) to investigate the management of the association and bring to the board their recommendations for consideration. He could enpower this committee to discuss any management topics with the associations attorney."

Is this stuff in the Davis-Sterling Act? How about a director having the right to contact the Attorney?

If any of you have a direct link to this information, would you please provide it? I'm not trying to be lazy and asking others to do the research- I just don't want to spend hours looking for something if one of you knows exactly where I should go to find it.

Thank you guys so much for giving such sound advice! It is so appreciated and I am learning so much!

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here