disagreement on board vote

Started by SteveC4 • 12 replies • 1753 views

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SteveC4 (Florida)
Posts: 154

Posted:

Hello:

I just wanted to know if IM allowed to write to all the 28 units reference to a vote meeting we had and the vote was pass for increase in monthly payments of the association. After the vote was final was told that the person they are hiring to do repairs on our 28 units theres no written contract or garunatee on there work...had I know this I would have voted no on raising the monthly association fee.

IM thinking about writing to the 28 units and letting them know that this guy has no written contract..this means that he can change his price at any time and then we can get assessment again.

I would not mind approving the monthly fees this way there is money in the reserves to do some repair work on the 28 units...but to hirs this guy without a written contract scares me...so this is why IM thinking of writting to the 28 units infomring them and maybe doing a revote on this issue until done correctly.

RogerB (Colorado)
Posts: 5,067

Posted:

Steve, I think it would be better to suggest to your Board that they have a fiduciary duty to make sound business decisions. This should include an HOA approved contract and copy of the independent contractor's insurance which is appropriate for the work being done.

RickN (Florida)
Posts: 27

Posted:

Not knowing which state or statute you're under, common sense tells me there should have been a bidding process (unless we're talking of an emergency situation). And once the bids were analyzed, the BOD should select one contractor. Then the contract phase starts. Of course, the price would have been known already. So it seems your BOD bypassed many steps. I suggest you review your docs and educate your BOD about the mistake they're about to make. In the end, you might end up just where you are now, but at least you'll know how much it will cost.
Good luck

JamesR2 (Maryland)
Posts: 5

Posted:

You might be dealing with two different issues. It might help to separate them into (1) fee increase and (2) contracts. (1) Does the association need the increase in fees for legitimate reasons? If so, then the vote to increase was probable a good thing. (2) If there is no contract, then the contractor should not begin any work or stop work immediately until a agreeable contract can be let or until the association collects three bids from other contractors who can do the work at an agreed upon price with a contract.

SteveC4 (Florida)
Posts: 154

Posted:

ref: RICKN-thanks for the reply..IM in Florida and no there was no bids...just not too happy that they will have this guy do repairs without any written contract...sounds too fishy to me.

SteveC4 (Florida)
Posts: 154

Posted:

ref: jamesr- thanks for the replay I agree with you 100% but the board and the mangement all gree to have this guy do the repairs without any written contrct....do you think I should write to the 28 units letting them all know this...no one knew about this until the vote was all final.

JoeW1 (New York)
Posts: 728

Posted:

SteveC4 - I don't recommend writing the owners on your own. Simply state your opinion that you approve of the expense and increase to perform the work, but that you disapprove of the current contract and would like to see a contract that better protects the association.

NancyD1 (Florida)
Posts: 447

Posted:

Quote:

Posted By SteveC4 on 09/20/2007 10:42 AM

Hello:

I just wanted to know if IM allowed to write to all the 28 units reference to a vote meeting we had and the vote was pass for increase in monthly payments of the association. After the vote was final was told that the person they are hiring to do repairs on our 28 units theres no written contract or garunatee on there work...had I know this I would have voted no on raising the monthly association fee.

IM thinking about writing to the 28 units and letting them know that this guy has no written contract..this means that he can change his price at any time and then we can get assessment again.

I would not mind approving the monthly fees this way there is money in the reserves to do some repair work on the 28 units...but to hirs this guy without a written contract scares me...so this is why IM thinking of writting to the 28 units infomring them and maybe doing a revote on this issue until done correctly.

SteveC4 (Florida)
Posts: 154

Posted:

Were the monthly HOA or Condo fees increased because of the work the vendor will do? Or did you get a Special Assessment to pay for the vendors services and you will include this with your monthly HOA fees?

actually the extra 50.00 monthly increase is included in the monthly HOA...but per board they will keep this additional money seperate for the repairs.

NancyD1 (Florida)
Posts: 447

Posted:

Then you can dispute the additional fee and the way it was imposed. It sounds as if it was a Special Assessment. When the money is all collected for the vendor, will you stop paying this extra money? If so, then the vote, without proper notification and member approval of this assessment may be illegal as per FL 720-303.

FL 720-303
2. An assessment may not be levied at a board meeting unless the notice of the meeting includes a statement that assessments will be considered and the nature of the assessments. Written notice of any meeting at which special assessments will be considered or at which amendments to rules regarding parcel use will be considered must be mailed, delivered, or electronically transmitted to the members and parcel owners and posted conspicuously on the property or broadcast on closed-circuit cable television not less than 14 days before the meeting.

SteveC4 (Florida)
Posts: 154

Posted:

They had a vote on the monthly increase and out of the 28 units/parcel owners...only 15 voted/9-yes and 6-no....13 did not reply at all...so the voted was yes for the $50.00 monthly/HOA increase to do repairs on the units. They stated that the $50.00 extra increase they will keep this fund seperate just to use for the units.

But after the vote was final come to find out that the guy they will have doing the repairs...that theres no written contract/agreement on his work.....had I know this I would have voted (NO)..plus this guy will not be completing all the units at one time...little by little..since theres not much money in the reserves...this is why the vote for the increase of 50.00$ for the outside repairs of the units.

NancyD1 (Florida)
Posts: 447

Posted:

You can question the BOD about the license and insurance of this vendor and if there is a contract. You have every right to request these documents. Do it in writing. They have 10 days to respond. If there were no other bids was this an emergency situation? If it was there is nothing you can do about no other bids. But there still needs to be a license and insurance.

If there is no contract remind the BOD that they have a fiduciary duty to protect the HOA money and property. They are putting the HOA at risk. What if something is done improperly? The HOA will not have any recourse because it is not in writting. If the vendor puts a lien and the property and you do not have a contract to back up any problems the BOD can be personally held responsible.

SteveC4 (Florida)
Posts: 154

Posted:

Thank You for your infomration very helpful...I will write to Bod requesting the information on this vender who will be doing the repairs of the units.

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