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LisaS (Illinois)
Posts: 341
Posted:
Just curious what the general opinion is on this: we are having an election next week, and it has just come to my attention that one of the biggest violators in our community is running for a seat on the Board.

She is, ironically, employed by a local management company as a property manager. We do not currently have a property management company and are self-managed.

She will (I assume) be pushing the agenda to get a management company as she has brought it up before...(probably hers).

Has this happened to anyyone else? Any advice?
JC3
Posts: 290
Posted:
Do your ccr's require members in good standing? The fact that you are self managed is marvelous--I wish we were. If she gets on the board, it does not mean that you have to accept her pushes to manaagement companies, and maybe you could even never place such an item on the agenda. The pres determines the agenda.
LisaS (Illinois)
Posts: 341
Posted:
Because of the structure of our HOA, the Board has the ability to vote in a management company at any time (scary, huh?). Because they do not have open meetings (again, scary...) no one would be the wiser until the bill showed up. And by then, it would be too late.

This is why it is of such big concern for me. Our CCR's are so lacking, that even though the person running is in violation of them, she is permitted to do so because the Board "MAY" suspend her voting rights, but is not required to do so!
Jadedone4 (Virginia)
Posts: 495
Posted:
LisaS,

In your first post you mention that "one of the biggest violaters in our community is running for a seat on the Board;" have the person's violations/infactions been properly documented by the current board? If so is the person up to date with their assessments, fines, and remedial measures to cure the infractions? If so, then there is nothing that should prevent this person from serving on the board if they receive the required number of votes. Now if they are are not current in the above you need to look to your governing documents for whatever requirements and processes afforded to ensure that this person is not allowed to hold a seat on the board.

Who, what, where... she is employed is basically immaterial at this point; it can go either way with M/C experience - good or bad - if she is not a "principal" at the M/C she holds no special authority to oversee how your community (if you move to an M/C) would function. If on the board I would expect that there would be a "screen" placed before her, on the RFP's or bids for services to ensure that the process is fair and balanced. I would not want her company to be able to displace another becuase of her access to board information (pricing, etc on the other proposals). However, again this can cut both ways - having a person in the industry can alert the board to what it should be looking for, may need in the community, and a good set of eyes to review the bids. Proverbial - "damned if you do, damned if you don't" situation.

Please remember that (barring any mention), your governing documents will dictate that unless an M/C is part of your existing budget, or planned for in upcoming budget and does NOT result in an increase in assessments/dues - your board can NOT hire an M/C without community approvals. NOW if it IS in your community's budget and does not result in an increase, most documents DO allow a board to make those types of business decisions for the community (as it should be for elected representatives).

As to "open meetings" I reside in a state which requires open meetings by ststute, and by our governing documents. If you reside in such a state, then I would suggest that you enlighten your board of such requirements, and if you have such a requirement as part of your governing documents that you point that out as well.

Lastly, be prepared to roll up your sleeves and get involved, might even consider running against the person if you feel that strongly about the process. You have every right afforded to you, that any other owner has - so use it to your advantage.

On the issue of usage of "may" on governing documents, it affords boards the ability to be flexible in responding actions. If a board only had black/white positions it would be too inflexible in its governance, and believe me, that would cause many more issues. While some boards use this in an abusive manner ("may"), it then becomes the responsibility of those in the community to stand up and demand that they board act accordingly. It is my personal belief (as President of a Board) that when you have multiple bodies in board seats, unless there is a concerted effort to abuse the usage of "may" it will not occur, as everything is (or should be) done via a VOTE.

LisaS (Illinois)
Posts: 341
Posted:
Thanks for the inpput... I was a previous VP on our Board, and generally the only one who knew the CCR's and the law. Once I left, the new Board basically decided that CCR's and the law didn't really matter.

This violator installed a very big project on her lot without even seeking approval by the association. We caught her and asked her to stop construction and she refused. She then lied and said she had submitted a request for approval (we received doctored application after the fact and without going into detail it can be proved 100%). We then denied the project based on our Rules and Regs to which she did not comply. Her attitude was that since she was on a property manager, she could get away with it. I guess if she gets on the Board, she will!

Our state and our CCR's are behind the times in protecting our community. Our Board can vote at any time to add a management company regardless of expense. This is what scares me...people who blatantly position themselves on the Board for their own gain.

Jadedone4 (Virginia)
Posts: 495
Posted:
Lisa, thanks for the update... question, do your gov-doc's allow for expenditure of funds that they HOA does not yet have? If your current budget (fiscal year just ended, so unless you are on calendar year your funds are dedicated they should be allocated), should have requred approvals.
SidneyP (Florida)
Posts: 302
Posted:
Posted By Jadedone4 on 09/30/2007 11:52 PM
LisaS,

Please remember that (barring any mention), your governing documents will dictadoes NOT result in an increase in assessments/dues - your board can NOT hire an M/C without community approvals. NOW if it IS in your community's budget and does not result in an increase, most documents DO allow a board to make those types of business decisions for the community (as it should be for elected representatives).

We had a HO (investor) get herself appointed to the Board by the BOD's and the seven (7) HO's that attended our last meeting agreed. This woman is w/a Real Estate Company and has now wiggled her way into being our new PM. This MC will be charging us $2,000. more a year. We can't afford this and our Board knows it. Our budget does not call for this much money. Last year the Board did the same thing, hired a new MC that cost us $2,000. more. At the end of June (semi annual dues Jan'July) we had $380. in the operating account. They have not paid into the reserves May

, June, July and Aug (last bank statement I have received). We do not have the funds for this increase and they know it. There will most certainly be another increase in our association fees because of this. Knowing our finances, shouldn't all 77 HO's have a vote for this? And to boot as of Aug 31st. we have 14 delinquent accounts with a total owed of over $10,000. This is our 3rd MC since Jan/06.

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