3-Member NC HOA Board President levying false special assessment to put lien/foreclose

Long story short, our North Carolina HOA Retirement Community Board Members quit over the past year due to a tyrant/bully HOA President who is an investor/landlord owner. There are 3 expired members total left levying thousands of dollars in special assessments for false damage, giving owners 6 months to pay, charging interest / late fees/ legal fees, then placing liens to foreclose.

Though a Register of Deed Online Searh, We just found our HOA President acquired ALL his condos purchasing HOA liens, foreclosing, evicting owners, and getting title from their banks on mortgages by consigning rents to their banks (these mortgages have very small amount left to payoff). His term is expired, but he has postponed our annual meeting to vote a new board due to Covid-19.

Were are getting a petition together to demand annual vote but he is friends with and controls the property management company and uses their attorney as our HOA Board Attorney.

If we get this petition signed, how do we have the annual vote if they are controlling everything, stalling and levying more fees and special assessments? How do we prove he and his 2 friends are voted off the Board and get our new HOA Board in???? HELP!!!

Also, sorry: a petition will not work unless you specifically follow the exact requirements of your governing documents that show how to call a meeting (likely called a "special meeting").

Great.

Just please ensure that the documents you're having signed follow the requirements of your governing documents.

Good luck.

The HOA lawyer will undoubtedly say that your proxy is not valid because s/he didn't draft it, but whatever- ignore the HOA lawyer and his or her tall tales, and be prepared to file a bar complaint against the HOA lawyer for helping a client do illegal things. That will hush him or her up.

The cheaper and appropriate action is to hold a special meeting and recall election to remove the bad actors from the board, as Paul recommended earlier. Your bylaws should tell you how to go about this. Be aware that you must follow all of the steps exactly, otherwise any recall will be invalid. And you need to have volunteers lined up to take the place of the recalled board members. Many people spout off about incompetent boards, but when it's time to step up and volunteer to be on the board themselves, they're nowhere to be found. If you kick out the current crop with no one to take their place, you're association will be dead in the water and unable to conduct business.

An attorney may, repeat *may*, be helpful if he/she can educate you and your neighbors about your rights and responsibilities as members of an HOA. If you can find one who is well-versed in HOA law, it may be worth buying a few hours of his time so that you know what you're doing.

In that case I do recommend finding a competent attorney and buying a few hours of his time for advice. It's unfortunate that covid-19 is gumming up the works, and even boards that do everything by the book are having to work around limitations as best they can.

Just be aware that legal action can be time-consuming and expensive - you may spend more than you would for that special assessment. And it's a crap shoot. That's why I recommend getting advice first to make sure you're on solid legal footing before you commit to anything further.

I would set up a Special Meeting, the purpose of which is to recall all the current directors and the replace them with your nominees - with or without the assistance of the management company. Make sure they know you are saving their communications with you and that their state licensing may be at stake.

I would have it online. I would additionally ensure each owner completes an affidavit per your docs and statute, specifically supporting the recall of all directors and election of the ones you wish to replace them with.

Between the meeting and the affidavits - assuming you get the numbers you need, there will be plenty of indication, regardless of your state law, for the current board and the management company to see which way this will go.

Don’t back down ... keep pushing. The bad guys will get the point.

Are you saying that the HOA/condo, by vote of its directors, agreed to sell liens the HOA had on various properties within the HOA/condo? I have never heard of a HOA/condo selling its liens. Is selling liens authorized in your condo's documents? I doubt it, but please do check.If there is nothing in the condo's Bylaws or Declaration giving the Board the authority to sell liens, then I believe the sale of these liens is an unlawful action, to say the least.

The first thing I would do is send a letter to the COA requesting Minutes of meetings, and the required records of actions taken without a meeting, as follows:

Dear Board of Directors,

Pursuant to the North Carolina Nonprofit Corporation Act Sections 55A-16-02 (b) (1), please provide a time and place to inspect, and copy as needed, the Minutes of all Board Meetings, and the records of any actions taken without a meeting, where the Board voted to sell the following HOA liens to Mr. ______.

[List of Liens Sold to the Condo President]

My purpose is to evaluate the practice and wisdom of selling condominium-owned liens to a condominium board director.

Thank you for your assistance,

[name]
[address]
[phone number]
[email addie]

Send this letter certified mail, return receipt requested to the condominium's registered agent. You can look up the registered agent at the North Carolina Secretary of State corporations site linked here:
https://www.sosnc.gov/online_services/search/by_title/_Business_Registration

The North Carolina Nonprofit Corporation Act appears at https://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByChapter/Chapter_55A.pdf

If two weeks go by without a response, report back here.