majority of bod resigns

Started by DeliaK • 10 replies • 532 views

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

⚡ Takes 30 seconds

Already a member? Log in

DeliaK
Posts: 20

Posted:

Hello

New here hoping for some advice. I am a director on a 7 member bod. Recently we had 5 directors submit resignations for the end of the month, additionally our management company is leaving the same day. That leaves only myself and one other director. There's been a committee formed to solicit quotes from new management company but we don't know if that will be completed before they leave. Any advice on the following:

1) best way to fill seats (bylaws state the 2 can appoint replacements)

2) any advice on what the 2 of us need to do in the transition time before a new management company takes over

I've been involved in HOA but was recently elected to board so this is completely new to me.

Any advice appreciated.
Thank you.

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By DeliaK on 07/19/2020 6:33 AM
1) best way to fill seats (bylaws state the 2 can appoint replacements)

To be exact, the two remaining directors can appoint one director. Then the three directors vote on and appoint a fourth. Then the four directors vote on and appoint a fifth. And so on.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I like to call this approach "There is always a bigger fish"... It means time to start drumming up interest for people to step up and join the board. Will NOT be easy. It depends on how apathetic your HOA is. If you have people chomping at the bit to join, that is great! If not, then not so great...

When my board basically disappeared (including myself) had to make that position look desirable. Like it was "worth it". It doubled my work and everything was done with a "smile". The goal was to make the job something desirable and pleasant. Like "Hey we can start over with a new slate!". "Come join and let your voice be heard!" Get something positive going.

The time is now. Generate some positive energy and change is going to be hard. Just make it positive and go back to basics. Maybe even have some meetings just to discuss the CC&R's and rules. Like "training" sessions. Something to make people WANT to get involved.

Former HOA President

MarkM19 (Texas)
Posts: 1,459

Posted:

Delia,
Hard to give much advice without some information.

1) Is your HOA Single Family Homes or Condos?
2) How many homes?
3) How old is your HOA?
4) Do you know much about your Reserves and Cash in Operating accounts?
5) Do you have dedicated Management or a you a Portfolio (Part time manager)?
6) Do you have any pending legal issues.

It seems like 7 Board members may be a tuff battle at this point. If you can make it to 5 you may want to make the change going forward.

KerryL1 (California)
Posts: 14,550

Posted:

MarkM asks god questions, Delia, which willhlpe us reply to you.

BillH10 (Texas)
Posts: 1,217

Posted:

Delia, here are suggestions:

1. Get control of the bank accounts and have the signatures changed to the two of you for now.
2. Obtain all existing blank paper check stock and deposit slips. If there are any credit cards outstanding, cancel and have them reissued with new numbers, if you need them. Personally we see no need for credit cards or petty cash funds but I have seen compelling arguments for the use of credit cards in some scenarios.
3. Obtain the account numbers of all utility and other service providers, and userIDs and passwords for everything.
4. Determine if your recurring bills are on ACH or a similar payment system or if paper checks must be written. If the latter, make arrangements for the bills to be sent to one of the two of you and be prepared to write checks.
5. Discuss with the outgoing management company staying on for 30-60 days to help you out. Were they fired, or did they fire you?
6. Discuss with the outgoing management company transferring association records to you if you cannot find another before the termination date.

This will keep you busy for a few days, others will undoubtedly chime in with their thoughts.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Make a motion that the remaining directors/officers will have the authority to enter into a new management contract even if there is not a quorum on the board. This will allow you to hire a management company if there are no volunteers to serve on the board.

DeliaK
Posts: 20

Posted:

Quote:

Posted By MarkM19 on 07/19/2020 9:11 AM
Delia,
Hard to give much advice without some information.

1) Is your HOA Single Family Homes or Condos? homes
2) How many homes? roughly 2,200
3) How old is your HOA? 12 years
4) Do you know much about your Reserves and Cash in Operating accounts? yes healthy for most part
5) Do you have dedicated Management or a you a Portfolio (Part time manager)? was f/t
6) Do you have any pending legal issues. none

It seems like 7 Board members may be a tuff battle at this point. If you can make it to 5 you may want to make the change going forward.
I believe due to the way the current 2 were dropped that several people are willing to step up. of course that could change on election day.

DeliaK
Posts: 20

Posted:

since we will be the board is this necessary? the outgoing aren't making things easy

DeliaK
Posts: 20

Posted:

Quote:

Posted By BillH10 on 07/19/2020 1:19 PM
Delia, here are suggestions:

1. Get control of the bank accounts and have the signatures changed to the two of you for now.

the outgoing will still pay invoices until a new company gets on

2. Obtain all existing blank paper check stock and deposit slips. If there are any credit cards outstanding, cancel and have them reissued with new numbers, if you need them. Personally we see no need for credit cards or petty cash funds but I have seen compelling arguments for the use of credit cards in some scenarios.

How do you survive w/out credit cards? would like to see that with new management company.

3. Obtain the account numbers of all utility and other service providers, and userIDs and passwords for everything.

outgoing said they will give to us

4. Determine if your recurring bills are on ACH or a similar payment system or if paper checks must be written. If the latter, make arrangements for the bills to be sent to one of the two of you and be prepared to write checks.

see above

5. Discuss with the outgoing management company staying on for 30-60 days to help you out. Were they fired, or did they fire you?

they won't but it's mutual

6. Discuss with the outgoing management company transferring association records to you if you cannot find another before the termination date.

I think they are holding everything until that time or will give us access to pdfs. Am I trusting them too much?

This will keep you busy for a few days, others will undoubtedly chime in with their thoughts.

🎯 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