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LaskaS (Texas)
Posts: 1,025
Posted:
hello,

I am in a condominium governed under texas 81. and those parts of 82 that also apply.

I have found reference and requirements for the association to keep accurate records receipts etc for expenditures .

I can't find anything that specifically stipulates the requirement to keep maintenance records for the property.

The current property manager,( who is also a board member and who was only supposed to fill the position for a couple months while the board searched for a qualified , vetted property manager) has refused to fill out basic maintenance log sheets. He refuses to utilize any kind of centralized documentation to log what is being done regarding operations and maintnenance day in and day out.

while the board all agrees that a maintenance schedule and records are absolutely necessary for properly managing the property. The board member who is also serving as property manager has flat out refused to fill out any log sheets or use any maintenance logs.

The board knows we need a professional property manager. however. they pretty much hired a placement agency and have let a year go by .

I believe an argument could be made that record keeping that is required to properly account for the expenditures of the association could be used to include what our employees are doing day in day out, since we are paying them a salary.

The problem is, the board will not fire the board member from the position because in their mind, hes better than nothing. However, at what point are they complicit in allowing the complete "wack a mole" method of property maintenance to continue??
Can anyone think of what other arguements can be presented to the board to emphasize that this can't continue. Not holding the property manager to any standards or requiring any documentation regarding operations is ludacris.

He does properly document the actual receipts and and financial accounting requirements. But absolutely no transparent system to allow the board or owner to know what is going on day to day, etc.
BillH10 (Texas)
Posts: 1,217
Posted:
Laska

I am not aware of any such requirements in the Texas Property Code, I doubt it would be found in other state or local regulations.

My first reaction is the Board should devise a template which can be used to capture the desired information and require the PM to make entries following clearly written guidelines.

It is not clear to me the level of detail you are seeking. We do not keep daily tracking logs of activities we perform on behalf of our client associations. We do use email as much as possible, we do not delete messages. We rely on email files for historical tracking. We supplement email with calendar entries to document dates we conduct reviews, meet contractors, meet owners, have roofs cleaned and inspected, and similar events.

We do not log every telephone call we make or receive, nor do we keep a contemporaneous log of our daily activities.

In terms of maintenance history, we use association financial reports and receipts to determine when a event occurred. Again, email chains also provide historical information.

From your previous posts I recall you have had contentious relationships with those administering your association. What is the purpose of the information you believe should be documented? How will it improve day-to-day operations of the Association?
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By LaskaS on 10/22/2021 6:50 PM
I believe an argument could be made that record keeping that is required to properly account for the expenditures of the association could be used to include what our employees are doing day in day out, since we are paying them a salary.
I think two types of "input" from HOA/COA owners are appropriate:

-- Suggestions for improve HOA/COA conduct that statutes and covenants do not directly support but also are not in violation of the statutes, covenants and case law.

-- "Suggestions" for HOA/COA conduct that it turns out HOA/COA statutes and covenants expressly require.

LaskaS, the Board is in charge of ensuring the COA is run satisfactorily on a day-to-day basis, usually via a manager. I think your latest proposal amounts to your opinion on how things should be done. To me, what you want is not really legally enforceable.

I think your proposal falls into the first category above. If I were you, I might make the suggestion at an open board meeting but plan to have it ignored. Then I would accept that the the only way to cause the change I wanted (if I wanted what you want here) is to get on the board with a like-minded majority.

In my opinion, one has to learn to accept (1) when one does not have the power to cause change; and (2) what it takes to get this power.
BenA2 (Texas)
Posts: 1,273
Posted:
Don't confuse the requirement to keep records with a requirement to make records. If I verbally tell our maintenance guy to replace a broken window, there is no requirement that I make a record of it and there is no record to maintain. If I send him an email or fill out a log, it creates a record that has to be kept.

As someone already mentioned, the financial records should suffice, e.g. receipt for materials and payment for labor. I don't think a log is necessary unless you need to keep tabs on what an employee is doing.

Another thing to consider is whether or not he is an employee or contractor. This is important because, if he is paid as a contractor (issued a 1099-misc as opposed to a W-2) then the board should not micro manage how he does his job. If you are ever audited or someone makes a complaint, the IRS could decide that a contractor is actually an employee, which could cost the HOA a lot of money. One of the many things they consider is the amount of supervision. A contractor should be told what to do, not how to do it. Requiring him to keep a log to monitor his work could later be construed as close supervision.
LaskaS (Texas)
Posts: 1,025
Posted:
Hi, thanks for the responses.

What I and other board members are asking for is for there to be some kind of maintenance schedule for the property. The board has asked the property manager ( who is actually a board member who agreed to fill the position until a permanent qualified ,experienced, candidate is hired.) (the board member also convinced the board to pay him an hourly rate that is higher than this association has every paid for the position. )

We have 24 buildings. The owners and some board members have been insisting that there needs to be some kind of schedule for regular preventative and daily mainteance of the buildings. If the roofs of the buildings are checked and blown of leafs and debris one a month. that's fine. then keep a record.
if building 7 has had repeated issues with the sewer line , then document it in a file for building 7.

Akin to what some people do for their automobiles. they keep a maintenance log.
to follow that analogy. I'm not asking for a log of every time someone gets in the car.
proper documentation enables the association to monitor the status of our property and individual buildings and property elements.

Additionally, the owners and residents have continually complained that their requests for a maintenance issue are not followed up on in a timely manner.
The property manager does not give the residents any record of their request. The board has no way to verify that valid requests are being properly dealt with.

To add insult to injury. before this board member was filling the position of property manager. he himself insisted that any property manager we hire needs to utilize a maintenance work order system to document what repairs and maintenance is occuring. He agreed, when he negotiated that he would fill the position temporarily, he would utilize the online work order system that the board has spent 3500 of association money to purchase access to.
Its called UPKEEP.
Within a week of him starting the position he just refused to use it.
Its insanity. What kind of facilities maintenance manager doesn't keep operation and maintenenance logs. How is the association supposed to property plan for upcoming required capital improvements.

I want to be clear. This is not only me that wants this. everyone on the board agreed we need a system.

Having no historical maintenance logs would be like your regular doctor not having any of your medical records and not keeping any kind of organized medical records.

Currently. the maintenance of the property is handled on a reactive basis. I agree , this is a important part of what goes on day to day. But there also needs to be preventative and ongoing maintenance of the common elements.

Anyway, I believe the board is ultimately responsible for ensuring the full time onsite employee of the association( property manager) is properly handling the affairs of the association. The board has agreed there needs to be some kind of centralized system that will track work orders and owner requests.
The current property manger( who is a board member) is running the property as he sees fit and when the some board members speak up and ask for some kind of documentation to log regular and reactive and preventative maintenance is being done. when and by whom. His answer is he is too busy.
PatJ1 (North Carolina)
Posts: 568
Posted:
Why hasn't the Board hired a PM?
JohnT38 (South Carolina)
Posts: 1,631
Posted:
LaskaS, I'm having a hard time understanding this. You are a board member. You and the other board members don't like the way the PM is doing their job and the PM's response is basically "stick it". Don't you already have your answer? Get rid of this person. What do you expect to change otherwise?
KerryL1 (California)
Posts: 14,550
Posted:
Do I remember this wrong, Laksa? Your were on the Board, but I thought you'd gotten off. No?
PatJ1 (North Carolina)
Posts: 568
Posted:
Quote:
Posted By JohnT38 on 10/23/2021 11:07 AM
LaskaS, I'm having a hard time understanding this. You are a board member. You and the other board members don't like the way the PM is doing their job and the PM's response is basically "stick it". Don't you already have your answer? Get rid of this person. What do you expect to change otherwise?

Re-read it. Over a year ago the Board decided they wanted a paid PM and listed the position with a placement agency with no success. In the meantime, they are paying a board member to act as PM and are upset because they are not doing it the way the board wants it done. The board member is not entering maintenance info. into the HOA software and is slow at responding to requests. Do I have that right?

I'm wondering "how" they are paying this board member? 1099 or W-2? Do their CCR's allow board member payments? Is their an MC processing dues and vendor payments, or are they self managed?

Why hadn't the board reached our to an MC directly for quotes to provide desired services?

JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By PatJ1 on 10/23/2021 12:00 PM
Posted By JohnT38 on 10/23/2021 11:07 AM
LaskaS, I'm having a hard time understanding this. You are a board member. You and the other board members don't like the way the PM is doing their job and the PM's response is basically "stick it". Don't you already have your answer? Get rid of this person. What do you expect to change otherwise?


Re-read it. Over a year ago the Board decided they wanted a paid PM and listed the position with a placement agency with no success. In the meantime, they are paying a board member to act as PM and are upset because they are not doing it the way the board wants it done. The board member is not entering maintenance info. into the HOA software and is slow at responding to requests. Do I have that right?

I'm wondering "how" they are paying this board member? 1099 or W-2? Do their CCR's allow board member payments? Is their an MC processing dues and vendor payments, or are they self managed?

Why hadn't the board reached our to an MC directly for quotes to provide desired services?


No need to re-read it. As you stated a board member is being paid to be the acting PM. The acting PM has outright refused to do what the board wants. Time to fire the acting PM or live with it. Nobody on this forum can help LaskaS make a belligerent person do anything. The choice is tell this person to do what they are told, fire them or live with it.
LaskaS (Texas)
Posts: 1,025
Posted:
I guess i'm not being clear. The current board will not fire the pm(board member)

If the board has been notified in writing numerous times by resident owners and by 2 of the current board members that the pm is not capable of doing the job as required.

At what point are the board members who refuse to fire him complicit in the mismanagement of the association.

I'm thinking that self preservation may wake some of the asleep at the wheel board members will finally be motivated to act if they find out that they can be held personally liable for taking action to remove him despite month after month of his refusal to perform the job duties he agreed to when he negotiated his "temporarily" taking the position.

(he also negotiated a pay rate which is 50% higher than the association has ever paid any of our onsite property managers over the last 20 years. )

so not only is he not fulfilling the job duties he agreed to when he suggested he fill the position, he's being paid 50% more than the last 3 property managers were paid.
The majority of board members have shown that they will not hold him accountable. This is a breach of a board members fiduciary duty.

I now have 4 other resident homeowners who are going to join me and run for the board in february.
Based on what happens every year , the annual meeting in february won't meet quorum, so the election will be put to the march meeting. I'm confident we will win the 5 positions that are up for vote. We already are gathering proxies from non resident owners.

I was just looking for some other angle to force the exisiting boards hand . If they found out they could be personally liable for this pm(board members) inaction. they may finally ask him to step away.
LaskaS (Texas)
Posts: 1,025
Posted:
Pat,

The board is paying him an hourly rate. I don't know if it's w-2 or 1099. I'm sure whatever he wanted is what they agreed to.

I was on the board when he suggested he would fill the position until we found a competent , qualified , experienced property manger.

Our condo's have always been self managed. The association employs a full time property manager and supposed to have 3 full time maintenance staff.

we use a management company to do the accounting only. all owner fees go to a lockbox and the management company keeps the books.
AugustinD
Posts: 3,698
Posted:
Quote:
Posted By LaskaS on 10/24/2021 1:37 AM
At what point are the board members who refuse to fire him complicit in the mismanagement of the association.
.
.
.
The majority of board members have shown that they will not hold him accountable. This is a breach of a board members fiduciary duty.
I disagree. IMO the Board is exercising its business judgment.

LaskaS, maybe consider not asserting an opinion as though it were fact? I think doing the latter tends to subtract from one's credibility.

1.5 cents
BenA2 (Texas)
Posts: 1,273
Posted:
Quote:
Posted By LaskaS on 10/24/2021 1:37 AM
I guess i'm not being clear. The current board will not fire the pm(board member)

If the board has been notified in writing numerous times by resident owners and by 2 of the current board members that the pm is not capable of doing the job as required.

At what point are the board members who refuse to fire him complicit in the mismanagement of the association.

I'm thinking that self preservation may wake some of the asleep at the wheel board members will finally be motivated to act if they find out that they can be held personally liable for taking action to remove him despite month after month of his refusal to perform the job duties he agreed to when he negotiated his "temporarily" taking the position.

(he also negotiated a pay rate which is 50% higher than the association has ever paid any of our onsite property managers over the last 20 years. )

so not only is he not fulfilling the job duties he agreed to when he suggested he fill the position, he's being paid 50% more than the last 3 property managers were paid.
The majority of board members have shown that they will not hold him accountable. This is a breach of a board members fiduciary duty.

I now have 4 other resident homeowners who are going to join me and run for the board in february.
Based on what happens every year , the annual meeting in february won't meet quorum, so the election will be put to the march meeting. I'm confident we will win the 5 positions that are up for vote. We already are gathering proxies from non resident owners.

I was just looking for some other angle to force the exisiting boards hand . If they found out they could be personally liable for this pm(board members) inaction. they may finally ask him to step away.

Even if 99% percent of the owners and 49% of the board think the manager is doing a terrible job, that does not mean the board is negligent for not firing him. At the end of the day it is the board that has to make the decision and the owners have trusted them with making that decision.

We should never take our fiduciary duty lightly but what is in the best interest of the association is almost always a matter of opinion, which is why elections are usually the only remedy to what we consider a "bad board."
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I find the more you bad mouth someone the less likely anyone will do anything about it. Matter of fact, it just looks more like a "You" issue than a "them" one. Speaking from experience. Our Ex-President was a scumbag con-artist using the HOA funds or making profit from it. However, even though I knew this for a fact it did not matter. People had to experience it for themselves before they believed me. I had to learn to let it go and let him hang himself with his own rope not mine.

Basically the more you complain or try to have others complain the more the board members are going to dig their heals in. Plus the more ammo you give this PM person an excuse of "That person is crazy don't listen to them". So step back and let live.

Just got reminded of this myself recently. Selling my house but not happy with my Realtor. Was complaining with friends about what the person did to make me upset. Their response was "It's their job to sell your house right?. They have years of experience doing it". So no matter how much this Realtor has irritated me other's opinion is that I am NOT a Realtor and let them do their job. FYI: Reason not happy with Realtor is they were to take pictures of my house. Had left things intentionally in places. I came by the house to find my curtains thrown on the ground in the garage that floods! It was to rain the next day. Plus a few other things like turning the air down when wasn't even showing the house! I had the air turned off to save on electricity. Overall has been extremely inconsiderate and questionable abilities. Signed contract so can't get out of it. Just taking it as a way NOT to be emotionally involved in the selling of the house or I would be a puddle of tears.

Former HOA President
LaskaS (Texas)
Posts: 1,025
Posted:
mellissa,

i'm how long after you knew it for a fact ,,did it take for the rest of the board to realize that the president was self dealing and not on the up and up?

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