Quote:
Posted By AugustinD on 05/03/2022 8:36 AM
Posted By DavidG45 on 05/03/2022 8:24 AM
I cannot find it addressed in the contract.
If this is a contract between the Declarant and the Management Company, then HOA Declarant law probably lets the two of them amend to their heart's delight, up until at least turnover of control from Declarant to the owners. What do your governing documents and state law say about Declarant turnover and contracts?
I think the subject of "declarant contracts and what happens at turnover" came up at least once in the last few years, with you or another poster. I believe a number of people pointed out that the instant turnover occurs, the contract is typically voided by at least mutual agreement of the parties?
Do share what you know about what happens to the contract at turnover.
I realize you are in a bad position because you all have a corrupt manager who naturally wants to continue working for the HOA and making money. Which as others pointed out, is way common.
Ask if you want me to take a look at what Delaware statutes say.
While I don't have the information in front of me, at the time that I was researching my understanding was that the contracts were not automatically voided, but any contract could be cancelled despite its term. So while our PM contract goes to the end of December, the new resident board could cancel it in May without penalty.
This seems to be not really on the table. I believe we are going to wind up with a board that includes people who have not been involved in the community and thus aren't aware of the issues we have faced. If I am on the board I don't want to be aggressive about this. My initial goal, then, would be to simply right the current wrongs. For starters, I want to insist we use proper accounting methods so the 55+ funds are accounted for; and to recover the money the PM wrongfully and illegal diverted from the 55+ residents to the community at large.
Hopefully either the PM will start doing a better job, or over time their ineptness will become obvious to all.