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EricaL4 (Missouri)
Posts: 1
Posted:
Hello! I have read several posts that might suggest something like this has been asked before, however, I'm hoping for some genuine direction for the group of homeowners who are hoping for increased transparency from our trustees.
We are in Missouri, and our subdivision is relatively large. In the past two years, we have had several large projects go on that have had a large impact on our homes, property, etc. Nobody seems to have a clue what is happening other than conjecture and gossip.
We have three trustees, and one no longer lives in our subdivision. A neighbor joined the board but left relatively quickly after the two long-time members refused to share information with her and basically just assigned her busy work and told her to not worry about the finances or anything else. The two long time trustees simply replaced her with their buddy. No one in the neighborhood was notified of any of these changes.
At least five neighbors that we know of, likely more, have emailed the trustee email address to request the regular business meetings required in the by-laws and to ask questions regarding some construction/trees being torn down etc in our common ground, and the large financial compensation the neighborhood received from the corporation causing the disturbance. Everyone has received the same type of answer, essentially blowing off any requests for meetings where people can ask questions. The emails are always signed by "trustees" and we are told consistently that there is "no business reason for a meeting" although our by laws clearly state these should be happening throughout the year. Their response is that they haven't had one in a while, and technology makes them unnecessary because they can email. Several of us have also offered to help if they need committee members, etc. They seem entirely uninterested in anyone having a conversation.
We know the trustees have been punitive to those they don't like in the past, so are trying to tread lightly as we organize, hoping that there is strength in numbers. It's been thrown around to have a meeting and invite them, to start a petition for financial transparency and regular meetings, and re-visiting the bylaws to ensure this doesn't happen again. Obviously, many of you reading this have WAY more experience than we do. We aren't looking to cause problems, we just love our neighborhood and would like to be a part of ensuring that it is well taken care of.
I have looked up home owner rights... it seems like we have the right to review the financials, etc. I find a lot on how trustees can enforce the by-laws. How do homeowners enforce them? Our focus on a next step is getting a meeting. Maybe we are thinking too small.

Does anyone have ideas, advice, thoughts regarding our situation? All ideas are welcome, we just aren't sure where to go next and want to get this right. Thank you so much for your insight!
CathyA3 (Ohio)
Posts: 6,299
Posted:
I'm sure we'll get into this in detail, but...

* Send the board and/or property manager a written request to view the records you're entitled to see. I'd probably started with the financials and board meeting minutes for the year. Cite the state law that says homeowners are entitled to see this information. If you get no response (and you may not), you may want to consider buying some time with a lawyer and having that person write the letter.

* I'd suggest asking the board to use newsletters or some other method of providing information to the membership. But I assume this would be a waste of time since the entrenched board won't even provide information to a fellow board member who is entitled to see everything.

* The real solution to removing the current board and replacing them with people who know what they're doing and who want to do the job properly. This takes time, effort, and allies who see things your way. Most important, you need people who are willing to serve on the board themselves, and this is where many remove-and-replace efforts fail. Lots of folks are willing to criticize, and they may even show up for a meeting and vote the bums out, but when it comes to volunteering to serve on the board themselves they're nowhere to be found. Not trying to discourage you, but this is a pretty normal thing in HOAs. Efforts to replace the board are more successful when the board is behaving badly enough that a large number of owners are outraged and motivated.

* If you don't have enough allies for this, the final (high cost) option is legal: hire a lawyer and force the issue that way. Frankly I'd be concerned about a board that won't disclose financial information, not even to a third board member. You'll have to decide if it's worth it to go this route. It may be overkill. On the other end, there may be significant financial mismanagement going on. (And you will have allies if this comes to light.)

My usual advice to any homeowner who is upset about how things are going is this: You have three options for dealing with an issue. You can live with it, you can change it, or you can move. As I mentioned, you'll need allies to really change this situation. If you don't have them, then you have to decide if the benefits of living in this community as it is right now are worth putting up with the nonsense of not knowing what's going on. Different people will arrive at different answers to this.

No easy answers to this, unfortunately.
AugustinD
Posts: 1,027
Posted:
CathyA3's post is on the money AFAIC. I want to post what I think is some reinforcement.

-- Missouri has no HOA statute per se. It does have some statute sections that address HOA ops, like this one, regarding political signs: https://revisor.mo.gov/main/OneSection.aspx?section=442.404 .

-- The OP should skim through the Missouri Nonprofit corporation statute at https://revisor.mo.gov/main/OneChapter.aspx?chapter=355 .

-- In particular, I think the OP should read Missouri Revised Statute sections 355.821, 355.826 and 355.831 and 355.846, for starters. EricaL4, cite these sections in any letter you send requesting a review of records. Also cite the applicable bylaw section on members reviewing records, if such a section exists. Bylaws often do have such a section.

-- Send any request for records certified mail, return receipt requested.

-- The courts have hammered and IMO will continue to hammer corporations when corporations are not providing records to shareholder/members like the OP (where the law says the corporation must provide certain records).
KerryL1 (California)
Posts: 14,550
Posted:
Cathy & Augustin give fine advice, Erica. Follow it!

A couple of questions: your HOA is "relatively large." How large? Three trustees do not sound like enough. How many do your Bylaws say you should have?

Do you have a community manager(PM)? Does s/he work for a management company? Full-time on the premises? Or? Often, that person would be the one to copy records for Owner who request them.

It's great that a group of you are taking a strong interest in your community. You must stay unified and headed towards the same goal to make changes. I like Cathy's idea for a group of you to pony up some funds to seek he advice of an HOA attorney. Without good HOA legislation in your state, someone specializing in corporate law might be good.

Meanwhile read the corporations statutes that Augustin advises to learn more about your rights.

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