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NitaD (Florida)
Posts: 26
Posted:
Im a new board member, the old board is dragging their feet on giving me access to financials etc. I have heard they have done this before with other board members, but now wondering how too I get their attention. There are so many complaints from homeowners etc, and I dont know where to start.
ElleN (Idaho)
Posts: 4,420
Posted:
NitaD, please consider always stating whether you are speaking of a condo or non-condo.

This situation of a board denying or massively delaying access by a fellow director to records arises often. It puts the targeted director in a terrible position. When it happens, it is a travesty and the very worst of condo and homeowners' associations.

You are stuck quoting the law back to the board and manager. There's no way a formal request here can be phrased as anything other than a potential threat of a lawsuit. Such a threat (veiled or not) by a requesting director (you) may make the director (you) what is known as an "adverse party." As an adverse party, the board can now harass you even more, and it's going to be largely legal or at least require you to hire your own attorney. A letter to the board would go something like this:

Dear Board of Directors,

I understand all directors have a fiduciary duty to ensure their votes as a board member are informed. Florida statutes FS 617 and FS 718 give all owners a right to inspect financial records. I believe directors have a duty and absolute right to inspect financial records.

As needed, I hope the board will arrange a meeting with the HOA attorney, with all directors present, to discuss this right of directors to have access to the financial records.

Pursuant to FS 718.111 (12) and FS 617.1602, please provide a time within the next five business days when I may inspect the following financial records: ____, ____, _____.

If you do not intend to honor my rights and fiduciary duty to inspect the financial records, please let me know within five business days.

Thank you for your assistance,

Director _____
address
email addie
phone number


Send the request by email to the entire board and manager. If there is no response, report back here, and I will propose ways to elevate this that hopefully get you what you want.

But be prepared for the worse. Boards can get away with dragging their feet and making you an outcast in situations like this.
KerryL1 (California)
Posts: 14,550
Posted:
When you write "old board, Nita, do you mean former board members who no longer are ON the Board? Or do you mean current directors who've been on the Board and have been reelected?

How many directors are there? What is the size of your HOA?

When you wrote about so many owners complaints, what is the relationship between those complaints and the financial records you seek?? Are the owners complaining about fines? or late fees?? Or something else that's "financial?"

Agreed letter to the Board and manager (if you have one) is, of course, what you need to do. Do make your latter as friendly & pleasant as possible so that you don't set up a situation where the rest of the board will ignore you or worse.
NitaD (Florida)
Posts: 26
Posted:
Im sorry I am a newly elected board member of a 78 condo association. The three person board that formally ran our association is having a little trouble allowing the new board members access to financials. In january of 2023 they created a paid liaison position, that was filled by the former president of the board, she receives 32,000 per year, and is pretty slow in getting things done. My feeling is that she should never have been placed in this position, along with the now president's husband who is also in a paid position to cover whatever the liaison can't get done. I have been speaking to many owners who are not happy with the situation, but am wondering what can be done. Since our annual meeting which was cancelled due to lack of a quorum, we now have a 9 member board. where do I go from here? We received 2 estimates on a painting project that is over $700,000 and noone thinks we need to get more estimates. I may be in over my head.
CathyA3 (Ohio)
Posts: 6,299
Posted:
I remember an earlier thread about a board that created a paid position for a former board member. Is this the same community?

If so, then I think them not providing financial records to a newly elected board member is the tip of the iceberg. Maybe the paid position was created to help the board get a handle on financial issues. Maybe the paid position is part of the financial mismanagement. Based on the little info I have, I suspect both.

I agree with starting with a polite letter. Even if it doesn't produce anything, it's the first step in documenting issues. When this fails to produce the records, there are some other options:

* One, if there are enough upset homeowners, you can try for a "recall and replace" election to remove the board members who were part of creating these paid positions and replace them with board members who will get a handle on things.

* Two, once the board has received the written records request, a clock is ticking. If the board fails to respond, I believe that Florida provides avenues for resolving disputes like this short of actually filing a lawsuit.

* Three, lawyer up.

Which of these options will work best depends on the players involved. Are you dealing with incompetence or deliberate malfeasance? From the outside these two things can look the same, so we need more info. The board's response (or lack of) to the written request for records will tell us something.

JackieB4 (California)
Posts: 398
Posted:
Ellen, I continue to be awe-struck by your continued support of explaining, educating, and providing helpful examples to HOAtalk contributers. In this season of thankfulness, you stand out. Maybe your life be easy, fun, and exceed your dreams.
Jackie
NitaD (Florida)
Posts: 26
Posted:
I am afraid Im on the same page as you. We have a board meeting set for two days from now, I intend to bring up a questions regarding the paid positions, and I hope to have enough support from the other newly elected board members to get somewhere.

The two paid positions are owners, They had been on the board for more than 9 years. Both recently resigned to take on these positions. Something fishy??

I will let you know what happens at the board meeting.
Nita
KerryL1 (California)
Posts: 14,550
Posted:
I, too, kind of remember the earlier post. Have you read the minutes when the board approved hiring either of the former directors as direct employees of your HOA? Do they have worker's comp? Does the Board have a written contract with each re: thier duties, etc.?

It sounds like your HOA has no community manager?
ElleN (Idaho)
Posts: 4,420
Posted:
CathyA3, good memory. I now see this other thread where NitaD reports on a former director now being paid to be a liaison. Sounds like corruption-city all-around. I am betting the OP has a tough fight.

JackieB4, thank you for your kind words. I recently returned to the great West. I have a fantastic rental house in a great neighborhood (with a HOA). I have already heard of a recent doozy of a decision by the HOA board (violating a federal wildlife protection law). Fortunately the board admitted their mistake. The directors supposedly begged the complainant not to pursue this. Everyone has settled down (for now).

Homeowners' associations are not boring.

I remember well the rogue majority of your board. I hope you are still President and hanging in there until the coming election in May. Your kids must be proud. Joyous winter solstice to you and yours.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Nita

A 9 member BOD is to large for a 78 unit association. I suggest you become "friendly" with a few like thinking BOD Members and begin to make changes. Do you have a Management Company (MC) or are you self managed?
KerryL1 (California)
Posts: 14,550
Posted:
I niw remember asking Nita about the 9 directors, w him she insisted are required by her bylaws. I can't recall if there might have been some confusion between officers & directors?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By KerryL1 on 12/06/2023 11:56 AM
I niw remember asking Nita about the 9 directors, w him she insisted are required by her bylaws. I can't recall if there might have been some confusion between officers & directors?

It is possible s/he is thinking 5 BOD Members and 4 Officer positions are 9 people versus the 4 Officer positions come from the 5 BOD Members. Typically Officers are also BOD Members but not all BOD members are Officers. People confuse Officers and BOD Members all the time.
AnnaD2 (Florida)
Posts: 960
Posted:
Wow, wow, wow! No Florida Board Members are allowed to be paid for ANYTHING or for any POSITIONS.
NitaD (Florida)
Posts: 26
Posted:
I did post earlier about paid liaison position. We have three officers, pres, vice-pres, and sec/treasurer. They just brought on 6 new directors. for a total of 9. The presidents husband is a paid employee of the association, as is the ex-president. both are paid, but I cannot find out how the positions were voted on, in Jan 2023 it just shows that NG the past president will be the liaison at a salary of 35,000. per year. I still cant find the salary for the president's husband.
So the board consisted of the pres, the vice-pres, the sec/treasurer for about 3 years, no other board members, according to bylaws must have at least5, but when I questioned it, they told me I was wrong, the by-laws said they could decide how many.
I have made a copy of that amendment for minimum 5, which I intend to bring with me. I'm not sure how many we need, but we need oversight on these three for sure.
Just wish me luck
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By AnnaD2 on 12/06/2023 3:34 PM
Wow, wow, wow! No Florida Board Members are allowed to be paid for ANYTHING or for any POSITIONS.
By my reading, this is not true for Florida condos subject to FS 718. It looks like it might be true for HOAs subject to FS 720. More on this in another thread.
KerryL1 (California)
Posts: 14,550
Posted:
Please cite your current Bylaws about the number of directors your HOA must have. sometimes it is a range, say 3-5. But nine for an HOA your size would be highly unusual.

If there are no minutes showing that the board voted to create either of these "positions" with adequate detail, insurance, duties, contracts etc. I do not think they legally exist.
NitaD (Florida)
Posts: 26
Posted:
The bylaws state that the association will be managed by a Board consisting of an odd number of directors consisting of not less than (5) FIVE NOR MORE THAN NINE (9) DIRECTORS. The number of members of the BOD shall be as provided from time to time by the ByLaws of the Assoc.

For almost 3 years, they have only had the three members who were also officers. So you see what we are dealing with
NitaD (Florida)
Posts: 26
Posted:
There was an amendment to the bylaws that states the board shall consist of not less than 5 nor more than 9. But this bod was just the 3 officers for at least 2 years.
CathyA3 (Ohio)
Posts: 6,299
Posted:
For reference, my 74-unit condo association has a 3-person board whose members serve staggered 3-year terms. We have 3 officer positions (pres, secy, and treasurer) that are always filled by the board members. Our bylaws allow the board to create ad hoc officer positions that may be filled by non-director homeowners, but they rarely make use of this. We employ a professional, non-resident manager who handles the books, among other things. This professional is not a full time employee of the association, they're a portfolio manager employed by a management company who manages communities besides ours - which means their annual compensation is more along the lines of $15,000. Board members do not cut checks or deal with the day-to-day money matters, although they do have signing authority on our accounts. The board's main duties are reviewing the financials and changing signing authorities after every election (the latter is a time-consuming pain in the keister).

I agree with others that 9 board members are too many - even 5 can be a lot. Condos often have problems filling all of the board seats, even on small 3-person boards. Finding that many willing bodies is unusual, so right away I'm curious about what the incentive is. Being paid would do it. I bet the amendment to the bylaws was enacted around the same time that the paid positions were created, yes?

I also agree that board members shouldn't be paid even if it's not illegal per the bylaws or state statutes. For one thing, they lose the protections volunteers enjoy under the various Volunteer Protection Acts, and that's kinda a big deal. In addition, being paid means a likely conflict of interest since their decisions can affect their compensation. It's less of an issue if they're being paid a pittance, but it sounds like that's not the case here.

Good luck tackling this. I hope other homeowners are up in arms about this, since it sounds like a small group has figured out how to use the condo association to benefit themselves financially. This group needs to be ousted from power.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By NitaD on 12/07/2023 3:39 AM
There was an amendment to the bylaws that states the board shall consist of not less than 5 nor more than 9. But this bod was just the 3 officers for at least 2 years.
It appears you continue to believe that an "officer" is the same thing as a "director." But this is not so.

As a result, I still cannot tell how many directors are serving on your board at this time.
NitaD (Florida)
Posts: 26
Posted:
Ellen: There are three board members 1 serving as president 1 serving as vice president and 1 serving as secretary/treasurer. They just appointed 6 new board members last night, by my count that is 9. Am I looking at this wrong? Are officers not considered board members?
NitaD (Florida)
Posts: 26
Posted:
Ellen: the six newly appointed are directors. the three officers were officers for the last 2-3 years. voting on all business before the board Does that explain ?
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By NitaD on 12/07/2023 9:00 AM
Ellen: There are three board members 1 serving as president 1 serving as vice president and 1 serving as secretary/treasurer. They just appointed 6 new board members last night, by my count that is 9. Am I looking at this wrong? Are officers not considered board members?
Nationwide HOA officers are not necessarily also directors.

-- Officers do not have to be directors unless the bylaws require that officers be selected from among the directors. There is so much variation from one HOA to the next that anyone posting here must not assume that everyone reading the thread has the OP's bylaws in front of them, AFAIC. Readers here most certainly do not.

-- The people who "appointed 6 new board members" are doing so in their capacity as directors, not officers.

Quote:
Posted By NitaD on 12/07/2023 9:02 AM
Ellen: the six newly appointed are directors. the three officers were officers for the last 2-3 years. voting on all business before the board Does that explain ?
Board votes are done by directors, not officers. Officers might provide input to help directors make a decision.

The distinction is often important. For example, the treasurer is often not a director. So the treasurer does not get a vote when a board decision is made. But of course the treasurer will have information that will help the directors make financial decisions.

Sometimes to be clear when I am writing, when the president (or say treasurer) is also a director, I sometimes use the phrase "President-director" (or "treasurer-director").

NitaD (Florida)
Posts: 26
Posted:
Ellen: thanks for that, so our bod for the last three years consisted of pres-director, vicepresident-director, sec/treasurer-director. So every single thing that was discussed was also voted on by them. The paid liaison is also included in the budget meetings, conversations that are held outside on the lawn, in the pres house and in any emails that are sent to board members
I hope I was able to make myself clear, we now have 6 directors plus the pres, vp, treas

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By NitaD on 12/07/2023 9:30 AM
Ellen: thanks for that, so our bod for the last three years consisted of pres-director, vicepresident-director, sec/treasurer-director. So every single thing that was discussed was also voted on by them. The paid liaison is also included in the budget meetings, conversations that are held outside on the lawn, in the pres house and in any emails that are sent to board members
I hope I was able to make myself clear, we now have 6 directors plus the pres, vp, treas


Nita

You have 9 directors 3 of are also Officers, Pres, VP, Sec/Treasurer. Typical the BOB, and the BOD alone, elects their Officers from among themselves.
KerryL1 (California)
Posts: 14,550
Posted:
Nita, are you saying that the Prez, VP & treat are NOT directors?
NitaD (Florida)
Posts: 26
Posted:
ok I will try to get this straight in everyone's mind. after last night's meeting, we now have four directors who are officers, and we also have an additional 4 directors. The officer positions were already decided and announced at the beginning of the meeting. No input from any other board members. Three of the newly elected board members were not present due to covid. So that is how that went. I plan to have a meeeting with the treasure to see if I can go over the financials and find out about the paid positions, that were never created in the light of day.
DeanJ
Posts: 1,786
Posted:
I would send a letter the board and association attorney requesting the records.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By NitaD on 12/08/2023 6:29 AM
after last night's meeting, we now have four directors who are officers, and we also have an additional 4 directors. The officer positions were already decided and announced at the beginning of the meeting. No input from any other board members. Three of the newly elected board members were not present due to covid.
If perhaps you need a bit of "validation," then I will say it: The contingent of directors who voted for officers without input or a vote from nearly half the board are swine.

Also it appears to me that FS 718 requires that the vote for officers take place in an open meeting.

These jerks need to be busted. The only reasons for not busting them are the labor it takes and the high probability of severe retaliation.
NitaD (Florida)
Posts: 26
Posted:
yes they are directors
NitaD (Florida)
Posts: 26
Posted:
Ellen: thank you I needed that validation, now lets see if I can do something about it. I don't run from fights, and these people are beyond belief.

ElleN (Idaho)
Posts: 4,420
Posted:
Today I run from fights where I do not have the numbers or possibly the money to throw away on a lawyer. If the issues are dear enough to me, I will seek a safer, firmer ground on which I can make my stand.

But often, a person has to experience extreme harassment first to make an informed decision in the future.

Not that you will suffer extreme harassment. But this forum pretty regularly sees reports of the latter from owners/directors seeking a board's compliance with the bylaws, covenants and statutes.

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