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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

RogerJ1 (Texas)
Posts: 550
Posted:
Based on the pattern of an association over recent years (eight directors have resigned), and the current situations with the board (down to three, indirect lawsuits, other adverse situations), there is a fair chance that everyone, or all but one person, resign at at anytime.

If that were to happen, what course of actions would be available to membership? Also, what happens if no party seeks receivership? It has few contractors*,and with their interaction being small dollars, I highly doubt any of those parties would file for receivership, and with no members wanting to be on the board, I could not see any members filing for receivership either.

*a power company from which it leases street lights, grass cutter who cuts grass on private property, owned by others not the Association, that fronts the subdivision, web hosting company, and maybe some lessor vendors, like private mail room were it rents a PO box, I have forgotten.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Choices are receivership. Which is expensive and not good. Effects the HOA credit line and how much people pay in dues.

Can hire a management company to help assist with the stupid going on till someone or all wisen up. It is time you all took back your neighborhood. Get together and read your documents. Get educated not drilled by lawyers.

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
What Melissa said. There are many older conversations on this website about receivership and why it's generally a bad idea for everyone - read a few and you'll see for yourself. If you have any questions, you can bring them to this conversation to ensure you get updated information.

You've had several conversations about your community's dysfunction, so now's the time to either put up or shut up. It's ok to come to this website for ideas, but whether you want to face this or not, it may be YOU'RE the one who will need to get the turnaround started. If you don't do it, no one else will or people who don't know or care what the hell they're doing will take charge and all of you will wind up in a huge shitshow. You don't have to do this alone, nor should you, so get out of your house and start walking around the community to talk to your neighbors. Hopefully, you'll find some who are just as concerned as you are - all of you can start meeting and setting up a strategy.

If you or they are new to the ins and outs of HOA board membership, go to the CAI website and invest in some of their educational materials, starting with the Board member's toolkit. Your documents will also provide the bulk of the information you'll need regarding the board's responsibilities, so read them.

Before you begin, have a come-to-Jesus meeting with your neighbors and tell everyone what will happen in a receivership:

* Whoever's on the board can petition the court to appoint a receiver because no one's willing to volunteer for the board to do it. If the judge agrees, he or she will appoint the receiver. The receiver only answers to the judge, so it won't matter what the homeowners say about anything.

* The receiver's primary responsibility is to see that the association's bills are paid, so he or she probably won't care much about exterior change requests or rules enforcement - prepare for a free-for-all all in that regard. Then what will your neighborhood look, sound and smell like?

* Assessments will skyrocket because now you'll have to pay routine expenses (even if you don't have very many), fund reserves, pay the receiver's fee (which can be several hundred dollars an hour) AND court costs/attorneys fees. You already know what happens if you don't pay assessments, so people can shoot themselves in the head if they want to.

* Say bye-bye to property values - do YOU want to move into a HOA community where the homeowners have no say whatsoever?

Some will call these scare tactics, but whatever works. If people sit on their hands and do nothing, they get what they deserve. Good luck to you.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
KerryL1 (California)
Posts: 14,550
Posted:
Is this your own HOA, Roger, or some other one about which you've asked questions previously?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
AS long as there is one person left on the BOD, that person can begin to construct a new BOD by appointing someone to the the BOD. Then the two of the find a 3rd they can agree on. Then the three find a fourth and if two of the 3 agree, the fourth is on the BOD. The 5th can be tough as 3 of the existing BOD have to vote for the fifth. So forth and so on until there is a full BOD.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By RogerJ1 on 02/14/2024 6:53 AM
Based on the pattern of an association over recent years (eight directors have resigned), and the current situations with the board (down to three, indirect lawsuits, other adverse situations), there is a fair chance that everyone, or all but one person, resign at at anytime.

If that were to happen, what course of actions would be available to membership? Also, what happens if no party seeks receivership? It has few contractors*,and with their interaction being small dollars, I highly doubt any of those parties would file for receivership, and with no members wanting to be on the board, I could not see any members filing for receivership either.

*a power company from which it leases street lights, grass cutter who cuts grass on private property, owned by others not the Association, that fronts the subdivision, web hosting company, and maybe some lessor vendors, like private mail room were it rents a PO box, I have forgotten.


It is very common for a power company to lease street lights. So I don’t know what your complaint is with that.

If the your equipment is being used to mow other property, you have a gripe.

Nothing else you list sounds under handed.
RogerJ1 (Texas)
Posts: 550
Posted:
Quote:
Posted By DeanJ on 02/14/2024 1:43 PM
Posted By RogerJ1 on 02/14/2024 6:53 AM
Based on the pattern of an association over recent years (eight directors have resigned), and the current situations with the board (down to three, indirect lawsuits, other adverse situations), there is a fair chance that everyone, or all but one person, resign at at anytime.

If that were to happen, what course of actions would be available to membership? Also, what happens if no party seeks receivership? It has few contractors*,and with their interaction being small dollars, I highly doubt any of those parties would file for receivership, and with no members wanting to be on the board, I could not see any members filing for receivership either.

*a power company from which it leases street lights, grass cutter who cuts grass on private property, owned by others not the Association, that fronts the subdivision, web hosting company, and maybe some lessor vendors, like private mail room were it rents a PO box, I have forgotten.



It is very common for a power company to lease street lights. So I don’t know what your complaint is with that.

If the your equipment is being used to mow other property, you have a gripe.

Nothing else you list sounds under handed.

My point was there are no third parties that would have an incentive to force receivership. Centerpoint leases about 9 or so already installed light poles at the cost of $20 a month for each. For ~$180 per month, I would not think Centerpoint's legal team would want to take the time and money to sue for receivership. The other parties are thing such as grass cutter, who may or may not be legal citizens, so I do not see them suing for receivership. I was just providing evidence of my train of thought that no outside party would have reason to force receivership.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By JohnC46 on 02/14/2024 12:58 PM
AS long as there is one person left on the BOD, that person can begin to construct a new BOD by appointing someone to the the BOD. Then the two of the find a 3rd they can agree on. Then the three find a fourth and if two of the 3 agree, the fourth is on the BOD. The 5th can be tough as 3 of the existing BOD have to vote for the fifth. So forth and so on until there is a full BOD.
This is exactly what my former HOA's attorney said.
LetA (Nevada)
Posts: 2,679
Posted:
You go into receivership and your HOA assessments will skyrocket because the receiver will spend your
assessments like a drunken sailor.

Rally your neighbors and yourself to run on the board to prevent this from happening.

CathyA3 (Ohio)
Posts: 6,299
Posted:
In order to go into receivership, one or more homeowners has to file a lawsuit (at their own expense) petitioning the court to appoint the receiver. This will take time. Meanwhile the association won't be paying bills or handling any maintenance or emergencies.

Two things to know about receivership:

* You will pay the receiver on top of your regular assessments. This will be expensive. Receivers can earn more per hour than an attorney. It's not unusual to see total assessments double.

* The receiver will make all of the decisions, and homeowners will have no say in how the community is run. The receiver says you need a special assessment, then a special assessment you will have. (*)

In order to terminate the receivership, one or more homeowners has to file another lawsuit (at the own expense) petitioning the court to terminate the receivership. This will also take time, and you will continue to pay the receiver while you're waiting.

You really, really, really don't want to do this. It's a high price to pay for running off the old board and convincing others they want nothing to do with it. Fortunately a few months of paying a receiver usually makes a community come to their senses. (Among other things, it will reset people's notions of what "unacceptable board behavior" actually looks like.)

(* It occurred to me the other night that a receiver's ability to set assessments at whatever level they deem necessary may conflict with state laws or CC&Rs/bylaws on how much assessments may rise without homeowner vote. I think the receivership overrides the law in this case, but I wouldn't bet any money on my opinion. It's an interesting question, though, and I hope I never have to find out the hard way.)

🎯 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