How to ensure unnecessary spending without member’s input/knowledge?

I don’t really know how to explain this properly. I’ll try the best I can, hopefully I’ll make sense.

The current president (been a board member the past four years) and I (two years) are resigning as board members on September 11th 2008. The current treasure insisted on being the president even though he didn’t have the experience necessary to perform the role properly. This went of for several days, before he finely, just threw his hands up and said fine “I’ll be treasure then, but next year I WILL be president” (very mature, right) At the time and still to this day, the both of us feel that he will then have the experience to be president of the BOD (unless another volunteer feels as though they are better qualified. Which is highly unlikely?

He seems to want to do things with HOA money that ONLY benefits him, his family and friends and NOT for the community. On several occasions he has made motions (in the past) the president or I seconded. We voted and it was 2/1 in our favor. He has out voted on just about every suggestion, luckily!

Just recently, at our last months HOA board meeting. He suggested having a observation pavilion built to where tennis advocates (of which he is an ALTA member of) could watch tennis matches, in keeping out of the weathers elements i.e. snow, rain, wind, blazing sun, etc, estimated roughly around $9,000.00 ($4,000.00 the board did it ourselves.) The president and I didn’t feel that having a pavilion built (which would merely be used for watching tennis matches) would be beneficial /appreciated for ALL those who pay assessments nor would it protect future property values and didn't play tennis.

Instead the president made a motion to “spruce-up” the front entrances. I naturally seconded it. (Very intelligent idea) The idea was now “tabled” for discuss the costs and time frame in which to start was discussed. We’ll receive several proposals prior to actually starting the project. Purchasing fresh pine straw, a few colorful flowers and several bushes (draught tolerable), estimating around $1,000.00-$1,500.00. Improving the appearance of our front entrances will entice/attract perspective buyers into our community, which increases our chances of getting a higher return rate when a HO sells their home.

Basically I would like suggestions as too how to ensure he doesn’t go ballistic with spending on "unnecessary" items that won’t benefit the majority.

Is this even possible? Should I just not worry about it, until it’s too late? What can the president and I do to prevent this from possible happening in the future. Can Rules be created?

Sorry for the long post.

Any/all suggestion/help would be greatly appreciated.
Thanks as always.

Chuck W.

Don't mean to be overly simplistic about this .. .. but the key word here is "budget" and one that prospectively identifies as much detail as possible. The tennis obersvation pavillion for example would fall in a capital improvements category. Such a category should not only be prospectively budgeted, but for significant expenditures, the actual improvements should be pre-specified.

Chuck,

Specifics of the merits of your Treasurer's goals aside, what your post evidences is your desire to create a legacy of proper fiduciary spending, and spending of funds on projects you and the President (or someone like you both) agree with. In an HOA and COA property regime, there really is no such way to forever prevent poor governing, or governing that differs from the your interests and those of others. Board members, Management, and the community members come and go. Revolving positions like the Executive Turnable section in the Rolling Stone Magazine.

Now the specifics. The best you can do now is as Donna suggested, provide a survey to the community. Request their feedback of areas of interest, would they like to see $9,000.00 of their dollars go to: A covered platform for viewing tennis games, landscaping for the front entrance, etc. Be fare in your survey and don't cast the die against your Treasurer who, unlike others, is at least volunteering his time.

Isn't there a threshold of Board spending without a vote of the community? If not, perhaps that would be a good thing to incorporate by community vote between now and Sept. 11 2008. You may also want to hold the election on an earlier date, given the anniversary and it's effect on attendance.

I would strongly suggest that you and the President pass the torch of offices to the Treasurer or someone prior your term expiration. Any one officer cannot technically overrule an entire Board. The two of you can overrule any one President or Treasurer, strategically that may assist. If for nothing else you should publicly explain in an open meeting why it is you are not in favor of the Treasurer's agenda and show why it doesn't make sense budget wise.

Remember, one day you will not be on the Board so it's best not to make any enemies in the process. : )

Charles,
Paul has brought up another thought that your membership should also debate and that is the financial situation of your association right now. You have stated that you have some problem right now in collecting dues from some members. This Tennis Pavilion is costly right now and perhaps when you get some replys to a survey, you will find that the general membership does not want to spend funds on such a project. Reserve Funds are NOT to be used for building a new amenity. They are for capital expenses/repairs, not for new construction.

Posted By DonnaS on 02/14/2008 10:06 AM

DonnaS,

I’m certainly grateful to have found this HOA discussion forum and to have met such wonderful and knowledgeable people in helping me to provide a better community for me and my family.

On September 11th, 2008 the president and I will have fulfilled our term as board members. Only one year term, which in my opinion is not beneficial to the community, what so ever.

Our association is 275 single family homes, of those there maybe at 18 members that even play tennis.

Very good suggestion, something that the board could post on the front page of our website, possible or perhaps in our spring letter would be better yet. Although, getting any sort of response from the HO in our community is like “pulling teeth”. They just don’t care!

The positions of President, Vice President and Treasure are selected (within 10 days) from the day of election, by the officers themselves, best qualified and/or experienced.

Thanks for the quick reply.
Chuck W.

CharlesW1: You have posted for awhile now of the many concerns you have with your association. The fact that you have now stated a Board members' term of office is ONE YEAR explains alot to me--and of the personal agendas brought along with each new annual election.

A one-year term of office, IMO, is very detrimental to the Board and to the community as a whole. I realize you were re-elected to another 'term' after your first year, but now you are ending that term in September.

Would you possibly consider running again for the Board to continue in your determination to make a positive contribution?

If you want to post a new topic to help define your Board's governing role and
spending habits of transferring money from one 'line item' to another, do so, and we can better assist you. There is much going on here which is not in the best interests of your community.

Posted By GeraldT4 on 02/14/2008 11:09 AM

GeraldT4,

I’m certainly NOT saying I’m unappreciative of him volunteering his time as a board member, but what I am saying is that his intentisions wouldn’t be favored by the majority of the residents in our community.
I will look into our governing documents and see “IF” there is anything specifying the board spending money without a vote. I would think there would be although that’s NOT going to stop someone “IF” they really wanted to do something.
I had thought off changing the Election Day, last year. I didn’t feel it was right then and I don’t feel as though it would be good now. Something else to look into.

You are correct Someday (September) I will NO longer be a board member, however I will always be apart of the associations committee’s, as a board member I know how crucial it is too have the help of a committee.

Thanks for your incite.
Chuck W.

Posted By PaulM on 02/14/2008 11:11 AM

PaulM,

I couldn’t believe what I was hearing. You would have to know the mind set of our current treasure, to be as taken back as I was.

He was always “barking” in meetings last year, about the “board spending money for themselves and NOT for the community” That is the reason for him running. He felt as though he could change all that this year. He has verbally expressed his feeling to the community (at several of our meetings), as though to say he (even though a board member) doesn’t agree with whatever it is that you maybe unhappy about. However, EVERYTHING that will and has benefited you, “I was all for”

I don’t know how many time’s I’ve heard him “throw the two of us under the bus” He justifies (to the members) that he isn’t apart of any decision the board makes. I’ve bitten my tongue on several occasions and have not addressed it. Even others noticed that what he was saying wasn't proper or a board member, of which he is.

He is pretty much against anything that will temporarily benefit the appearance of the community, such as seasonal color, which is budgeted or clearing out the under growth along the fence line in order to reduce rot and mold from forming on the fence itself.

I believe he didn’t really give is purpose all that much though due to his previously expressed feels.

Thanks for given me plenty to think about.
Chuck W.

Chuck - Don't interpret the following as being controversial, or argumentative, it's not meant that way. I understand entirely the importance of taking care of the meat and potatoes of budget items first, rather than capital improvements as a priority. But I am wondering if your personal feelings aren't getting the better of you. Be cautious of that.

You state of the Treasurer, ...his intentions wouldn't be favored by the majority of the residents in our community.

How would you know what the majority of the residents do or do not favor? Have you polled each owner as to their interests in community matters?

You've stated, "Although, getting any sort of response from the HO in our community is like “pulling teeth”. They just don’t care!".

Based upon that statement and all the other posts regarding your HO's apathy, I do not believe you could possibly know what the residents favor regarding anyone's intentions. You may be assuming they don't favor things. Until you send out a survey, and get every single owner's response you can not state or assume the majority of the residents don't favor the Treasurer's intentions, or anything for that matter.

Do you have an association pool? If so, how many use it at any one time? How big is the tennis court? 18 owners using the tennis court is a good thing. I'd capitalize on that and try to get the Treasurer to form a recreation committee.

Posted By DonnaS on 02/14/2008 5:44 PM

DonnaS,

I truly believe that he was “testing the water” so to speak. Seeing “IF” we thought it was a good idea, and confirm any of his preconceived notions/assumptions he made about the previous board, of which I was a member of.

I don’t believe he really gave what he said much thought. As I said in previous posts, He is all about NOT spending money that doesn’t directly affect the members residing in the community, yet he wanted to have a “tennis pavilion” constructed for those who watch/play tennis i.e. friend, family and relatives

Appreciate the suggestion. I will be forward the majority of the posts I have received thus far to the President.

Thanks as always.
Chuck W.

Posted By GeraldT4 on 02/15/2008 6:58 AM

GeraldT4,

You are 100% correct. I don’t know exactly what other HO are thinking. Although (past experience) has provided me with enough to make a safe assumption that they wouldn’t approve of that particular structure. Especially when several had expressed their concerns in other areas concerning money spend and why!

I as well as many other residents purchased a home in this association because it’s a pool and tennis community, HOA and affordable housing. Many (including myself) don’t use the pool or play tennis (I know my lose)yet I figured that would help ME , when I sell.

After reviewing the budget I saw many areas that were rather alarming to me and I strongly felt those areas needed immediate attention. We didn’t have much in our reserves either. I had a suspicion that the previous boards were mismanaging MY money. I also figured by making this announcement we would be tempting more people to get involved. I was seriously mistake. Owner apathy prevailed yet again. Although we didn’t receive the positive attention I was expecting nor did we receive any, we did however, collect the necessary funds to safely protect our investments.

Last year I suggested raising the assessments. The board felt it would be appropriate to inform residents of the 10% increase (although not necessary) in a letter address to every Lot owner. The announcement was a rude awakening once we purposed this to the community. I and the other board members believed that this was being very considerate of our neighbors, thus the reason why we notified everyone of the increase, prior to receiving the coupon.

I feel I can safely imagine that “IF” we mailed out a survey to our community we wouldn’t get a response from about 2/3. As this has been the typical response from the majority, of the community, thus substantiating my previous statement.

When we opted (as you are familiar) from HOA to POA, we were acting upon the concerns (mentioned at other HOA meetings) from many of the homeowners residing within the community. After further investigation, I and the board realized that being a POA would help our community dramatically. We needed 2/3 approval from the entire community (those members in good standings), to “opt-in”. We supplied a self addressed stamped envelope with the return address already printed on the envelope, to be safely returned, for a better out come. Whether the purposed amendments were or weren’t in favor, the board expecting EVERYONE to mail the ballot back, either FOR or AGAINST it. An overwhelming amount of ballots we not returned at all, which wasn’t acceptable to me or to the board.

We only received 93 out of 275 Lots and three of which were board members. If we would have receive 2/3 or even half disapproving the POA, the board would have dismissed the entire thing. However, not submitting a ballot either for it or against didn’t tell us anything.

As the ole’ saying goes “if you are not part of the solution then you are part of the problem”

IDK about other association, but 18 members using the tennis facilities is pretty pathetic if you’re asking me.

Thanks as always, certainly appreciate your “words of wisdom” yet once more.
Chuck W.

Charles,

Isn't it a sad day when you cannot get owners to put a stupid ballot in an envelope that already has a stamp on it" Your association is just like almost every one in the country. Owners just don't get it--, that they have to voice their opinions and that they have to participate in running the place where they live.

Remember Roger's survey as to what we felt is the number one problem in today's associations? This is and always be the worst problem. There will always be just a few of us, who go daily to do our elected and volunteered jobs, working for the betterment of where we live.

Now the Tennis Courts.18 members out of 275 members does not warrant a pavilion. If they want some shelter, inform them that they should buy a portable canopy and take it up and down as they use it.Do those 18 members always cast ballots for amendments and do any of them volunteer for your association? Unless those 18 members go out and get sufficient interest in the members to pay for their pavilion, I would just let them know that the Board has not found sufficient funds and interest in their request.

Charles one of the things we did two years ago was send out a anonymous community questionnaire of about 40 questions asking about everything from improving/changing recreational equipment, building safety, fine amounts, etc. Most were answerable with yes/no answers or check boxes; along with places for more detailed answers if they wished and a self addressed stamped envelope. This is the cover we used with the association name and formatting removed and we got about a 50% response:

Community Questionnaire

Do any of the following statements sound familiar?

“I’d like to have the Board do _______, but I’m too shy to talk in public.”
“I’m afraid my idea will be laughed at.”
“The Board only listens to certain people.”
“I just moved in, I’m not sure if I should say anything.”
“I think ________ should be changed, but I’m afraid my neighbors will get mad at me.”
“The Board are just a group of dictators who just do what they want.”

WE WANT YOUR OPINIONS!!!

Believe it or not we do care; every Board member is first and foremost a homeowner here at XYZ. We all equally share in the ownership and risks of this community. There are 132 homes here at XYZ and each owner has a different opinion of how things should be done. The sad fact is the only time we hear from most homeowners are when the monthly assessments go up, and we understand that. You come home after a hard day at work and you just want to kick back and relax.

Please take a few minutes out of your busy day and complete and return this questionnaire. You do not need to give your name; this survey is completely anonymous, so please answer truth-fully. Don’t circle Yes to something because it is the politically correct answer; if your answer is really no - circle No.

If you need more space, attach a blank sheet to the back and note the number of the question. Please write legibly, if we can’t read it – we can’t count it. Put it in the pre-addressed, stamped envelope and drop it in the mail. Results will be tabulated and will appear in a future newsletter. To have your opinions included return the questionnaire by April 28, 2006.

GlenL,

Now that seems to be a pretty good idea. I will purpose that possibility to the Board via email this weekend.

Thanks for the great idea. I can only hope to receive 50%, at least!

Chuck W.