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Statement of Information Issues - HOA in suspension

Started by JasonP7 • 16 replies • 151 views

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JasonP7 (California)
Posts: 26
Posted:
I am the HOA President and do not get along with our Treasurer who goes out of his way to make things difficult for me. He had not filed a Statement of Information for 10 years and our HOA was in suspension for the last 7 years which we fixed. I asked to be granted access to the document to remedy future issues (he created it so he has to grant me access) and he does not do it.

Also, he is the Treasurer but lists himself as Chief Financial Officer. Does it make any difference what his title is?

Thank you.
SheliaH (Indiana)
Posts: 6,964
Posted:
For those who don't know what this is, a statement of information us filed with the secretary of states office every year. It should have updated information about a business or organization's officer names, directors, registered agent, and contact information.

This filing keeps the state informed about the organization' status, and if you dont file it on time, you risk penalties and having your legal status suspended. I think Terri, one of the California regulars, had a conversation about this a month or so ago.

Anyway, if the treasurer hasn't filed this in 10 bloody years(???), why haven't the rest of you taken that duty away from him, especially if the HOA got suspended? You know what I say about one or two people terrorizing the entire board or community - it doesn't happen unless you allow it.

Give the man an ultimatum - make the document available to all board members or someone else will take on this duty since he's demonstrated he cant or refuses to do it right. You can have this discussion in an executive session because clearly there are some personal issues that need to be addressed so everyone can do their jobs.

And stop wasting time majoring in the minors- who cares what the treasurer calls himself when he can't even file a form on time? Fulfilling his duties as a HOA board member and officer is more important. The guy is just ego tripping.

In my state, I think we have a similar rule and our property manager does this for us. If you have to take this off the treasurer's plate, you can do it as president. Or the secretary can handle it.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By JasonP7 on 02/13/2025 5:15 PM
I am the HOA President and do not get along with our Treasurer who goes out of his way to make things difficult for me. He had not filed a Statement of Information for 10 years and our HOA was in suspension for the last 7 years which we fixed. I asked to be granted access to the document to remedy future issues (he created it so he has to grant me access) and he does not do it.

Also, he is the Treasurer but lists himself as Chief Financial Officer. Does it make any difference what his title is?

Thank you.

So if he gets hit by a truck and dies, who can get access to the document in the future?

You should work with the other board members to relieve him as Treasurer and not appoint him to another officer position.
CathyA3 (Ohio)
Posts: 6,299
Posted:
This job belongs to the Secretary in my association, not the Treasurer who deals strictly with the money. If the Secretary doesn't do it, the President will.

Along with Sheila, why hasn't the rest of the board stepped up? If you have an officer who is not performing, why has the rest of the board not replaced him? That's entirely within the board's authority *and responsibility*. And the President likely has the authority to file the necessary documents on his own.

If you have a registered agent (which you should, and this is often the association's attorney), that person can also file this information.

It doesn't matter what the Treasurer thinks his title is, according to your bylaws he's almost certainly the Treasurer and that's what he should be called unless you amend your bylaws.

This problem is easily fixable. But it involves appointing a Treasurer who is more interested in performing his duties than in giving himself inflated titles.

CathyA3 (Ohio)
Posts: 6,299
Posted:
Gotta say, we've had stories about board members who refer to themselves as CEOs and CFOs and COOs. The irony is that if any of them held these positions in the corporate world and performed as poorly, they'd have been bounced so fast their heads would still be spinning.

One of my professors once referred to a person like this as a "bullfrog"; big noise from a big mouth sitting in a small pond. Meanwhile a great blue heron s-l-o-w-l-y approaches.....
KerryL1 (California)
Posts: 14,550
Posted:
His title should be “Treasurer” per, I’m guessing your Bylaws.

With other, why do you not vote him out of office of treasurer? Only owners can vote him out as director.
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By CathyA3 on 02/14/2025 4:22 AM

One of my professors once referred to a person like this as a "bullfrog"; big noise from a big mouth sitting in a small pond. Meanwhile a great blue heron s-l-o-w-l-y approaches.....

Now that's funny! I'll have to remember this.

Since our annual meeting is next week, I think I'll ask the board about this. We're a townhouse community, with some being one story and others, like mine, two story. In my building, the vents go out to the roof and then I guess the hot air and whatever floats out through the roof vents. The last time I had my vent cleaned, the contractor asked the same question and because the roof is common area, he couldn't go up there. He did see the roof opening from my unit and cranked up his machine to clean up to that point.

The one story units have dryer vents on the side of their buildings, so I would think that's more accessible, so the homeowner should be able to take care of the whole thing. Then again, a few had issues with birds building nests in them, and the association had them removed and then put a cover on them.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
SheliaH (Indiana)
Posts: 6,964
Posted:
Whoopsies! I just realized my last comment was supposed to go in the discussion about dryer vents! Good thing the weekend is here - it's time to take a break!
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JasonP7 (California)
Posts: 26
Posted:
To answer everyone's question, I have tried to vote him out but the answer is: No one cares. Literally no one cares. We are a ten unite building and 5 of the units are overseas investors who rent out their units. So there are 5 of us here and literally no one cares what this Treasurer does as long as he pays the bills.
SheliaH (Indiana)
Posts: 6,964
Posted:
How many people are on the BOARD? If there are three of you, you and the third person (the secretary?) should be able to outvote him on this issue. If he still refuses, could you notify the secretary of state's office and give him your contact information or the secretary's information with a request that all subsequent correspondence regarding the association be sent to one of you? If he squawks, remind him he's responsible for the HOA being penalized for not sending the form on time in the first place. If he wants to continue doing this, he will be the one who has to pay the association's late fees and penalties (you can outvote him on that, as well). If he wants to sue, let him - and then he can explain why he did what he did.

You two don't like each other and this guy could be doing it because he knows it ticks you off and everyone else seems indifferent. It is petty, but on the other hand, maybe it's time for you to decide what battles are more important to fight. To wit - if the man pays the bills in full and on time, and you get access to THAT information, this might be something you should drop for now. If you look at the income/expense reports and something's not adding up, that's when you should raise hell.

As for this document, does the secretary of state have a website where you can review what's listed regarding your association? If so, and the information's accurate, maybe you don't HAVE to look at the document, although the man's being petty for not allowing you to access it. If he's worried about something being changed, he can always send you the document as read only.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posted:
Does he do a decent job of paying the bills?

If so and if the situation isn't going to change, and if there is something uniquely wonderful about your home, I'd pick up the slack on this one issue. It's in your best interest that the HOA maintains its corporate status so that you can insure the common elements and maintain D&O insurance to protect the board if somebody decides to sue you.

If there isn't something uniquely wonderful, I'd say "the heck with it" and sell my unit.

Very small HOAs seem to magnify the issues faced by all community associations - you live on top of each other, and your options for electing better people are limited.

And as I'd said upthread, filing statements like this is the job of the secretary in my community. I've never heard of the treasurer being tasked with anything other than overseeing the financials. if he's actually the secretary/treasurer, which happened in a very small condo association I lived in, I take it back.
TimB4 (Tennessee)
Posts: 21,062
Posted:
My understanding is that the form is provided by the State.

Here is a link to CA Secretary of State bizfile site

Here is a link to a video on how to file: Quackit homepage

Go online and obtain a copy of the filed form for your HOA.
Now you have the information to complete one online.

Realistically, a copy of the completed form should have been provided to the Secretary to file in the Association records.
TimB4 (Tennessee)
Posts: 21,062
Posted:
I would also suggest that you, as President, create a calendar of when things need to be done.
This will make it easier for the next person.

I've attached one I had created for my previous Association located in VA.
📎 Attachments (1):

⏸ Downloads temporarily unavailable

📝121457032071.doc(34 KB)
JasonP7 (California)
Posts: 26
Posted:
He pays the bills on time but does a lot of frivolous spending.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By JasonP7 on 02/14/2025 7:29 PM
He pays the bills on time but does a lot of frivolous spending.

In that case, he isn't the Chief Financial Officer. He's the Dictator. Spending priorities are set by the board as a whole, not by the guy with the checkbook.

So he's a problem. But so are all the other owners - in theory they have the power collectively to change this, but they go along with whatever he does.

This brings me back to a previous comment: how wonderful is your community, and could you easily find a comparable situation that isn't run by a dictator?

In most HOAs, solving a problem will boil down to three options: live with it, fix it, or move. Fixing it will require allies - enough of your neighbors will need to agree that this is a problem to remove the treasurer. The issue I see is the percentage of rentals you have. You noted that they don't care what happens as long as the rent checks keep coming and the place doesn't fall apart. So you may not have enough potential allies to fix this. That leaves you with moving.

On the other hand, any HOA can end up with problems like this, because that's human nature. Even in communities where homeowners have ousted problem board members, the problems can and probably will recur. If it isn't the Old Guard, it's the New Guard with new and creative ways of messing up. It's why a number of posters on this site are long-term board members - sometimes you just have to do it yourself if you want the association to be governed properly. It's an unfair burden on these folks. But the alternative is tolerating mismanagement, including mismanagement of the finances. For some of us, it's either volunteer or find a nice rental somewhere.

SheliaH (Indiana)
Posts: 6,964
Posted:
And so the rest of the board just sits there and allows him to spend whatever? Don't you have to vote on expenses? What do you consider "frivolous " and why? Have you asked the manager to justify them?

You still haven't said how many board members- I assume you have an odd number (to avoid ties) - what's their take on all this?
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:
With Shelia, why isn't the Board voting at an open meeting to approve expenditures?

Also note that it is the Board who can vote this guy out of the office of treasurer. He'd still be a director.

Please read your Bylaws,

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