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GeorgeR
Posts: 6
Posted:
Would you believe that the majority of our HOA board quit recently beacsue a few home owners turned up the heat... These few home owners are people that I would not trust with the association, one was a previous board member that was removed from the board by the other officers a few years ago. The others want to lower our dues by no longer watering the grass at our enternace, by turning off the landscaping lights permanently at the enterance, and by stopping all the community programs the HOA sponsors like our annual easter egg hunt and July cookout. Now these few want to take control of the neighborhood and oust the remainder of the existing board. They have called a special meeting and they currently hold all our corporate documents...you'll like the story of how they got them...

Apparently, this small group of homeowners found support from 1/4 of the association to petition the board to resign. They took their petition, one of several in the past, to the President and Vice Pres of the association the other night, and after an apparent verbal exchange, the Pres and VP gave all the records from the HOA to these home owners and also gave their verbal resignation. They apparently had enough bickering and decided that they didn't want to be in charge any more (wish I could do that with my job!)...playing right into the hands of these people who want to make change.

With the Pres and VP resigned, there is one board member left, becasue the others quit a few weeks earlier. And now all the HOA Board records (including the HOA checkbook) are in the hands of a homeowner who will not relinquish them until after his special meeting to oust the remainder of the board takes place in a few weeks.

Where do you start with a mess like this? I'm a concerned Home Owner and would get involved if I knew where to start... My first thought is to have the one remaining board member appoint some others, then suppena the records back from the renegade Home Owners...but then what to do about this special meeting to oust the board that this renegade home owner has called, and will run on his terms? He is holding it at a venue of his choice and it will be a challenge just to speak at, let alone convince the rest of the neighborhood not to act with him. He sent letters to the neighborhood telling eveyone that after a vote, a new board will be elected and new committes will be established. Who gives him the right to do this?

If the current board is ousted, who has the right to take charge and setup a new board?

Your thoughts are appreciated,
George
GeraldT4
Posts: 1,022
Posted:
GeorgeR - There are recalls of existing board members, and there are hostile takeovers. Recalls typically require a percentage of owners to petition for a special meeting owners and for the existing board members to have an opportunity to address the issue, and then for a percentage of owners to vote then and there to remove or not, and for a new board to take charge. 1/4 is 25% and that number in my HOA would be sufficient to call the special meeting. Shame on the existing board members for capitulating to these renegades. I can understand the frustration but like heck I'd give over the documents that easy. Someone needs to step up and send a cease and desist letter to the renegades threatening a lawsuit if due process is not immediately followed. I'd get together with the remaining board member, and the board members that resigned and see where their heads are at with all this.
SusanW1 (Michigan)
Posts: 5,202
Posted:
I agree with Gerald - the Board members should not have folded up like a cheap tent. They have left the organization in a lurch. Is anything salvageable, there? (members willing to stay on??)

Anyway, first of all the "resignations" are not official until it has been motioned and accepted at the same meeting of the body that elected them. A Special Meeting will have to be called for that.

At that same meeting, the new board members can be elected. The chips will fall where they may. This new group may get in. Who knows?

There's no such thing as a "coup" in associations. There is due process and there are procedures that must be followed.

Work with the Board to try to hold this together. Remember: It is much more difficult to REMOVE than it is to VOTE IN.

BrianB (California)
Posts: 2,820
Posted:
check your by-laws, and remember what Susan said:

the resignations are not official until accepted by the board. You have one remaining board member. He needs to meet, accept or deny the resignations.

Your by laws probably have rules for replacing board members who leave. Probably by appointment. the remaining board member needs to follow those rules, and get a board back.

then, that board meets, and elects officers.

then, business returns to normal.

In the meantime, as the ONLY board member, that member should absolutely demand that the records and checkbook be turned over and remain with the board. Period. Anything less should begin to involve a local sheriff, or at least the threat of such. as long as there is a board member, THEY KEEP THE RECORDS.

Lastly, the coup actually lost a step... once everyone resigned, their petition probably lost all value (i bet it was worded such that these actions ruin the intent). The remaining board member should appoint folks to replace the quitters, and that will likely null/void the wording on the petition.
HaroldS (Arizona)
Posts: 906
Posted:
"the resignations are not official until accepted by the board.... Lastly, the coup actually lost a step... once everyone resigned, their petition probably lost all value..." Which is it Brian?
Seems to me that if they are still on the board, the petition is still valid.

What a can of worms. Someone needs to marshall the votes to stop them. If the "sensible" members of your association don't step forward, you will indeed be ruled by these renegades. Meanwhile, the board needs to go after, by all legal means, the association property. You might remind the "resigning" board members who turned over that property that they could be held personally liable for doing so.
BrianB (California)
Posts: 2,820
Posted:
i kind of jumped ahead one step there, didn't i? I meant that once the resignations do become official, the coup most likely lost a step in the battle. If they wanted a recall, they didn't get it. instead, they got a board hand picked by the remaining member (of course, they may have wanted that). The odds are, however, the petition is no longer valid because the conditions it attempted to remedy no longer exist (once the board resignations are observed).

FYI, the remaining board member SHOULD convene a meeting to accept the resignations, and then accept ONE resignation. Make an appointment to fulfill that position, then accept the NEXT resignation, appoint, and so on until the process is complete. that way, they retain their quorum, etc.

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