Removal of Board Dictatorship

Wow - what a mess.

1) Any motion can be ameneded or recinded by the same body (people) who voted it in originally. So that could have been done. And it STILL can be done.

2) If a Board member, especially an officer, moves out of the community, what do your bylaws say about that? What are the qualifications to sit on the Board?

3) How is your board suing members? For what? They can't be sued for conducting a recall; but they can be sued for being in arrearage.

Thank you for the feedback. Our CCR's allow a qorum to vote (in person or by proxy) to vote a special assessment in. We have never argued that the vote was illegal. What happened is when the vote happened many of the people who live out of state and older local folks were not fully aware that it was to be paid in one year. First $7000 to be paid in 2008 and then it was supposed to be $12- 15,000 for 2009 but that figure has now changed to $10,800. After realizing that members of the association started talking to some of us and stating that they could not afford it because the housing market had softened the prices. We all agree the work must be done. The roofs and the rehab of the buildings. What we are disagreeing about is the matter of payment. 50 of us agree that we should obtain a bank loan for an amount only to reflect those owners who need a payment plan and only those owners would pay the interest and carrying costs. To a reasonable person this sounds like a reasonable answer in a difficult time to maintain the buildings. Our president absolutely refuses to even meet with the owners to discuss it. She has threatened to sue us over and over. She has actually moved out of the community and I dare say is most likely one of the least liked persons ever to live in the community - but she will not step down and her board (3 of them) continue to rant about us and ignore the majority of the community. We had 2 recalls which were not certified by the HOA atty. So we asked that they be dismissed rather than chance legal fees in case the arbitrator voted in their favor. We had 46 votes and then 48 votes. We needed 46. Then we called a special meeting, notified everyone by mail and had a qorum and voted 36 to 1 to change the by-laws to allow removal of the board and then had a vote on removing the board and then elected a new board. We did this even though 20 people at that point were in arrears because of the assessment. Our CCR's state: Section 4. Apecial Assessments for Capital Improvements> In adition to the annual assessments, authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the cost of any constrution, reconstruction, repair or replacement of a capital improvement upon the Common Area, inclusing fixtures and personal property related thereto, provided that any such assessment shall have the assent of two-thirds (2/3) of the votes of each class of Members who are voting in person or by proxy at a meeting duly called for this purpsoe.
In light of this we are townhomes and we own the lots beneath our homes so it is not common area but referred to as dwelling lots and the common area is clearly defined by metes and bounds descriptions. We consulted an atty and he told us that our CCR's were "silent" or "ambiguous" on the restrictions for a long term assessment on "dwelling lots" and if the majority voted it in it would be hard for a judge to overturn the majority wishes. We went on that and explained it to the homeowners and they agreed or 50 of the 90 did actually more than that did but they told us they did not want to incur the wrath of the President so they would not openly support us. We moved forward with the plan after months of requests to the board to meet and discuss the options. They have to date refused. We were served with a lawsuit yesterday suing every person who signed the ballots for the recalls (they are including the special meeting vote as a recall also) for legal fees and damages. We also received a letter in the mail telling all owners in no uncertain terms that if they could not pay, the board would "agressively" as the IRS seek payment and that if we couldn't afford it should move and not "burden" the other homeowners with our lack of ability to pay. It is incredible. We have a majority who has fought the board for 9 months and they are still refusing to step down and now they are suing all of us. We have spent $3,000 of our own monies on an atty but he advises that if we sue to remove them from office and they fight it - it could cost $25,000 or more and we would ultimately foot the bill because the PResident is protected by HOA E & O insurance and has the use of the HOA atty on her side at our expense. It is the most daunting mess I have ever seen. I have lived in this community for 16 years and never have I seen or heard anything like it. She has now moved and is ruling with a iron fist and bully stance and we all feel victimized and it feels as if she is actually enjoying our demise and the community be damned for voting against her. It is truly bizarre. Have any of you ever come across anything like this and do you have any suggestions? We can vote her out in September but by then so many will be in such arrears that it will have ruined our chance for a bank loan. It is a sad situation and even though we have the majority support of the community, we feel awful about it. Help.

Harold:

Yes that is true but even though 25% are right now in arrears - we have been able to have 36 vote against the board - so we still have hope. The most votes any of them have ever gotten is 30 and we all know by talking to people that there is no way they will get revoted in in September. I think they know it too but it really feels like the President who has moved to another community but is still on the board is going to do enough damage to everyone who voted against her that she will ruin our chances for a loan. We think that if we must wait until September that we will "rescind" the vote she placed in effect and release all of the liens against the HOA for special assessments because they are all paying the regular dues just cannot afford the extra $600 on top of the $244.00 per month and see if we can get back on track. Its a sad situation dealing with a vindictive and it really does appear to be unstable personallity. It makes one very cautious about who can serve on a board. I am considering whether I want to stay in the community after the housing market rebounds. this has really shaken many of us. We are looking into whether we can sue her once she is off the board so she cannot use our HOA atty. We feel she personally used her position to cause hardship and revenge. But then again once she is gone we want to forget her forever....pity her new HOA they have no idea what sickness is headed their way.

Paul:

The One year Only - is for common areas not for dwelling lots. And the vote is for the majority of a quorum by a vote in person or by proxy. The vote was valid - we are arguing that over 50% of the homeowners want a 10 year payment plan to cover both assessments. In other words if 30 people want to pay over 10 years they take out a loan to cover those 30 with payments amortized over a 10 year period with those 30 who need the loan paying the carrying fees and loan costs. It gets all of the work done with a monthly fee that the owners feel they can afford. Also there is no pre-payment penalty so they can pay off in increments early.

PeggyS: For the moment, let's put aside the issues with the President and speak to members' concern over the actual special assessment. You state the special assessment was voted upon and passed by a "quorum" and that's all that is necessary, and it wasn't illegal.

You state the assessment is to pay for roofing on the units. Are the roofs included as part of the Capital Assets and are, therefore, for the Association to fund repair/replace? Does your Association have this fund established and as a result, are you able to use part or all for the roof repair?