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ChuckB2 (Washington)
Posts: 14
Posted:
Our HOA includes 40 homes and is just now 7 years old. Common areas have been neglected for several years now and violations of the covenants are common. The previous administration was headed by an individual that, in my opinion, used his position to shield his illegal business operation (within the HOA community) and used his power to make life miserable for others. The attitude in the neighborhood was apathetic and we were like 40 little isolated islands, with little talk and cooperation. In talking with people there was a lot of animosity and distrust.

Last July, a new board was seated but with the same old guy now as VP. Attendance was really poor and the main reason he was able to stay in theloop, so to speak. I was new to the area and had no idea what I was getting into. The new members tried to get things going but the "same old guy" did everything he could to thwart our efforts. He delayed getting the finance records and checkbook to the new treasurer for almost three months. He did the same with the historical documents needed by the secretary, me. There is much more to this part of the story, but you get the picture.

The new board decided that it was time to start enforcing the CC&Rs so we began by making a list of known violations. Chief among them being the illegal business that was both a major nuisance to his neighbors and illegal by county zoning restrictions. During a board meeting we confronted the VP and said we could not have a board member with such a violation and that he needed to remove his business. This needed to be done before we felt comfortable going to people asking them to shape up. He whined and cried and pointed fingers and said he would take action. He didn't, so we held another board meeting and voted him off the board. A new VP was appointed to take the VP position.

Then we contacted the HOA lawyer to start legal action to get the business out only to find out that the lawyer also represented the illegal business. We looked and found another lawyer to represent us and started legal action. A letter was sent notifying him of his violations of the CC&R as well as County zoning restrictions and he was given 30 days to get out. He did not respond to the lawyer and did not move his business, so the next step was to begin a suit and ask for an injunction which would have forced him out immediately. He was also notified that he would be fined $100 each week and that the fine would escalate if he did not move the business. Again he ignored everything.

During this time the board revamped the CC&Rs, bringing them up to a more reasonable and fair condition. This included removing all the invocations of the builders rights since the builder is long gone. We also made minor changes to the Bylaws. By the way, we asked everyone in the HOA to submit recommendations and gave them several weeks to do so.

When we sent out notice for our annual meeting we sent copies of the CC&Rs and Bylaws with the proposed changes included. In our agenda we had the normal stuff along with the CC&R and Bylaw issues and vote. We also included a robust proposal with three options that would shape up the appearance of our community. One was to contract the whole thing out and there were two proposals for a self-help way of getting things done.

We also included an agenda item for the HOA legal action against the illegal business.

Past meetings have been poorly attended but this one was different and our first indication for success. We had 50 percent of the homes represented, including the one with the illegal business. The atmosphere was upbeat and friendly. You could tell that here were people that cared and were interested in getting things changed.

We had the obligatory sign in sheet and our freind with the illegal business continued his childish ways by signing in as "Here" which completely negated any vote he might make on any of the issues. And, it was just another example of an attitude that we will not miss.

The CC&R changes were discussed with some very good comments and points made. In fact, several comments will result in slight modifications. The vote was completely in favor with our friend not bothering to register a vote.

The same thing happened with the Bylaw changes.

The proposals for common area maintenance were voted on and everyone voted to buy equipment and attempt a self-help system using volunteers. I hope this works and if we are able to maintain the energy we had at the meeting I don't see any reason why we won't be successful. But, time will tell.

When we got to the legal action against the illegal business our friend informs us that he has bought a new home and will be leaving in 3-4 weeks. This was great news because it removes a boil that has been bothering many for a long while. The issue now is if the board has the fortitude to bill this guy for the fines and legal fees or just let it go. I don't have a rational position on this and my one irrational thoughts are to get the money out of him regardless.

OK, now we are on a solid path to revitalization and bringing back our curb appeal and in creating a harmonious sense of community. We have a change in attitude going on and with about $10,000 worth of equipment and a few weekends of work we should have things ship-shape. After that it should boil down to a periodic maintenance effort.

Personally, I am very happy with this because I put an awful lot of effort into things. As some of you may recall, I asked for advice from all of you and that advice was reflected in what we did and the outcome.

I thank you for that.

If you are still reading this, thank you. This is someting that shows things can be made to work if people get involved and stay focused.

Thank you all!

Chuck
BrianB (California)
Posts: 2,820
Posted:
don't let up on the miscreant.
1) saying you are leaving doesn't mean you are. common delay tactic, in my experience.
2) buying another home doesn't mean you sold this one. Until a new owner comes along, he is STILL the owner, responsible for dues, assessments, fines, etc.
3) he owes. we shouldn't reward people for walking away from their problems.

MicheleD (Kentucky)
Posts: 4,491
Posted:
Wonderful news!

I love to hear when homeowners take control back of their HOA.

I do also agree with everything Brian said.
ChuckB2 (Washington)
Posts: 14
Posted:
BrianB

You are correct in what you say and we should make him pay what he rightfully owes. It is certain that he is leaving because it was confirmed by the Real Estate agent that sold him the new home.

Chuck
AnnaD2 (Florida)
Posts: 960
Posted:
Wow! You've got some movers and shakers in your community!!! Great Job! You may also seek a new association attorney. Our attorney (being our Association Attorney) refuses to represent anyone on a personal level in our community. Too much conflict of interest.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Yes, that was my concern: why is YOUR attorney also representing homeowners in the very complex he represents? Stop that ASAP. Talk about a Conflict of Interest!!!

Also, give this guy 30 days; if he hasn't moved, get going on the violations again! (which apply to the latest CCRs) Home-run busineeses, especially with Baby Boomers retiring, are going to be the biggest thing in the next 20 years. Better get a strong policy on them ASAP.
MicheleD (Kentucky)
Posts: 4,491
Posted:
ChuckB stated: " Then we contacted the HOA lawyer to start legal action to get the business out only to find out that the lawyer also represented the illegal business. We looked and found another lawyer to represent us and started legal action."

I believe he's already handled the attorney issue.

CharlesW1 (Georgia)
Posts: 826
Posted:
ChuckB2,

I'm certainly impressed too hear that you have members of your community so very much involved. However, I’m not so sure volunteers (of the community) are or would have liability coverage “IF” they were to be injured and need medical assistance or “IF” they damage the homeowner’s property. I would look into this just in case.

As BrianB posted previously about the HO moving in 3 or 4 weeks, might just be all talk. Until the new HO moves in I wouldn’t back down. I WOULD CONTINUE WITH THE FINES AS FREQUENTLY AS YOUR GOVERNING DOCUMENTS ALLOW.

FIRST AND FOREMOST FILE A LIEN. Obviously, look to see what it will cost. “IF” you can file a lien on a home for fines that is, That way the fine, interest, attorney fees and filing fees will be paid at closing, If he should sell. I believe you can file a lien, but (depending upon the state) you may not be able to foreclose!

Keep us post at too what comes about. You’ve got me interested now.

Chuck W
BTW-great name!

Charles E. Wafer Jr.
JohnK3 (Pennsylvania)
Posts: 967
Posted:
Chuck,

Big round of applause for you and your reactivated, cooperative membership.

Two Qs, one comment:

1. Was there a reason you bought the $10K in equipment rather than rented it?
2. What manner of business is/was the troublemaker conducting?

As to volunteers, if they come out in force, which I hope they do, good for them. A small prob we've had in the past, however, is that volunteering is one thing, performance is another. You know, "Oh, I forgot my daughter has a soccer game that day", "Oh, we made other plans for that weekend. Sorry." etc.
BradP (Kansas)
Posts: 2,640
Posted:
Chuck:

Bill him...and slap a lien for it if your state allows...as Brian said he is probably stalling and even if he wasn't he caused the legal expenses. Don't eat them because you just want to be done with him
ChuckB2 (Washington)
Posts: 14
Posted:
Thanks for the responses.

Why are we buying and not renting equipment? Partly due to the hassel of renting, meaning the arrangements to rent, transportation of equipment, and the cost. Rental isn't cheap. I built a spreadsheet showing expected expenses over a 7 year period and doing it ourselves with our equipment had the most advantage. Compared to contracted work we will save around $40,000. By buying good equipment this time period could go out as far ast 12-15 years. The rental would continue to add cost but would have been considerably less than contracted. Initially, rented equipment would be cheaper but the cost would merge at about the 4 year make with the cost of our own equipment. If it turns out that our volunteer system doesn't work out then we are no worse off two years from now had we started contracting. We would be a little better off if we had rented. The hassel of renting was the major factor in our final choice. One other factor, not mentioned, is that the building we will install on common property can double as a small office. We will obtain an adress for this site from the county and our HOA mail will be deliverd to a mailbox in one of our NBUs. Currently our mail goes to a PO Box about 8 miles away.

About liability when we do it ourselved. We have an insurance guy on our board and he is going to recommend necessary changes to our policy to cover our liability and medical should anyone get injured. Some on our board think working on this project isn't much different than working on your own yard since we all are part owners of the common property. I agree with this philosophy, for the most part, but want to make sure we have something in place should something happen.

About the illegal business. We are continuing to sue the business and force an injunction, plus we will charge him for all expenses and the fines. Even though he has said he is leaving he hasn't said that he won't continue to use the property for his business during the time he tries to sell his current home. One thing that is sad is how little support we get from the county. They have served him with papers but he ignores them and they are sooooo slow that any action they take could be a long time from now. The fact that they have contacted him is a solid point when we get this before a judge.

When I signed on to this HOA position I had no idea how time consuming or interesting it would be.

I use websites like this one for RVing and woodworking as well and the amount of information and experience on tap is absolutely priceless. Almost without fail, every respondant has something usefull to add to the discussion which makes my work all the better and easier. Thanks

Chuck

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