HOA and POA Acts not in every state

Michigan currently does not have a HOA or POA Act in place. Does this mean that whatever our by-laws state cannot be challenged? I asked a question before about board members getting compensation and I appreciated all the feed back. I will state again what our by-laws say.

Section 1. Composition.   Any person, Partnership or corporation which is the owner of said property..XXXXX and reside in xxxx County, Michigan, According to the plat thereof recorded in xxxx, County records, shall immediately and without further process, qualify as a member of xxxx Improvement Association, in Michigan non-profit corporation, hereinafter referred to as "association".

Section 3. Default.  Any member of this Association shall be in default when said member tails to pay dues or maintenance charges as provided herein witten (20) days after same as payable, or when said member fails to pay any other obligation due to the Association after statement thereof is mailed to paid member at said member's address as shown b the books of the Association.

Section 4. Suspension of Voting Rights. & nbspAny member who is in default as provided in Section 3 of Article 1 shall be suspended from having any voting rights whatsoever, as otherwise provided for the members in good standing of this Association.

Section 9. Compensation. nbspDirctors as such shall not receive any stated salaries for their services.

ArticleXXX Amendments of By-laws... These by-laws may be altered, amended or repealed and new by-laws may be adopted by a majority of the duly constituted members present at any annual or special meeting of the members where a quorum is present, or by a majority of the directors present at any regular meeting or at any special meeting, if at least four days written notice is given of intention to alter, amend, or repeal or to adopt new by-laws at such meeting.

We challenged the board at last meeting for not paying full dues and the President was caught telling another board member not to worry because it is just a technicality and we don't get a check. We ask for documentation from counsel and to be put in minutes which was suggested by someone on this board. President is calling counsel. I already called him and he said he could get in trouble for talking to me but it seems like a whole lot of people need to pay dues. I am a board member and paid full dues and it has been now 45 days that they have had my check and did not deposit. I asked treasurer if he has my check and he replied I do and don't go to the bank ever week. That night he presented to the board the last deposit slip which was September 17th, I sent it August 18th our meeting September 30th. The board was outraged of our requests and the Treasurer said we did this along time ago since the 60's and he's not going there and not discussing it any longer, and they don't know where documentation is and they weren't looking for it. They said they would give us the minutes, how dumb is that! My question: What legal action can we take to make them pay there dues or produce documentation? Can we use our attorney since they are considered not in good standing? Or, is this just point blank what the by-laws state. Just to note: usually nobody shows up to the meetings and I went in there with 20 homeowners. I think they are wondering what to do with my check since my bill was for $400 and I sent them $800 full dues. They didn't say anything that night about me over paying if in fact we are allowed 50% reduction in dues. Can't wait to see that check cleared in my account. I look forward to all your replies.

Shelly,

In answer to your question, yes your gov docs are the "law" if there is no state law governing HOAs. However, there may be state nonprofit corp laws that would also apply to HOAs. You should check this out. If there are such laws, I think compensation of directors is most likely covered.

I might also suggest a thorough review of your gov. docs. Look for a provision under "assessments" which states all members of the assn shall pay the same rate of assessment. This is what you can use to justify your position that the board members cannot take a reduction in assessments.

IMO, the only way to get this turned around is to get a majority of the members to complain. Being the only board member who is disputing this practice means the board is not going to be on your side. Normally I would never suggest a board member do something against the very board which they are a member of, however, in this case I think it's an important issue to have corrected. The members may not be breaking any law, but they are behaving in an unethical manner. They are justifying their actions by saying they're not being paid because the assn is not cutting them a check, but in a manner of speaking they are really "stealing" from the assn.

Donna,

I doubt the nonprofit laws "address" HOAs, but if an HOA is a nonprofit corp they do "apply" to HOAs. I'm sure that is what you meant! :-)

Unless your bylaws so state, the Board members don't have any special privileges, compensation, or dispensation from paying dues, just like the other members.

Unless it says so in the bylaws, the board cannot set different assessments for different members.

Do you have a definition of a "member" anywhere in your documents? Most bylaws state that a member must be "in good standing."

Your board members are not "in good standing." That may be a reason for removal (recall)of all board members.

Do your documents talk about removing board members?