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DarylF (Washington)
Posts: 157
Posted:
So our HOA has been a huge mess, mostly because of our PM. The PM has resigned effecive the end of this month and so is her crony on the board. Another board member resigned last month because he didn't want to deal with the mess anymore. There have been questionably illegal acts, lots of screw ups, and simply shady business.

At a meeting last night to replace the board members she shows up with 8 proxy votes (our community is only 87 homes)! Note that she lives in our community, and the conflict of interest issue has been brought up several times in the past. During the meeting she actually slipped and said she was going door to door, but quickly corrected herself saying "I mean, in communication with homeowners." She also cheerleaded for one particular person during the meeting, saying repeatedly how great they were.

And to top it off, the person she was cheerleading for at one point suggested she stay on and not resign! And then at the end of the night, guess who got elected?

I doubt there is anything illegal or any conflicts with the CC&Rs/Bylaws, but how sleezy is this?
GeorgerwilliamsW (Indiana)
Posts: 975
Posted:
Sleezy to the nth degree.

About as sleezy as it gets!
RogerB (Colorado)
Posts: 5,067
Posted:
Daryl,
I suggest your HOA consider amending their Bylaws to limit the number of proxies to 2.
BrianB (California)
Posts: 2,820
Posted:
yeah, it's really sleezy that someone would campaign for an elected position by going around to homes, talking to people, communicating with them, and asking for their votes. She probably shakes their hands, chats, gives them attention, and makes promises that she will do what they like. horrible.

THat gives all those who politic for office by remaining silent, aloof, and distant a bad, bad name.
DarylF (Washington)
Posts: 157
Posted:
It would not be bad if she were not the PM. A PM that we pay, a PM that is resigning (we guess because she does not want to be fired from her own neighborhood), and a PM that has been a disaster.

As PM she is in a position of power, when she goes door to door looking for proxies, people that do not know what has been going on give her instant credibility.

At the least she has proven to me why it is a conflict of interest for her to live in our neighborhood and be PM.

My take on a PM is a neutral third party there to manage things and make sure things go right. Canvasing the neighborhood for proxies and pushing for certain people to get elected (people that wants to keep you employed) is far from being a neutral 3rd party!

Just my $.02 and why I'm steaming this AM!
DwightT (Idaho)
Posts: 664
Posted:
Well, she may be the PM, but she is also a homeowner, which means that she has the same right to solicit proxies that you do.

I do agree with you that it is a bad idea to have a homeowner as the PM. Our first management company also hired a homeowner as our PM, and it created similar problems. At the time it sounded like a good idea to have a PM who was familiar with the neighborhood and the people. But it put her in a bad position when somebody received a CC&R violation notice and created the perception of a conflict of interest, even though it is the responsibility of the Board to give the PM direction and authorize her actions.
BrianB (California)
Posts: 2,820
Posted:
Quote:
Posted By DarylF on 10/22/2008 8:49 AM
It would not be bad if she were not the PM. A PM that we pay, a PM that is resigning (we guess because she does not want to be fired from her own neighborhood), and a PM that has been a disaster.

As PM she is in a position of power, when she goes door to door looking for proxies, people that do not know what has been going on give her instant credibility.

At the least she has proven to me why it is a conflict of interest for her to live in our neighborhood and be PM.

My take on a PM is a neutral third party there to manage things and make sure things go right. Canvasing the neighborhood for proxies and pushing for certain people to get elected (people that wants to keep you employed) is far from being a neutral 3rd party!

Just my $.02 and why I'm steaming this AM!

Not to add fire to your steam, but:

If you pay her, then set expectations and objectives with her, and discipline her if she fails to achieve them. She works for the board, don't blame her if the board doesn't manage well. If an employee is a disaster, 95% of the time, it's because their manager allows them to be.. through inaction, bad management, ostrich management, etc.. As the board, YOU control all the power. How did she get to be a disaster without the boards approval, overt or tacit?

You say that "people who do not know what has been going on" give her credibility. How is that her fault? So you have idiots who are happy to give away their votes without knowledge. Why not be upset with the idiots, not the person smart enough to harvest them. Unless there is coercion, those owners are free to act like idiots, give their votes to anyone they wish, etc.

As for her disappointing your take on a PM being neutral, is that spelled out in her job description? If not, then basically, it's your opinion of what a PM should be versus hers... and hers is that a PM should be an active player in the political process, working hard to get people she believes are best for the HOA into power, etc..

JohnK3 (Pennsylvania)
Posts: 967
Posted:
If PM is an HO, she can do whatever any other HO can do. Personalities and perceived conflicts aside, I don't see where she's broken any rules.
DarylF (Washington)
Posts: 157
Posted:
like I said, she probably has not broken any rules. I just think it's really sleazy.

And i agree, shame on our board for letting her stay this long.
JohnK3 (Pennsylvania)
Posts: 967
Posted:
I still don't get the "shady" and "sleazy" parts. As Brian noted, she went out, pressed the flesh and got support in the form of proxies.

PMs can be removed, as can Board members, if Membership decides they're not up to snuff, ASSUMING Membership chooses to make the effort. Apparently your Membership has chosen not to.

Maybe they need a leader to champion a recall. Maybe they need volunteers to replace the current administration. Or more likely, maybe they won't/don't want/don't have the energy or commitment to enact changes.

That's not her problem. That's their problem.
MaryA1 (Arizona)
Posts: 7,043
Posted:
I always find it interesting when people complain about someone gathering proxies when they, in fact, have the same rights and could have done the same thing!

Although it may have the appearance of being a bit unethical, I see nothing sleazy or shady about the PM -- who IS a member of the HOA -- gathering proxies. And, if she was gathering proxies to sway the vote I would think she would have wanted to get alot more than just 8.
MikeS1
Posts: 668
Posted:
That's the problem with proxies, that's why they are being banned or phased out in some states and I'm predicting that you'll see more and more states go this way. More and more of the larger communities are doing secure web-based voting. It's much cheaper and more efficient. Please don't whine and tell me that not everyone has access to the web.
SusanW1 (Michigan)
Posts: 5,202
Posted:
I don't see the sleazy, either. If her job as PM does not prohibit her from gatherihg proxies, then she is acting like any other HO and exercixing her Member rights.

The board goofed in not defining her job role and limitations when she (as a member) got the contract for the PM position.

Time for the board to re-visit the PM contract BEFORE you hire anyone else or re-sign her contract.
BrianB (California)
Posts: 2,820
Posted:
But Mike, in my HOA, i would say that 80% of the homeowners don't have web access at home.. I know for a fact that of the four who surround my property, none of them do. It's not fair!!!!!!!

BrianB (California)
Posts: 2,820
Posted:
But seriously Mike.. i am curious, how does secure web based voting work?
SusanW1 (Michigan)
Posts: 5,202
Posted:
Unless your bylaws permit electronic voting then you can't do it.

The MEETING, with live debate after motions, along with the possibility of amendments added to the motion, should always be protected. For elections, what about nominations from the floor or write in candidates.

People miss a lot when they miss a live meeting.

Is it a dying thing?
DarylF (Washington)
Posts: 157
Posted:
She is resigning at the end of this month. If she wasn't resigning I have little doubt she'd have been fired by the end of the year. Chances are she resigned to avoid a lawsuit as some of her screw ups are pretty bad. I had reason to take to the attorney general as she ignored my requests to view financial records.

And, she only had 8 proxies because that's about all the people in the neighborhood that doesn't know what is going on and didn't kick her off their door step! Seriously.

There is a lot more to the story as well. Maybe that's why it is so clearly sleazy to me.

Plus, if I can't win a vote just with people hearing both sides of the argument and I have to resort to canvasing the neighborhood giving just my side of the story and getting proxys, do I deserve to win the vote? I like the idea of a 2 proxy max.

Plus, plus, as the propery manager, doesn't it come off as a little more offical then just a home owner when i knock on your door and ask for a proxy? People could think she was acting on behalf of the board?

Oh well, thanks for the thoughts and opinions

And for the record, I agree, on line voting would be horrible!!!! You need to be able to discuss things before voting.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Daryl,

The crux of the problem is that most people just don't want to attend meetings! Mail-in voting seems to becoming the norm in many assn's. My assn has 1,700 members and if we get 20 people to attend the annual meeting, we're doing good. AZ outlawed proxy voting several years ago and the way the law is written, nominations from the floor cannot be undertaken.
KirkW1 (Texas)
Posts: 1,665
Posted:
The big problem as I see it is having a home owner as a property manager. I just wouldn't want that to happen. And in my opinion, if she is working for another company, they should not have allowed that to happen either. Quite frankly I think a large part of our corporate problems are caused by the lack of real governance caused by those in power also holding so many votes in the corporation.

As for the elimination of proxies, that to me is unwarranted government intrusion.

As for the permissibility of electronic voting, I don't see where your documents have to specifically authorize it at all. I would posit that if the issue isn't addressed it is up to the organization to address it. As a BOD member I would always vote for putting such an item to the membership for decision though. But if you are going there, why not go the whole way and stream the meeting allowing someone to watch and cast votes in real time? I predict this will happen in the future. All the same, either one takes a certain technical knowhow.

The biggest issue with secure voting via the web is that you simply must trust those running the web vote to be honest. The issue is less problematic if the votes are cast via a live interface in real time. Of course those votes won't truly be anonymous. Those collecting the votes will know who voted what. If you are not taking real time votes, then I would recommend outsourcing the vote to a trusted vendor to reduce the possibility that someone would rig the election.
DanaB1 (Connecticut)
Posts: 319
Posted:
We have a painter that lives in our complex, one board member suggested this painter for doing some work we needed done. I said that I didn't think it a good idea. What if we had to fire her? Life would than be rather awkward for us and this painter.

Think like a dog and don't poop where you sleep.

Dana
DonnaS (Tennessee)
Posts: 5,671
Posted:


Mike---WHINE!!!(don't whine and tell me that not everyone has access to the web.)

Not everyone has web access, sorry to tell ya. I had a Board member/ ARC committee member who did not. He did a terriffic job without the cyber world and there are more around than you think.

MikeS1
Posts: 668
Posted:
Brian - I guess that we'll have setup a laptop with an air-card on the night of the vote. 80% dot not have web access? That's nuts!
MikeS1
Posts: 668
Posted:
Donna - Not in our area...
MikeS1
Posts: 668
Posted:
Brian - Just google "secure web based voting" or "secure web based voting for HOA". There's tons of good information on this out there. FYI - It's my understanding that one of the Goliaths of HOAs (RHOA - Reston Homeowner association) uses this service. By the time you factor the cost of producing the proxies, mailing the proxies etc; it's a no-brainer! This service will save the HOA money.
BrianB (California)
Posts: 2,820
Posted:
lol.. i suspect your laptop and card still won't work out here... unless you have access to the only cell service that does work reliably, at least.. my HOA is a killer for cell phones and wireless, nothing works more than a few feet in any direction except the infamous Bell Baby...
BrianB (California)
Posts: 2,820
Posted:
Okay, i looked at a few e-voting websites, and i still don't understand: how do they prevent what is essentially proxy voting? From what i can see, either the process requires registering your computer directly (which won't always work with some ISP's) or you simply get a username and password. So instead of asking for your proxy and signature, why wouldn't i just go out and ask for your proxy username and password the HOA sent.

If a person gives up their right to vote to the first person who knocks on their door, why wouldn't they give up that right and the little letter/slip of paper that came in the mail too?
KirkW1 (Texas)
Posts: 1,665
Posted:
Brian,

The sites would not stop people from freely giving out their usernames and passwords. But I would expect that fewer people would just give out that information then would sign a proxy statement.

Many people will sign a proxy statement because they won't be attending the meeting and know that a certain number of votes must be represented. Why they won't could be because they can't, or maybe because they don't care to.

In my neighborhood I would expect that getting people to vote online would be much easier then to vote in person. I have counted that at least six of the nine houses on my street have high speed internet. I would not be surprised if all nine have high speed internet.
JohnK3 (Pennsylvania)
Posts: 967
Posted:
I said this before and I'll say it again:

Web Access Does Not Participants Make. Web Access Does Not Cure Apathy.

Thumbnail:

From: The Board
To: Membership
Re: ByLaw Change Ballot
Via: Email

(paraphrasing)

Dear Kids,

We'd like to make annual audits optional based on a majority vote of Membership. Saves 5% of our budget. But we to amend our ByLaws. Please return the attached ballot.

Hugs and Kissess,

The Board

(Epilogue)

ZERO RESPONSES

BrianB (California)
Posts: 2,820
Posted:
Quote:
Posted By KirkW1 on 10/23/2008 7:10 AM
Brian,

The sites would not stop people from freely giving out their usernames and passwords. But I would expect that fewer people would just give out that information then would sign a proxy statement.

Many people will sign a proxy statement because they won't be attending the meeting and know that a certain number of votes must be represented. Why they won't could be because they can't, or maybe because they don't care to.

In my neighborhood I would expect that getting people to vote online would be much easier then to vote in person. I have counted that at least six of the nine houses on my street have high speed internet. I would not be surprised if all nine have high speed internet.

I think Kirk, you have more faith in people than I have. I am pretty convinced that if someone is stupid enough to give their vote away (ie, a blank proxy, not a directed proxy), then they are stupid enough to give it away no matter the form. I am a pretty cynical guy. I am glad you still have hope for people-kind...
KirkW1 (Texas)
Posts: 1,665
Posted:
Well to be sure, in our first election there was no prior knowledge of who was even running for the Board. For that matter, who knew that there would be a vote on the number of members of the Board? (Our documents allow for three to five members. Someone felt we should only have three and made a motion to have three. That motion carried two votes. A second motion for five carried with two opposed.)

Then again, our PM tried hard to setup for the same number of nominations as positions on the Board. She seemed a bit bothered when we had 6 nominations for the five positions. Even at our first meeting, she wanted to setup that every member of the Board would have a title to avoid people from feeling left out.
MicheleD (Kentucky)
Posts: 4,491
Posted:
First, I find it highly unlikely that proxies will be outlawed -- I mean, I get proxies every year from the companies in which I have voting stock.

You're not seriously saying that I would have to show up in person at the annual meetings to vote, are you?

Kooky.

Second, we have fewer than 10% of our residents who regularly use the internet or have web access at home.

We have a "website" (a free thing that's pretty much informational only), but out of 300+ homes, we only have email addresses for about 10 or 15 of them.

Kooky, number two.

Finally, how many board members are there? Did I miss that info somewhere? So even if the PM got a "favored person"on the board, that's still only ONE vote, right?

And if she's "resigning," is there a new PM waiting in the wings?

Just curious.

DarylF (Washington)
Posts: 157
Posted:
Update on the story. The one, of five, board members that she strongly promoted at the meeting and probably voted for has offered her to stay on for the rest of the year. Not by vote of the board or community, just him asking. She accepted. Now it's a fight! The board has not even met to see who would take what position!

Note: we had a board of three, although our docs say it should be five. This was because our PM did not read our docs before the turnover meeting (one of many mistakes she has made...). Two of the three board members resigned before the meeting, and we elected in two more to get up to five. Thus we have four of thefive board members being elected at that meeting. The other three new ones are not educated on all the things she has done wrong, so right now the only one fighting the re-hire is the board member that carried over form the original three. And she is tired of fighting this crap, and doesn't want to look like the bad guy fighting everything.

Obviously, she resigned and she was not re-hired by the board or the community so she is still resigned, but this one new board member, who she worked hard for to get on the board, is insisting that she stay on and has invited her to the next meeting.

ARRRG!

Yeah, nothing sleazy going on... This happens on all boards of directors...
KirkW1 (Texas)
Posts: 1,665
Posted:
I would say that you might be surprised at how often BODs have a dysfunctional member on them. We elected our president and then came to find out that she has major issues with us telling people what they can and can't do with their property. She claims it was obvious. The only thing obvious is that she hadn't realized the situation until closing. Many people aren't sure when they close but come to realize the benefits of having covenants.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Kirk, I have to confess, I don't understand your post at all.

She claims what was obvious?

And what "situation" had she not realized until "closing?"

Very confused.

=|
KirkW1 (Texas)
Posts: 1,665
Posted:
Our president claims that her statements about not knowing about the HOA until closing and that we should carefully consider all rules should have been an obvious tipoff to her position that we shouldn't be able to tell others what they can do on their property. I figured it out about two or three months into our tenure. She doesn't know it, but I plan to work hard to ensure she is not president of the HOA again next year. And I may work to get her elected off at the end of her term.

I don't think most people realize that she is against the idea of covenants. I also don't believe that she would have been elected if they had known. I think there is a good chance that the candidate who didn't make the meeting may have been elected instead.

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