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MiltonB (California)
Posts: 5
Posted:
Hi, I want ask if anyone has any ideas as to how to remove all of the BOD. They are spending our money like they don't care. Here's the situation:

Our HOA is in California and we have earthquakes. During the '94 Northridge quake,
our HOA filed for damages, but the insurance companies denied it. The insurance commissioner declared that it was not done correctly and allowed for re-file. About four years ago we received close to $3 million. I was president at the time. I started investing the money back into the property in the form of upgrades (pool, paint, patios, doors, etc...).

One owner became greedy and suggested we give $10,000 to each unit. I rejected the idea, but he had already spread the word around to all owners. Obviously, I looked like the bad person for not wanting to give free money to everyone. So, I stepped down and allowed them to do what everyone wished.

Six months down the line, it was found that this owner, which became my replacement, was found to be stealing money through inflating invoices with crooked contractors. (I have all the proofs).

The current board fired him, but the money was never recovered. They said that there was nothing they could do.

Now, we only have less than $400,000 in the bank and they approved another round of distributions. They have also increased our dues and this would pretty much wipe out our account.

I need help in what to do to remove them all and get new people in. Someone that will take the best interest of the property first. I was able to get back in the board in recent election, but I know that they will want to vote me out. I'm out numbered.

I want to take the evidence to the police and give my testimony. I'm hoping that it is not too late to request an investigation and have this as leverage to kick them out of office. This would make them inelegible to serve.

Any ideas or suggestions??
SusanW1 (Michigan)
Posts: 5,202
Posted:
In your entire post, you are talking about ONE illegal act by someone who has been caught. Shame that the funds can't be collected.

However, THIS board may just be implementing what was voted on back then.

You need to find the motions that order the board to distribute the funds back to the Members. Find the original and find the one that should have been passed just recently -

I don't see what you could tell the authorities that would make them take action.

KirkW1 (Texas)
Posts: 1,665
Posted:
The first issue I see is that your association seems to be run by a single person.

Beyond that, I am wondering where the $3 million came from for the repairs while the claim was outstanding. I am guessing that a special assessment was made. And if so, then I think the membership should be given the choice of having that refunded back to them. Even if not, with that amount of money I am still inclined to think the membership should have voted.

Given that you stepped down knowing what would happen, I would not be inclined to vote for you now.

Now to actually answer your question, check your documents. In my association the process begins with a petition signed by 10% of the membership. (Or simply waiting until each person's term is up and electing new people in at that time.)

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