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FrancescaM (Washington)
Posts: 264
Posted:
How can the board on the whole work on working under laws and guidance of such?

Our board mtg for tonight for example... Our budget is late for our fiscal year due to circumstances beyond.. It's an issue with our PM. None the less, our governing docs say that our budget must be prepped and mailed to the ho's 30days prior. Obviously we are late. We also voted on a 10% increase in hoa dues which can not take affect due to the fact that our budget was late. The law clearly states that any increase in dues must be presented within the budget 30 days prior to the begininng of the fiscal year. So we are looking at other options not limited to special assessement for unexpected expenses....

Saying that this was exposed to the ho's tonight in open forum. One board member challenged our Pres. on this by saying.. You make a mountain out of a mole hill and really you don't have to follow that laws! One homeowner piped in.. so are you suggesting we break the law? It was kind of nasty..

I don't know what else we can to other than constantly recite the law with every motion, judgement or action. It's hard constanting educating the pompous board member who MUST try to banter with the President..every single meeting.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Francesca,
You all need to get organized. How. All Board members should know your documents. The President should control the meeting. Unless you are conducting your meeting and following the State Statute, you are not working with Laws. You are working with:
. What are CC&Rs? The covenants, conditions and restrictions (CC&Rs) are the governing documents that dictate how the homeowners association operates and what rules the owners -- and their tenants and guests -- must obey. These legal documents might also be called the bylaws, the master deed, the houses rules or another name. These documents and rules are legally enforceable by the homeowners association, unless a specific provision conflicts with federal, state or local laws.

As you can see they may be enforceable within the association, they may not, as they were devised by a lawyer and changed by the members, probably.

You may benefit to have a Board member serve as a parilmentarian and defer to their decision on procedural matters. Again the President controls the meeting.

The matter of the Board member that wants to disagree. He has that right and if you think he is a problem try taking that right away from him. The President is charged with making his board effective, he should give it his best effort. Sometimes it don't work out and dissent continues, work around it, and isolate his involvement, but that is last resort. You will find this guy probably is not dumb and has lots to contribute, just needs to find his spot.

It sounds as if your Board has tried to do some good things (open forum), just keep them well in hand. Allot members a set time to speak, do not tolerate personal attacks but opinions or what they think, not what they think of so and so.

Your budget stuff may be written out in your CC&R's but what are you going to do if you are late? Don't be late next time, and move on with the process. You have no choice. The board must be flexible and keep their eye on the prize. Keep the open forum separate from the Board's nusiness...........no owners comments while doing the Boards agenda work. Work should abide by all requirements of your documents concerning procedural matters. Compromise is better than drawing line in the sand. Also true for Board member participation.
Take it slow and keep up this open forum and if a subject is raised that the board can't answer, make damn sure the Board finds an answer and not only notifies member but notes it next Board meeting.
ChuckR (Texas)
Posts: 8
Posted:
First, it may be time for the board to reflect on their own actions as a whole. It is indeed hard to justify "special assessments" for increases in dues, when you haven't even prepared your financial report.

Do you truly think it is justified to suddenly push for the members to incur a "special assessment" when you can't even report to the members what the financial status is of the non-profit corporation this "board" is running?

Until the board can do its minimul duty, I'd suggest you consider backing off of "special assessments" until the board can show that it is operating in pusuance of state statutes that require you to be fiscally responsible to the members of a non-profit corporation.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Late? How late?

Only if someone complains about the lateness, thus preventing its approval, will there be an issue.

FrancescaM (Washington)
Posts: 264
Posted:
Quote:
Posted By SusanW1 on 02/12/2009 5:59 AM
Late? How late?

Only if someone complains about the lateness, thus preventing its approval, will there be an issue.


According to our governing laws.... the prepped budged should of been out Feb. qst. Our Board approved it and the PM was to process it. The PM did not process this in time despite having a complete budget! They called the following week and more or less said "mistakes happen".

Saying that our law specifically states our budget for the new fiscal year must be prepped and sent out to HO's no later than 30 calader days from our fiscal year's begining. ( 3/1/09) In this alone the law clearly states we can NOT submit a budget with any increases, in attempt to do so is an infraction of a state civil code.. which we could be cited on....

Please note Kirk... I do appreciate your input, but our issues directly fell on our management company.. through email corresspondance.. it is clearly documented we submiitted our items on time.. and now we have this.

JohnK3 (Pennsylvania)
Posts: 967
Posted:
>>>Saying that our law specifically states our budget for the new fiscal year must be prepped and sent out to HO's no later than 30 calader days from our fiscal year's begining. ( 3/1/09)<<<

Huh? That would be April 1st, 2009, yes? So what's the late part?

Also, it seems the BOD approved the budget but that it wasn't "processed" by the PM. Processed meaning what?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Well said ChuckR and right on the money...IMHO
ChuckR (Texas)
Posts: 8
Posted:
Thanks Robert. I strongly feel that HOA's having directors non-compliant with their corporations articles or with the duties as set forth in the bylaws of that non-profit corporation should be investigated by the State Attoreny General(s) of their respective states the very moment they operate Ultra Vire, and they should have their charters dissolved immediately.

That would halt a lot of nit picking and bickering within Associations. Quickly.

EllenS1 (Florida)
Posts: 1,148
Posted:
Contact the agency that is in charge of management companies and report them.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Chuck,
What you are suggesting would certainly start a new subject matter to any communication that was going on. But you don't sound like an unrealistic man, and you must realize this would just about involved most of the functioning associations in the country, and given that people are people, why such a hard line stance. I am critical of most of what my board does, and agree higher standards should be demanded and certainly a more proactive position should be incouraged, and probably a bunch of other things. How and why are you so hardlined, and is there a solution for HOA, because without an effective Board, all kinds of stuff happens.
MikeF4 (Texas)
Posts: 26
Posted:
Since it was the MCs fault you could not get a 10% increase in dues why not tell them that they will have to take a cut in their fee equal to the cost of the increase you otherwise would have gotten? They can frequently be held liable for mistakes up to the cost of their services.

www.silveradohoa.com
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Mike,
You bring up an interesting point that I don't recall ever having a specific post.

That is what is, how does the BOD, what should the owners expect, how to you go about firing, should there be a Board member assigned as M/C liaison...........all this about the association relationship to the M/C or manager, or what have you. If you get my intent, maybe you would want to start a new post about this kind of stuff

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