Homeowner Elects Himself New President

Started by EllenB • 15 replies • 1808 views

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EllenB (Virginia)
Posts: 8

Posted:

I've never experienced this before. A Homeowner in the Association has sent letters to all owners saying that the current board is illegal & calling new elections. He had a meeting in his home where 8 people attended (quorum is 40+) elected himself Pres, his wife Secr/Treasurer, then proceeded to go door to door for proxies. He has now sent another letter to all homeowners saying he is in charge. Oh yes, also he is now the management company.
If I was reading this I would think it was a hoax. Believe me it's not!

LisaP (Florida)
Posts: 32

Posted:

What? lol. The election procedures, including the recall of the current Board should be clearly defined both in your Association's covenants, bylaws and state statutes/laws.

JulieS (Georgia)
Posts: 412

Posted:

Sounds a little crazy to me....I highly doubt that your docs allow two homeowners of the same address to be on the board, let alone both of them being an officer! The current board may want to talk to their attorney and get this thing under control.

CharlesW1 (Georgia)
Posts: 826

Posted:

EllenB,

That is the most ridiculous thing I have ever heard. That is like making the claim that I am the president. Just because he says he is president of association doesn’t mean he is. (LOL)
I don’t know what can be done legally. I’m anxious to hear what other advice you receive about this situation.

You said he is also his own MC? Does he have bylaws? Or is he using the current CC&Rs? I know in most HOAs there are restriction as to who can be on the board and who can’t be.

JulieS, took the words right out of my mouth!(LOL)

Sorry to hear of your problem. You came to the right place though.

Best of luck
Chuck W.

Charles E. Wafer Jr.

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

EllenB,

If your board does not have an attorney, now is a good time. This owner needs to be sent a cease and desist notice on attorney letterhead, explaining his actions are in violation of your by-laws. Have unit owners been told to send their monthly maintenance dues to a new address? If so, it would constitute serious criminal fraud, don't you think?

GeraldT1
NNJ

BradP (Kansas)
Posts: 2,640

Posted:

Ellen:

where is the current board during all of this? Who paid for his mailing that he sent out? Who has control of the money right now? I am not sure what this guy is smoking, but it sounds like some good stuff.

As others have said you need to get an attorney involved now, not tomorrow or next week.

JosephW (Michigan)
Posts: 882

Posted:

I've seen this before, and what happens will depend on the original board. They have to notify the bank, the state (corporations bureau) and their agent (either management or whoever is listed as the resident agent on their annual corporate filings) that no changes to records should occur with the signed consent of the current President and Secretary or Treasurer, depending on which is needed. As long as they control the money and the corporate standing (on which they would be listed as the board), they will probably have the legal standing.

Next, get a letter out to the owners, preferrably with the association's attorney including a statement on his letterhead, telling all of the owners what has happened and what you plan to do.

I agree that the attorney should send the cease and desist letter to the rump board.

From that point on it will depend on who wins the communications/public relations battle, since a real meeting/election will probably follow soon.

Joe

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CarolynK (Alabama)
Posts: 15

Posted:

boy i sure wish it was that easy to get rid of board members. i know all the ones that we have would be out on there head. we had our sec/trea resign and we have not even been informed of this by our pres. just happened her husband was upset with my husband and i and he called and told us that she had resigned and for us not to call them and ask anymore questions. so our dues are due end of this month and no one has been told not to send the monies to her. so i guess we will have a len put on our house ,because i refuse to send her my monies.

carolyn k

JulieS (Georgia)
Posts: 412

Posted:

Carolyn,

You are still required to pay the money, the check is made out to the HOA, not the treasurer. I wouldn't just not pay my dues because of a personal issue. You will be getting yourself in a not so good situation.

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

EllenB,

Read JoesephW's post regarding your predicament, he is 100% correct!!

GeraldT1
NNJ

EllenB (Virginia)
Posts: 8

Posted:

It does. This guy is interpreting things incorrectly. Our attorney gave us an opinion & we sent it to all the homeowners. Did I mention, this homeowner owns 2 units, last year when one was vacant he did not pay dues, his opinion was that he didn't have to because he didn't hava a tenant...needless to say we sent him to collection...not a happy camper. Now he is paid up.

EllenB (Virginia)
Posts: 8

Posted:

We've talked to the atty. He says that the only thing we can do as a board is sue him which would be expensive.

EllenB (Virginia)
Posts: 8

Posted:

Sure is rediculous! Our attorney says the only thing the Board can do is sue & that would be costly. Did I mention, this homeowner owns 2 units, last year when one was vacant he did not pay dues, his opinion was that he didn't have to because he didn't hava a tenant...needless to say we sent him to collection...not a happy camper. Now he is paid up.

EllenB (Virginia)
Posts: 8

Posted:

The board seems to be intimidated. He paid for the mailing himself. We have total control of the finances. We've let our contractors know not to listen to anything he might say. We've also clued in our bank!
We have talked to our atty, he says the only thing we can do in sue. We've got our annual meeting in a few weeks. Luckily this association is on quarterly dues.

EllenB (Virginia)
Posts: 8

Posted:

Yes we've done most of that (excep not the state corporation commission. The letter has already been sent but I believe all of the communications are confusing people.
The annual meeting is coming up soon.

RogerB (Colorado)
Posts: 5,067

Posted:

Ellen, if your attorney said the only thing we can do is sue then they are wrong. You control the money and the association. I would not have even talked to an attorney but would either ignore this idiot or preferrably send a notice to all owners explaining the situation.

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