HOA awarded the repair work to it's own company

Jacky.
Do yourself a favor and go back and read your own Post with a critical eye. That's what we do when we offer advice.

All you have done is make assumptions. You may be right on target, but certainly not by offering any sort of rational thought to your accusations.

You must set this supposed problem in some kind of order. Lets just take one statement that speaks volumes about the position you find yourself in.

This concern by some of you has been going on for several years and it even involves a Reserve account disappearing. Where were you all living during this time? Where were these concerned folks when this Board was and is (supposedly)mismanaging your funds.

Jacky if you all can't help each other and more important, help the association daily why do you think some one else can bail you out?

If you are accusing your management of criminal acts, hire a lawyer and sue them. If, most likely, you don't like the way they do things, get involved. You really have no choice.

Please, take the time to have a chat with a few of your fellow owners. Agree you want to be able to go to the Board with a few critical questions. Get 3 or 4 good specific questions together, then together select a good speaker among your group and have him/her call the Board and ask for an emergency meeting before the Board to discuss concerns your group has. But don't accept anything other than an officially called meeting to discuss the issues. If they don't agree, then try and attend a regularly scheduled meeting and present your voice as a group. If you feel this assessment is out of line ask for written justification as to why, what, where, and when this was all decided. Ask for copies of a bidding process and view the bids submitted. Ask for the record that committed the Board to this expenditure.

Start all this with building information. You all must do this, and if you don't believe me, read your documents as a group, learn to understand them. Establish what your responsibilities are as an owner, individually, then go on to what the Board is required to do.
All a lot of work and you all are years behind it seems. Maybe some one in your group has some knowledge, but you must build your knowledge base in order to effect change. You must start talking to your management, let them know you are there and you also have concerns.

We will be glad to help.

Jacky,

I suggest you thoroughly read the CA Davis-Stirling Act, specifically section 1365, Financial Records Reporting and section 1366, Regular & Special Assessments. The HOA is not only obligated to abide by their gov docs but also state law.

Regarding the contract with the company that is owned by the mgmt co. If the board members knew of the relationship and were not concerned about a potential conflict of interest then one may not legally occur.

If enough members are upset with these actions perhaps a board recall is in order. Check your bylaws to see what steps must be taken to recall a board member. I don't think this is addressed in the Davis-Stirling Act, but you may want to check it out.

Here is the URL for the Davis-Stirling Act:

www.davis-stirling.com/MainIndex/DavisStirlingAct/DavisStirlingAct/tabid/791/
Default.aspx

Jackie,

It seems apparent you have not read or understood your covenants, etc. This should be the first thing to do. All covenants are different but ours (here in Florida) require a special meeting by all members of the community at which a 2/3 vote is required before the assessment is ok'd. They also are specific on how many days notice must be made to all members prior to the meeting. Ditto using reserve funds for anything other than their initial purpose. The board works for the association but does not have a free hand to do whatever they want.

Your bylaws should let you know what powers the board has and what it would take to remove one or more of them.

You have lots of questions and I believe most could be answered by your covenants.

Thanks to all who reply.

Few of home owner meet together and study the HOA document.
According to Bylaws of Associate ,we write a letter to request for special meeting
to discuss and verify this subject matter. We went to each unit
and collect signature for the letter, ALL of the home owner were very surprised
and angry about this special assessment, every home owner we talk to is willing
to support and sign the letter, and we have more than enough signature to call
for special meeting and hopefully put this project on hold.

We talk to one of the board member, he and other board member know that HOA manager
and the contractor company were husband and wife, so they did disclose the information
to board member.(but not in writing to any home owner). He also "educate" us that
in this industry, this is very common(really??).(wife is HOA manager and awarded repair work to
company own by husband) He also think board have right to decide this special
assessment without inform any communication to the home owner. (I understand
by law he maybe right about this and it's still legal.)

But you see what make us home owner so angry is that kind of attitude.
We went to board meeting but didn't feel welcomed.
"We Don't Want You at Our Meetings." http://loan.yahoo.com/m/primer13.html
( they won't told this to you, but many of us have the same feeling)

Our current board has been there since 2004, and they switch the management company
to the current HOA management. The BOD told us that current HOA management company is
doing excellence work. But the fact is that since we switch to them, they raise the
HOA fee every year, they send few home owner letter to collect the missing HOA fee which
is more than one years ago. I have to call my bank and have bank send HOA prove of
payment. They ignore letter from my bank and keep sending collection letter after few month.
It turn out that I not only pay the fee, but actually overpay money.
But you can guess that it's impossible to get the money back from them.
Today some other home owner just share the similar story to me, I am not the only unit
to get the collection letter of HOA fee(they collect the fee which is 1-2 years old)
They are really unprofessional and I really have no idea how to manage the accounting
data internally( sorry to say that, but we just feel that HOA company want to collect money from
home owner whenever possible) And in fact we did not get financial report document for 2 years.
We did not know how much money is still in our reserve.

I feel sad and angry because I know we home owner let this happen, we vote for them and don't
pay enough attention to HOA.(but we used to have very professional HOA management company for years and we never worry that much. all these start to happen after we switch to current company
- which is run by 2 person. We are all angry and will get involved by law.

Mary,

Many many thanks for the advice. 5% of our budgeted gross expenses is only $9000.
Board does not have authority to pass this special assessment(65k) without going through
member voting. (Non of the home owner member can agree it's emergency)

If HOA managing company don't follow the law, we can't trust this company
to run our HOA and manage the money..

I find following "CONFLICT OF INTEREST" from BOARD OF DIRECTORS CODE OF PROFESSIONAL ETHICS.
My question is: does your community/HOA request BOD to sign this kind of PROFESSIONAL ETHICS
document?(is this document required by law?)

HOMEOWNERS ASSOCIATION BOARD OF DIRECTORS CODE OF PROFESSIONAL ETHICS
http://www.gvccc.org/documents/hoa_ethics.pdf
CONFLICT OF INTEREST
No member, or employee of a member, may use their position to enhance their own financial status through recommendation of vendors, suppliers
or contractors that may pay a gratuity to the member or employee of a member of the organization. In addition, all situations where any
appearance of a conflict of interest could exist must be disclosed in writing to the Board of Directors at the earliest opportunity. Any dealings with
related parties must be fully disclosed to the Homeowners Association and abstentious and/or recusal must be entered on all voting and discussion
issues relating to the contractors.

Some update to this:

At least 80% of members is angry and requested for special meeting.
HOA sent out notice for special meeting date, however there were
problems..

1. I believe according to bylaw, date of the special meeting should be between 35 - 90 days
after HOA receiving letter to request special meeting. But HOA did not follow this.
2. Notice of special meeting should post to public place for at least 2 weeks, but HOA
only send out letter.
3. Days between special meeting date and notice date should be at least 20 days, but HOA
didn't follow this.(only 10 days)

I am not trying to be picky, but should a professional HOA company follow California LAW and BYLAW?
HOA's lawyer will present in the special meeting, they are trying to validate their special assessment
(which is 30% our annual budget) and argue that it's emergency situation(safety of home)so there is no need for member approval. But at least 80% member don't agree it's safety issue.
HOA fee pay for HOA's lawyer, but it's clearly lawyer is on HOA company's side.

Enough members is angry and we plan to recall BOD and replace HOA company. However
we know that we are dealing with HOA lawyer and they will try their best to validate
the special assessment and force member to pay the money.
My question is: By California law, what's the right process to recall all BOD,
have interim BOD take over? Would that possible to do all of this in special meeting?
Do you know any article which talk about the detail procedure ?
(we will prepare proxy ballot and we have majority of member's support!)
I believe HOA's lawyer will be really picky about this process because they want to make
it VERY HARD for member to replace them. Too sad we don't have lawyer to do all these for us.

Jacky,

Yes, the BOD should follow what is stated in the bylaws regarding calling a special meeting of the members; however,as long as every member has been informed of the meeting I wouldn't belabor the point that they may not have followed the rules to a Tee. What's most important now is determining what can be done to reverse the special assessment and whether the members want to hold a vote at the special meeting to recall the board members.

I've checked out the CA Davis Stirling Act and could not find a section that pertains to recalling the BOD. Therefore you will have to rely solely on what your bylaws say.

Section 1363 of the Davis Stirling Act reads: "(e) Notwithstanding any other provision of law, notice of meetings of the members shall specify those matters the board intends to present for action by the members, but, except as otherwise provided by law, any proper matter may be presented at the meeting for action."

Therefore even if recalling the board is not a reason for the meeting as specified in the notice that action can still be taken at the special meeting. All that needs to be done is to have a member make a motion to vote to recall the board members. Another member can second the motion and a discussion can take place followed by a vote. I would suggest making a separate motion for each board member to be recalled. But, before going through this process I would let the BOD know that unless the special assessment is cancelled the majority of the members are ready to hold a vote to recall the board members. The members will not tolerate the board taking an action that requires a vote of the members.

Make certain that as many members as possible attend this meeting and try to get proxies for those who are unable to attend.

Jacky,
Mary gave you some information and Mary is usually right on track. You may be able to control the meeting by making motions and trying to push back the special assessment business until you get your ducks in a row.

But understand this, the more you post here and give up more information the more apparent it is you need a lawyer. You might even use the names of these 80% to get this idea of special assessment delayed until you have retained an attorney. I am not a big fan of attorneys solving HOA probloems, we should be smart enough to do it ourselves. But your place as discribed sounds out of control.

You must look for some common ground, you really have no choice. Think about it, you all are going to be living there when the dust settles. Take over your responsibilities. You won't do it all in one night but don't walk out the door until you can get something to build on. That may sound wise, but it is just good business and you all are trying to run a business........very true.

What part of california are you located?

Hers a link

http://www.davis-stirling.com/

Susan,
Your:
If the notice was clear as to what motions the members were going to vote on, you don't need a lawyer. This meeting would be short and sweet.

8**********************************

If a frog had wings he wouldn't hit his butt when he jumped.

This meeting is going to be chaotic, even if Sotomayor(sic) was presiding.

Someone better keep in mind tomorrow is another day and this is not the end, but a start.

Meetings of the Membership

Who May Call a Membership Meeting. As provided for in Corp. Code §7510(e) special meetings may be called for any lawful purpose by the following:

1.

Directors. By the board, the chairman of the board, or the president.
2.

Petition. By petition of the membership signed by at least 5% of the members. The right to call a meeting by 5% of the membership cannot be changed or eliminated by contrary provisions in the bylaws. Members are restricted on the purpose of special meeting.
3.

Others. By such other persons as are specified in the bylaws.

Setting the Date. The date of the special meeting is set by the board and may not be less than 35 nor more than 90 days from receipt of request. Corp. Code §7511(c)

Notice of Meeting. The board has 20 days from receipt of the petition to set the date and give notice of the meeting. If the board does not do so, the persons calling the meeting may set the date and give notice. Corp. Code §7511(c) If the board fails to give notice, the petitioners may give notice which is not less than 10 nor more than 90 days before the date of the meeting. Corp. Code §7511(a) However, the 10-day minimum was modified by Civil Code §1363.03(e) which requires at least 30-days of balloting. As a result, notice must be at least 30 days. As provided for in Corp. Code §7511, notice may be given by any of the following means:

* first-class, registered, or certified mail,
* personal delivery, or
* electronically to those members who agreed to this method of notice

Agenda. Notice of meetings must specify those matters that will be presented for action by the membership. Civil Code §1363.03(e) Business at the meeting is limited to noticed items only; no other business may be transacted. Corp. Code §7511(a)

Parliamentary Procedure. Membership meetings must be conducted in accordance with a recognized system of parliamentary procedure or any parliamentary procedures the association may adopt. Civil Code §1363(d)

Voting. Voting on issues may be done entirely through the mail without a meeting of the membership. If balloting is done without a meeting, a special ballot form must be used. A board or membership meeting is still required for purposes of publicly opening and counting the ballots.

>Agenda. Notice of meetings must specify those matters that will be presented for action by the
> membership. Civil Code §1363.03(e) Business at the meeting is limited to noticed items only; no
>other business may be transacted. Corp. Code §7511(a)

Thanks. This is useful.

In the meeting where out BOD approved the special assessment,
this special assessment is not listed as AGENDA sent to member.
(HOA doesn't want homeowner to know this special assessment in advanced)

Can we say that the approval of this special assessment is not legal according this law??