HELP!: Issues with HOA Board of Directors

I'm just a little curious as to how you know that board members or committee members are not current in their assessments if there is no communication about financial matters.

Also, in the interest of full disclosure, I just paid our association's annual insurance with my own private credit card.

We didn't have enough money in the coffers.

I will be reimbursed at the end of the year.

Sometimes you just gotta do what you gotta do.

Having said that, I'm not aware of regulations in Maryland regarding open meetings. In Kentucky and per our documents, board meetings are not required to be open. We do not have to send out any notifications.

That may not be the case in your area, though.

At this point it is simply via unofficial claims by other members of the Board. I am in the process of requesting all pertinent information from our community management company. I have been copied of a few emails between members of our Board regarding these matters.

When you made that payment with your private credit card, were you required to get approval to do so by your Board? Or at least, approval to be reimbursed at the end of the year?

Below is part of Maryland State Law regarding association meetings. This outlines when a meeting may be closed:

§ 11B-111. Meetings of homeowners association or its governing body

Except as provided in this title, and notwithstanding anything contained in any of the documents of the homeowners association:

(1) Subject to the provisions of paragraph (4) of this section, all meetings of the homeowners association, including meetings of the board of directors or other governing body of the homeowners association or a committee of the homeowners association, shall be open to all members of the homeowners association or their agents;

(2) All members of the homeowners association shall be given reasonable notice of all regularly scheduled open meetings of the homeowners association;

(3) (i) This paragraph does not apply to any meeting of a governing body that occurs at any time before the lot owners, other than the developer, have a majority of votes in the homeowners association, as provided in the declaration;

(ii) Subject to subparagraph (iii) of this paragraph and to reasonable rules adopted by a governing body, a governing body shall provide a designated period of time during a meeting to allow lot owners an opportunity to comment on any matter relating to the homeowners association;

(iii) During a meeting at which the agenda is limited to specific topics or at a special meeting, the lot owners' comments may be limited to the topics listed on the meeting agenda; and

(iv) The governing body shall convene at least one meeting each year at which the agenda is open to any matter relating to the homeowners association;

(4) A meeting of the board of directors or other governing body of the homeowners association or a committee of the homeowners association may be held in closed session only for the following purposes:

(i) Discussion of matters pertaining to employees and personnel;
(ii) Protection of the privacy or reputation of individuals in matters not related to the homeowners association's business;

(iii) Consultation with legal counsel;

(iv) Consultation with staff personnel, consultants, attorneys, or other persons in connection with pending or potential litigation;

(v) Investigative proceedings concerning possible or actual criminal misconduct;

(vi) Consideration of the terms or conditions of a business transaction in the negotiation stage if the disclosure could adversely affect the economic interests of the homeowners association;

(vii) Compliance with a specific constitutional, statutory, or judicially imposed requirement protecting particular proceedings or matters from public disclosure; or

(viii) On an individually recorded affirmative vote of two-thirds of the board or committee members present, some other exceptional reason so compelling as to override the general public policy in favor of open meetings; and

(5) If a meeting is held in closed session under paragraph (4) of this section:

(i) An action may not be taken and a matter may not be discussed if it is not permitted by paragraph (4) of this section; and

(ii) A statement of the time, place, and purpose of a closed meeting, the record of the vote of each board or committee member by which the meeting was closed, and the authority under this section for closing a meeting shall be included in the minutes of the next meeting of the board of directors or the committee of the homeowners association.

Oh, one other thing...make sure you're not confusing in the documents how the BOD handles meeting notices for THEIR meetings and for the ANNUAL MEMBER'S Meeting.

The lack of financial information is a cause for concern...but with a properly worded request to the BOD, you should have that information within 10-14 working days (a reasonable time period to comply with a valid request for association records). Have you asked for any of this information?

A few other questions...

Why would committees need to notify the entire membership of their committee meetings? If you're on the committee...you attend the meeting. If you're not, why would you care when they meet?

You, as an owner, elected the BOD to act in the best interests of the association, so they have meetings from time to time. Do your documents/statutes/laws REQUIRE that the BOD notify the entire membership every time they meet?

With just a bit more info, a proper course of action can be charted.

I appreciate your input. To give you a little background, I am a first time homeowner, and have been living in my community for a short time. The information you are giving me is exactly what I need to know. I am looking for a basic list of things that I should be doing.

1. What documentation I should be receiving or requesting on a regular basis as it pertains to our Resident's Association?

2. A typical procedure for discussing grievances with the Board.

3. Any other general advice that you may have.

Well, there is a TREASURE TROVE of information here! Read through back posts, and try not to get too overwhelmed! There's a LOT of info out there. There's some AWESOME people here!

Bite off baby bites...you'll get there!

I do have a copy of our governing documents, however I do not have any of the amendments that have been made. I know that they have been made, and some were discussed at our annual meeting, but no documentation of them was every provided.

Maryland has enacted laws this year to make condo and HOA governance more transparent. These laws will be in effect October 1. Until then, go to www.marylandhomeownersassociation.info for a summary of these laws as well as best practices for association governance.

However, I agree with others that are saying talk to your board with your concerns. Some boards are just doing the best they can and don't know what Maryland law is. Help them by explaining Maryland law and best practices to them.
Jeanne

Nathaniel,

Anytime that the governing documents are amended, copy must be sent to all HOA members. This is the duty of the Board to provide all of them. That includes the lower form of documents such as Rules & Regs. Because these are filed along with the original docs, they must be attached to them and that includes each and every copy that is in the hands of the owners. But yes, your County register of deeds should have the amended copy for you to have.

Cathy0,
I have pasted you response here. See ((((( ))))) for my comments.

In regards to using proxy votes at board meeting, this is not legal. It is in Roberts Rules of Order along with a HOA Association Booklet. (((((There is nothing legal about Roberts R of . Unless your documents specify it MUST be followed to the letter, it serves as a guideline only) Our association tried one year to use proxy votes, so I reached it, and gave the board president the information stating the they could not use proxy votes at the board meeting. He did not believe me so he contacted the attorney for the HOA in Utah, and fould out that I was correct.((((((((((Proxies are usually State specific, and some states have no such laws dealing with proxies. To be safe I would suggest you amend the documents to specify the proxie rules. According to what the state mandates.)))))))))))))

Your finance officer is responsible to have available for any board member or association member a finance sheet for them to see. If he is not producing this, your board needs to call for an audit of your books as soon as possible. (((((((((Most state allow and most association have covenant demands that the Records of the association be available for review by any member so requesting. It is not just a financial sheet. Your covenants should require a financial report as often as monthly, it's no trouble to do. You need to replace your finance office if he/she is not abiding by the Boards desires. An audit should be required as specified by your documents and detailed how to get an Audit under unusual circumstances)))))

If your president is spending money that she is not authorized to spend, and is using her own credit card, the board should inform her that she can not spend money with out a motion giving her permission to purchase things. (((((((((((Again, this can be handled with a Board direction. I would strongly suggest no personal credit cards (except small re-reimbursable be used by your association. Get your own association credit card.))))Your treasurer can be held responsible also for writing her a check to reimburse her. Your president needs to be warned at a meeting that this spending without a motion will not be excepted and if she uses her own credit card, then she can pay the bill, that your association will not pay any more bills that have no been approved by the board. There are general maintenance bills that are paid ever month, but these extra items are not.
(((((There should be a limit set by your board on how much money can be spent by any single individual))))))

CathyO,
Don't get the idea I am preaching Gospel. I am just giving an opinion. It is sometimes difficult to believe that what we post here on this site can be taken as the Law of the Land. Most of what we post here has to be weighed and valued as individual assessments.
Few can be all thing to all people and fewer have "Right answers" that apply across the board. I commend you for your obvious interest, the knowledge who must have obtained through hard work and you desire to help your community. Don't stop posting because you think I am critical, I try to be constructive.

Nathaniel,
Please copy and paste your question (statement) onto a new thread.

I will give a short answer here. This site is full of situations just like you are describing. Use the search feature upper right.
In a nutshell, you care, most don't. But you can't effect change very well by yourselve, you have found that out. It is reasonable to conclude that this person holds more power than you do. He/she don't. You have to make a interest group stronger than this out of control whatever. It will take time it will take patience, it will take dedication but once you build your support you can move the mountain. Simple as that. Little by little you will gain ground. You go to a meeting or talk to your board individually and they rebluff you, or the manager or M/C. Next time you talk, take five people with you........notice the difference it makes.
You do not need the majority of your owners, you need enough to get the majority supporting what you want to do. Be nice to yourselve and your neighbors, dedicate your cause to the association not to personal agendas.