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MaureenM1 (PA)
Posts: 344
Posted:
Does anyone have information about forming a "shadow board" to oversee the developer
as development goes towards transitioning out of developer control?
LarryK1 (Washington)
Posts: 32
Posted:
Have you read the Community Association Institute (CAI) Research Foundation Best Practices Report for Transition? See:

http://www.cairf.org/research/bptransition.pdf
MaureenM1 (PA)
Posts: 344
Posted:
thanks
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Maureen,
Why don't you explain what you mean by Shadow Board. I doubt it is something that will be included in Best Practices as defined by CAI.

But, I could be wrong for the the 2,800,356th time.
MaureenM1 (PA)
Posts: 344
Posted:
you are correct, it isn't.

Our President who also is the builder is not make decisions in the best interest of our HOA and development. He is costing the HOA excessive fees for contractors, ie snow removal, landscaping, etc. because he is friends with them and we cannot out vote him. He would go into the reserve to pay these bills, if we weren't constantly arguing with him.I have read several threads on this site that says NEVER take money out of reserve to pay monthly bills. He would also raise our monthly fees to pay these bills. He is in control, however, he is not making decisions to benefit the integrity of the development.

He has three votes, myself and another resident board member has 2. We are ALWAYS outvoted.

I read about forming a Shadow Board in the Association Times. It would be a committee of owners who would become more involved
in the decision making processes while the Developer is in control. It is formed during an annual meeting.

Not sure if it can be done since we do have an Executive Board in place. Builder (President), his two appointees, myself and one other resident board member. Our builder is President, however, the other board members, including myself do not have a title (ie treasurer, secretary, etc.)

I tried to get legal advice and did find an attorney that specialized in HOA law, however, he said it would be a conflict of interest since he respresents boards.

Don't know how to find an attorney that specializes in HOA law in attorney. I search the web but did not come up with anything.

KirkW1 (Texas)
Posts: 1,665
Posted:
In most cases a "shadow board" is intended to learn from the developer so that they understand what they are getting into at turnover. Just as you don't have the power to out vote the developer, you don't have the power to setup a group that has power over the developer.

As for paying the bills, I am wondering what you consider to be the right way of dealing with them. Regardless of liking it or not, if the income from dues doesn't meet the expenses then the dues need to be raised. You can then look into lowing them after turnover if you indeed get lower rates for services.
MichaelK11 (Texas)
Posts: 432
Posted:
I am also having trouble finding attorneys who are knowledgeable about HOA's, here in Texas. That's not exactly accurate, but I would like to find more knowledgeable legal help than I have found.

I also need to find someone who really understands easements, and someone who understands what happens to HOA's in bankruptcy. All pretty difficult.

We now return you to your regularly scheduled discussion thread.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Maureen,
I would think it is time for the owners in your association to start getting knowledgeable about where their money is going. Tell us more about what your association consists of, a general description and is it condo or HOA.

The name "Shadow Board" bears no special distinction as far as I know and might mean different things to different people and for obvious reasons I would stay away from that kind of contotation.
First there is nothing illegal about a group of homeowners who happen to live in an association form a "Homeowners concerns Group. Just don't give it the name a your association in a manner that would indicate some kind of official representation. I am sure you have an association name already. You are in the same boat as a lot of other folks and some have decided to speak for themselves by grouping together and challenging the developer. Nothing illegal about this, it happens all over this country daily and an example is a group of Homeowners pettiioning the local government for better services such as police protection, better street cleanup, more transparancy in the tax records or in the city budget. I can't stress how important it is to make sure you hire good legal help, but maybe you don't need any legal help. Maureen, you have over 100 posts here, surely you have read some of the posts dealing with this issue. Use our search feature, top of page.

A few owners get together, and you and the other owner that is on the appointed board can certainly join the crowd, unless you signed some sort of compliance contract with the developer, have a cup of coffee together, and discuss your status overall. If you feel the owners need more input, call a town-hall meeting, work hard getting a turn out and discuss in open forum your complaints and concerns.

If you have enough willing to support an effort, elect representatives to be spokesmen and women. Hear all the concerns that night, have your representatives meet and formulate a plan of action. Have another meeting and hammer it out and make a proposal to the developer your reps want to meet with him and discuss mutual concerns.

Don't hide any of this, keep it open to MEMBERS only and allow all to speak. Be transparent do no secret deals.

See what it gets you. For sure you will get the developers attention and if he/she is interested give him the opportunity to speak before your group.

Will it work? Better chance it will than it won't. Maybe the developer has problems, most developers do have bottom line problems, however, to consider only his problems is not fair to the homeowners, so don't allow it to happen and speak your piece.
It could cause a heap of problems and some may decide it is not worth it so be upfront and be smart, don't shoot yourselve in the foot, be fair, and keep at it. If nothing happens to bring about change I will assure you come turn-over time you will have a group of homeowners that will be interested and will not be denied.
MikeF4 (Texas)
Posts: 26
Posted:
Michael-
I am in the Austin area and we have a knowledgeable attorney representing our association.

If you are in this area and would like his contact info, let me know.

www.silveradohoa.com
MichaelK11 (Texas)
Posts: 432
Posted:
I am in the DFW area, but I would like to contact your attorney, if it's not one with whom I've already spoken.

Should I use the Gmail address on your web site to contact you?
MaureenM1 (PA)
Posts: 344
Posted:
Thanks, but I would need an HOA attorney in NJ. I have been searching the web but so far
havn't found one.

SusanW1 (Michigan)
Posts: 5,202
Posted:
Michael from Texas - please start your own thread.

This is Maureen's stage.
MaureenM1 (PA)
Posts: 344
Posted:
Thanks Robert, you are always so helpful. I invited the owners to meet at my house every quarter to go over the progress of
our development. We fill them in about the finances, the progression of capital improvements, etc.

We will be having our annual meeting soon and rather than it turn into a "gripe" session I want to go in there prepared on what
we want for the future of our development.

Your advice on getting more spokes people is a good one. The developer/builder is always hearing from myself and the other resident board member.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Maureen,
Hope what I say helps.
You and your other Board Member owner are in a tough spot. It is natural when you find yourselve on a Board to have some sense of the importance of unity in all Boards. The structure sets you up for that. You all meet in a room and discuss things that by their nature may not be fodder for the outside world, so to speak. So you feel Birds of a Feather complex. Normal stuff. But in your (both of you) you are torn between two loyalties and try to do a good job. In the end when the dust settles and the developer is gone, you all are left to go on with your lives. Sounds melodramatic, but true. All this m,eans is you should not feel uncomfortable abour crossing swords with the developer.......it's just a job and your loyaly is to the members not to his bottom line.

So, sure, get some other faces in his face, if he don't like it he can kick them out, but at his peril. He is much better served if he can make the owners happy and have a smooth transition, the way you do that is build up repsect and communication now, before turn-over.
MaureenM1 (PA)
Posts: 344
Posted:
Unfortunately our builder, not the developer is the President of our HOA with two appointed memeber. Myself and my neighbor were elected by the owners.

We are nearing 75% sold with the minority of homes owned by the builder (which he rents) so eventually we will need to transition
over to owners, however, he is a control freak and wants to control the development to the very end. He hires his friends at excessive
costs to the HOA and does not make decision that are for the best interest of the development.

He doesn't care about the owners. He only cares about making money and ownes and rents 8 and when all is built maybe more.

The vote will be close (especially with the units he owns and four lots that will remain vacant until the market picks up) but when the times comes, myself and the other board member will hold meetings to encourage other owners to run for a seat on the board and go
door to door for votes.

We want to wait until our capital improvements are complete, there are more owners (other than the declarant) in the development
and until we know we have the majority of votes for the takeover.

Our HOA attorney is the President's nephew so we will certainly need our own attorney when that time comes to assure that
the transition is done correctly and in our best interest.

Not many attorney's specialize in HOA law.

EllenS1 (Florida)
Posts: 1,148
Posted:
Maureen,

I'm not into using attorneys unless it is absoltuely necessary. You can check out Martindale & Hubbel (I think that is the name) in your local library and find national law firms that have offices in your state. They would be informed on the hoa laws in your state.
MaureenM1 (PA)
Posts: 344
Posted:
We are not consulting with an attorney until it is absolutely necessary.

thanks for the information.
GloriaM (North Carolina)
Posts: 829
Posted:
Maureen:

I used to manage in NJ; do you have a professional management company? I know of many NJ attorney's I used to use that were very good.
MaureenM1 (PA)
Posts: 344
Posted:
yes, we have a management company that was selected by our Declarant. I searched the web for attorneys in NJ that specialize in HOA law and have not come up with any as of yet.
GloriaM (North Carolina)
Posts: 829
Posted:
Maureen:

Email me and I will give you 3 names of good attorney's I used to use in NJ. I don't want to publish their names and numbers on this forum.

[email protected] and I'll send you their names, assuming they are still there in NJ and conducting business. I left NJ 8 years ago and have been in NC since.

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