need a new management company

There are three board members on our HOA. Our current mgt, co is not performing according to contract. I have been trying to convince the other two members to change and they refuse. They are only interested in our pool and the mgt co has been helpful to them with this. They are not concerned about the lack of covenant enforcement or those who do not pay dues. This is not in the best interest of our community of 420 homes. We are wasting money on the mgt. co. Is there any way to get around this refusal short of hoping for a board change at the next election? Unfortunately, we haven't had a quorun of 25% at an election in a number of years due to the lack of interest in this community. Changes on the board only come as result of a resignation. These two members are not going to resign--they like being pool policemen too much.

John,

Perhaps a letter from an attorney telling the management company was in breach of contract they might take notice. You don't have to be on the board to do this but sadly, would have to pay the attorney.

I appreciate all the responses to my delima. We have had this company for three years and they have been directed constantly by the board to persue past due dues and have been provided detailed covenant violations by myself as president and chariman of our ARC committee plus pictures. These violations have not been corrected. Some of them are years old. We do not know what the mgt. co. has done with them--they refuse to send us status reports on violations or past due dues. I have asked for these reports over and over and am ignored. Same response to questions about expenditures. This is the point. The other two members have decided and I think they are getting this from the Mgt co. that you cannot make anyone correct covenant issues or make them pay dues even thought the residents signed a contract to do so. This is now their attitude. The other board members have come to expect this kind of response from the mgt. co. I cannot get it through their heads that this is not acceptable. We have all been on the board together for two years--it hasn't always been this way with them. Something has happened this year to change their minds--we started the year giving the mgt. co. a chance to change and agreed that if not we would change companies. Nothing changed with the mgt co, but they did. I seached the by laws for a recall by the residents, but did not see anything. I am considering a mass mailing to the residents to plead my case. Thanks again.

John,

It sounds like the BOD has contracted with a mgmt co and they have assigned a prop mgr to your assn. If this is correct, has the board contacted the mgmt co management to let them know the prop mgr is not following the directions of the board and has refused to provide financial reports to the BOD. They can assign a different prop mgr to your assn.

To say the assn cannot force covenant violators to cure their violations or delinquent members to pay up is certainly not true and is a dangerous mindset for board members to have. The mgr may be telling board members this as a way of justifying his/her ineptness. When a mgr refuses to provide financial reports to the BOD, to me this is a red flag to the possibility of fraud.

Your CCRs should outline the remedies that can be undertaken if a member breaches any provision of the declaration. This may include issuing fines for any violation of the declaration. Based upon what the CCRs state, the board should adopt a collection policy that fully outlines each step that will be taken to collect delinquent assessments. They should also adopt a policy for noticing violations, stating when violations letters will be sent and what action will be taken if the violation is not cured within the time period specified. A fine schedule should also be adopted which outlines the amount of fine that will be imposed for the various violations. These policies should be sent to all members of the assn and also given to the prop mgr so he/she will know exactly what is expected of him/her.

If the prop mgr continues to refuse to do his/her job as instructed by the board or if the prop mgmt co refuses to assign a different mgr to your assn then the board needs to take immediate steps to break the contract. Since the contract would be cancelled "with cause" there should be no penalties against the assn if there is still some time left on the contract.

The board needs to quit stalling and take action immediately. What bothers me the most is that the prop mgr refuses to give the board a financial accounting. This is definitely not a good sign!!