Outside Management or Not?

Started by MC • 13 replies • 2289 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

MC (Kansas)
Posts: 4

Posted:

Hi, I am new to this site and a right under 1 year old new home owner in a new developement. We just had our 2nd New Board vote tonight. Not real happy, not a lot of homeowners getting involved. I have expressed that, although I understand a year ago there were not a lot of homeowners and even less volunteers, so that is why 2 people from the same household was on the board, however, there should not be. I was not heard, and they are both on the board again. I just do not feel there should be two votes from the same household.

We have a potential of 90 homes and we have 32 now, we are not solvent and the developer is still subsidizing. The previous board members have brought in someone from a company that comes in and runs an HOA to talk to us. I am unsure of this and wonder if this is the norm. I personally feel that if you cannot handle the position on the board, then don't volunteer. I am uncomfortable with someone from outside the HOA taking over. Also, then what is the board for?

If anyone can give me some insight on this, I would really appreciate it. We already have issues with a very "untruthful realtor" in the area and already having issues with people not wanting to live by HOA convenants. This is a very nice neighborhood, expensive homes, I would think that everyone would want to do what is necessary to keep the value of our homes up.

And yes, I volunteered to be on the board, but right now, I don't think I can have an open opionion on things. I am on a board that consists of a married couple, that I think is unethical, and because only 7 people volunteered, all were immediately on the board because no one else volunteered. Including the husband of the district manager of the realtor in our area. They recently completed their home (currently in the home of parades, so not moved in yet). They had their yard graded not to code, raised it so much that the neighbor's yard is underwater.

Maybe it sounds like we need someone outside to run things....????

Thanks for any advise. Lisa

PaulH3 (Connecticut)
Posts: 29

Posted:

As has been discussed here before, you need to check your govenring documents to see if there is any restriction regarding having two Board members form the same household. You may be surprised to find that there is no limitation.

RogerB (Colorado)
Posts: 5,067

Posted:

Lisa, a management company does not run or take over the HOA; they are hired help, directed by and answerable to the Board. A management company is used to do the day to day work whereas Board members establish policies and procedures and make decisions. Outside management is needed when the volunteer Board members do not want to spend many hours a week doing the HOA's daily chores or when they do not have adequate professional knowledge. This includes HOA, state, and federal governing rules; enforcement of covenant violations; numerous accounting duties; soliciting contractor bids; etc.

Why do you need 7 Board members for 90 homes? If you had 5 you could eliminate the need for two from one family. And why would the HOA ever allow a member to grade where it allowed drainage onto a neighbors yard? Yes, it does sound like you need professional help.

MC (Kansas)
Posts: 4

Posted:

Thank you for your insight. That makes sense to only have 5,and yes that would eliminate the problem. I believe the former president was trying to eliminate that but she did not want to look like a bad person by speaking out, I told her I would but the vote went so fast last night, that the situation to speak out never presented itself. They have had only 4 board members and at our last meeting it was mentioned that there should be an odd number to eliminate any tie votes. The president look up the rules and it states you can have up to 7 people, 7 volunteered, the sheet was handed out to the few people who showed up, no one really knew any of these people (2 were not even at the meeting), then everyone was voted in.

Like I said, this is all new to me.

When I have more time, I will read through the message board, and see if I can get some more insight on how HOA's work.

Thank you for your responses. Lisa

HaroldS (Arizona)
Posts: 906

Posted:

MC - I am curious: You say only 32 homes out of a potential 90 have been sold. That is roughly 1/3 sold out. Usually a developer will retain control of the HOA until a certain % of homes have been sold and 1/3 sounds pretty low to me. Does your developer have control members on the board or are you all homeowners?
If the developer still controls the board, the issue of husband and wife being on the board has no bearing. If indeed you homeowners already have control of the board, I find it a remarkable feat that out of 30 homes you were able to fill 7 board seats - even if two are from the same household. But how would changing to a five member board necessarily cause the couple to be the ones booted off? Harold

MC (Kansas)
Posts: 4

Posted:

We are all homeowners, even on the board. The developer handed the HOA over almost a year ago, when there were only about 20 homes sold, he still subsidizes us. Maybe there being a couple on the board now doesn't matter, since there are more. It was just this past year, with 4 members, 2 votes came from a married couple. I do know to just get the seven names the previous president talked to (a few select) homeowners and asked them. I expected a list of the people that were running to be sent out to all the homeowners, even asked that there be a little bio so that people knew a little about who they were voting on, but this did not happen. Within the last week, she put the names together and had it at the meeting last night. Being on a Tuesday evening (vote per the rules has to be 2nd Tuesday in October) very few people came. We had our last meeting on a Sunday and with less homeowners, we had a pretty much everybody there. She did send out in a letter informing everyone of the meeting that if they couldn't make it to contact her and they could do a absentee vote, but no one contacted her.

From all the reading I have done and the comments that I am getting, it sounds like an HOA of 90 homes much be extremely small.

Lisa

BradP (Kansas)
Posts: 2,640

Posted:

MC-

If you have 7 board members out of 32 homes that is pretty good! I have a hard time getting 7 out of 165 homes. A management company is always an option, but that option comes at a price too. No disrespect to anyone on here that works for an MC. Self managing is possible, but hard. It seems to me that you have a great amount of participation right now.

DuaneW1 (Georgia)
Posts: 34

Posted:

Lisa, One thing I'm not clear on, is in our HOA, only homeowners get to vote, and it would be one vote per household, is it not this way generally, or is our HOA just weird?

We also have a married couple though he is the secretary and she is the head of the social committee. But they still only get one vote(though we've only had ONE meeting in a year since the CCR's say we have to have a minimum of one, the board took it to mean they only have to HAVE one as well!)

RogerB (Colorado)
Posts: 5,067

Posted:

Duane, usually the By-laws specify how many Board meetings per year are required. So check your By-laws. For single family homes it is often quarterly (4/yr) Board meetings; condos often have monthly Board meetings. Usually there is one vote per unit (lot) for homeowners.

MC (Kansas)
Posts: 4

Posted:

Duane, it does not specify in our by-laws that there is only one vote per household. However, I, along with many others feel that it should be. For the past year, to have 4 members on the board and 2 are married, seems a little unfair. That is one of the reasons the board wanted to make sure there is an odd number, in case of a tie vote, and the by-laws state we can have anywhere from 1 to 7. Since 7 volunteered, 7 are on the board. We also have 3 committees, I believe, and there are board members on the committees, along with spouses of board members. I believe the committees responsibility is if there is a complaint, they review the complaint, put together a plan of action to correct the complaint and then present it to the board.

Our by-laws also specify 2 meetings pre year and that is what we are having. The problem I have seen, and will try to repair since I am now on the board, is that when the board makes a decision that changes items that are in the by-laws, they are not notifing home owners until we have a meeting.

Lisa

BonnieC (Pennsylvania)
Posts: 11

Posted:

This is my first time to this wonderful website.
Can anyone tell me a ball park range for what a management company charges?
Thanks

CharlesW1 (Georgia)
Posts: 826

Posted:

BonnieC,

I don’t know what you can expect of other MC. Our management company is Heritage Property, we are very fortunate to have found a good MC. We have an $18,900.00 a year contract. It is in our contract to pay them before the first of every month $1,575.00.
What state do you live in? Maybe we (this discussion board) can give you suggestions of an exceptional MC in your area. Heritage Property(Atlanta, Georgia) has been a great help to our community, we appreciate all their hard work.

Keeping reading topics on this discussion board, there are some very knowledgeable people that have posted and responded to troubles that other HOA can or have experienced in their community. The Search box in the top right hand corner is very useful, to give you advice on previously discussed topics.

This probably doesn’t really help you all that much, sorry I couldn’t be of more help.

Best of luck,
Chuck W.

Charles E. Wafer Jr.

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

MC,

Regarding two board members that reside in the same residence, check your governing documents. However, each owner gets one vote, correct? 90 homes, 90 votes correct? If so these board members are excercising two votes. Seems to me this illogical, could be unethical and could be contrary to your by-laws.

Regarding voter/owner turnout, the importance of volunteerism is a concept that is lost on many. In HOA's volunteerism is critical.

A good Board can encourage owners to participate and hold social gatherings to get the message out.

Best of success!!
GeraldT1
NNJ

HaroldS (Arizona)
Posts: 906

Posted:

Why are two members from the same household being on the board such a problem? They were supposedly elected by the members who must not have had a problem with that. Board members wear two hats: as an elected board member, and as a property owner. Elected board members each get one vote on items that come before the board, so yes, an elected couple would have two votes on the board. However, as property owners they would have just one vote on matters put to the membership for a vote.
On a three member board a couple could control the vote outcome, but with seven board members, how would their two votes influence the outcome? They both may not agree completely on every item anyway. A couple with one a board member and the other a committee member should not be a problem. Committee members have no vote on board matters. If your documents do not forbid household members serving on the same board, there is not much you can do except try to change your documents to reflect your concerns. Harold

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here