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MaureenM4 (Washington)
Posts: 20
Posted:
Recently learned that our new book keeper and our PM (homeowners)of many years does not have any agreement or contract. Does this strike anyone else beside me as scary?! Any advice on how to move this BoD forward in time from the 80's regarding contractors?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Maureen,
Well, worry is not the word from what you post. certanly concern for your association is demanded by your documents. Go to a Board meeting, voice your concern and request a reply. That's the first step, ask if there are other employment contracts, read your documents and see if homeowners can actually hold these positions, does state law allow it? You need to become part of the solution, one way or the other. Are you ready for that? It's a long tough job, thought about running for the Board? I don't know that we can pass judgment or what you describe, it certainly should be justifed if it is true. I don't see it as scary But you are not telling us all you think you know, are you. No problem about that, but it does put a different slant on the picture.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Well, to be honest, the ones to whom this would or should be "scary" would be the contractors.

Without any agreement or contract, the HOA can simply pay them whatever, or kick them to the curb with no notice or compensation.

It's not exactly beneficial to your HOA, but your HOA has less to lose than the contractors who have no agreement.

MaureenM4 (Washington)
Posts: 20
Posted:
Hello Robert,

Yes, I am on the BoD., Brand new Pres as of the last meeting. I am trying to be very cautious on details for this reason. I spoke with the last Pres about some kind of manual for any new BoD member (oreintation)and the answer is that we have none. Basically we have been running this Association year over year with the PM (homeowner) making decisions for the majority of the BoD based off of this persons opinions and experience. That in itself typically is not a bad thing; however, when he/she steps over the line and dictates meetings, sets the agenda, types the minutes and omits things.. also, presides over meetings its a bad thing. The old Pres did not step in and take the lead. Also, this person interrupts BoD discussion before motions and its getting tense. Some Bod members stated that they were angry this was happening after our last meeting. So, I started investigating (call old Pres, etc). I thought I might have over looked or not asked the right person where are our proceedures, policies, and standard operating contracts or agreements were... Answer is - none. Here is the language that I have from the CCRs:

Each Member hereby agrees that the Association may enter into such agreements for the performance of any or all of the functions of the Association with such persons or entities as the Association shall deem fit and proper in its judgement and discretion; provided however, any agreement for profesional management of the Properties, or any other contract providing for services by the Developer, sponsor or builder, must provide for termination by either party without cause or payment of a termination fee on ninety (90) days, or less, written notice and the maximum contract term shall be three (3) years.

So, yeah I am feeling a tad bit worried here that I and others have no roadmap here. Thoughts or advice?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Maureen,
Well, you are right to worry when the tail wags the dog and that is exactly your problem, and it will get worse probably. It does not need to happen, it should have never happened, but it is common.

For help" Use the search feature at the top of this page and search Duties of Board or some such.
Look at the highlighted in yellow on the left this page, (CAN reference library is good) lots of help there and ten thousand links about references on how to run an HOA. It's a tough job but you must, as president know more than your manager about running the Board. Use him/her as a resource. I do not have good vibes about an owner being a manager. I do not have good vibes about a manager being an owner. Just not my preference and would never happen in our condo as it would be a covenant violation. Get your Board Members together for a meeting, you run the meeting, you do not have to have anyone there you don't want. I even suggest all your meetings be open to all members. You can not or should not hold a meeting in secret about this, unless you want to cover it with the legitimate reason of personnel discussion (that would be my choice then you can go closed), but do not hide behind the closed meeting routinely.

I expect Glen will pick up on this and give you some legal references and state laws. There will also be others to help you get started. Hell, if you got a Board majority, you can run the ship, if you don't, it just makes the job tougher.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By MaureenM4 on 01/09/2010 7:44 PM
Recently learned that our new book keeper and our PM (homeowners)of many years does not have any agreement or contract. Does this strike anyone else beside me as scary?! Any advice on how to move this BoD forward in time from the 80's regarding contractors?

Maureen,

They probably have a verbal contract of some sort (even if it's as simple as agreeing to be the bookkeeper for x dollars). However, written contracts and not verbal should be the norm for any HOA. Contracts can also help prove if the individual is an employee or an independent contractor.

Tim
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Maureen,
I recently received a blurb from the following company that could be the kind of thing you are looking for. Go to hoaleader.com and have a look at this new quide book.
I am not emdorsing any company but this may prove helpful.
MaureenM4 (Washington)
Posts: 20
Posted:
Thank you all for your suggestions and responses.

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