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BeverlyC (Texas)
Posts: 5
Posted:
The former president, waived HOA dues/late fees without board approval for her friend. She now wants to run for the board again. Does the current board have any recourse to recoup these fees or legally prevent her from running on the board again?
DanielH1 (California)
Posts: 482
Posted:
The Board can send a letter demanding payment or refer the account to a collection agency.

Unless there's something that I'm not seeing, the president's actions were unofficial and have no value. Even if the debtor has a signed statement on HOA letterhead or receive statements saying that her account with up to date, it doesn't matter: the action was unofficial and illegal. It's just the same as having your neighbor or the President of the United States waive your dues; they don't have the power, either. It's as if it never happened. (It's just the same as worming a promise out of the president not to foreclose on your home: the president doesn't have the power to interfere in the process without consent of the Board.)

You probably can't prevent the former president from running again. The best thing to do is have better candidates and have her lose, fair and square.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Beverly,

IMO, the board cannot go back and try to collect the dues and late fees that were waived in error by the past Board Pres. The BOD should have done this at the time the Pres acted in error. I'm assuming this didn't "just" happen!

I cannot think of any way the BOD can prevent this person for running for a board position again. However, if she is elected I would make certain she is not appointed as Pres and also that she understands she does not have the authority to make these kind of decisions w/o a majority vote of the board.
JeanneK3 (Maryland)
Posts: 562
Posted:
Beverly:
Send a letter or door notice to everyone living in your community describing what happened and the reasons why she should not be elected again. Make sure you have evidence before you do so, otherwise she can sue you for slander.
Jeanne
DanielH1 (California)
Posts: 482
Posted:
Legally, the HOA is owed the debt and can collect on it.

If the Board decides to waive the debt anyway or just waive late fees/interest, they can probably take a vote to do that, assuming it is not in violation of your documents. If you want to validate what the president did, a Board vote should be able to do that and should actually be done.

But the debtor doesn't have any legal right here. Maybe they have some "ethical right" but, legally, they got nothin'. Any debt holder has a right to fix mistakes, even fairly long after the fact. Invalid or illegal or lack-of-authority issues don't automatically invalidate the debt.

If it were me, I'd be reluctant to have the rest of the HOA "give a gift" to this person. Maybe I'd convince the Board to waive late fees/interest and send a "sorry but the former president exceeded his authority, so sorry, but please pay us now" letter.
JackB8 (Virginia)
Posts: 141
Posted:
Just bill the homeownwer unless she can provide proof the debt has not been satisfied by payment or by authorized forgiveness of the debt by proper authority and due process. Technically, I think the person who forgave this debt has violated at least one of the provisions of your governing documents and could be said to be negligent in his/her duties and therefore ineligible to serve.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Beverly (and all),

Without seeing your Associations legal documents that explain if and how Assessments/dues and/or fees and penalties can be waived it's difficult to answer as knowing this information may change the initial advise given.

IF your documents allow assessments to be waived, it is possible that the Association has no recourse. It depends on who has the authority to waive them and what procedures may or may not be in place to consider waiving them.

IF your documents do not allow the assessments to be waived, the Board may have action against the former President but not necessarily the homeowner. How long ago it happened, how it happened and more specifics would be needed to properly answer this.

Hope this helps,

Tim
SusanW1 (Michigan)
Posts: 5,202
Posted:
How did this get past the treasurer and/or the MC?

Who's watching the books?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Beverly,
What is your position in all this? It matters, if you are a Board member, you should try and resolve through the Board. If not, present your concerns to the Board and request the Board take a position (providing all this can be verified). No action that way and you feel strongly enough, make sure you get the Board to enter into minutes your concerns, then, consider doing a little community information service and actually present your information publicly. As had been said many times here, maybe more productive to not do anything and monitor the actions of this person on the Board, if she is elected, a semi good board will not allow this kind of thing to repeat especially after notification of a prior infraction by this selectee.

Also, consider running your own candidate against her. Not to hard to get more votes than letting nature take it's course.
BeverlyC (Texas)
Posts: 5
Posted:
The former President has been on the board till the lasst election for about 25 years. The majority of the time she served as president. The treasurer at the time (2007-2008) owned a large number of the condos - basically a landlord who will rent to anyone. He never looked at the books, which were done by a Managament company that took advantage in so many ways it should be criminal. The secretary - was a lady who worked for the Majority owner of condos who later filed bankruptcy leaving 80 units and the HOA struggling to collect from lenders. Leaving 2 other homeowners out numbered.

I was elected President in April, the former secretary is not longer serving but, the former treasurer is. and since that time it has been very challenging. It took several months to realize there was no one "minding the store" We began to challenge the managament company on invalid charges and have since been able to chang managment companies. We have started to turn things around, but now the former Secretary and President want back on the board. This is my first time to serve on a board and must seek guidance to insure I/the board are doing things properly. I only recently discovered this forum, which I feel will aid us immensely. O

Our documents are from 1983 and have never been updated and are very generic in nature, which gives no guidance in this situation. I need to understand the condo laws, but do not know where to find them.

GraceH (Virginia)
Posts: 224
Posted:
Beverly,

You have come to the right place for help! Allot of the people that post here will provide you with the tools you need to research most any situation that arises.

While I do not know Texas Laws, I can tell you that you need to check the minutes of the meeting when the fees were waived. If there is no reference, bring it out in Executive Session so that the rest of the board members are aware prior to the election of officers.

I know that it was said to post a notice that explains the situation, however, unless you have that notice reviewed by an Attorney, PLEASE do not post it. This day and age anyone can and will sue anyone for anything.

Regards,
Grace
RobertR1 (South Carolina)
Posts: 5,164
Posted:
To comment on your last post.
In general you seem to be off on the right foot. Understand you will need intelligence, smarts, patience, self control, supporters, an absolute hard shell, and persistence and time to do what you want to do. Keep in mind, right now, if this person is trying to usurp the Board, right now they have to attack you, if she or whoever becomes a Board member they can do it from the inside. This woman probably has done some good for the community and she has probably done some bad, but done is done, time to move on, no, "this is how I used to do it", that ship has sailed. You absolutely need to get a majority on your Board, as the president you stand a damn good change of doing that if you are smart with your proxies, not illegal, but smart. If you have to go door to door, do it, remember right now you are the good guy and the only way to negate you is to make you look bad. Don't give her a reason and if you are not having open meeting, open up your Board meetings, be very careful about executive sessions and build a power base by getting supporters and get them working for what you are working for, you don't need that many you just need a loud honest voice. Keep the high road.........always.......and convey to the membership you seek one goal. To serve the association and protect it. Don't try to do too much at a time, little steps and if you find something you can't go through, go around it....tomorrow is another day.

All this applies only if you are truly what you present yourself to be. As always, IMHO

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