HOA controlled by delinquent investor

hello, new member here. Our condo HOA in Texas is controlled by delinquent investor, who happens to be the President of HOA and owns about 50% of the units. He is pretty much in delinquent in HOA dues all of the units he owns.

Since he is the President of the HOA, he somehow, he was able to block the management company to send overdue notices to enforce the usual collection process and blcoking anything from going forward unless it benefits him personally. Anyways, this year he refused to call an annual meeting where we suppose to vote on the 1-yr term positions of President, Secretary, and Treasure. Our HOA bypaw do not have a specific language to handle overdue broad members from vacating the seat; but our state HOA law does if a quorum of 1/4 of the voting units is called upon. Question: is a quorum our only option?

Also, he is threatening to holds our management company "accountable" if we go forward with bylaws-allowed items such as grant it power to accept the insurance settlement of roof damages from a recent disaster. we suspect he did that for personal gains since the management company did not pick the firm of his choice to do the roofing works since it would costs more (from kickbacks?) to the HOA.

Thanks in advance.

The BOD can call an annual meeting for the residents to vote on a new President.

If it were my association, I would not want the owner of 50% of the properties to be an officer (unless its a really small association and every owner needs to be an officer to fill the spots).

Thanks folks. well, here's the part he was able to pull the stun on all of us so far. Since he has about 80 units (out of the 160 or so), he was able to have 2 more business "partners" to run for and occupied the rest and 100% of the board positions to control the rest of the board (president, secretary, and treasurer). Since the board set the agenda for the third-party management company, which BTW he tries to replaces with his own for personal reasons, the mana company hands are tied in terms of collecting, lien filings, etc. notwithstanding not doing so compromising its fiduciary duty.

Chris, I could have read the original post wrong, but I don't think this HOA president is the DEVELOPER.

In think he is an investor in property and has purchased up to 50% of the units and is leasing them out.

It's my understanding that he is simply a member like the other members, but just happens to own more units, therefore has more votes.

But it would seem to be in his best interest to ensure that the HOA is run properly so he can get optimum $$$ for his own units when he puts them up for lease.

It would seem to me that not to do so would be counter-productive to his getting a premium price for his units.

I guess "quantity" is just as good to him.

I feel for the other owners. With this investor having such a large block of votes, they are going to have a rough way to go to have their own interests protected.

Gee, could this be one of the reasons FHA won't write a mortgage if one person has over 10% of the units.

I do have side question. Since our annual meeting and voting supposed to occurs by end of each calendar year, which also our fiscal year, it hasn't happens. Our bylaws do not state what our option are if that happens, thus it falls back to our state statue, which i have not able to find the details. What do most state statue allows for missing an and made-up election?

Warren in CA members can apply to the courts to force an election but you probably have the answer in your own CC&R's. Most allow a certain percentage of the membership to call a Special Meeting for a specific purpose.

Mary, at least in our documents a special meeting can be called for any valid reason. No where did I advocate to Warren that he call a meeting to recall the Board but if he wants a Members meeting this would be a way to get one.

Depends on the CC&R's and State law.

Warren,
Everything that has been offered here has been negated by the control of the majority of votes by one person. You has listed a litany of ways you have tried to get representation of the minority of votes. The fact remains that the minority of votes is the majority of people. Consider writing out a time line on all these unfair (and they are unfair) circumstances you have tried to use to get some representation. A power point demo would be great. Call a town hall meeting open to all. Get some good strong leader to conduct the meeting, conduct the meeting as totally outside the association. If this guy is there, he becomes one vote, that is all....new rules at this meeting. Get your point across and ask for cash to get up a war chest to hire a good lawyer. Glen's advice way back. Don't hide nothing, don't exclude anyone and don't get aggressive and make a mistake. This guy will know what you are doing and he will not like looking at a meeting outside his control.....tough. But document everything so when it comes time to get a lawyer you will have the ducks in order. He may be as legal as he can be, but you take this before a judge with a good lawyer and have a good presentation, you will get some relief in all likely hood. For this guy to even want this much control is immediately suspect. Do not close any doors and always be willing to sit down at the table.
He has built a record, lay that record out.