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TamV (California)
Posts: 3
Posted:
I am in California. I am a treasurer of a small HOA, only 14 townhouses/Condo. Since the board work for free, no one want to take responsibility and take care all complains. There are no Management company; I take care of the repairs, maintenance, and utility as well as insurance expenses. Now there are only a treasurer (me) and a secretary. What can I do? Should I have city involved? what if I sell my unit, who will replace me? I am stuck.
GlenL (Ohio)
Posts: 5,491
Posted:
Tam you can call the other owners together and explain you need help and they need to step up. Then you can lay out some options:

1. They help and you continue to be self-managed.

2. Assessments can be raised to hire a Management Company to take care of the day to day operation although you will still need a Board to direct them.

3. If no one wants to help you can go to the courts and ask that a receiver be appointed to oversee the community. If that happens the other homeowners will have zero input on what the receiver does and the assessments will go up to pay his salary. The receiver will remain in charge until the homeowners can prove to the court that they are willing and able to meet their responsibilities.

Studies show that 5 out of 4 people have problems with fractions
BrianB (California)
Posts: 2,820
Posted:
some good advice in the previous answer... and if you sell your home, honestly, who cares? it's not your problem once you do.

TamV (California)
Posts: 3
Posted:
GlenL

I agree that even I hire a Management Company, HOA still needs a president as a board structure.

What court can I go to get an appointed President if needed?
TamV (California)
Posts: 3
Posted:
BrianB,

Selling the home is not an option at this market. Moreover, it is not a solution since I still have to transfer all of the paper, banks (meaning cash, money), contracts, reports, meeting minutes, monthly payments to someone.
GlenL (Ohio)
Posts: 5,491
Posted:
Tam, the courts won't appoint a president. If no one will step up and you can't or won't do it any longer then I believe you would apply in superior court for the receiver.

Code of Civil Procedure ยง564. Appointment of a Receiver.

(a) A receiver may be appointed, in the manner provided in this chapter, by the court in which an action or proceeding is pending in any case in which the court is empowered by law to appoint a receiver.

(b) A receiver may be appointed by the court in which an action or proceeding is pending, or by a judge thereof, in the following cases:

(1) In an action by a vendor to vacate a fraudulent purchase of property, or by a creditor to subject any property or fund to the creditor's claim, or between partners or others jointly owning or interested in any property or fund, on the application of the plaintiff, or of any party whose right to or interest in the property or fund, or the proceeds thereof, is probable, and where it is shown that the property or fund is in danger of being lost, removed, or materially injured.
(2) In an action by a secured lender for the foreclosure of a deed of trust or mortgage and sale of property upon which there is a lien under a deed of trust or mortgage, where it appears that the property is in danger of being lost, removed, or materially injured, or that the condition of the deed of trust or mortgage has not been performed, and that the property is probably insufficient to discharge the deed of trust or mortgage debt.
(3) After judgment, to carry the judgment into effect.
(4) After judgment, to dispose of the property according to the judgment, or to preserve it during the pendency of an appeal, or pursuant to the Enforcement of Judgments Law (Title 9 (commencing with Section 680.010)), or after sale of real property pursuant to a decree of foreclosure, during the redemption period, to collect, expend, and disburse rents as directed by the court or otherwise provided by law.
(5) Where a corporation has been dissolved, as provided in Section 565.
(6) Where a corporation is insolvent, or in imminent danger of insolvency, or has forfeited its corporate rights.
(7) In an action of unlawful detainer.
(8) At the request of the Public Utilities Commission pursuant to Section 855 or 5259.5 of the Public Utilities Code.
(9) In all other cases where necessary to preserve the property or rights of any party.
(10) At the request of the Office of Statewide Health Planning and Development, or the Attorney General, pursuant to Section 129173 of the Health and Safety Code.
(11) In an action by a secured lender for specific performance of an assignment of rents provision in a deed of trust, mortgage, or separate assignment document. The appointment may be continued after entry of a judgment for specific performance if appropriate to protect, operate, or maintain real property encumbered by a deed of trust or mortgage or to collect rents therefrom while a pending nonjudicial foreclosure under power of sale in a deed of trust or mortgage is being completed.
(12) In a case brought by an assignee under an assignment of leases, rents, issues, or profits pursuant to subdivision (g) of Section 2938 of the Civil Code.

(c) A receiver may be appointed, in the manner provided in this chapter, including, but not limited to, Section 566, by the superior court in an action brought by a secured lender to enforce the rights provided in Section 2929.5 of the Civil Code, to enable the secured lender to enter and inspect the real property security for the purpose of determining the existence, location, nature, and magnitude of any past or present release or threatened release of any hazardous substance into, onto, beneath, or from the real property security. The secured lender shall not abuse the right of entry and inspection or use it to harass the borrower or tenant of the property. Except in case of an emergency, when the borrower or tenant of the property has abandoned the premises, or if it is impracticable to do so, the secured lender shall give the borrower or tenant of the property reasonable notice of the secured lender's intent to enter and shall enter only during the borrower's or tenant' s normal business hours. Twenty-four hours' notice shall be presumed to be reasonable notice in the absence of evidence to the contrary.

(d) Any action by a secured lender to appoint a receiver pursuant to this section shall not constitute an action within the meaning of subdivision (a) of Section 726.

(e) For purposes of this section:

(1) "Borrower" means the trustor under a deed of trust, or a mortgagor under a mortgage, where the deed of trust or mortgage encumbers real property security and secures the performance of the trustor or mortgagor under a loan, extension of credit, guaranty, or other obligation. The term includes any successor in interest of the trustor or mortgagor to the real property security before the deed of trust or mortgage has been discharged, reconveyed, or foreclosed upon.
(2) "Hazardous substance" means any of the following:

(A) Any "hazardous substance" as defined in subdivision (h) of Section 25281 of the Health and Safety Code.
(B) Any "waste" as defined in subdivision (d) of Section 13050 of the Water Code.
(C) Petroleum including crude oil or any fraction thereof, natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel, or any mixture thereof.

(3) "Real property security" means any real property and improvements, other than a separate interest and any related interest in the common area of a residential common interest development, as the terms "separate interest," "common area," and "common interest development" are defined in Section 1351 of the Civil Code, or real property consisting of one acre or less that contains 1 to 15 dwelling units.
(4) "Release" means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment, including continuing migration, of hazardous substances into, onto, or through soil, surface water, or groundwater.
(5) "Secured lender" means the beneficiary under a deed of trust against the real property security, or the mortgagee under a mortgage against the real property security, and any successor in interest of the beneficiary or mortgagee to the deed of trust or mortgage.


Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
Tam, I know you didn't ask this question but I thought I would add a question and answer from www.davis-stirling.com:

QUESTION: Most of the owners in our 12-unit association stopped paying their dues. The board is not holding meetings and the management company terminated the account. The insurance has not be paid, the landscape, trash, etc. are not serviced as the vendors haven't been paid. At this point I think the intent is for all the owners to stop paying dues. Do you know what happens next?

ANSWER: What you describe is quite serious. Without insurance, all owners are personally exposed if someone is injured in your common areas. Each member could be sued and there will be no insurance to defend them or to pay any judgment. Each owner would need to pay out of pocket for an attorney and each could be liable for the entire judgment (joint and several liability). Your association has probably had its corporate status suspended, which means it cannot defend itself against lawsuits. Deferred maintenance will accumulate, leading to water damage and mold in the common areas (more potential litigation). In addition to owners being vulnerable to litigation, directors from the last board of record could be sued for breach of their fiduciary duties. Finally, the market values of your units will plummet to the point of being unsalable. Sellers must disclose to potential buyers the true state of your association's affairs, and who in their right mind would buy into your association?


Studies show that 5 out of 4 people have problems with fractions
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
With strict laws in California, davis stirling, along with the economy going down the tubes, HOA's are facing many problems. Getting volunteers when everything is easy going is easier, its not so easy when people have their own problems, and serious HOA problems on top of that. Now it becomes a real job, on top of their real job.

You may have to get creative. Say your dues are $100 month. Have the president pay their dues, then cut them a check as a contractor/consultant for $100 month. That may get people involved.

When things go to hell, you just need to find a different way of doing things.
BrianB (California)
Posts: 2,820
Posted:
Quote:
Posted By TamV on 05/16/2010 10:48 PM
BrianB,

Selling the home is not an option at this market. Moreover, it is not a solution since I still have to transfer all of the paper, banks (meaning cash, money), contracts, reports, meeting minutes, monthly payments to someone.

Respectfully, i must disagree...

First, you mentioned selling in your OP. i was just commenting that if you take that route, you have no horse in the race anymore, and thus, shouldn't care what happens to the HOA after you have sold.

Second, I do not recall any law that has banned home sales, so i believe selling is still an option. perhaps not one you like, or want to do, or will make you lots of money, but it is still an option.

and lastly, it is a solution: again, once you have sold, it doesn't matter who takes over the HOA. you can leave all the papers, bank accounts, contracts, reports, etc. in a box on the garage floor. It's not your HOA anymore. You don't own stock in it anymore.
DanielH1 (California)
Posts: 482
Posted:
If I were you, I'd vote myself in as President, raise fees and hire a management company. Hire the management company at the highest/most expensive service plan and delegate almost everything possible to them.

If people don't want to volunteer, then they can pay. And pay. And pay.

At some point, they'll become so upset at the fees that they'll show up and complain.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By SteveM9 on 05/17/2010 4:00 AM
With strict laws in California, davis stirling, along with the economy going down the tubes, HOA's are facing many problems. Getting volunteers when everything is easy going is easier, its not so easy when people have their own problems, and serious HOA problems on top of that. Now it becomes a real job, on top of their real job.

You may have to get creative. Say your dues are $100 month. Have the president pay their dues, then cut them a check as a contractor/consultant for $100 month. That may get people involved.

When things go to hell, you just need to find a different way of doing things.

Yeah, that would sure get me involved were I living in that development. That's pretty dangerous advice if the deed restrictions or by laws do not allow the board members to be paid. Trying to get "creative" and calling it "consulting" is just that, creative and not exactly ethical and possibly illegal IF the restrictions/by laws do not allow for paid board members.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
creative and not exactly ethical and possibly illegal IF the restrictions/by laws do not allow for paid board members.


Illegal according to your what your docs allow, not illegal according to city, state, federal laws. Lets not pretend there is any threat of criminal prosecution. It would be a civil case.
RonaldH (Connecticut)
Posts: 3
Posted:
I am the Treasurer of a small Condominium Association 14 Units.We have the same problem.We had been self managed for the past 10 years.The Unit owners that managed have sold their units and moved south.Now it is impossible to get anyone involved in the Board. We have had three Presidents resign over the past three years.Each time I am stuck with the work for the Association.I convinced the unit owners in Oct 2010 that we needed to hire a mgmt company.We have just hired a company and introduced them at our unit owners meeting.They did a nice job explaining the need to maintain a Board even with a mgmt company.They explained that if we did not maintain a Board that we would be forced in court recievership.
They indicated this would make it very hard to maintain unit values and to sell units.Our bylaws do not permit paying Board members.I believe if there were some compensation for the people who actually do all the work for the Association that we would have some takers for the Booard positions.This would only require a change to our Bylaws to make this happen with 2/3 of the unit owners approval.

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