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BertJ (Arizona)
Posts: 5
Posted:
But..I have a question first of all I am from a rural town in Arizona. Our home owners association is relatively new since we have only taken control for a little over a year. I have a question. Our previous board(The first) worked hard to stop the bleeding and put the HOA back in the BLACK. They did this by renegotiating contracts and cutting waste. Unfortunately health issues and travel plans pretty much gutted that board. We now have what I have seen referenced here as a banana republic type board. I went to the last three meetings and the president and this board seem hell bent on spending every dime in our reserves. Case in point the old board received a legal opinion(I was there at the meeting)concerning painting of Barrier fencing that borders our Golf Course. The cost was astronomical and the legal opinion stated that these fences belonged to the individual and not the HOA. In addition it was brought up that the type of paint to be used and the required sanding would require the issuance of a Material Safety Data Sheet and all necessary protection because of the fumes. It also stated that each person would have to be aware of the consequences of the painting(Health-wise). The Board (Then) voted to just do the common areas as this was their requirement. This board(Since three of them live on the Golf course) have elected to do the fences, disregarding the legal opinion that was given to them. My question is.. does this protect our HOA from lawsuits that could arise from this since
they would literally be painting private property and have been told they can't? or does this become an individual problem as far as the board members are concerned? Since they have already been rendered a legal opinion.

These guys are beauty's they have been voting themselves reimbursements for just about everything and have squandered the previous boards savings and are spending like madmen.Unfortunately we could never get the 66% required to get them tossed. So do I as a Member have any options? One of the Board members who was on the board brought this up as a point of order and the President refused to have it included in the minutes.

Just wondering about this. Thanks in advance and have a great weekend. God Bless our troops and all that have given their Lives.
SheliaH (Indiana)
Posts: 6,964
Posted:
Why would anyone need a legal opinion on painting a fence anyway – didn’t these guys and gals check the governing documents??? If not, you should start there (in fact, most questions regarding HOAs start here, so be sure to get good and familiar with them, whether you’re on the board or not). It would seem to me the Association would be responsible for the fences.

You say the cost was “astronomical”, but how do you know the Board didn’t review several bids and this one was the best? Astronomical may seem high, but you have to consider the length, size, materials, labor and all that stuff. Did your reserves cover major repairs for the fence (if not, and it’s Association property, you need to factor in maintenance and replacement costs for the next reserve study). As far as health risks are concerned, are we talking about the people who live close by this fence, the workers who will be doing the sanding or both? I would think the workers would be covered by worker’s compensation that the contractor would be carrying. If the homeowners are involved, they should be talking to the board about potential health hazards and how those will be addressed.

As for the board ‘spending like madmen”, well, to quote Eleanor Roosevelt, no one can take advantage of you without your consent. If other homeowners are upset about the spending and whatever else the board is doing, they have to get up, addent meetings and ask hard questions – and if the answers aren’t forthcoming and/or don’t make sense, they will have to become part of the 66% required to throw the bums out. Then, there will need to be new board members who can and will do the right thing. Since you are an association member, this may mean YOU will have to go door to door and talk to your neighbors and consider running for the board yourself to turn things around. Good luck!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MaryA1 (Arizona)
Posts: 7,043
Posted:
Bert,

I've pasted below the applicable AZ HOA statute pertaining to removal of board member(s). As you can see the requirement is for a majority vote of those voting at the meeting (or those who have mailed in ballots). This is the requirement regardless of what your CCRs or bylaws say -- the state law prevails. A petition is required for which the % is based upon the size of your assn and the BOD cannot disregard this petition. They have 30 days after receipt of the petition to call the meeting. I would suggest presenting the petition to the BOD at a regularly scheduled board meeting. I don't know if you want to recall the whole board but I would strongly suggest recalling those 3 whose homes border the golf course. In order to meet their fiduciary resp., board members are required to make decisions that are in the best interests of ALL members of the assn not decisions that are in their best interests. From what you have said, these 3 board members are in violation of their fiduciary resp. and do not deserve to serve on the BOD. So, the next order of business should be to get all your friends together and start working on that petition. I would also suggest lining up interested members to run for the vacant seats should the recall be a success. In fact, when the petition is presented you could inform the board that the notice should also call for an election and give them the names of the candidates. BTW, how many members are in your assn and how many have homes bordering the golf course? I doubt those members would be willing to sign the petition!

We have quite a large number of homes that border a lake and/or the golf course and have "view" fences in their back yards. These fences are the resp. of the property owner to maintain and this is stated in our CCRs. I would suggest you thoroughly read your CCRs to see if this is outlined therein. If not, I really cannot understand how an attorney could issue a legal opinion saying it's the prop. owner's resp, unless it can be proven that the fence is definitely on the prop. owner's property.

Unfortunately, there is not AZ law which addresses reserve funds. So, unless there is something in your CCRs (which I doubt), then the board can use them as they like.

-------------------------------------------------------------------------------
33-1813. Removal of board member; special meeting

A. Notwithstanding any provision of the declaration or bylaws to the contrary, the members, by a majority vote of members entitled to vote and voting on the matter at a meeting of the members called pursuant to this section at which a quorum is present, may remove any member of the board of directors with or without cause, other than a member appointed by the declarant. For purposes of calling for removal of a member of the board of directors, other than a member appointed by the declarant, the following apply:

1. In an association with one thousand or fewer members, on receipt of a petition that calls for removal of a member of the board of directors and that is signed by the number of persons who are entitled to cast at least twenty-five per cent of the votes in the association or one hundred votes in the association, whichever is less, the board shall call and provide written notice of a special meeting of the association as prescribed by section 33-1804, subsection B.

2. Notwithstanding section 33-1804, subsection B, in an association with more than one thousand members, on receipt of a petition that calls for removal of a member of the board of directors and that is signed by the number of persons who are entitled to cast at least ten per cent of the votes in the association or one thousand votes in the association, whichever is less, the board shall call and provide written notice of a special meeting of the association. The board shall provide written notice of a special meeting as prescribed by section 33-1804, subsection B.

3. The special meeting shall be called, noticed and held within thirty days after receipt of the petition.

4. For purposes of a special meeting called pursuant to this subsection, a quorum is present if the number of owners to whom at least twenty per cent of the votes or one thousand votes, whichever is less, are allocated is present at the meeting in person or as otherwise permitted by law.

5. If a civil action is filed regarding the removal of a board member, the prevailing party in the civil action shall be awarded its reasonable attorney fees and costs.

6. The board of directors shall retain all documents and other records relating to the proposed removal of the member of the board of directors for at least one year after the date of the special meeting and shall permit members to inspect those documents and records pursuant to section 33-1805.

7. A petition that calls for the removal of the same member of the board of directors shall not be submitted more than once during each term of office for that member.

B. For an association in which board members are elected from separately designated voting districts, a member of the board of directors, other than a member appointed by the declarant, may be removed only by a vote of the members from that voting district, and only the members from that voting district are eligible to vote on the matter or be counted for purposes of determining a quorum.

BertJ (Arizona)
Posts: 5
Posted:
Thank you very Much..everyone. I probably was not clear enough about the fences but they are by legal opinion the property of the Homeowner..Both sides. The legal opinion stated that the common areas need to be done but the fences on private property are the responsibility of the owner. Thank you both for your comments they were put together very well.
BertJ (Arizona)
Posts: 5
Posted:
Thank you very much you made some great points and you are right..time to get off my rear end.
GlenL (Ohio)
Posts: 5,491
Posted:
Bert, since they're gutting the reserves I would suggest you start putting some extra money away for the special assessment that is sure to happen.

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