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PattyB1 (Kentucky)
Posts: 40
Posted:
I really could use some advise on what to do with this situation. As I stated in an earlier topic, the Board Members,who I refer to as the (Santa Barbara Saints),are not going to be paying their yearly dues as of July of this year. They are a group of 7 friends that placed themselves on the Board with no opposition, wrote it up in a newsletter and called it an election. I was President for 3 years and had stepped down for personal reasons.
I mailed all Homeowners a nomination form but after 30 days I still had not received anything back. Long story,but anyway, They have decided to rewrite our By- Laws and CC&Rs which have been in place since 2001, before any of them lived here. I'm sure it will include Board Members not having to pay dues. They are making rules as they go to benefit them, not our neighborhood.
They have to know what they are doing is against the By-Laws, and they are quickly emptying out our HOA account, with most of the checks being written to various Board Members. This has to stop, What should I do first? Patty
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
First thing to do is inform the other homeowners.

- Write a letter to every homeowner. Stamps are cheap! (anonymous if you like with a note of a free email address such as gmail to get in touch with you)

- Online forum. Start an online forum and mention it in the letter. This will allow all the homeowners to discuss what is going on.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Patty, you may have to seek an injunction.

You should immediately contact a well-versed HOA attorney.

You will also need to get your neighbors involved.

What they are doing is improper and unethical and it likely will need to be sorted out in a court of law.

Not sure what city in KY you live in, but I know a couple of really good HOA attorneys in Louisville.
JonD1
Posts: 2,350
Posted:
Seems Steve hit the nail on the head. Where are the unit owners in all this???

Was an election held???? Were these folks voted in?????

People get away with what you let them.

As to changing the By-Laws to allow for their not paying CCs well I would think that would require a vote of the unit owners. Is that in your documents?

Do you have monthly open meetings? Any open meetings??? Is a budget provided or audit required annually?????

If not where do you get your information from? How do you know about what checks have been written?

The unit owners either get involved or more than likely you will have a few less dollars coming in each month if what you have represented is accurate.

PattyB1 (Kentucky)
Posts: 40
Posted:
I live in Georgetown. I hired our HOA atty. several years ago and he is well aware of our By-Laws which is why this surprises me. Our homeowners have never been very involved in the HOA, they pretty much just pay their dues and go on, but there was never a decision made concerning the finances without the homeowners input or vote.
The Board that is seated now is a very cozy group of friends and they prefer to keep new people out in spite of the invitations to join the Board.Meetings are held bi-monthly but the decision to exempt Board Members from paying dues was made within the group of "friends" before the meeting.Our By-Laws are very clear about a Board position being voluntary and by not paying dues, you are being paid.
Something has to be done,it's about the money for them,and soon, they will raise the dues because they will not be making enough. I appreciate all of your comments. Patty
PattyB1 (Kentucky)
Posts: 40
Posted:
When they send out newsletters, they have a small section that contains the financials. So far, a majority of HOA checks have been written to 5 different Board Members, some are for office supplies, others have no explanation, then you have the lawn care and so on. I know how it works because I was a Board Member for 4 years, President for 3. I had a CPA go over our financials every year and do our taxes, so a third party was also looking at the books, this Board is not doing that. One of their neighbors whose wife sits on the Board is going to do it.
I'm not sure of everything that is being done because I'm not in the circle, there is also not a budget, when they run short of money they will raise the dues without a majority vote. I don't believe that just because we have money it should be spent. They disagree with me, they are also putting their hands in the cookie jar and they like their little enterprise.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Patty, you are going to have to pound the pavement and get your neighbors involved.

Also, what is the background of the HOA attorney? You may have found him, but did he have a reliable HOA resume?

It doesn't sound like it.

You will only be able to do something if you get enough people involved in stepping up and taking back control of their association.

If the documents are clear about the board being voluntary, then the waiver of the fees is definitely compensation and the IRS considers it to be, as well.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Patty,
I'm sorry but there is a lot of what you say is suspect. You mentioned the seating of this Board. Tell us how that came about. If these folks are all putting their hands in the cookie jar it has got to be a first. I am unsure about how many people you are calling crooks but it seems a lot. That would mean they all would have to agree to be crooks and their is no honor among thieves.
Another thing that strikes me is you don't seem to be doing anything that would establish that you object to what is going on. You can request to be put on the Board agenda to discuss any number of things. The point here being you need to get on the record your concerns and present something to the board that they would be obligated to answer. If they don't answer you request it be made part of the official record and tape your request if necessary. How is your credibility with the other owners, surely after serving four years you can scratch up five or ten and go to a board meeting and get your concerns on record.
Michele also has a point about your HOA attorney.....if....he is being consulted in all these illegal procedures you say that have happened but then again he may not know what is going on and unless paid he could care less. You should listen to what is posted here, and you should start building some foundation for your side of the story, because if you are right there is only one place this will end up and that is court, cover your back and get some strong support and if you are right you can chase the devils away, shine some light on the matter.
PattyB1 (Kentucky)
Posts: 40
Posted:
Up untill last June, I had 3 Board Members including myself. We were elected by a majority of the homeowners.Every year.we hold an election. I did not have any idea these people were interested in a Board seat,because in 3 years they never came to a meeting or showed any interest. Theye did complain alot. This group has been wanting to do this for quite a while, but I was objecting very strongly. I know what going door to door is,That's how I would offten get homeowners to attend meetings and get out to vote.
I'm sending out a request to be heard tomorrow as I have some serious questions that need to be answerd. I'm not so sure they will be prepared. I will also speak with the atty.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Patty,
You need to read what you write if this is a reply to my questions. I asked how the Board was seated? I could guess my election of the members but you did not say so. There is also this election ever year, are you saying you change your board every year completely, don't think I ever heard of that. You say they have been waiting to do this for a long time. What's that mean?

Look I am playing some of the Devils Advocate here. From this posting you raise more questions than you answer. You just went off the Board, I offer no criticism for that, you have to do what you have to do. As I said when yopu are heard before the board, make sure it gets recorded. Prepare a statement and ask thaqt it be included in the minutes, be factual, direct, don't get personal and cite any violations with correct reference to your documents.
In your last post you state you had no idea they were going to do this although they complained a lot. Then you say they have been waiting a long time to do this............how does the reader take that.

You sound sincere and instinct tells me you have a valid concern, but you also appear to be rushed to do something and don't have the time to get your ducks in order. If you can, devote some quiet time to formulating a plan and get some support, build your position and take small bites of the apple. If these people are suspect, steady slow smart pressure will crack the shell and you can then take some constructive action.
PattyB1 (Kentucky)
Posts: 40
Posted:
Thank you for your advice.You are right about taking my time.

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