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SallyB (North Carolina)
Posts: 5
Posted:
During the homeowner forum portion of our last Board meeting our President fielded a question regarding why our HOA had a new property management company. The former management company originally gave notice in August that they would not renew their contract with us at the end of December 2006 due to the fact that the Board was not taking their professional advice seriously. There has been a history of declining respect by the other two Board members for several months. The management company's advice has historically been to not continually make exceptions for violations which have been ruled upon by the ARC, among other numerous issues. As a fellow Board member I urged the other two to "talk things out" with the property manager if they were unhappy with his services (I was not unhappy and feel he handled things extremely professionally--and I am a former real estate paralegal). At any rate, the President told the property manager that he didn't want to hear any of his advice toward the end of the August meeting, so the next day the property manager consulted the head of his company and submitted his 30-day notice. The Board scrambled to hire a new management company (much research was done and I feel we all truly did a good job in choosing, though I still feel the other management company would do the best job for our community).
At our October meeting a homeowner asked why we have a new management company, anyway, and the President of the Board said, simply, "The short answer is that they did not renew their contract with us. But the good news is that the new company charges less money."
This was highly misleading and inappropriate. I intend to go on the record at our next meeting (tomorrow night) as objecting to this misleading statement. This (and every homeowner who inquires) should be given the true information about what took place. I wouldn't even mind if the President said that he and one other Board member were not completely pleased with the management company, but to leave this as a misleading statement is implying that our prior manager was leaving us in the lurch.
Has this happened to anyone else out there? How can you gracefully call the President on the carpet for "lying"?
I'm disgusted with our Board!
GeraldT1 (<Not Specified>)
Posts: 519
Posted:
SallyB,

Are the President's statements misleading, or abridged? The President didn't lie. You can't expect him to say that the MC felt the Board was not deciding appropriately, do you?

IMO, letting it go will be the most graceful way you can achieve your goal. Which I believe is for you to one day be President and lead by positive example.

Best of success!!
GeraldT1
NNJ
RogerB (Colorado)
Posts: 5,067
Posted:
Sally, I see nothing wrong with the Presidents answer. There was no lie. It is the Board's choice as to which advice they chose to follow, even when the advice is sound. It was the management company that chose to terminate and we would have also. But I do not see the answer as inappropriate or misleading?

Meanwhile, if the Board is making exceptions for violations it may be time to remove those Board members.
NancyM2 (California)
Posts: 249
Posted:
Sally & Roger; A similar situation happened to our HOA several years ago. I was on the board when it was apparent our Board Pres and "in house" attorney wanted to get rid of our MC (personal reasons) they claimed they were rude. I was treasurer, and was extremely happy with our MC, as was the homeowners. So I fought hard to keep them. They would make false claims at board meetings trying to get the board to fire them. I would run around proving them wrong. (caused some very tence moments) all this caused some health problems for me so I had to step down. Shortly after I resigned they fired the MC and retained a MC that was friends of our "in house" attorney (she did disclose that fact)We are paying almost double the cost the previous MC charged. I am not awaire of any other bids going out at that time either.

I asked the BOD at the next meeting the reason for dismissing our previous MC. They told us it was too egregious to discuss, as they could be liable if they disclosed it. I asked the old MC what reason they were given. It was the same, (too egregious to discuss) So they remain in the dark as well. Therefore it remains a mystery (all the board members were told not to discuss it with anyone) We did have to pay off the existing contract for several
thousand dollars, therefore it could not have been a "material Breach" As A homeowner do I have the right to this information?

NancyM2
RogerB (Colorado)
Posts: 5,067
Posted:
Nancy, please pay attention to your health first. You may not have the right to know the reason for terminating the old MC depending on the settlement terms. What would you gain by knowing other than satisfying your curiousity? You already know they had to pay several thousand dollars (probably because the agreement was yearly with no way to terminate earlier without payoff). I advocate HOAs ask for a termination clause in their Management Agreement which states: "Either party may terminate this Agreement, without cause, upon receipt of 30 days written notice."

It appears your real concern is the Board members will not be open with the members and are not doing a good job. You know you are now paying the new MC almost twice as much. I would address these concerns at a members meeting.
NancyM2 (California)
Posts: 249
Posted:
Roger; Thank you for your concern. This is the reason my husband will not let me run for the board again. We did have a termination agreement, that's why we had to pay them off. Also I have brought up many times at BOD meeting my concerns over spending more than we needed (in many area's) Since no one attends the meetings except for their cheerleaders it falls on deaf ears. I will just have to sit back and watch us go under. We are operateing in the RED right now, spending more than we are taking in. It seems to be coming out of reserves.
Thank You again.
NancyM2

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