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NicholeS1
(Florida)

Posts:7

03/19/2007 2:29 PM
I live in a 461-unit townhome community in South Florida. Last November, there was an uprising of homeowners who had never participated in meetings, or community affairs. The only reason they got themselves involved was because of the recent raise in the monthly maintenance fee, due to the costly insurance premium. It was proven, less than one month after the election, that there were falsified proxies, double signatures and more ballots distributed than representations. After re-evaluating these documents, it was determined that there was not a quorum present. However, this new "Board" has refused to a meeting to review the information, taking advantage of the mistaken quorum establishment. Since their "election" they have fired the on-site property manager, and one of her assistants. The pool was closed by the county's Health Department. Now, the management company has served this Board with a 30-day notice. If we lose the management company, we will have to get a new homeowners' insurance policy in June - the onset of Hurricane season! The problem that myself and the former Board is faced with is censorship. We post flyers on the mailboxes, informing the community about the upcoming meeting, what has been happening, and how they can recall the Board. Within a few hours, the new Board drives around and rips them off. Is this a violation of free speach? One of the new "Board" members, prior to the "election", went door-to-door soliciting homeowners with her promise to lower the maintenance fee. She even stood at the entrance with a sign, and was yelling to entering homeowners to "come and vote!". Nobody stopped her from exercising her right to speak freely. Just because our message isn't what this "Board" wants to see means that it shouldn't be seen by anyone? Let me know your thoughts and opinions. The meeting is tomorrow night. I may ask some of you who respond if it is ok to use your comments. Thank you for your help.

JM2
(Oregon)

Posts:439

03/19/2007 2:43 PM
Hello Nichole: If the election was not valid, then it is highly possible (I don't live in Florida so your law could be different) that any action taken by the current "Board" would not be valid, i.e. could be legally challenged in a court of law. I'm not sure what your documents say, but barring anything to the contrary in the state law, they would be include the legal requirements for a valid election. Also not certain - this would need to be checked with the HOA's lawyer and insurance agent - whether any decisions made by a board not legally elected, would be protected through the D&O coverage. Normally, there is one proxy per Lot/unit. If a husband and wife both signed proxies, only one would be valid. If a couple only has one spouse listed as owner, that person would be the one required to sign a proxy - normally the other spouse could not, since the name was not on the title to the property as an owner. This may be an occasion where you would need to bring a lawsuit to have a court determine the issue, if the Board is not willing to listen and respond; or, you may need to recall the board in accordance with the procedure outlined in your documents (usually the Bylaws). J. Patrick Moore, CMCA

LindaC3
(Florida)

Posts:526

03/19/2007 2:52 PM
You nee to go read the Florida State Statutes Chapter 720 if you are an HOA and 718 if you are considered condo.....Linda C

JC3

Posts:290

03/19/2007 3:39 PM
"We post flyers on the mailboxes, informing the community about the upcoming meeting, what has been happening, and how they can recall the Board. Within a few hours, the new Board drives around and rips them off." It may not be the board removing them, but the post person. We can't post anything ON the mailboxes. We have cluster boxes, and the few notices people do tape, are taped to the cement pad they are set in. I think that's true if they are individual curb side boxes or even on houses. So tape your notices to the cement under the boxes.

NicholeS1
(Florida)

Posts:7

03/19/2007 6:55 PM
Actually, we did witness the Board members removing them. That fact about the cement under the boxes is a great tip. Thanks. By the way; tonight, as I was distributing the flyers throughout the community, one of the Board members tried to run me over in her car. Literally. She said to me, "you don't know who you're f**king with!". This was right after she drove up behind me, got out of her car, and removed two of the flyers I had placed in homeowners' doors, screaming "you can't do this!". We don't have any laws restricting the distribution of informational material. In fact, their front-person did the same exact thing last November. She had the police called on her, from the previous Board, only when she was knocking on homeowners' doors, and soliciting for their signatures. I've already read Statute 720 many times. I've approached the Board in person, and in writing, regarding the election meeting. Since they have refused to meet with me and review the proxy/ballot tabulations, the next thing to do is the recall. Which is what we are doing now. If a recall doesn't work, then we need to seek legal counsel. Which we have already done. This Board is just excited with their new-found powers, and, sadly, do not know how to use them for the benefit of the community.

JC3

Posts:290

03/21/2007 1:34 PM
If you are being assaulted--attempts to run you down, or any other assault--this is police business. I'd report them.

MelissaP1
(Alabama)

Posts:650

03/23/2007 5:19 PM
Sorry, I am going to be the "devil's advocate" here. I see a little bit more to this story than was posted. My feeling about this situation is that this is a reaction to the fact that dues had to be raised to cover an increase in Insurance costs. Was this raise in dues a "special assessment" type? or an increase that is allowed yearly? There is a difference. A special assessment would require the vote of Majority General Homeowner's to approve in a SPECIAL MEETING. This may be a one-time assessment to raise an amount of money to cover the costs. The amount needed is divided evenly amongst ALL the homeowners. Now, there is a situation where a special meeting/vote is needed to raise dues ABOVE the yearly amount of "cost of living". Typically, a HOA BOD is allowed to raise dues 3 - 6% to cover increases of costs in the coming year. Contractors, MC's, or Utilities often increase their bills over time. However, sometimes an increase of dues is needed ABOVE the allowable 3-6%. That increase may require the same measures of a "special assessment". Whereas a special meeting is called for the members to agree to increase dues OVER the 6% so that severly increased cost or the need for capital improvements can be achieved. This can be temporary or permanent. Usually lasts one year or until the next special meeting is called. I have a feeling that the residents aren't getting the fact that the HOA is ONLY funded by the residents and FOR the residents. That means if an increase such as a required element of insurance, goes up, dues may need to rise to compensate for that. It's not easy to adjust to this change nor easy to accept. People often blindly put their dues check in the mail NOT realizing the money collected may NOT be enough to cover required costs. Recalling the board or suing is NOT the answer here. Increasing your knowledge on how your HOA works is. You may be shocked to find out how your HOA board may be stretching the money to make sure all the amenities are paid for. When I ran my HOA, the owner's paid $50 a month. There were 107 homeowners. On average only 95 residents paid on a regular basis. 5 were late payers and the rest NON-payers. (That's a good month!!!). The monthly costs of lawncare, garbage pickup, insurance payments, bookkeeping services, emergency repairs, maintenance items, pool service, clubhouse maintenance, legal costs, and utilities ran atleast $5,000!!! We HAD to have 100 members a month guaranteed to pay on time just to afford the operational costs alone. An extra $100 meant all the difference in the world. That would be considered our "savings". So realize what your "fighting" for. Your HOA works just like a "kitty" in poker. Everyone must chip in their fair share if they all want to win something. Plus, keep in mind, if you sue your HOA, your suing yourself and your neighbors. Doesn't sound like that's going to be much help at all.

Former HOA President

GlenL
(Ohio)

Posts:1458

03/24/2007 11:12 AM
Melissa, be careful when you make statements like: Typically, a HOA BOD is allowed to raise dues 3 - 6% to cover increases of costs in the coming year. Every Association's documents and State laws allow/mandate different things. I've seen many posts here where the Board's limit to raise fee's without a vote is 10%, one 5% and my own HOA has no set percentage limit. From the numbers you gave no wonder your HOA was in such trouble. Savings is not something you do if you have money left over it's an item to be covered just like insurance. To show you the difference in State laws in Ohio HO's must vote every year to allow special assessments otherwise everything including reserves must be funded. In other States the BOD can simply have a special assessment, in others the HO's must approve them.

BradP
(Kansas)

Posts:1742

03/24/2007 2:01 PM
our board can raise it as much as 20% in any given year

NicholeS1
(Florida)

Posts:7

03/24/2007 2:56 PM
Melissa, please read over my initial comment again, before replying. First, Florida is going through a state-wide homeowners' insurance rate hike. There was no need for a Special Assessment, and this cost will not go away for years, no matter what the new governor says. The hurricanes of 2005 assured us of that. Second, we are a large community with a $245/month maintenance fee. This new "Board" is not "stretching" any funds. They have already created a deficit of $162,000. Do the math: 461 x $245 = $112,945. The deficit amount, for one month, is as if 461 homeowners plus 106 homeowners didn't pay. We have payables of $58,000 a month. $5,000 a month wouldn't even get our grass cut. Also, after 20 years of service, it took only 4 months of their rule to make the management company call it quits. Everyone else... thank you for your replies. I have good news. The "Board Member" that almost ran me over is off the Board. She, and one other Board member were removed because they were not on the deed. Technically, they are not homeowners. The new lawyer (that this Board hired) confirmed this fact. The new property manager served them with the information, and they were required to resign. I guess SHE didn't know who she was f**king with! Prior to this, one of the other trouble-makers on the Board resigned, as well. She couldn't handle the pressure, I guess. It was announced at the March 20th meeting. Now, there is only one trouble-maker left. Chances are, she will resign without the support of her other partners in chaos. If not, we will only have to focus the recall on her. There is potential for the others. The remaining three new Board members are now working with members of the previous Board. This is looking good for our community. At the next meeting, the need to fill the empty seats on the Board will be announced. Homeowners can submit an application that will be reviewed by the Board. This community is mainly all talk and no action, so it is safe to say that we will soon have four of the experienced Board members joining the three new members. It will be a nice balance.

MelissaP1
(Alabama)

Posts:650

03/24/2007 4:40 PM
Did I read "DEFICIT"? That means your HOA is in the hole. Deficit isn't a good thing. It would make sense for the HOA to want to raise rates or have a special assessment to get out of the debt plus get be able to meet monthly bills. How else do you expect the HOA to pay their bills if the current dues aren't large enough to cover their debt plus the increase in insurance costs? Plus the hiring of an attorney? That's a good expense right there alone. I can only imagine his retainer fee alone has to be in the thousands of dollars. Not to mention the cost of each communication and letters written. Like I stated before... The HOA is ONLY funded by the owners for the owners.

Former HOA President

NicholeS1
(Florida)

Posts:7

03/24/2007 5:00 PM
Melissa, you need to get some glasses. THE DEFICIT OCCURRED AFTER THIS BOARD TOOK OVER, AND AFTER THE MAINTENANCE FEE WAS RAISED TO COVER THE INSURANCE PREMIUM RAISE. Maybe you don't understand... our insurance is INCLUDED in our monthly maintenance fee. The $245 is made in one payment. However, $141 of that amount goes directly to the insurance company. This is to maintain the coverage, not to pay a deductible. The remaining $104 is for lawn, pool, tennis courts, clubhouse, basic cable, legal and management/administrative costs. There is also a lawyer FOR the association, paid BY the association. This lawyer is used primarily to place liens on delinquent homeowners, and to serve notices of foreclosure on those homeowners that have not paid their fees to remove the lien after (I believe) 90 days. If there still was the need to seek legal counsel, it only costs $50 to obtain a mediation professional. We would not go to court. Retainers are for lawyers in civil or circuit court proceedings, where a monetary gain would be expected for their client(s). There would be no monetary gain, if I were to request a mediation. It would just be a monitored meeting, where the Board of Directors would be required to review the information they have been refusing to, until now. The information would be reviewed by the mediator, and a certified order would be made, according to the mediators decision. In this case, it would mean that the Board of Directors would have had to prove that they were, without a doubt, legitimately elected. This proceeding would not cost my neighbors one penny. Get your facts straight before you try to make someone else look stupid.

BradP
(Kansas)

Posts:1742

03/24/2007 7:11 PM
Nichole: Good luck getting it turned around. It is unfortunate that some people get on boards and ignore the rules.

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