Board Resignationand Legal Issues

Started by KimD7 • 8 replies • 1507 views

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KimD7 (West Virginia)
Posts: 5

Posted:

Hello, would appreciate some advice.
We are a self managed condo association with only 5 units. Three of the homeowners do not bother to attend any meetings, etc. Are there any legal issues if the board president & secretary treasurer resigns (due to sale of their condo) and none of the homeowners step up and take over the responsibilities. The current VP doesn't come to meetings, etc.
Would a letter of resignation to all owners, including contact information of all the owners advising them to contact the VP and arrange a meeting to elect officers be sufficient? Only the treasurer's name is on the Checking account. Concern is that no one will step up & the utilities and insurance, etc. will not get paid. Don't feel that the new owner should take on the sole responsibility.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Your HOA may want to consider going with a management company instead of any legal route. The legal route could put you in consertativeship and without choices. Instead of being self managed, let a company do it that specializes in running property. Look for a property manager. You may lose your rights for voting and controlling your dues, but you will have management of the property taken care for.

Check a few property managers out and see what they can offer. It may be a good thing in the long run.

Former HOA President

PetunkaM (Florida)
Posts: 1,009

Posted:

Even if you hire a management company you still need the Board. You need to convince the people to get involved.. only five units? Should be able to manage all the affairs in very little time, really.

KimD7 (West Virginia)
Posts: 5

Posted:

The problem here is that the homeowners refuse to get involved, they have no interest, don't return phone calls, won't pay their dues on time, ignore rules, damage property, etc. It's an every day battle. I'm the who person now serves as the President & Sec/Treas. I'm burnt out, so now planning to sell. My question is do I have a legal responsibility to the Assoication since I'll be removing my name off of the checking account w/out anyone offering to step up?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

You can disband the HOA and hire a management company if there is still common areas to take care of. Otherwise, you can disband the HOA and everyone take care of their own areas. A disbanded HOA needs no board.

Former HOA President

CarolF (Florida)
Posts: 435

Posted:

Melissa - I think that a management company in Alabama must mean something quite different from Florida and probably other states. Here in FL using a management company just means you pay a licensed property manager to handle the day to day details. We still have a board that directs policy according to the documents. We vote on all things that are required, and the property manager takes direction from the board.
There are property managers that specialize in a handling small associations, and you can contract for the services that you need.

PetunkaM (Florida)
Posts: 1,009

Posted:

SusanW1 (Michigan)
Posts: 5,202

Posted:

With your very small size and the issues going on, I'd suggest to hire a management company and find someone to act in the capacity for the board. This person would meet with the MC every 3 or 6 months and report to the Members.

A buyer with real estate savvy will be asking about the HOA and how it is managed, a financial report, reserve fund, etc. BEFORE buying a unit. It is in your best interest to make sure you are able to present a healthy HOA.

It amazes me that 5 people would let their home values be threatened because of lack of interest.

TimB4 (Tennessee)
Posts: 21,047

Posted:

A letter to the members is always a good way to start. You certainly want to get the VP or someone to be a signature authority on the checking account so bills can be paid.

The remaining board members should be able to appoint people to fill those vacancies and serve out the remaining term.

The other option would be to petition the court and have yourself or the VP appointed as receiver (I don't like the option but it would allow you to function).

You may want to check State laws and see if you can lower the number of Directors required.

I'm facing a similar issue of membership apathy with over 130 lots. Wish I had better answers.

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