SusanH9 (California)
Posts: 17
Posts: 17
Posted:
Our HOA board members disreagrd our bylaw/corporation law and acted against the members. Besides reelection, is there other mean to handle this situation?
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HOA board members disregard law and act against members
Started by SusanH9 • 10 replies • 2574 views
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TimB4 (Tennessee)
Posts: 21,047
Posts: 21,047
Posted:
Be involved.
Attend as many Board meetings as you can.
Ask Questions.
Read and Understand the Association Governing documents.
Read and Understand applicable State laws.
Trust but verify.
Typically, the behavior you speak of doesn't like to be seen. Therefore, if you are involved and watching, this behavior might stop.
Attend as many Board meetings as you can.
Ask Questions.
Read and Understand the Association Governing documents.
Read and Understand applicable State laws.
Trust but verify.
Typically, the behavior you speak of doesn't like to be seen. Therefore, if you are involved and watching, this behavior might stop.
SusanH9 (California)
Posts: 17
Posts: 17
Posted:
TimB4, Thank you for your input. We are heavily involved. The board members are developers who still own close to 1/3 of total units, who appointed themselves as board members and they signed contract with their own company to manage our HOA.
We worked so hard and successfully recalled the old board. However, the old board made up ballots for members live out of state and we lost the reelection after the recall. (their actions are similar to the story described in the article 'deceiving Las Vegas in 12/15 issue of Bloomberg Businessweek on p 68.)
The new board held three closed meetings after the reelection and made decisions against members. Their decisions created uproar among residents. The new board disregard members' voices.
In the closed session, they voted to cancel the annual meeting and election, so they can stay as board members for another year.
We are so disguised by their behaviors. We can try another recall. I just wonder whether there is a higher way to get rid of the old/new board.
We worked so hard and successfully recalled the old board. However, the old board made up ballots for members live out of state and we lost the reelection after the recall. (their actions are similar to the story described in the article 'deceiving Las Vegas in 12/15 issue of Bloomberg Businessweek on p 68.)
The new board held three closed meetings after the reelection and made decisions against members. Their decisions created uproar among residents. The new board disregard members' voices.
In the closed session, they voted to cancel the annual meeting and election, so they can stay as board members for another year.
We are so disguised by their behaviors. We can try another recall. I just wonder whether there is a higher way to get rid of the old/new board.
CarolR11 (Colorado)
Posts: 2,563
Posts: 2,563
Posted:
Susan, Tim gives good advice. While you, & it sounds like others, are heavily involved, you must learn your governing documents. It's possible that the developer still has certain rights to control your HOA.
Probably your Bylaws (or possibly your CC&Rs) spell out the requirement for your annual members meetings. I doubt that it's legal for the board to "cancel" the annual meeting.
In addition, in Calif. the board may only meet in "closed, that it to say, executive session, for certain reasons and canceling the annual meeting is not one of them!
There also are strict HOA election laws in Calif. that can protect you. Both the "Open Meeting Act," which is part of Calif. Civl Code and election rules can be found at davis-sterling.com. The site has an excellent menu that you can scroll through about various topics. It sounds like you're already somewhat familiar with Calif. Corporations Codes.
I assume that the developer also hired your HOA's attorney? If enough of you are interested, you might consider hiring your own attorney that specializes in HOA to get advice and to interpret your governing documents. It may not be wise at this time to seek yet another recall if the current board isn't going to conduct it properly.
What did the board do that worked against HOA Members' interests?
Probably your Bylaws (or possibly your CC&Rs) spell out the requirement for your annual members meetings. I doubt that it's legal for the board to "cancel" the annual meeting.
In addition, in Calif. the board may only meet in "closed, that it to say, executive session, for certain reasons and canceling the annual meeting is not one of them!
There also are strict HOA election laws in Calif. that can protect you. Both the "Open Meeting Act," which is part of Calif. Civl Code and election rules can be found at davis-sterling.com. The site has an excellent menu that you can scroll through about various topics. It sounds like you're already somewhat familiar with Calif. Corporations Codes.
I assume that the developer also hired your HOA's attorney? If enough of you are interested, you might consider hiring your own attorney that specializes in HOA to get advice and to interpret your governing documents. It may not be wise at this time to seek yet another recall if the current board isn't going to conduct it properly.
What did the board do that worked against HOA Members' interests?
SusanH9 (California)
Posts: 17
Posts: 17
Posted:
Dear Carol,
Thank you for your advice.
The HOA board did hire the HOA attorney. Unfortunately, the HOA attorney trying to please the board and gave them an advice that the Board can do a business decision to postpone the annual election due to lack of funding, but the attorney qualified his saying with a statement that the board might get sued. The board ignore the risk and made their decision without even studying the financial report.
Why do they do that? They received very high density bonus from the city for building a so-called senior and affordable housing complex. They put their initials on the front gate. They acted as our condo is their kingdom. They are king and queens. Even we paid 20k to 80k over the price documented in the master agreement with the city, the developers/board members still think our purchased units are theirs. They spent out HOA fees as their own money.
Their motives are so sickening.
Thank you for your advice.
The HOA board did hire the HOA attorney. Unfortunately, the HOA attorney trying to please the board and gave them an advice that the Board can do a business decision to postpone the annual election due to lack of funding, but the attorney qualified his saying with a statement that the board might get sued. The board ignore the risk and made their decision without even studying the financial report.
Why do they do that? They received very high density bonus from the city for building a so-called senior and affordable housing complex. They put their initials on the front gate. They acted as our condo is their kingdom. They are king and queens. Even we paid 20k to 80k over the price documented in the master agreement with the city, the developers/board members still think our purchased units are theirs. They spent out HOA fees as their own money.
Their motives are so sickening.
CarolR11 (Colorado)
Posts: 2,563
Posts: 2,563
Posted:
How many units are in your HOA? Are they all detached homes, Or? How many directors are there on the Board?
Is the property mgr. onsite or does s/he manage several accounts? You homeowners have the right to see the executed contract with the PM or the Prop. Mgmt. Co. You may have a copy of it at a reasonable cost. Ours states that the PM must comply with our governing docs and state laws. Does yours?
Why would an annual meeting and election cost a lot of $? Is it because you'd have to rent a space? If your HOA doesn't have enough funds to send out proper ballots, elections rules and the legally required double envelopes, I am afraid that you have serious financial problems. How do you know that the board hasn't read the financial report(s)?
By the way, by now, you homeowners should have received a copy of the 2012 budget for your HOA, a summary of your reserves and other documents that are required by law.
What do you think the developer's "motives" are?
Is the property mgr. onsite or does s/he manage several accounts? You homeowners have the right to see the executed contract with the PM or the Prop. Mgmt. Co. You may have a copy of it at a reasonable cost. Ours states that the PM must comply with our governing docs and state laws. Does yours?
Why would an annual meeting and election cost a lot of $? Is it because you'd have to rent a space? If your HOA doesn't have enough funds to send out proper ballots, elections rules and the legally required double envelopes, I am afraid that you have serious financial problems. How do you know that the board hasn't read the financial report(s)?
By the way, by now, you homeowners should have received a copy of the 2012 budget for your HOA, a summary of your reserves and other documents that are required by law.
What do you think the developer's "motives" are?
SusanH9 (California)
Posts: 17
Posts: 17
Posted:
Dear Carol,
You asked a lot of good questions. Your questions would be very easily answered, if our HOA operates normally as it should be.
I agreed it should not cost so much to run an election. I have reviewed our financial report, we can afford an election, but the board does not think so. Their attitude has always been 'we will do whatever benefits us regardless of rules, laws, budget, etc..'
Their motives are beyond my imagination.
Our complex is a condo. Our garage just got red-tagged as unsafe to park by the city because the developer/board disconnected the exhaustion fans (we have proof) and now they posted a note saying that the fuses have been stolen.
We had reported the above problems to the city before. City did not do a thing at that time. This time we went to a city council meeting. One of the residents pointed the mayor and accused him of helping our developer build such a sh... building for us. The city manager is working on our case. However, the first thing they do is to cover their a... by redtagging us.
We are so frustrated.
You asked a lot of good questions. Your questions would be very easily answered, if our HOA operates normally as it should be.
I agreed it should not cost so much to run an election. I have reviewed our financial report, we can afford an election, but the board does not think so. Their attitude has always been 'we will do whatever benefits us regardless of rules, laws, budget, etc..'
Their motives are beyond my imagination.
Our complex is a condo. Our garage just got red-tagged as unsafe to park by the city because the developer/board disconnected the exhaustion fans (we have proof) and now they posted a note saying that the fuses have been stolen.
We had reported the above problems to the city before. City did not do a thing at that time. This time we went to a city council meeting. One of the residents pointed the mayor and accused him of helping our developer build such a sh... building for us. The city manager is working on our case. However, the first thing they do is to cover their a... by redtagging us.
We are so frustrated.
GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
The board members are developers who still own close to 1/3 of total units, who appointed themselves as board members and they signed contract with their own company to manage our HOA.
Are they developers who happen to own lots in the HOA or are they "The Developer" of the HOA. If it is the latter then you may be very limited in what you can do before transition. If they are not "The Developer" but simply owners like you, then you may have to sue to hold a meeting.
Are they developers who happen to own lots in the HOA or are they "The Developer" of the HOA. If it is the latter then you may be very limited in what you can do before transition. If they are not "The Developer" but simply owners like you, then you may have to sue to hold a meeting.
Studies show that 5 out of 4 people have problems with fractions
SusanH9 (California)
Posts: 17
Posts: 17
Posted:
Hi,
The developers are members like us. They own units under their company name. For example, if they have 30 units under one owner name, they still have 30 votes.
We found out filing lawsuit will take long time to get things resolved. Is there a quicker way to resolve this issue?
The developers are members like us. They own units under their company name. For example, if they have 30 units under one owner name, they still have 30 votes.
We found out filing lawsuit will take long time to get things resolved. Is there a quicker way to resolve this issue?
GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
If you can get 5% of the membership to agree with you, call a Special Meeting and recall the Board. If you do this I would make sure to contact the non-resident owners to avoid a repeat of the last election.
Studies show that 5 out of 4 people have problems with fractions
CarolD2 (Michigan)
Posts: 6
Posts: 6
Posted:
File a complaint with the Attorney General. All the advice is always remove the board and run for election. Start collecting information and make yourself a case and turn these dictators in to the state. Enough is enough. Make your Attorney General accountable for the abuse and disregard of the law. He or she gets voted in right. If they don't help you then when election time comes rebel against them and make sure everyone knows if they helped you or didn't help you. People need to start speaking up and protecting themselves. WE have the power but only if we make what bothers us heard by all. Good luck.
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