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AnnR2 (California)
Posts: 1
Posted:
I am a vp on the board for my community.In reviewing the financials, I discovered that the board president purchased 7 units within the past year. this would not be a huge problem, except he did not disclose any of the purchases when voting on liens against the properties. The president was privy to financial information on delinquent homeowners from executive sessions. His family member, contacted the owners and arranged for the president to purchase their homes right before they were forced to sell. Past executive session minutes show that he was the one bringing the motion forward to forgive amounts owed in dues and to stop liens on the properties - while he was in escrow to purchase the units.

When confronted, he still denies owning the units when he is the sole person on the deed. After confronting him, he has since quitclaimed the properties (all paid for in cash) to an attorney.

I should also mention that he approved invoices ranging between 12k - 25k on 4 of the seven units for work done due to slab leak damages. Nothing was reported to our management company and I really have no proof other than his word that a leak even existed in these units. the money was paid to contractors who make large donations to his charity.

since I have asked for an explanation from him, my family has received 2 death threats in a community where we have lived in for 14 years without any problems. I'm not accusing him of making the threats, however, it has been very stressful on my family. I have documentation to support everything I have stated but he has two very close people on teh board with him and they trust him 150%. I am running out of options. When I question other properties he may be involved in purchasing, he accuses me of being racist and wont answer my question - "what is your affiliation to this unit?" Is this an unreasonable question? If he is affiliated or in the process of purchasing the unit, he should recuse himself from voting on any financial issues relating to the unit.
TimB4 (Tennessee)
Posts: 21,047
Posted:
Ann,

As for determine if it's a conflict of interest, the Davis-Stirling.com website provides this assistance (based on CA laws) on their Conflicts of Interest Webpage.

As for the death threats, or any concerns over personal safety, I would advise that you contact the local police department as they are trained in the proper response for these issues.

Based on your posting, what you describe as the Board members actions, certainly sounds like an issue I would concerned about. I see one major hurdle in addressing it. Your posting specifies that the rest of the Board trust him 150%. It's hard to change things from the inside without support from other members.

The decision you need to make is deciding how much this issue is worth to you. You will be the one that has to expend time, energy and money concerning it. You will be the one having to live with any consequences (good and bad) that come from it. No matter if you address the issue, try to address it and fail or let things go on how they are - YOU are the one who will live with the consequences. Therefore, you have to ask yourself how much is this issue affecting me and my family.

Some people will fight tooth and nail over principal. Some will fight because if they are doing something to others when will they do the same thing to me. Some will not do anything because they don't have the resources or are not willing to live with the potential consequences. Some will decide to just remove themselves from the issue (move, resign from the board, etc.). Only you can decide what you and your family can live with.

If you want to make changed from the inside, you need to gather community support. This will require that you inform the board and/or membership of your findings. Don't embellish the facts, let them speak for them self. Once the Board/membership is informed you can make motions to remove the individual from the Office of the President and/or solicit support from the members to hold a special meeting and recall the individual from the Board.

If you want to start slowly, you might want to gather your evidence and just talk to a single board member one on one and see if you can get them to agree it's a concern that should be addressed. If they agree - you have started gathering support. If they disagree - you know the battle ahead. Of course, don't say anything to one that are not willing to say to all. This is because you can't control who the other person might mention this information to.

If you want the courts to become involved, you will need to consult a local attorney to see what your legal options would be.

If the potential risk outweighs the potential gain, You could resign and let the issue continue without anyone watching it OR continue on the board just to let the member know your watching whats happening and hope to address the issue at a later date.

If you want to wash your hands of the whole thing, you could put your property up for sale and move.

As I said, none of the choices are easy ones and they all carry both good and bad consequences. Since you are the one who has to live with these consequences, you are the one that has to make the decision.

Hope this helps,

Tim
SusanW1 (Michigan)
Posts: 5,202
Posted:
Ann - were these foreclosed units? Bank owned? All the information about them would have been public before any action from your HOA concerning the fines and leins.

You would have to prove that this guy received preferential treatment, above any that any other buyer would have received.

Re: the construction. Are you saying that unnecessary action (construction) was performed? Again, you will have to prove preferential treatment.

Re: death threats. Report to the police ASAP.

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