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ReneeD (Illinois)
Posts: 201
Posted:
Can a manager refuse payment from a homeowner who wants to get on the Board? Renee
LarryB13 (Arizona)
Posts: 4,099
Posted:
Can you give us more details? I assume that the payment is for assessments. Is the amount due in dispute?
TimB4 (Tennessee)
Posts: 21,062
Posted:
They shouldn't.

There really isn't enough info here for more of an answer.

Has the member received legal notices requiring payments to go through an attorney?

Is there more things than a delinquent account preventing the member from running for the Board (like a hard date to announce by)?

Was the payment full payment or partial (in other words was there an agreement requiring full payment and a partial payment was offered)?

Has the member tried paying the treasurer directly?

KevinK7 (Florida)
Posts: 1,343
Posted:
Do you mean nothing is wrong with the homeowner and the manager does not like them so they will force the homeowner's account to go into arrears, essentially making them not in good standing?
ReneeD (Illinois)
Posts: 201
Posted:
To answer KevinK7's question...that's the impression I got and felt the CAM was wrong for not accepted his payment.

Anyway, regular Elections meeting was on September 11 and at the time the homeowner/candidate was current with assessments. Unfortunately, we did not meet quorum and when the Board met again on September 25, the Board decided to hold a Special Election Meeting (held on October 23)in order to meet quorum.

We met quorum last night and this one particular homeowner is technically now a Board member. He also came with a check in order to he is provide a current status in assessments. The two remaining board members felt the CAM acting totally unprofessional by refusing to accept his payment....according to her, this homeowner/candidate is ineligible to become a board member. IMO, she should've accepted payment however I think another disgruntled and now ex-board member pointed this out to our CAM he was late in his payments. In the course of our Elections Meeting and before announcing votes garnered by each candidate, our CAM declared that the Board needed to go into an Executive Session. Here again, I think her actions were wrong. How can a CAM speak for the Board? Since when does a CAM "run" an election meeting and speak for the Board?

As the Board Treasurer, I encourage all our board members to remain current in their assessments. The only prohibitive measure I point out to them would be the inability to vote on any issues coming before the Board while in arrears be it assessments or violation/fines. Outside of that, there is nothing remotely close in our governing documents that state 'a member must be in good standing'.

There is an apparent disagreement and our CAM's retort was that she refused to go into further discussion with the Board; instead, we will be hearing from her boss for an ultimate decision of that person's right to be on the Board.

ReneeD
CarolR11 (Colorado)
Posts: 2,563
Posted:
It's not a "ultimate decision" to be made by your prop. mgr. or her "boss." The Board makes the decision based, one hopes, on your governing documents and/or state law.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By ReneeD on 10/23/2013 10:59 PM

We met quorum last night and this one particular homeowner is technically now a Board member. He also came with a check in order to he is provide a current status in assessments. The two remaining board members felt the CAM acting totally unprofessional by refusing to accept his payment...

If this is the case, not only was it unprofessional but it may be a breach of contract.

Quote:
Posted By ReneeD on 10/23/2013 10:59 PM

Elections Meeting and before announcing votes garnered by each candidate, our CAM declared that the Board needed to go into an Executive Session. Here again, I think her actions were wrong. How can a CAM speak for the Board?

The CAM can speak for a Board if the Board allows them to.

Quote:
Posted By ReneeD on 10/23/2013 10:59 PM

Since when does a CAM "run" an election meeting and speak for the Board?

That would depend on who the Board appointed as the election committee or delegated to run the meeting.

This is a Board issue. The CAM may be overstepping their authority or may simply be exercising the authority the Board gave them.

Quote:
Posted By ReneeD on 10/23/2013 10:59 PM

there is nothing remotely close in our governing documents that state 'a member must be in good standing'.

The Board must comply with the Associations governing documents and applicable laws. If there is no qualifier that a Director must be in good standing, then assessment payments can not be a consideration if an individual may serve on the Board or not. If the members want to have that as a qualifier, they need to amend the appropriate governing document.

Quote:
Posted By ReneeD on 10/23/2013 10:59 PM

There is an apparent disagreement and our CAM's retort was that she refused to go into further discussion with the Board; instead, we will be hearing from her boss for an ultimate decision of that person's right to be on the Board.

There again, the ultimate decision is not the management companies. The ultimate decision rests with the membership and the Board of Directors as outlined in the governing documents and applicable law.

If there is a need to interpret the governing documents or the law, then the ultimate decision rests with the Board of Directors. The MC, PM or CAM can only advise the Board. The Board makes the decision. In reality, this is all an attorney does, they give an opinion based on there legal experience and training but the actual decision is that of the Board.

If the members disagree with that decision, they have two options:

1) Ask a third party (typically the courts) to determine if that decision is in compliance with the governing documents and/or applicable laws.

2) Recall the Board and replace them (or wait for the next election and replace them) with individuals who will make decisions the members agree with.

If I were on that Board, I would review the terms of the contract and if there is a possible breach of contract, use the opportunity to explain to the MC that it is now time to replace the CAM or risk having the contract breached due to the actions of that CAM. Then give the MC x number of days to appoint a replacement.

If the contract wasn't breached, I would use the opportunity of meeting with the MC to explain that the Board believes the CAM has overstepped their authority. That the CAM needs to be replaced within x days. Explain that how this issue is resolved by the MC will be remembered by the Board when it comes time to renew the Contract.

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