Get 2 months of free community web site hosting from Community123.com!
Thursday, October 19, 2017
Get 2 months of free community web site hosting from Community123.com!


SBCA: Free education for HOAs and condos on satellite placement issues.
(National Trade Organization)
Helping HOAs, condos and property managers with satellite placement issues since 1986.
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: General Discussion
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
AM3
(Georgia)

Posts:10


04/15/2017 9:13 PM  


We have 100 condominiums and the biggest hurdle we will have real soon is asking the Board to resign. The current Board has been in place through 4 terms of 3 years each. We have not had enough eligible voters to vote them off due to fee delinquencies that have kept us from voting them off. We have garnered the support of half of the owners and we will be asking the board politely to resign from the Board at the annual meeting because we want a new board with fresh ideas commitment, and homeowner involvement to improve our investment. The Board has been derelict in a number of responsibilities early on and did not have a sense of urgency in handling matters and in taking care of the smallest items, insurance has lapsed several times, and our property is in shambles. Some of it has been due to financial constraints and other reasons are due to the boards non-performance that was in their control. They failed to have a plan to collect delinquent fees as far back 10 years ago before it got to such a catastrophic level. This board has taken the position that they will stay on the board forever. We plan to make a simple request for their resignations at the meeting due to the number of years service on the Board. The bylaws state a three year term. We expect that the board will not step down willingly. If they do not do we need to request a special meeting to remove them from the Board if they decline to resign? We are in the state of Georgia.

We must make a change.

A.M.
MelissaP1
(Alabama)

Posts:6699


04/16/2017 5:18 AM  
Great... Now my question... Where are the NEW members going to come from? It's all great and well that you have identified the problem and solution. However, the next problem is who is going to replace them? These are the people who are going to represent you all... Do you really think taking the candidates from a pool of non or late payers going to make it better?

Sometimes to change the "culture" in your HOA is to take a different approach. Just change one thing or incorporate one change. For example, maybe set up a committee/group to educate yourselves on the HOA rules. Take a section at a time to discuss. That way you can learn how a HOA works and the best approach to make changes.

Don't always focus on the "Big picture" of replacing the board. Sometimes making changes involve making small changes over time. It's what many of us here did before we became board members. It takes time and your home is a long term investment. Take the time for creating positive change.

Former HOA President
DouglasK1
(Florida)

Posts:868


04/16/2017 6:52 AM  
If you have the support of over half the owners, why don't you just vote in new board members?
AugustinD


Posts:551


04/16/2017 7:21 AM  
Like Douglas seems to be saying: Isn't an election being held, every year or every few years, as your condominium's governing documents require?
AM3
(Georgia)

Posts:10


04/18/2017 6:24 AM  
Thank you so much for the responses. No election has been held each year due to the fact that there is a large delinquencies in fees so we have not had enough voters to vote in a new board. So the current board President and others have stayed in place for more than four terms. And they have no intentions of leaving the board and they have made that clear.

We do have the verbal/written support of about one fourth of the paid up and non-paid up homeowners (who also for one reason or other stop paying their fees due to the conditions)which is not the correct way to have handled it. We plan to ask the board for a resignation. We know that Board will not accept it. We plan to ask them to resign at the annual meeting. If that does not work, then we will call for a special meeting where they can have their say and attempt to remove them from the board by this process. The bylaws say that the Board can be removed with or without cause.

This board has failed to successfully collect delinquent fees for 10 years back and there is a very large receivable of delinquent fees due that the attorney for the board is attempting to collect in any way they can. The required insurance has lapsed several times without any notice to homeowners leaving owners without protection; There is virtually no property maintenance so our property overall has declined; no communication from the Board on important matters affecting homeowners because there is no relationship between the Board and interested homeowners; no meetings where homeowners are invited, etc.

We did form a separate homeowner group/committee early this year to learn more about the bylaws, operations, and to learn how we can change the Board. We are concerned that if there is no change we will continue down the same road forever and they do need to be removed for nothing more than they have served far too long. Of course homeowners have choices.

I must admit that I have some concerns and I have voiced them to the committee.
AugustinD


Posts:551


04/18/2017 7:25 AM  
Posted By AM3 on 04/18/2017 6:24 AM
Thank you so much for the responses. No election has been held each year due to the fact that there is a large delinquencies in fees so we have not had enough voters to vote in a new board. So the current board President and others have stayed in place for more than four terms. And they have no intentions of leaving the board and they have made that clear.




Hi AM3, interesting situation. To clarify: Are you saying your Bylaws require a certain percentage to achieve a quorum, else and without a quorum, an election cannot be held? If so, this scenario tends to mathematically support why members who are delinquent should not be counted in any way when computing whether a quorum is present. In other words, suppose a HOA has 100 members, and 60 are delinquent and so, per the HOA's governing documents, these 60 may not vote. If the quorum number is "20% of eligible members" (or words to this effect), then the number needed to achieve a quorum is 0.20 x 40 eligible members = 8 members. As long as at least 8 members are eligible to vote, then the election would be legal.

I believe most, but not all, states permit HOAs to suspend the voting rights of members who are delinquent.

If your board is denying even this, then it's time for a polite letter explaining your understanding of the law. If two weeks pass and there is no response, then send a formal letter of demand (google for details; it's easy). If there is still no response, then consider attending a free legal clinic in your area (typically offered by the local courts as part of the "access to justice" movemet) to file for an injunction to run an election, stating what the requirements for a quorum must be, per your understanding of the governing documents. If such a free clinic is offered in your area, then it will direct you in which court to file. If there is no free clinic, contact your area's state court clerk and ask if there is a form for a temporary injunction yada. The court clerk cannot give legal advice but can say, 'Yes there is a form, come to room xyz to get it, or you can download the form at web site abc.'
SheliaH
(Indiana)

Posts:1919


04/18/2017 12:04 PM  
Your bylaws state a three year term, but don't confuse that with term limits. Sometimes you can have board members serving for many years who are damned good at what they do - why get rid of them just because they've served two or three terms? Conversely, there's your current group - apparently they've gotten too comfortable and might think they're entitled to say on because no one else wants the job. Frankly, they may have a point if you have a massive delinquency problem. After all, the delinquents don't seem to care about their legal obligations to pay assessments (separate from what the board is or isn't doing). Otherwise, how do you expect the board to do its job so the association can provide services with no money?

At your next annual meeting, go ahead and put up your own candidates and make sure all the eligible homeowners show up to cast a vote. If you follow AugustinD's suggestions on checking the voting percentages in your documents, you may have more than enough to give this bunch the heave ho. Just make sure you have people ready and willing to step up, as Melissa pointed out - and yes YOU may need to step up as well.

If these people don't accept being voted out at that time, you may need a special meeting to force them out with a recall. Check your documents to see how special meetings are called - usually, they start with a certain percentage of homeowners signing a petition requesting it. When that petition is presented, the board must call the meeting, but if they refuse, have one anyway. Once again, you need to have people to step up, so if you've identified people willing to do this, you should put together a plan of action for what happens next.

First, it wouldn't hurt to have the association financial records audited to make sure money's going where it's supposed to. You also need to determine what are the most pressing problems that need to be addressed - starting with the delinquency issue. They also need to educate themselves on best practices in running a HOA - this is a non-profit corporation, not a souped-up block club, and must be run like a business.

If you and everyone else is new to this, visit the community association institute (CAI) and buy some of their education materials - they have all sorts of topics, ranging from delinquency collection to parliamentary procedure and back to reserve studies. You want to make sure the newbies and those coming after them know what they're doing and why, so the materials would be a good way to adapt best practices to your association. Good luck!
JanetB2
(Colorado)

Posts:3427


04/18/2017 11:21 PM  
Posted By AM3 on 04/18/2017 6:24 AM
Thank you so much for the responses. No election has been held each year due to the fact that there is a large delinquencies in fees so we have not had enough voters to vote in a new board. So the current board President and others have stayed in place for more than four terms. And they have no intentions of leaving the board and they have made that clear.

We do have the verbal/written support of about one fourth of the paid up and non-paid up homeowners (who also for one reason or other stop paying their fees due to the conditions)which is not the correct way to have handled it. We plan to ask the board for a resignation. We know that Board will not accept it. We plan to ask them to resign at the annual meeting. If that does not work, then we will call for a special meeting where they can have their say and attempt to remove them from the board by this process. The bylaws say that the Board can be removed with or without cause.

This board has failed to successfully collect delinquent fees for 10 years back and there is a very large receivable of delinquent fees due that the attorney for the board is attempting to collect in any way they can. The required insurance has lapsed several times without any notice to homeowners leaving owners without protection; There is virtually no property maintenance so our property overall has declined; no communication from the Board on important matters affecting homeowners because there is no relationship between the Board and interested homeowners; no meetings where homeowners are invited, etc.

We did form a separate homeowner group/committee early this year to learn more about the bylaws, operations, and to learn how we can change the Board. We are concerned that if there is no change we will continue down the same road forever and they do need to be removed for nothing more than they have served far too long. Of course homeowners have choices.

I must admit that I have some concerns and I have voiced them to the committee.


Seems you are taking the appropriate steps with potential "Special Meeting" if needed to replace the board. To have 10 years of delinquent fees I personally find reprehensible. I also commend that you and others are willing and wanting to learn more about your bylaws and operation. You need to add if not yet learning your CCR's and your State Statutes. Keep in mind in some instances your State Statutes will supersede your CCR's. When reading your State laws they will sometimes defer to the CCR's and other times Regulate or Superceed your CCR's.
Please login to post a reply (click Member Login on the menu).



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement