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Subject: Options for HOA board
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JamesD18


Posts:0


03/02/2019 6:41 AM  

Hello-

I'm a new board member in a small HOA in Georgia (60 houses). We haven't had a quorum in years, probably 10 or more due to an inactive HOA where homeowners don't care and ignore the board. The board was crazy and never followed the rules when I would bring up what wasn't being followed all they would say was I should volunteer, so I did. Things didn't change, they blatantly violate the covenants, for example, they are taking 20k out of reserve funds to take down trees and replace with a fence, it's nice and will look great, however, we can't just take 20k without approval from the membership, its going to be a surprise. Next, they raised our annual dues by 50 dollars at the annual meeting where only 10 people attended. Not only can you not hold an election as they did (because they didn't meet our 60% quorum) but the dues cant be raised without the same 60% quorum, the covenants are extremely clear, all of this is just in the past week. I brought all of this up, and have produced the covenants showing our violations as a board, they obviously don't care. I plan on resigning, I can't be part of a group who has a blatant disregard for their fiduciary duties. When they receive an email from a concerned homeowner, they bash, make fun of and slander them before responding, it's disgusting. What are some options here? If homeowners don't care, I just sit back and let the board violate the laws? Continue to allow them to raise dues in violation? Am I required to pay the increase if they didn't have the authority? These board members have been on for many years, and our bylaws/covenants haven't been amended since they were approved back in 1995.

Thanks
RoyalP
(South Carolina)

Posts:722


03/02/2019 6:48 AM  
based upon your BOD's history of malfeasance:

option 1 ... move

option 2 ... campaign the other HOs

option 3 ... law suit
KerryL1
(California)

Posts:6350


03/02/2019 9:35 AM  
Do NOT withhold your dues. There's wording to include with your payment to say you protest, for something. Someone else can help with that.
RoyalP
(South Carolina)

Posts:722


03/02/2019 10:08 AM  
Posted By KerryL1 on 03/02/2019 9:35 AM
Do NOT withhold your dues. There's wording to include with your payment to say you protest, for something. Someone else can help with that.




CORRECT
DouglasK1
(Florida)

Posts:1394


03/02/2019 11:45 AM  
Unless you are in one of the few states where there is an agency that provides HOA oversight, your primary relief for the association acting improperly would be a civil suit. Depending on the state, you might be able to do this yourself in small claims court, otherwise you would want to talk to a lawyer.

Escaped former treasurer and director of a self managed association.
JamesD18


Posts:0


03/02/2019 11:53 AM  
I wouldn't withhold my dues, that was just out of frustration. It is pretty clear to me that a quorum was needed to increase the dues, all the rest of the board sees is they can do it without a vote of the membership. Now I don't have a law degree, but it seems pretty obvious to me.

Attachment: 132533128571.pdf

SueW6
(Michigan)

Posts:491


03/02/2019 12:07 PM  
Please post the CCR sections that prevent (prohibit)
1) borrowing from the reserve fund
2 elections without a quorum at annual meeting
3) raising the assessment a certain amount without a vote of the Membership or creating a new assessment.

Many states allow some or all of these.
SueW6
(Michigan)

Posts:491


03/02/2019 12:13 PM  
Sorry, didnt see your post.

How old are your bylaws?

JohnC46
(South Carolina)

Posts:8270


03/02/2019 12:15 PM  
Posted By JamesD18 on 03/02/2019 11:53 AM
I wouldn't withhold my dues, that was just out of frustration. It is pretty clear to me that a quorum was needed to increase the dues, all the rest of the board sees is they can do it without a vote of the membership. Now I don't have a law degree, but it seems pretty obvious to me.



It appears the BOD can raise the dues by 10% per year without a membership vote. Only more than a yearly increase of 10% requires a membership vote.

10% a year doubles in 7 years so go up 10% a year and in 7 years the dues will be doubled.
JamesD18


Posts:0


03/02/2019 12:16 PM  
Twenty Four years old.
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