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Subject: Can Board hire Mgmt Company without approval of homeowners
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DarleenP


Posts:0


09/09/2019 3:36 PM  
Can Board hire Mgmt Company without approval of homeowners? The docs in regard to the management of our condo association of 25 units is clearly outlined as having a HOA board of 5 with a Pres, Treas & Sec required with VP if desired and 2 others. There is absolutely no mention anywhere of any option for a management company in the documents. At a different condo that I am familiar with does have it outlined as an option, but ours does not which is why I am asking.

There is a possibility that the board is being underhanded as there has been many unbelievable recent events occurring and way to many details to go into here, but bottom line is that our board calls for 5, 3 board members (friends) want control and trying to keep it to 3 instead. Had an owner vote and owners still voted to keep to 5. Later 2 moved and 3 are doing everything possible to keep those positions unfilled despite volunteers to to be on the board. Suddenly when owners were demanding it be filled (they know they would get out voted), suddenly the owners received a letter from a 1 man management company that said he is now taking over and to call him for everything and left his phone number and rent an address! This is a red flag to me and there are other concerns as well.

This was not in our budget this year, never discussed before at any meeting with owners, as a matter of fact, our budget fell short and we had a special assessment of over $1,500.00 that many feel could have been budgeted for the future but went along with it. This is no emergency as there are volunteers for the board, and our docs don't provide for something like this. The owners have no idea what kind of contract they signed.

Any info or opinions? Now what?
SheliaH
(Indiana)

Posts:2665


09/09/2019 4:43 PM  
It may not be in your documents, but that doesn't mean it can't be done. The documents likely state the board is responsible for managing the community, and depending on what you have in the way of common areas, a management company may be necessary in doing the work effectively. Remember, board members have lived outside the association, so if you and your neighbors don't want the expense of a management company, some of you will need to get off your rear end and offer to help.

That said, the board should have broached the subject with the homeowners to see if they'd be ok with this. If there are only 25 units and as many owners, it would see there are tasks someone or several could have volunteered to help. Yes, that includes you.

By the the way, if there are 3 people who are behaving like they want to dictate everything, my math suggests the are more than enough people to vote them out. So why is everyone standing around sulking?




SteveM9
(Massachusetts)

Posts:3329


09/09/2019 6:46 PM  
A board can hire someone to mow the lawn or an mgmt company. Yes, they have that power.
MelissaP1
(Alabama)

Posts:8497


09/09/2019 10:21 PM  
A MC is hired by the board to assist them in running the HOA. Why is this an owner decision or to be in the documents? The only reference we have to a MC is if we were to disband and no longer member owned or operated. We then have to be managed. Otherwise a MC is just like any other hired contractor.

Former HOA President
SueW6
(Michigan)

Posts:549


09/10/2019 6:36 AM  
Darlene
Your posts mixes apples and oranges:
1) board at 3 members. This can be solved at the next Annual meeting where vacancies will be filled by voting Members. They are not mandated to fill vacancies right now unless your bylaws say vacancies MUST be filled immediately.
2) MC hired by current board. This motion to hire can be tracked by reading the minutes, or better yet having attended the meeting where this was discussed and voted on. Sounds like you weren’t there, however, you can request a job description for this position to understand what this job entails. Remember - boards don’t do everything, they just make sure that everything gets done. Hiring staff and entering into contracts is permitted to Boards.
3. A Member approved assessment. It might be your opinion that is wasn’t needed, but apparently your fellow Members did vote it in. You can track these funds by watching to make sure the assessment is restricted to cover costs of whatever reason the assessment is intended ( roof? Insurance? You don’t say. )

What state do you reside? Sounds like you are dissatisfied with the board. Run for the open position, then.
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