Switching Mgmt Co's/Ombudsman

Started by NancyM2 • 2 replies • 1670 views

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NancyM2 (California)
Posts: 249

Posted:

The Mgmt Co we had during the time I was Treasurer offered good services, and was close by. (Ombudsman services included, no extra charge) I was able to work very well with them as well as good homeowner Mgmt Co. relationships. Unfortunately our "in house" Attorney and one other board member did not share my enthusiasm. Shortly after I left the board they dismissed that Mgmt Co. and hired a Mgmt Co. further away at DOUBLE the cost per month.

Strangely enough the CEO's of our new Mgmt Co. we hired were friends of our "in house" Attorney. When I questioned the reason for leaving out first Mgmt Co. I was told the reason was too egregious, and would never be revealed. The word "egregious" was the same word they gave the CEO's at the Mgmt Co they had fired, with no other explanation. Therefore we were obligated to pay off the contract at a cost of several thousand dollars to our HOA. I don't believe any RFQ's were sent out for other bids before they retained the new Mgmt Co. There simply wasn't enough time. As a board member I was under the impression that before we let out any contracts we needed to get several bids.

My question would be ~~ As a homeowner should that information be available to me, or can they just blow me off again.

Nancy M

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

NancyM2,

It does not sound like there is was an egregious act. However, to the new board members it was probably egregious that the old MC was acting in a professional manner.

The contract with the MC probably had a terminiation clause that included "with or without cause".

As a homeowner you have a right to almost if not all association related materials and to audit everything except probably sensitive matters of pending litigation.

They can delay providing access to the information all they want, but the choice is yours how tough wish to get.

I'll repeat what I said in a previous (unrelated) post. Do your governing documents have a threshold on board spending as it relates to the budget? Does the (double) cost of the new MC exceed a percentage (of your budget) therefore requiring a 2/3rd's community vote?

GeraldT1

NancyM2 (California)
Posts: 249

Posted:

Gerald:
Again I Thank You for your response to my questions. We do have a 5% threshold of our annual budget for "Capital Improvements" However I don't think it applies to anything else. I will look into it.

I was on the board when we hired the Mgmt Co. that was fired. The contract had a 60 or 90 day release clause. All other items had to be a "Material Breach" Obviously their was no material breach ~ Witness the fact thay had to pay off the contract.

I am positive that the proposed "egregious act" was bogas. and that is the reason they can't tell anyone. You can bet I am the last person they would give any information to, short of me hiring another Attorney or contacting the Attorney General in the state of Calif. It is my understanding that our Attorney General doesn't do anything anyway. (brick wall)

I could request that information, as we have some new laws here in Calif as of July 1st of 2006 (Davis Sterling Act)However I know they will just blow me off again. And I don't have the means to hire an attorney.

Nancy

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