Board Collection Report

Thomas,

EEEEE GADS! Someone better close the barn door before all of the horses are gone. What do your documents say as for delinquencies? Can you place leins against an owner for non payment of dues? This is a horrendous amount to be behind for operating an association.

Also, what does the Georgia HOA Law say about rights to inspection of documents? As a Board member, you have all of the rights to review and inspect any association documents. Budgets and expenditures should be openly reviewed at least every quarter but preferrably each month by the entire board. You had better get this Board together and have some major straightening out . This is unacceptable business practices from all of you who are the caretakers of this association.

The NAMES of the delinquent accounts may be "confidential", but certainly not the amounts or the status of the collection.

Our delinquncies are listed by address and amount, only. These are gone over evey meeting with a report from the treasurer on the collection process for each one. This is part of her Treasurer's report.

Thomas first off if you don't have one, the BOD needs to draft and implement a collection policy outlining the steps to be taken and it needs to be followed. If the president is unwilling to follow through then s/he needs to be moved to another position, anyway the decision on whether or not to lien or foreclose should be by a vote of the whole Board, not one person. And if the treasurer is truly two years in arrears then she shouldn't be on the BOD anymore. Most documents state as a qualification to serve that the member must be in good standing. I'm not familiar with GA law but even if you aren't allowed the information as an H/O you are as a BOD member. How many are on your BOD?

I grew up on a farm, so I've smelled a load of horsesh*t in my time once or twice.

But that's about the biggest load I've sniffed in a long, long time.

Please point to me in your documents where "appointed" board members and "elected" board members are not of the same class of board member, and thus do not have the same rights as all board members?

First of all, what's wrong with everyone else on the board? Obviously, the president and treasurer don't know what they're doing (or just imcompetent) - do the other board members think as you do? If so, it's two vs. everyone else, and if you're the majority, you can compel them to do their jobs. It may also help to see what some of the other residents think - if they all show up enmass to a meeting and demand information from the treasurer, she'll have no choice but to comply

And speaking of the treasurer, why is she on the board with two years of delinquencies? In our community, board membes can get tossed for several reasons, one being 60 days or more behind on delinquencies, because homeowners lose their voting rights at that point if they don't pay. If your bylaws or CCRs address this issue, I'd suggest that she be removed immediately.

Finally, with a 66% delinquency, it's time every account be reviewed and see who's really far behind and why. If your governing documents give the association the right to file a lawsuit or foreclose, you will probably have no choice but to take those steps.

We also have a high delinquency rate and we discussed them with the president of our property management company on Tuesday - he's going to review the accounts and make recommendations as to what should be written off or pursued. I'm treasurer of our HOA and it'll be interesting to see what he comes up with. The words "write off" came up a lot and while I know that will happen on some of the accounts, I intend to persuade the board to exhaust every collection option we have before making that decision.

Those who read my post know that I am the Treasurer (only since Mar 31st/08) of our Association and mailed in a complaint to the DBPR about our PM not doing her job but most importantly not having a CAM license. I finally received a return letter telling me they will be investiageting.....here's where I need help again. Do I send another complaint letter.

Last week, I wrote the PM/Board for the upteen times about a unit next to mine that was abandoned well over a year ago, about or maybe has been forclosed on. The last tentants who lived there stuffed some very (animal nasty) furniture in the shed and left the place filthy. The bank changed the locks but has done nothing else. Bugs every where. I ask the Board for help, I have been brushed off all this time, telling me they can't do anything about it. In our CC&R's it does state that it is the Boards fiduciary duty to look out for the HO's health, safty and welfare and of the community. I stated that I felt this fell in that catagory....The e-mail I received back from the President said it was my reopnsibility as treasurer to gather the contact information for this HO. We pay a MC/PM dearly to handle these things and besides I have always been told to butt out, the MC/PM is in charge of the finances not me.

So, I e-mailed the PM/Board and told them since the President had given me this responsibility/ this athority to handle this delinquent account then she has given me the athority to handle all delinquent account in written word in her e-mail. I then ask for all letters that had been written to out delinquent HO's so that I could see which steps they had taken in the process of collection....I have neither received a call, e-mail or mail about this information.

Today I picked up all the financials...first priorty on my list was checking the aging account. Our delinquency has gone up to 17 out of 77 HO's with out standing balance of $20,343.47 Written on the bottom of the list is a statement: "The accounts checked have been sent a late notice."

"A LATE NOTICE"

These accounts are for $3,508., $2,623., $2,804., (3)@over $1,500 and (3) @ over #1,000. the rest are from July 1st....Our dues are $409. semi annually. So as you can see they haven't even tried to collect if they are just now (after I ask for paper work) sending out late notices. My question to you is "should I send in another complaint to the DBPR"..we don't even have the money to pay our expenses and they are not even trying to collect....Most of these HO's should be in lien by now. And they are not even applying the late fee and interest correctly. Late fees and interest come off the top first so if not paid in full the remainder would be considered late dues and the HO would still be charged a late fee plus interest.

Sorry this is so long.

Thomas,

Can you post the bylaws article which says appointed board members cannot vote? I find this quite unusual. However, if that's what the bylaws state, perhaps you do NOT have the same authority as the elected board members. I'd like to read the whole bylaw provision b/4 making a judgment call. Of course, it would only be my opinion, for what that's worth!

Thomas,

Not doubting your word, but find it unusual there is no article addressing powers and duties of the BOD.

Regarding the mgmt co's statement about nonprofit laws; perhaps the state has laws for nonprofit corps? If so, there may be a provision regarding "inspection of records" but I doubt it says anything about nonvoting members of the board. It probably only states what records may be viewed and/or copied by members of the assn.

It appears to me you are not being regarded as an actual member of the board. Perhaps if you had been aware of what this appointment to the board really meant, you may have refused. You're a warm body good for performing tasks; a board member in name only. It sounds like you are a hard worker and I'm sure the board is thrilled to have you available to perform whatever task they might not want to perform, right?

I do feel for you Thomas...my Board President treats me the same way. The difference is, I never gave up...I got just as much information when I wasn't on the Board then I do now....I finally got tired of being told to butt out...We are in such awful financial shape, I truly don't think we can out of it....If you read my post below, you can see what I found out...They, the Board/PM have not gone after our delinquent accounts, they just let them keep growing and growing....Keep after them, read your docs, find what you need and comfront them w/the information....If they don't want you to see the books, there is probably something there they don't want you to see....HOA Association's can have many problems but IMO, the priority concern is collecting the dues. With out the dues from all HO's the other problems start falling by the way side...If you can't pay for the services, there are no services....or expect an increase in dues and perhaps a "Special Assessment"

I don't know about your docs but here in Flordia, if you ask for files (send a certified letter), they must give them to you within 10 days or must pay you $50. a day up to 10 days....Good luck but don't give up.

Thanks Dwight and Mary...
Yes I have learned alot the past couple of days including we ( the Board) do not have a Code Of Ethics... so I have found examples and drafting one now as we speak for the next BOD...could have saved alot of headaches. As far as the financial committee...get this.. the treasurer was suppose to start that as well as getting a reserve fund done...neither have been touched. I just started the Membership / Welcome Comittee two weeks ago after she stated in March that she would be "glad to organize it"...it is going to be a an interesting annual meeting and elections next week !!!