regaurding our President & management comp

Started by SheltonO • 4 replies • 2067 views

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SheltonO (North Carolina)
Posts: 4

Posted:

First of all I am new to all this HOA business. I have owned prior homes in Illinois but they did not require HOA dues.
1.) My first question is I would like to know how a president is elected? We have a president who has just put herself in office can anyone tell me how we as a community can go about getting her off? We have put out a petion and half the home owners have signed it.

The second thing I have is our bylaws in NC states that no board memeber or his family memeber can receive any HOA monies in there home. Well our so called president was paying her son $600.00 a year $50 a month to pick up trash. Know one in our community had no knowledge of this. Can someone tell me how we can go about getting our money put back in the budget?

3) We as home owners have requested at our last meeting that our president get the management company to meet with us in 30 days. Or else they would terminate his contract. And she would be put off the board. Those were put in motions at our last meeting. Well we have not heard from her. Can someone please tell me is she suppose to be reprsenting us as a community? Also the managemment company stated that he does not have to attend any unscheduled meetings only 4 a year. Is he inviolation of his duties in NC.

Thanks Gwen O

JulieS (Georgia)
Posts: 412

Posted:

Typically, the board of directors is elected by the homeowners and the board members then decide who will have which position. Apparently, they felt she was the best qualified person for the job or maybe the only person willing to take it on.

Why do you want to remove the president?

Regarding payment to the son for picking up trash; this is not a violation of any type. A service was received for payment. The person volunteering for the position cannot receive payment for board member duties. Her son is not a board member and should not be required to pick up trash for free. We had a board member in which we paid her son to clean the bathrooms twice a week while the pool was open. It was cheaper than hiring a company to do it and saved the HOA some money. This is not unethical or a violation of any type.

The management company is a tool used by the board of directors. I would highly doubt that the management company will hold a meeting to meet with homeowners on your request. If so, I am sure there will be an additional charge. The contract we have with our management company includes presence at the annual meeting and a budget meeting. We are also allowed an additional meeting or two during the rest of the year. Additionally, the homeowners cannot fire the management company. This will need to come from the board of directors. We have people who want us to fire the MC because they didn't like the way they were spoken to on the phone one time about 2 years ago. We cannot operate this way.

I would be careful of going around the neighborhood and collecting signatures to remove board members unless you have done some research and are acting on facts rather than what you think. This type of activity, a special meeting and such, can be very expensive to the HOA as well as creating an unhappy community. This comment comes from experience in dealing with it.

RogerB (Colorado)
Posts: 5,067

Posted:

Shelton, following are answer to your questions. Tell the Board members they can easily initiate action when the President doesn't.

1) Check your By-laws, here is what is normally done:
a)Directors are elected at the annual meeting of homeowners and shortly thereafter a Board meeting is held to elect officers.
b) At the initial Board meeting officers are elected by the Directors. c) An officer can be removed from office (but not from the Board) by a motion which is passed and approved by the Board members at a Board meeting.

2) I would question that is what your by-laws says since this would be discrimination. Nevertheless the son needs to be hired by the Board not the President. I would bring the issue up to a vote but would probably not ask for any money back if the son actually performed the services for a reasonable fee.

3)Again check your by-laws. Probably the VP (when the President refuses to act), or any two Board members, as well as the President, can call Board or Members meetings. The motion at the last meeting to remove the President from the Board is meaningless if it violates the By-laws. Usually it requires a members meeting duly called to remove any Board member.
Regarding the MC you need to read the Management Agreement to know if and when the contract can be terminated. Often a Management Agreement states "the Agent will attend 4 regularly scheduled Board meetings each year." However, you can request his presence at any Board meeting and pay any extra amount according to the Agreement.

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

Hi Gwen,

1) The title of President is actually an office that is typically decided upon by board members. Board members are elected by the community ideally at an annual meeting. Officers (Pres, VP, Treasurer, Secretary) are decided at the first meeting of the board or shortly after the annual meeting. Vacancies on the board may occur and your by-laws may have articles or provisions that the remaining board members can fill the vacancies, not the community members.

2) If the board member you seek to remove will not voluntarily step down, a special meeting will need to be called with a petition to the board that specifically states the purpose of holding the special meeting. Check your by-laws for the requirements. In all honesty, it sounds to me like your community, or a group of disgruntled owners are just now getting savvy to the goings on in your HOA.

3) Was the trash actually picked up, or is it just the cost you are complaining about. If the trash service was adequate, future service providers can be requested by the community with more strict monitoring by a committee, community members, or a pro-active board. The money is gone, and I really think you should give up on trying to get the money back.

3) What is NC because you said you are in Illinois?

4) How many board members do your by-laws require?

5) How many homes are in your HOA?

5) If the management contract stipulates a maximum of 4 meetings a year, there's no violation.

6) Do your by-laws have any articles regarding what is required if the community wishes to self-manage? Because I'm not sure if your community members can terminate a contract, and certainly would need the good graces of the management company to hold an impromptu perhaps hostile meeting. Instead you may only be able to request your board terminate the contract for documented, fair, and valid reasons.

7) Typcially, meetings that change provisions in your by-laws, or removal of board members require adequate written notice to ALL owners. These meetings can cause a great deal of instability within a community. So I recommend you dot your i's and cross your t's on storming the bastille so to speak.

8) A pro-active community that works together with the board, even if they disagree, will get better results than splintering into factions.

Best of success!!
GeraldT1
NNJ

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

Gwen,

Correction to 1) I meant board members can fill the vacancies, it's not for the community members to vote upon.

Best of success!!
GeraldT1
NNJ

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