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SM3
(Alabama)

Posts:6

11/11/2008 9:07 PM
We have 197 homes, with 54 late in paying. This has caused us to not have money to pay the electricity bill, our property taxes, etc. We are in hopes our neighborhood will approve a vote to increase the dues, so that we can contract with a management company to aid in "daily functions". With this said, I am the treasure and am tired of doing all this work. The board, what board? We can't get people to run for office, I've served two, two year terms. Me and one other board member have been doing all the work. Can I resign? If so how? How do I go about getting my name off of every account, and off the list of board members? Thanks!

SusanW1
(Michigan)

Posts:2316

11/12/2008 5:22 AM
To resign, simply write a letter to the board stating the effective date that you have resigned. Don't worry about getting your name off the accounts, the board will establish new signers, etc. The board will motion to accept your resignation at the next meeting and it will appear in the minutes. It is then part of the legal record, although your own effective date is when you actually "quit" Please think this over. At this time, the board needs expereince to lead them thru this difficult time. While you are responsible TO you are not responsible FOR these trying times, so continue to help out. In fact, your workload may get bigger, since your HOA may have to really do some cutting in the budget (including not having a MC, but sub contracting things our yourself) You MUST get some help. Call a Special Meeting of the members to talk about this and explain the financial challenges you will face, including apathy in running the board. Ask if they want a judge to run the place!! You can TRY for a raise in dues, but don't be surprised if it fails. It's not a good time to ask for increases now. Make sure you have trimmed ALL the fat from the budget AND have a plan in place to collect those past dues. Good luck!

SM3
(Alabama)

Posts:6

11/27/2008 10:19 PM
I'm not sure we have done thing correctly when we took over from the developer. I'm not sure a federal tax return has been filed. What do we do about that? We are in the process of getting a management company, but that requires and increase in dues, and the neighbors are voting on that by mail in vote now. I don't see it passing. There are no new board memembers. Nobody wants to serve on the board. This is why most of us have served for 3 years. I want out of it, but I legally want to cover my butt. I want to be sure all that I have done on the board was done legally before I get out. Suggestions?

RobertR1
(South Carolina)

Posts:2523

11/28/2008 2:00 AM
SM3, Stick with me on this and let's just stick to your request for someone here to provide you with legal advice to cover your butt, so you won't have to worry in the futrure because of something you did in the past. How rational is that? Did I state this wrong? If so, I suggest a lawyer. Susan gave you the procedure for how to resign, and from your response you want more. Are we to then suspect you have something in the past that concerns you, I sure don't know. Now that I have pissed you off, let's move on one step and ask what you can do to solve the situation you find yourselve in. I doubt there is one regular poster here that has not guit this whole mess a time or two. It's the truth, I have resigned from many committees and swore vengence on my management more than once. But in the end you find that is not the answer, for me, or my association. So we joing the fray again and now after twenty years I am starting to get comfortable with apathy, board blindness, management screw-ups and tilting at windmills. The only measurement I make about my twenty years and counting is: "Has my association improved over the years, are the improvements evident, and did I have anything to do with it." I can answer these question with a "yes." That's enough for me. After twenty years are the majority of owners apathetic? Most certainly. So some folks, few in number, have stepped up and our record is far from perfect, but we know up from down and can keep it that way, in spite of all. Nothing has got easier, but things are now familiar, and we stumble along. We all have the same problems and I dare say, we all have different ways of moving along.

DanaB1
(Connecticut)

Posts:148

11/28/2008 6:35 AM
Amen Robert. Nothing more to be said. Dana

SusanW1
(Michigan)

Posts:2316

11/28/2008 6:59 AM
SM - to incorporate, you would have had to have a Federal ID number (EIN Number) So . . . was the group incorporated as the HOA? What is your annual budget?

MicheleD
(Kentucky)

Posts:1866

11/28/2008 7:01 AM
Wow, Robert, no offense, but it might have been reaching a tad to suggest that the original poster might have something to hide! I think what she/he is looking for is a way to get her/his name off of all the legal documents, especially the ones associated with the money, in order to prevent something coming back and biting her/him on the back side later on down the road. That doesn't mean she/he may or may not have done anything tricky or unethical, just looking to protect herself from future problems if the association goes under. Plus, keep in mind that we never, ever should be offering "legal advice" in any of our posts here. Generally we can provide some insight or suggestions, and offer generic advice, we've all done that, but it's important to point out that none of us is qualified to offer specific legal advice to any posters, especially in this venue. I don't know when the annual meeting is, or when the board members are generally elected and the length of their respective terms, but the letter of resignation that Susan suggested works for that portion of it. It might be in the poster's best interest to actually go into the bank (since she is the treasurer) and talk to a bank officer/representative to see if she can get some direction there on what to do about removing her name/contact info from the bank account. Even then, I don't know what FUTURE protection that would provide, but a banking official might be more qualified to give her some insight on what else might need to be done. Also, the original poster could contact the Secretary of State for Alabama and talk to someone in that office about how to remove oneself from the officer/directer positions of a corporation such as an HOA. With luck the treasurer is not also the "registered agent," which would mean it would be a little easier. They might also be able to provide some direction on who else the poster can contact to get additional advice as well. Good luck to you!

MicheleD
(Kentucky)

Posts:1866

11/28/2008 7:04 AM
This sentence in my previous post should be corrected to include the word "probably": ". . . but the letter of resignation that Susan suggested works for that portion of it. " CORRECTED: ". . . but the letter of resignation that Susan suggested PROBABLY works for that portion of it. " Oh, and one more thing, check with your governing documents. There is probably a passage in there somewhere that might mention what a board member is to do if he/she wants to step down.

MaryA1
(Arizona)

Posts:2504

11/28/2008 7:06 AM
Posted By SM3 on 11/27/2008 10:19 PM I'm not sure we have done thing correctly when we took over from the developer. I'm not sure a federal tax return has been filed. What do we do about that? We are in the process of getting a management company, but that requires and increase in dues, and the neighbors are voting on that by mail in vote now. I don't see it passing. There are no new board memembers. Nobody wants to serve on the board. This is why most of us have served for 3 years. I want out of it, but I legally want to cover my butt. I want to be sure all that I have done on the board was done legally before I get out. Suggestions? SM, The fact that you are wondering if you performed all your duties as a board member legally, tells me you have never "knowingly" done anything illegal; therefore, I don't believe you could be held individually accountable for any illegal acts undertaken by the board. The tax return matter can be resolved quite easily. Simply call the IRS to find out if any tax returns have been filed by your HOA. If not, hire a CPA and have all back tax returns filed. The assn may not even own any money and if they don't I don't believe there will be any penalties or interest to pay either. If they do owe any money, I would venture that it would be very nominal, unless yours is a very large assn with a lot of interest income earned on savings. Also, make certain to check with your State revenue dept to find out if filing a state income tax return is required.

RobertR1
(South Carolina)

Posts:2523

11/28/2008 1:00 PM
MaryA, What I wrote: 11/28/2008 5:00 AM Quote Reply SM3, Stick with me on this and let's just stick to your request for someone here to provide you with legal advice to cover your butt, so you won't have to worry in the futrure because of something you did in the past. How rational is that? Did I state this wrong? If so, I suggest a lawyer. Susan gave you the procedure for how to resign, and from your response you want more. Are we to then suspect you have something in the past that concerns you, I sure don't know. ******************** and what you thought I wrote were two different things. I asked the poster to respond if I was right or not. Also what I said had nothing to do with legal or illegal, I don't know what he wants to santitize, but that is what he wants advice on doing. I will retract my remarks and just turn this over for you and Sm3 to resolve. Good luck!

RogerB
(Colorado)

Posts:3725

11/28/2008 1:10 PM
SM3, Your By-laws should state how a Board member can resign. Usually it simply takes giving a written notice to the Board. Your association should have D&O insurance which will cover you so long as you acted in good faith with no wrongdoing or fraud. The important question is how to get your assocition back on track by getting owners to volunteer to serve on the Board; raising assessments and hiring a Managing Agent; and have the MA work on collecting delinquent accounts.

Roger Borcherding Official HOATalk.com Sponsor DARCO Property Management (Colorado) (303) 925-0150 *See legal notice below (end of page) or go to www.hoatalk.com/legal

MaryA1
(Arizona)

Posts:2504

11/28/2008 4:03 PM
Posted By RobertR1 on 11/28/2008 1:00 PM MaryA, What I wrote: 11/28/2008 5:00 AM Quote Reply SM3, Stick with me on this and let's just stick to your request for someone here to provide you with legal advice to cover your butt, so you won't have to worry in the futrure because of something you did in the past. How rational is that? Did I state this wrong? If so, I suggest a lawyer. Susan gave you the procedure for how to resign, and from your response you want more. Are we to then suspect you have something in the past that concerns you, I sure don't know. ******************** and what you thought I wrote were two different things. I asked the poster to respond if I was right or not. Also what I said had nothing to do with legal or illegal, I don't know what he wants to santitize, but that is what he wants advice on doing. I will retract my remarks and just turn this over for you and Sm3 to resolve. Good luck! Robert, Are you addressing your message to me? If so, I'm not sure I understand what you are saying. All I did was give my opinion which had no bearing on your message. :-(

DonnaS
(Tennessee)

Posts:2951

11/28/2008 4:23 PM
Mary, I think that Robert was replying to SM3--(right Robert?)

RobertR1
(South Carolina)

Posts:2523

11/28/2008 6:02 PM
My error folks, sorry Mary, I was wrong. The post I was referring to: By Michelle: Wow, Robert, no offense, but it might have been reaching a tad to suggest that the original poster might have something to hide! I think what she/he is looking for is a way to get her/his name off of all the legal documents, especially the ones associated with the money, in order to prevent something coming back and biting her/him on the back side later on down the road. That doesn't mean she/he may or may not have done anything tricky or unethical, just looking to protect herself from future problems if the association goes under. Plus, keep in mind that we never, ever should be offering "legal advice" in any of our posts here. Generally we can provide some insight or suggestions, and offer generic advice, we've all done that, but it's important to point out that none of us is qualified to offer specific legal advice to any posters, especially in this venue. ******************* I enjoyed your comments about the liriope Donna. Some of our recent transplants from up North can't see much of a problem getting rid of this stuff, just dig it out or spade in under. Yeah right! First problem you have is to sharpen the shovel so it will cut through the stuff. Again I goofed Mary.

MaryA1
(Arizona)

Posts:2504

11/29/2008 10:22 AM
Robert, So you goofed! Welcome to the club; I've done that many times. LOL You're still a teddybear. :-)

SM3
(Alabama)

Posts:6

11/29/2008 7:42 PM
Thank you all for your advice. And no there is nothing I have done that I want to cover up in the past. We have struggled to get the association going. We have had to learn so much on our own for we are the first board to be in the nieghborhood. THe developer, whom we thought was giving us good advice, told us we didn't need to file a tax return. Then reading on the board here, I saw topics on filing returns. Thus my questions about covering myself after I resign. Also, we currently don't have insurance because past presidents and such didn't take care of that. Now I'm stuggling in where to find that, how much should it be, what do I look for. I'm attempting to do everything I can before I resign, because I don't want the next volunteer board to have the struggles I've had for 3 years. Thank you all for your help.

SusanW1
(Michigan)

Posts:2316

11/30/2008 1:13 PM
Can you answer the questions I posted Nov. 28? SM - to incorporate, you would have had to have a Federal ID number (EIN Number) So . . . was the group incorporated as the HOA? What is your annual budget?

MaryA1
(Arizona)

Posts:2504

11/30/2008 3:50 PM
Susan, In AZ a corp is not required to have a tax ID number to incorporate. This is something that can be undertaken after the incorp. has been approved by the Corp. Commission.

SM3
(Alabama)

Posts:6

11/30/2008 5:34 PM
We do have a EIN number. Our budget is 10,000.

SM3
(Alabama)

Posts:6

11/30/2008 5:35 PM
And I have placed a question to a local CPA who will get with me tomorrow, she was out of town for the holiday.

SusanW1
(Michigan)

Posts:2316

11/30/2008 6:15 PM
If your budget is that little, don't worry about the tax filing. Check with your CPA, but I think that they (the IRS) is not even worrying about corporations that earn less than $25,000. Yes, you should file anyway, but your budget is really small, in the scope of things.

DwightT
(Idaho)

Posts:483

12/01/2008 8:27 AM
I would be interested in hearing what a CPA has to say about the "IRS ignore" amount. A small non-profit that I'm involved with has been told that the level was $5000. Since we brought in a little over that amount this year, we were finally going to have to file.

MaryA1
(Arizona)

Posts:2504

12/01/2008 2:04 PM
Posted By DwightT on 12/01/2008 8:27 AM I would be interested in hearing what a CPA has to say about the "IRS ignore" amount. A small non-profit that I'm involved with has been told that the level was $5000. Since we brought in a little over that amount this year, we were finally going to have to file. Tax returns should always be filed even if no tax is owed. If an HOA only has "exempt income" (assessments) there will be no Fed. tax to pay. Regarding delinquent returns or nonfiling; if there is no tax owed I don't believe there is a penalty.

MicheleD
(Kentucky)

Posts:1866

12/01/2008 2:31 PM
Posted By MaryA1 on 12/01/2008 2:04 PM Posted By DwightT on 12/01/2008 8:27 AM I would be interested in hearing what a CPA has to say about the "IRS ignore" amount. A small non-profit that I'm involved with has been told that the level was $5000. Since we brought in a little over that amount this year, we were finally going to have to file. Tax returns should always be filed even if no tax is owed. If an HOA only has "exempt income" (assessments) there will be no Fed. tax to pay. Regarding delinquent returns or nonfiling; if there is no tax owed I don't believe there is a penalty. Exactly my position. We had several years where we were below a "threshold," but were obligated to FILE anyway.

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