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Subject: What to do about too many vacancies?
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Author Messages
MarcW
(Texas)

Posts:11


08/24/2006 10:45 AM  
I'm presently the VP of a 4 member HOA board in a small 10 unit complex in Dallas, TX. We've just had 2 members step down (the President and the Secretary), citing lack of time to be involved in board issues. This leaves me and our Treasurer. Our bylaws state that, in case of vacancy, the remaining members can elect replacements even without quorum, but there appears to be no interest from the other 6 owners. Is it okay to turn to people outside of the community to fill these vacancies, such as tenants or friends? Do we compensate them, if so? Can we legally continue to operate without these members if nobody steps up? Additionally, does this change my role as VP? Am I now the President? Does this make the Treasurer the VP? It would seem strange to elect an outsider to these roles.
CharlesW1
(Georgia)

Posts:826


08/24/2006 10:56 AM  
MarcW,
I’m sorry to hear that your board is deteriorating. I’m not 100% sure but I don’t believe you can hire people outside of the community. Maybe you can. I don’t know.

If you want to continue to have an HOA then you and the treasure need to pick up the slack. Maybe you could turn the entire HOA over to a MC? If your development is that small maybe if would be best to turn it over. If this is even possible!

Many of the people on this discussion board are very knowledgeable as to what can and what can’t be done in your particular situation.

I wish I could be of more help.

Chuck W.

Charles E. Wafer Jr.
JulieS
(Georgia)

Posts:412


08/24/2006 10:56 AM  
Yes, you are now the president. Most of the answers to your questions can be found in your documents. Sometimes, one board member can hold two offices, check your documents. Maybe you should amend to allow only three board members (from four), this will help with the lack of volunteers and eliminate the possibility of a tie when a motion is made.

Board members are volunteer positions so payment cannot be made. Your documents should let you know if members of the board are required to live in or own the homes. You could look into hiring a management company if time seems to be an issue in finding volunteers. The additional cost may encourage someone to step up to the plate.
LisaP
(Florida)

Posts:32


08/24/2006 12:39 PM  
Generally, any person, inside and outside of the community, can hold an office (treasuer, secretary, etc.). However, in owner Association's, only owners can be Board members... and in some cases, the developer.

Check your bylaws, with counsel or state statute.
BradP
(Kansas)

Posts:2640


08/24/2006 1:33 PM  
Marc:

You really need to check your bylaws because you have a number of issues that need to be addressed. Such as, is there a quorum required for the board to vote on issues and is that more than 2?

yes you are the president, and you also need to check your documents for non-members becoming board members. Our documents allow non-members of the association to be board members. If you can and elect to go that route I wouldn't compensate them. I would also look at reducing the number of board positions to 3, 4 seems like a lot for only a 10 unit complex.
MarcW
(Texas)

Posts:11


08/24/2006 6:41 PM  
I've been reading both our bylaws and Declaration today, and have yet to find any statements about members holding multiple offices. It does appear that there only needs to be 3 actual Board members, as that was the initial number the community started with, and there have been no addendums changing that number. I'll continue reading, but I'm thinking that, if nobody volunteers to fill that 3rd slot, 2 members would be 66% of us and should still be able to conduct business.
GeraldT1


Posts:0


08/25/2006 8:07 AM  
MarcW,

Yes, 2 out of 3 is 66%, and 2 out of 3 ain't bad as they say. In my HOA/COA Pres. and VP can't hold any office but Pres. and VP. Treas, can be secretary, and vice versa. Is there anything in your by-laws that says how many offices you are supposed to have on your board? If you are to have office of Pres. VP, Treas. and Secretary and only 3 board members than it seems to me you can indeed turn to outsiders to fill the officer positions. However, and I'm only playing devil's advocate, do you want non-residents deciding matters for residents? If anything I'd hire a management company, make their duties handle the secretarial and treasurer aspects and have the Pres. and or VP. with powers of final approval of check signing, budget allocation, and investments replacement and repairs. That is until you find a third board member that may handle the treasurer aspects.

Best of success,
GeraldT1
NNJ
JulieS
(Georgia)

Posts:412


08/25/2006 9:40 AM  
We are required to have a president, treasurer and secretary. Additional board members can include a VP. Our docs allow for a member to hold two positions, just can't remember what they are at the moment. I would go with three and have the president, treasurer and secretary. Management company is also good, whether you do full management or just the accounting & legal side.
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