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SheltonO (North Carolina)
Posts: 4
Posted:
Hi
I am a hoa member in NC. We as the community have called a meeting and have fired the board and management company. We called a meeting by the HOA members and had a quorum that we needed to get rid of them. But now we are having problems getting our books and finanes from the managemnet company. They have also started re electing new board members. The management company refuses to let anyone see the books. Which is illegal. It states in our bylaws that we as memebers can get rid of them. They have also notified them by certifed letter that they have been fired. Is there anyone out there that has any suggestion on how we need to go about getting our books?
RogerB (Colorado)
Posts: 5,067
Posted:
Shelton,
You must follow the By-laws to remove Board members. And to fire the management company you must comply with the legal contract the association has with them - the Management Agreement.

You may have put the cart before the horse by not having studied the Management Agreement prior to antagonizing the management company. Now you have an advisarial situation. You need to get a copy of the Management Agreement to see IF, HOW, and WHEN the association can terminate the management company. An attorney will probably be needed to resolve your mess.
SheltonO (North Carolina)
Posts: 4
Posted:
Thanks for the input. But this management company refuses to let anyone see his agreement and is not complying with the bylaws his self. The memebers of the HOA have asked to meet with him and he refuses. So this is why they requested he be fired.
EdR (Texas)
Posts: 170
Posted:
SheltonO:
This is exactly what is going on in our assn., except the worst case scenario--the board needs to be removed and will not follow the law; the MC is in cahoots with the lawlessness of the board and will not allow themselves to be removed. Although RogerB apparently is a good MC and I agree with what should happen, when the outed board will not provide you with the MC agreement and the MC will not provide you with a copy of the agreement, the best situation is to get rid of everyone and start over. Basically, although if you give a MC proper notice, pay off their contract and all the right things, they still can (and will) sabatoge you by losing or not giving you records and files on homeowners; if you you do not go by the letter of what you think is the law, there can be the same outcome. An HOA in Houston were successful with firing both board and MC, took over their assn.; got their banks in order; started hiring work done by outside (of their choice), preparing their own newsletter, etc., and hired an accountant and an outside inspector and things are great with them now.
EdR
GeraldT1 (<Not Specified>)
Posts: 519
Posted:
SheltonO,

To answer the question of your subject line, "How does a hoa get rid of the board and management company", IMO not the way that was done in your HOA.

My answer short and sweet is methodically, and over time.

Granted, sometimes upheaval is necessary but the instability that is caused needs to be grounded with a backup plan. Such as copies of all financial records, unit owner addresses and contact information, resolutions, transition reports, prior minutes/agendas, newsletters, developer related communications, borough related communications. Someone or a team basically has to be secretary to gather all the info prior to saying sianora to the old regime. Whether you like the management company or not, an hoa/coa should house as much information as it can in the event management is replaced.

I hope your by-laws don't say that the decision to self-manage requires x number of unit owners to vote upon, because if that's the case, technically you've got a real problem if you don't have a mangement company. You basically have a floundering board and community with no paperwork on the assets you have.

Not to add salt to the wound, but why wasn't the new board formed the night you removed the old?

If a certified letter of request (return receipt requested) to the old MC and old board members doesn't work, then you're up the creek unless you get an attorney involved, and even then.....

A new and reputable MC will know how to guide you to a transition rather than stay in the upheaval that seems to have been created.

Best of success!!
GeraldT1
NNJ
JoyceN1 (California)
Posts: 90
Posted:
In California if a member asks for the records or to view the records the management company has 10 days to comply and if they don't you can file a complaint with the State Attorney General.
GnomeX (Washington)
Posts: 253
Posted:
@Joyce

Any particular reason to dredge up a 7 year old thread?

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