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Subject: Board member delinquent in dues
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Author Messages
TimB4
(Virginia)

Posts:3253


03/07/2010 1:58 AM  

Under Section 4.1 of our Bylaws it states that membership rights and privileges together with voting right may be suspended by the board for unpaid assessments, as that board member has now lost his status as a member of the association. If the Bylaws state that only members can serve on the board, then the board member that was delinquent should be removed from the board automatically.




Richard,

How did the individual lose his membership?

Did he fail to keep current on his assessments or sell his home?

Members are normally defined as owners of the lot. If behind in paying assessments, they might not be a member in good standing but they are still a member.

Therefore, if the bylaws don't specifically address this situation, perhaps by wording similar to what Mary suggested, they are allowed to serve. The rest of the Board could certainly remove them from being an officer and make them just a Director with no additional responsibilities or authority (and probably should).

I've said it before, what is legal is not always what appears as the right thing to do. What is legal usually depends on the specific wording of the law/rule/guideline. This is why there is so much gray area.

You stated that your bylaws say voting rights may be suspended (my HOA bylaws has this language also). This wording doesn't make voting privileges go away automatic. It only provides an option that could be taken. It doesn't even say that the action must be taken or if taken has to be taken for everyone that is behind in assessments. It can be on a case by case basis.

I've only been part of this forum for a short time. However, in that time I've seen many discussions get into a debate on what we would like or not like to happen vs. what the legal options are to address the issue. I feel fairly positive in stating that everyone here would agree that the person shouldn't still be on the Board. Irregardless of this agreement, legally it may be possible for the individual to still serve on the Board. Since the OP never replied if they were a condo complex or not, no-one can really say for sure.

Personally, I enjoy hearing the legal options. This way I can see if my HOA has potential problems in the future and work to address them before they become a problem. I also enjoy hearing the personal opinions on what posters believe is the right thing to do. I actually prefer those that disagree with mine because it can demonstrate to me weaknesses in my own argument or show me something I hadn't thought of before (thanks to all of you for that).

Again, something that is legal might be a scummy thing to do in our minds. However, that doesn't change the fact that it's legal.

Tim
MaryA1


Posts:0


03/08/2010 3:08 AM  
Richard,

You wrote: "If the Bylaws state that only members can serve on the board, then the board member that was delinquent should be removed from the board automatically." You are saying a delinquent board member can only be removed if so stated in the bylaws. So how can you take exception to what I posted which was explicitly prefaced with, "if not addressed in the bylaws" when you are saying the very same thing?

But, having said that, the bylaws provision you refer to has nothing to do with removal of a board member who is delinquent. All it has to do with is suspending voting rights and the right to use the amenities if a member is delinquent. I suggest you research your bylaws further under the section that deals with board members' removal/disqualification.
MaryA1


Posts:0


03/08/2010 3:22 AM  
Tim,

You wrote: "I also enjoy hearing the personal opinions on what posters believe is the right thing to do. I actually prefer those that disagree with mine because it can demonstrate to me weaknesses in my own argument or show me something I hadn't thought of before (thanks to all of you for that)."

Hooray for you, you're my kind of person! I can't tell you how many times I've been personally attacked because I did not have the same opinion. You would be surprised to know how many people think only their opinion is worthy and anyone else with a differing view is plain stupid. Like you, I welcome a differnt point of view; it's amazing what you can learn. And sometimes, if you really think about that different point of view you may realize that it's more on the money than yours was; you just hadn't thought of that angle b/4!! I think that happened to me once in my lifetime and I'm no Spring chicken. LOL
PhilipL
(Florida)

Posts:16


03/10/2010 5:45 PM  
Florida ----------- Statute 720.305

3) If the governing documents so provide, an association may suspend the voting rights of a member for the nonpayment of regular annual assessments that are delinquent in excess of 90 days.

The answer would be in the Association's Covenants/Deed Restrictions or BY-Laws.
In my Florida community, a member may attend meetings but is denied voting rights.
A Director who is delinguent should be removed by the process outlined in the associations documents.
MaryA1


Posts:0


03/11/2010 5:26 AM  
Philip,

Your FL statute has nothing to do with a board member serving if delinquent in payment of assessments. This statute only suspends the voting rights of a member of the ass meaning that member cannot vote on any issues that members are required to vote on. It has nothing to do with voting on board issues or even remaining on the board if delinquent.
JamesC
(Maryland)

Posts:282


03/11/2010 6:46 PM  
Mary: You said:::::

Philip,

Your FL statute has nothing to do with a board member serving if delinquent in payment of assessments. This statute only suspends the voting rights of a member of the ass meaning that member cannot vote on any issues that members are required to vote on. It has nothing to do with voting on board issues or even remaining on the board if delinquent.
"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""

I am becomming more confused every time I log on, and read these posts.

You say the FL statute only suspends the voting rights of a member of the Association, meaning that member cannot vote on any issue. Other then a member of the Association voting to select a member to the Board of Directors, our HOA does not allow homeowners to vote on "any" other issue. The homeowner is given the opportunity to express their comments on topics being addressed, but only the board members may vote.

However! Members of the Board of Directors "are also Members of the Association". Therefore, how can you say it has nothing to do with voting on board issues, or any issue involving the association, if they are deliquent of their monthly assessement fees?
I still do not see the legality of sitting in judgement of other deliquent share holders, if you yourself are in the same situation?????????????????

Jim


RobertR1
(South Carolina)

Posts:5164


03/11/2010 7:40 PM  
Jim,
If you are confused this is the place to be, I doubt there is a more confusing issue than HOA's.

Since this conflict you refer to has been addressed here many times, I think I can safely say (and Mary has repeated this)that Mary is not giving her personal opinions on the rightness or wrongness of the topic, she is just saying that under the FL statute, which is the senior "court" in this matter, that this is what the laws says. She has said she feels it is wrong and should be amended. Mary has extensive history in writing and pushing legislation through judicial forums and if she is wrong, it is a rare occurrence. Consider there are two kinds of votes, homeowner votes for homeowners decisions and BOD votes for Board business. The homeowners get this right to vote on associations matters from the documents and the statutes. The BOD get their votes, separate from their homeowners votes by virtue of their position as a BOD member.

I personally think it is nonsense. know anyone that can take that to the bank.
MaryA1


Posts:0


03/12/2010 6:57 AM  
James,

First of all you must remember not to confuse what you think is right with what may be allowed in the gov docs.

The provision stating a member cannot vote if delinquent in paying assessments only applies to a member voting on issues that members are allowed to vote on, i.e. mainly board elections. That particular provision does not mention a board member being delinquent and whether they can continue to serve on the board. As I've stated several times b/4 the provision you are looking for would most likely be found in the bylaws under an article which talks about director disqualification or removal. The bylaws of my assn do NOT say anything about removing a director from office if delinquent in assessments, however, the bylaws of my former assn state: "No member shall continue to serve as Director if more than 30 days delinquent in the payment of any assessment, and such delinquency shall automatically constitute a resignation by such delinquent director on the 31st day of the delinquency." This is the only reason a director can be removed from office w/o a vote of the members, aside from ceasing to be an owner.

Most bylaws have a provision giving the board the authority to remove an "officer" from their position with or without cause. If the bylaws are silent on removal for being delinquent, the BOD could use this provision to remove the board member from their officer position, but they could not remove him from holding a board position as a director. A director is elected by the members and an officer is either elected or appointed by the board members.

You may personally think it's "illegal" to hold a board position if you are delinquent in assessments, but if your gov docs or state law do not say this cannot happen, then it is NOT illegal. The best you could do is mount a campaign to have this board member recalled based on a moral principal -- that is if you even know about the delinquency.

Note that I'm not giving my personal opinion on the topic, I'm only stating what can or cannot be done based upon the gov docs and/or state law.
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Forums > Homeowner Association > HOA Discussions > Board member delinquent in dues



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