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AudreyB (Florida)
Posts: 104
Posted:
I live in Florida on the Space Coast.

Happy New Year Everyone!

My BOD's is finally rescinding their illegal compensation, which is called "Monetary Gift Program." However, the President wrote in our December Newsletter that,they are rescinding their Monetary Gift Program because the program did not work. Not that it was illegal.

Recap of the story:
The BOD's increase our yearly dues to cover this program. So, a portion of our income for our HOA was used for this program. Our Articles of Incorporation as well as FS 617.0505 says in my words, NO portion of the dues which income to our corporation can be distributed to any member of the Board of Director's, officers, or members.

I recently sent a certified letter to the President requesting a retraction for her to speak the truth that their Monetary Gift Program as being illegal, not that the program didn't work, in our January Newsletter.

I also informed the President, since this program is illegal, the giving out $7,500 to members of the Board and their members of their committees,at our Annual Meeting, is also illegal, and the money needs to be returned to the rightful owners, our HOA. I told her the check the President personally handed me, I didn't cash it. As a Board memeber from another Association, I knew the program as well as receiving this money was also illegal. So, $7,400 needs to be returned to our HOA. Agreed?

The BOD's also has to write our County as to why they are rescinding their amendment to our Articles of Incorporation for their Monetary Gift Program, I also requested that they write the County the truth that it was illegal to compensate our volunteers and the giving out of $7,500 was also illegal and is in the process of be returned to our HOA, should also be in their letter. Also that, all the homeowner's are entiled to a copy of that letter sent via first class mail.

Since this President is in the bad habit of ignoring my certified letters in the past, I also sent a copy of her letter to our HOA's
attorney. I also included a copy my letter to the attorney to the President. I told the attorney about how the President has ignored every one of my certified letters in the past, and this issue too important for her to ignore, is why I'm letting him know what is going on. I also included a copy of our Newsletter, where the President says the program did not work to get new volunteers to be on the Board. That, we may have to turn our HOA over to a management company. Where I already wrote her a CPA maybe the better way to go, and no answer from her about that either.

Is there anything I've missed, that I should have addressed?

Since compensation of volunteers who serve on the BOD's as well as the volunteers who serve on their committees is illegal, do you agree the money that was given to these people should be returned to the HOA? Or, should I have just been happy with the amendment to our Articles of Incorporation being rescinded? Since the President doesn't answer my certified letters, was I wrong for sending a copy of my letter to him?

Thank you for your input.
Audrey
RogerB (Colorado)
Posts: 5,067
Posted:
AudreyB, in response to your request for my comments:

1. I would thank the Board of Directors for recending the illegal amendment to the Articles of Incorporation.
2. I would demand the $7,400 be refunded back to the HOA by those members of the Board and committees who cashed their checks since the action was not legal.
3. I would make sure the Board notify all owners that the recent amendment to the Articles, which they should have been provide to all owners, has been recended and the reason why.
4. I would not ask the President to "speak the truth that their Monetary Gift Program as being illegal."
5. I would not advise the County (if your Article of Incorporation are filed there rather than with the Secretary of State) on the reason for recending the amendment.
6. I would NEVER consider a CPA for a property manager since they are not qualified, except for accounting services for which they are way too expensive.

Just my thoughts,
Roger

AudreyB (Florida)
Posts: 104
Posted:
Happy New Year, Roger!

I appreciate your thoughts. I agree with you.

Since the President wrote in our December Newsletter:
"MONETARY GIFT PROGRAM BEING RESCINDED", I used her words and wrote the President for her retraction, “The reason the Monetary Gift Program is rescinded is because, it is illegal to compensate the volunteers of a Homeowner’s Association. Therefore, all the Monetary Gifts that were handed out at our Annual Meeting on October 6 2005, needs to be returned to our Association as-soon- as-it-is-possible." However, what I wrote is not written in concrete, it was an idea.

It might have been wrong for me to continue to call it the Monetary Gift Progarm as she did. AND, you are right, I should have written, like you say, "Thank you for rescinding your illegal amnedment to the Articles of Incorporation."

The BOD's did not file this amendment with the Secretary of State. The amendment was filed under Bylaws within our local courthouse. I wrote the Secretary of State, and about this very subject, and the answer I received, they do not file Bylaws.

Since we already have an attorney for the legal stuff, a CPA to help them with their finances, for what little has to be done each year for 269 homes, shouldn't be more than $3,000 a year, wouldn't you say? Especailly, when they have $7,500 returned plus, an extra $7,500 each year, they can well afford a CPA, or a management company. The President has my fellow neighbor's/ homeowner's believing, however, since the BOD's is missing volunteer's to fill three of their alternate spots, the BOD's will be directly turned over to a management company, and when that happens, no more BOD's, or volunteers for the Association. She knows, both are needed.
Thank you so much, Roger.

Take Care,
Audrey

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