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Subject: HOA issues
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Author Messages
WilleneC
(North Carolina)

Posts:4


08/04/2010 2:52 PM  
I own a condo in NC with 24 units and have ongoing issues that the HOA will not handle, we also have a do nothing managent company and I am extremely frustrated. We have only had 1 HOA meeting in the past 4 years, and the managment company ran the meeting and would not let me address my concerns. A board has not been elected since April or May of 2006, the board continues to self appoint themselves and any new board members. The homeowners just finished paying a $975 assessment to paint the exterior on all units and painting & repairs were to begin in June/July but have not begun and no one will provide an answer on when this work will start. Also, I have numerous leaks in my unit and one significant leak in my enclosed sun porch the roofer came to look at this and stated repairs would be $1200 but the management company will not approve this to be done stating he needs approval from the board and I have asked the board to approve this and also asked twice to meet with the board, however I still cannot get an answer...I don't know who to contact for help any suggestions!
SusanW1
(Michigan)

Posts:5035


08/04/2010 7:34 PM  
Do you know of ONE board member who will talk with you about the procedure for your concerns?

Are you having Annual Meetings of the members? If not, Why not?


MaryA1


Posts:0


08/05/2010 7:13 AM  
Wilene,

Hopefully there are other concerned h/o's that you can convince to attend the next board meeting with you. Demand to speak to the board and also demand that your concerns be addressed or you and your group will be forced to start a recall campaign. Let them know this is not what you want to do but if the board continues to be unresponsive to your complaints then you have no choice.
Now, before you take this action make doubly certain you know what your rights are and also that you know what the assn is resp, for repairing and what you are responsible for repairing.

Regarding your "do nothing management company", remember that the property manager can only do what the board instructs them to do. They work for the BOD, not the other way around!
WilleneC
(North Carolina)

Posts:4


08/05/2010 8:33 AM  
The major problem here is the other h/o's don't get involved. I did request a meeting with the board twice recently about my leaks but no response to my request. I just learned this morning that one of the board members accused me in an email to our property manger of making a threat because I had asked for a response in writing about my leaks by tomorrow. I contacted the management company this morning as was told that the assessment $975 assessment that we just paid to paint the condos will not be used for that as it is going to take care of other issues, is this legal?
WilleneC
(North Carolina)

Posts:4


08/05/2010 8:37 AM  
We had a meeting July '09 that was the 1st since 2006, I've pointed out a number of times that Annual Meetings are required but no one obviously cares. I learned from the property manager this morning that the assessment of $975 per unit to paint will not be used for that purpose, can they do this??
GlenL
(Ohio)

Posts:3526


08/05/2010 10:09 AM  
Are they not holding annual meetings or do they have insufficient quorum to hold one? I would suggest in addition to your CC&R’s which should answer your question of what they can impose or use a SA for if not you may need to consult an attorney. You need to read both the NC non-profit corporation statutes and the NC condominium statutes in addition to your CC&R's.

http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_55A.html

http://www.ncga.state.nc.us/EnactedLegislation/Statutes/HTML/ByChapter/Chapter_47C.html

47C‑4‑103. Public offering statement; general provisions.

(5) Any current balance sheet and a projected budget for the association, either within or as an exhibit to the public offering statement, for one year after the date of the first conveyance to a purchaser, and thereafter the current budget of the association, a statement of who prepared the budget, and a statement of the budget's assumptions concerning occupancy and inflation factors. The budget must include, without limitation:

a. A statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement;

b. A statement of any other reserves;

c. The projected common expense assessment by category of expenditures for the association; and

d. The projected monthly common expense assessment for each type of unit;

*****

55A‑7‑03. Court‑ordered meeting.

(a) The superior court of the county where a corporation's principal office, or, if there is none in this State, its registered office, is located may, after notice is given to the corporation and upon such further notice and opportunity to be heard, if any, as the court may deem appropriate under the circumstances, summarily order a meeting to be held:

(1) On application of any member if an annual meeting was not held within 15 months after the corporation's last annual meeting; or

(2) On application of a member who signed a demand for a special meeting valid under G.S. 55A‑7‑02, if the corporation has not held the meeting as required by that section.

(b) The court may fix the time and place of the meeting, specify a record date for determining those persons entitled to notice of and to vote at the meeting, prescribe the form and content of the meeting notice, fix the quorum required for specific matters to be considered at the meeting (or direct that the votes represented at the meeting constitute a quorum for action on those matters), and enter other orders necessary to accomplish the purpose or purposes of the meeting.

(c) If the court orders a meeting, it may also order the corporation to pay all or part of the member's costs (including reasonable attorneys' fees) incurred to obtain the order. (1993, c. 398, s. 1.)

Too bad the only people who know how to run the country are busy driving cabs and cutting hair. - George Burns
MaryA1


Posts:0


08/05/2010 11:46 AM  
Wilene,

I suggest you review the article in your covenants that addresses special assessments. Unless it is stated therein that the monies cannot be used for any other purpose than stated in the vote for a special assessment then the BOD cannot do this. I could not find anything in the SC Condo statutes addressing special assessments so the BOD must go by what the covenants state. IMO, the BOD is most likely in violation of the covenants; however, that is just my opinion -- your covenants may be worded differently.

As for the annual meetings, if a quorum cannot be reached then the meeting cannot take place. Has a meeting been announced each year and then canceled. If no meetings have been announced since the last one in 2006 then I would think the BOD is in violation of the bylaws and perhaps state law. Even if a quorum is not reached most bylaws state the meeting may be adjourned until such time as a quorum is reached, or something to that effect. In other words, the BOD must make an effort to attain a quorum. So, if the BOD has complied with the requirements of the bylaws and a quorum could not be attained then it would not be improper for the board members to remain in office and/or for the BOD to make appointments to fill any vacancies.
WilleneC
(North Carolina)

Posts:4


08/05/2010 2:37 PM  
There were no meetings held or called between fall 2006 until July 2009. Between '06 & '09 I pointed out to the board and the management company numerous times that they are required to hold at a minimum an Annual Meeting, but this did not happen. When we met July '09 I again pointed out that the board has been self appointing and the board positions have terms all of which had expired and Annual Meetings were not being held as required, but the property manager shut me down and said it was his meeting and would not hear my concerns. I have gone round and round with this board & property manager about issues, but they for some reason chose to bury their heads in the sand. The place is in ill repair & I keep being told the association has no money...we have 24 units and pay $150 per month and have NO AMENITIES...the grass is cut, we have water, sewer & garbage pickup & pay the PM. $3600 a month and no money? We just paid the $975/per unit &23,400)SA for painting that is now not going to happen. Every place I've gone to try and get help has turned out to be of no assistance. I thank each of you for the help you've been providing and please continue to give me your helpful answers. I will review the bylaws and can hopefully move forward to make a differnce here.
MaryA1


Posts:0


08/05/2010 4:32 PM  
Wilene,

You are witnessing what happens when the HOA members do not want to get involved and there is no state agency to adjudicate HOA complaints. IMO, about the only thing you can do is to thoroughly read and understand your gov. docs so that you know exactly what the BOD is not doing and exactly what provisions of the gov. docs they are violating. However, if you cannot convince some of your fellow members to take some sort of action, such as a recall of the board, then there isn't much that you (as only one person) can do unless you are prepared to spend thousands of your own $$$ to take them to court.

BTW, the BOD is supposed to be in control, not the property manager. It sounds to me like it's the other way around and this PM has fooled your BOD members into believing he knows what's best for the assn. To say that the board meeting is "his meeting" speaks volumns about his arrogance.
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