Acting President not in good standing

I have a question.. If the president has been acting as president for a couple of years and the management company just now found out that he is not in good standing regarding his name is not on the deed and their is a lien on his place also. Can there be any legal issues that might pop up and get the hoa in trouble because of this? He has made many decisions that are questionable and now I wonder if our HOA could be sued for something. Basically what kind of damage could he have brought on us for committing fraud. HOA in Arizona

Yes our ccr's say you need to be in good standing financially to be a board member.

Mindy,

When you say the CCRs state a board member must be in good standing financially, do you mean he cannot be delinquent in paying his assessment. If so, there may be a provision in the bylaws that would allow the BOD to remove him from the board. You should check this out!

Also you should check the bylaws to find out if nonmembers can serve on the board. If his name is not on the deed that means he does not own his home and he is not a member. If only members can serve on the board then he should be removed immediately. I don't believe this should require a vote of the members since he should have been disqualified from running. I would put the blame for that on the BOD and the manager. They both should know exactly who the property owners are. I wouldn't be so quick to accuse him of committing fraud, many people are not aware that only HOA members can hold a board position. And, hard to believe as it may be, many people do not understand that they do not own the home that is only titled in their spouses name, mainly because AZ is a community property state. Many people do not really understand what that means.

Mindy, read your Bylaws to determine the qualifications to be a) an Officer and b) a Board member.
a) If an Officer is required to be a member of the Association they should be removed from the office immediately because they is not qualified to hold any office.
b) If a Board member is required to be a member of the Association they should be removed from the Board of Directors because they are not qualified to be a Board member.

If they really are a non-owner and they are qualified to be an officer and a Board member under your Bylaws then they are not delinquent - they have no assessment and no lien.

Mindy, look for the good. It will teach your Board to do their job better. Simply remove the President from the Board elect a new President; fill the vacancy on the Board; and move forward. Since the Board is now aware the Board can execute new agreements if they chose to do so.