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Forums > Homeowner Association > HOA Discussions
Subject: Acting President not in good standing
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Author Messages
MindyD
(Arizona)

Posts:47
09/05/2010 8:21 AM  
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
SusanW1
(Michigan)

Posts:5035
09/05/2010 9:40 AM  
Check your documents for qualifications of a board member or officer.

Some corporations don't even require membership to hold office position on the board or as an officer.

His financial picture has nothing to do with board service UNLESS if affects the HOA - in the form of past due financial obligation.
MindyD
(Arizona)

Posts:47
09/05/2010 10:09 AM  
Yes our ccr's say you need to be in good standing financially to be a board member.
MindyD
(Arizona)

Posts:47
09/05/2010 10:10 AM  
Oh sorry forgot. The lien is for an assessment from 2004
MaryA1


Posts:0
09/05/2010 4:25 PM  
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.

SusanW1
(Michigan)

Posts:5035
09/06/2010 6:57 AM  
How can he have a lien on the property that is not his?
RogerB
(Colorado)

Posts:4647
09/06/2010 8:33 AM  
Posted By MindyD on 09/05/2010 8:21 AM
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



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.
MindyD
(Arizona)

Posts:47
09/07/2010 3:20 AM  
Maybe this will make it simple for you. The acting presidents unit is under his parents name. I have read the by laws and he is not a member because his name is not on the deed and the lien is in his parents name. My question is since he has signed every thing as the president "and I mean this literally" )*&^ ()&&^& HOA President, can this hurt us somehow.
RogerB
(Colorado)

Posts:4647
09/07/2010 8:02 AM  
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.
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Forums > Homeowner Association > HOA Discussions > Acting President not in good standing


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