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Subject: Can a Board of Directors Vote be Rescinded?
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Author Messages
KathleenR
(California)

Posts:13


08/19/2007 12:37 AM  
I am a new Board Member and it appears that our BODs are not too familiar with the CC&Rs/legal rights. Without anytime to review/research our fiscal budget, several BODs voted on a 15% increase in HOA Dues. The following day and after further discussion/review we realized that we do not need this 15% increase. Can our vote be rescinded? (We are in the State of California.) I love this website! Thanks everyone!
JudithC
(Virginia)

Posts:253


08/19/2007 4:34 AM  
Voting to rescind it is sure better than the alternatives! If you stuck with it I could see all sorts of "digging in the heels" and stonewalling to cover-up an erroneous decision. Cover-ups aren't good either on the association level nor national. It always gets you in trouble.
MikeS1


Posts:0


08/19/2007 6:42 AM  
Who wants to rescind the vote? The Board? or the members?
RogerB
(Colorado)

Posts:4896


08/19/2007 8:49 AM  
Posted By KathleenR on 08/19/2007 12:37 AM
I am a new Board Member and it appears that our BODs are not too familiar with the CC&Rs/legal rights. Without anytime to review/research our fiscal budget, several BODs voted on a 15% increase in HOA Dues. The following day and after further discussion/review we realized that we do not need this 15% increase. Can our vote be rescinded? (We are in the State of California.) I love this website! Thanks everyone!


Yes.
PaulM
(Pennsylvania)

Posts:1347


08/19/2007 8:56 AM  
KathleenR:
Based on another of your posts this was an action based on your PM's advice that the assn. was 'going bankrupt' and the dues would have to be increased.

How is the situation now with your PM?
KathleenR
(California)

Posts:13


08/19/2007 10:34 AM  
MikeS1: Our Board of Directors and Board Members are one in the same and the entire Board wants to rescind our vote.
LindaC3


Posts:0


08/19/2007 10:39 AM  
KathleenR.... I do belive that the post where MikeS1 asked who wanted to rescind the vote..he meant who wanted to rescind ? The Board of the Association OR all its members....LindaC
KathleenR
(California)

Posts:13


08/19/2007 10:52 AM  
PaulM: Wow you're good! Yes this was based on our PM's advice. I'm not too fond of our Property Management Company, because I'm getting the feeling they're "pulling the wool" over our eyes! As we suspected, my fiance and I did a lot of research/investigating and there appears to be a lot of questionable areas of concern.
RobertR1
(South Carolina)

Posts:5164


08/19/2007 10:56 AM  
Kathleen. I would say; in whatever forum you used to adopt the old rate, open a meeting in that forum and make a motion that the original amount requested be adjusted to the new amount and justify it by stating that , after review by the Board, the new assessment amount will be ****** instead of *****.
Amen.
JoeD5
(California)

Posts:4


08/20/2007 2:23 PM  
I am on the same board as Kathleen R. and I want to take this a step further because I also dont trust our PM. Can the board meet without the PM present? Can we call the board to order and do business without the consent of the PM?

This might be another topic but hey... Ill just tag along on this one.
Jadedone4
(Virginia)

Posts:495


08/20/2007 2:42 PM  
Joe, the PM works for the community via the Board... as such they can be excluded from any meeting. The only "persons" who are allowed by right to attend a meeting are owners in the community.
RobertR1
(South Carolina)

Posts:5164


08/20/2007 3:21 PM  
JoeD,
I suppose it would depend on what you gave up in the contract to hire the PM.
In my opinion, even if your board signed something to the effect that the PM must be at all meetings your Master deed would probably trump that. I know our docs. call for meetings of owners, it does not address anyone else. Our manager does attend but I can't see how he could remain if a motion was made to exclude him/her, or if a meeting was called by the president and specifically excluded the PM. I am afraid our Board as well as most boards will turn themselves inside out before making the Manager mad, especially (here I go again) when the Board are absentee owners. Who can they pull out of the hat to replace him/her. The board has the authority to hire and fire, the membership doesn't, they aren't even asked an opinion. I don't think it is uncommon to have doubts about the manager.
My first night in this place I live I was rudely awakened by blaring rock music. Look out the window down into the Court yard and there must have been 250 people down there having on hell of a party and it went on to all hours. Came to find out it was a little benefit the manager provided a city charity fundraiser, and had done this each year. I am glad to say that was the last year that happened, very much against our CC&R's.
JoanW1
(California)

Posts:12


08/20/2007 4:00 PM  
Hi Kathleen: I ham also in California. I am President of our Board of Directors. What does your CC&R's say in regards to assessments? Our CC&R's give the BOD authority to vote for increases in Dues after the new yearly Budget has been reviewed. It does not address rescinding an increase, but I believe if a mistake was made in approving the increase, it would be permissable to rescind that vote, at an open meeting, so that all members are aware of the action and are given a reason for the action. Hope this helps.
NancyD1
(Florida)

Posts:447


08/20/2007 4:17 PM  
Check your doc's. Can the board just raise the dues without proposing a new budget? Most will not allow this. If you have an assessment that is a different story. Our BOD can approve an assessment but notice of it has to be displayed 14 days in advance of the assessment meeting.

The BOD can rescind any vote and the PM does not have to be at any meeting. He is your employee.
RobertR1
(South Carolina)

Posts:5164


08/20/2007 6:49 PM  
Our Board in our Condo needs owners approval for an assessment increase.
Our HOA of which we are a part, can raise assessments without owner concent.

I see no earthly reason why a board can't recind an action. It is a lot simpler that bringing up to vote another change. Now, once the initial action has been activated with an action the only action left to the board is inaction and take action on another action change. No, that is not from our documents, but it would not surprise me.
MikeS1


Posts:0


08/20/2007 7:51 PM  
KATHLEEN - THANKS for clarifying distinction between Board and Member/residents. You knew what I meant. I guess I should have said "BY WHOM" and "WHY" and the only reason I say that is due to the fac that our HOA docs were written so that if the residents produced a petition that contained 10% of the total number of owners, then they can call for a special vote to rescind a recent rule change or recentmotion that they might have a problem with. This happened just once when we attempted to pass a resolution on parking. Then what happens is this... The only people that bother to vote are the people that are most motivated and in this case, it happened to be the people that wanted to overturn the parking resolution and maintain the status quo. Jungle rules. It's my understanding in our state that this doesn't happen with COA's. It doesn't apply to Condo's in our Commonwealth. Only Hoas.
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Forums > Homeowner Association > HOA Discussions > Can a Board of Directors Vote be Rescinded?



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