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Subject:  BOD fiduciary duty
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06/29/2011 12:16 AM  
we have 200 condo units and 15,000 sq ft of shopping center mixed project in california.
we had property management company, and when developer release this project, BOD fired PM and went in self management. we have 5 BOD 1 commercial(shopping center) 4 condo owners.(* one of them is cemmercial side 's wife) fYI husband and wife in as BOD. they said self management will reduce HOA dues, OK great !
so year ago, Our HOA due was reduced 15% ,great. now we learned, that after commercial HOA due also reduced 15 %
2 month lator commercial side owner reduced another 20% only for them. when we asked other 3 BOD, they didnt know that. when BOD adjusting HOA dues, don't they have to go thru members Voting procedures commercial owner is running management for their favor, they even changed their liablility insurance under HOA coverage, commercial side had resposible for their own security, cleaning, repair and insurance after PM is gone, they are tryig to mix everything with HOA. what can we do? should we call police or dept of realestate. even if we mentioned in board meeting, they are keep ignoring us. help


06/29/2011 12:29 AM  

I'm going to be of the expectation that your governing documents gives the Board the authority to do what they are doing. With this expectation, the only thing you can really do is inform the membership and vote the bums out. I would suggest gathering the documentation to prove your statements and then start soliciting proxies for the next membership meeting. This way you will have a large enough voting power to vote those people off the board and start reversing what is happening.

Here is a link to website which can help you about proxies and recalls.



06/29/2011 3:44 AM  
Mike - I wonder how you found out that an additional 20% dues reduction was allowed for the commercial part of the HOA? Since the other 3 board members didn't know, how do you know that info?


06/29/2011 8:55 AM  
one of BOD gave me information and I double checked on association accouting books, resulting commecial side owe HOA $13,000 and growing. Other 3 BOD confirmed there was no agenda, no approval, no minutes they just did change their commerical HOA due monthly invoice, to me this is illegal, we just firmed audit committy and going after them, but I know they will not cooperate with us. we need something very strong position to deal with them. any suggestion ? Many HOAmembers upset but their action is not strong enough.


06/29/2011 5:50 PM  

You don't have just a problem with the 2 BODs who you claim reduced their own costs you have a problem with the 3 other Board members not doing their job.

Just how do two Board members adjust the dues rates without the others knowing?

Anyone watching the books. Who collects the dues? Who handles the record keeping?
Let me guess the three other Board members, hear no evil, see no evil, and speak no evil well they turned it all over to the helpful commercial owners. How nice....

When are your Board elections? I would suggest you find out what the other Board members plan to do if anything and then work to remove your friends from the Board ASAP.

The police more than likely will be of little help. With 200 units I would make this information available to all of them and hopefully 20 or so might feel the need to act. My next move would be to seek legal advice if the eoections are far off. IF not I would work day and night to vote them all out if necessary.

One reality many people seem not to want to face is that you get what you allow.
You allow people to abuse the property and their authority in the end it is not their fault it is the property owners who are to blame. When you sit back and do as little as possible or nothing at all just what do you expect?

Easier to keep the car from running into the ditch rather than pulling it out once it's in there..........

Good luck.



06/29/2011 8:40 PM  
thanks a lot John !
I mentioned your thought to other 3 BOD and they agreed that they let it go too far.
finally they realized this is our home and we have to protect it.
again thanks mike
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