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Subject: New Board Member to Residential run board.
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10/04/2019 8:41 AM  

Hi I'm a new board member to a fully developed community. What are some things that should be updated within our cc&r now that we are fully ran by residential board. Our management company is no longer the board of directors however, they stayed as our management company. I'm noticing that the management company still acts as if though they are the board of directors. We had 3 members on board we're down to 2 members. Reelection is in a few months to replace that member position.
MC tells us each Board of director position is the same. However, the president has been allowed to approve of certain things without the entire board. I also ask the management company who sigms our contracts they say only the MC. Is this typical?

The only thing we have ever received are ARC via email request to approve or deny.

Help please!

(South Carolina)


10/04/2019 10:09 AM  

The big question is what your Covenants say about what your BOD size should be? If as low as 3 and you only have two, that is enough for a Quorum so you can conduct business. I suggest your first two items of business should be to appoint someone to the BOD vacancy. Check your Bylaws how to do this.

The next item of business is ask the MC for a copy of the contract they have with your association. If asked why, inform them the BOD is considering hiring a new management company. Scare them.

The MC works for the BOD and can be fired.


10/04/2019 11:33 AM  
Karen, most likely nothing needs to be updated. Your documents should include language which renders null references to the builder, developer, etc. when the association is turned over to member control. However, if your documents need to be amended for some other reason, you should discuss with the association attorney whether or not it makes sense to red-line out previous language which is no longer relevant or applicable.

Your larger issue is with the MC. Most likely they are operating in the same mode as when the association was under developer control, i.e., the developer and board wanted little or nothing to do with managing the association and delegated responsibility to the MC. Not uncommon.

I recommend you first seek a 3rd member for the Board. It is probably the two existing members can fill the vacancy by appointment until the expiration of the term.

Your Bylaws should clearly spell out the responsibilities of each officer position on the Board so begin your reading there. Then you and the other members of the Board should choose who will fulfill which responsibility, and communicate that to the MC.

Finally, the three of you should seek to understand the purpose of having an MC and what role you wish for them to play in your Association. You likely will have to define roles and responsibilities for the Board as well as the MC, develop guidelines, set expectations, etc. Remember, the MC works for the Association through the Board.


10/04/2019 12:13 PM  
Posted By KarenP16 on 10/04/2019 8:41 AM
Is this typical?

It is after turnover when the incoming homeowner board is inexperienced and clueless. You have much to learn.

Agree with the above advice to find someone willing to be a third board member. Then all 3 of you should get real familiar with your governing documents, but especially the Bylaws because they should tell you who gets to be on the board and how to run an election. The management company works for YOU.
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Forums > Homeowner Association > HOA Discussions > New Board Member to Residential run board.

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