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Subject: No Volunteers for a Mandated HOA Board
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Author Messages
JensW
(Delaware)

Posts:8


11/08/2020 3:24 PM  
We are a small 49 home Community. Have been self-governed successfully for 7 years. Always found 3 to 5 homeowners to serve on our HOA board. Last year there was unusual friction, largely due to the problem with the president of the HOA posting a Trump sign, in clear violation of our "no-sign" covenants. He is now resigning and so are all other board members. Due to this friction among homeowners we have no volunteers to serve on next year's Board. Our Covenants require a Board of at least 3 members, up to 5. We are lucky to find one. Our accounting system is fine, almost no delinquencies, and a former treasurer agreed to continue our dues collection and payment system for contractors but does not want to be on the Board. What do we do? Have other small HOAs had similar problems? Some people say get a "Property Manager" - but DE State Laws and our Covenants still require a HOA Board, and property managers are not Counselors to solve political or personal frictions among homeowners.
Have other smaller HOAS have similar problems? What are the solutions?
GeorgeS21
(Florida)

Posts:3411


11/08/2020 3:34 PM  
Hi Jens,

Could you provide excerpts of your bylaws that discuss number of board members? The detail might be helpful.

Some bylaws are benign enough to allow a single person to be the sole member - that person then might be able to appoint another board member, etc. Not the best circumstance, but waaaaaaay better than receivership.
AugustinD


Posts:4421


11/08/2020 3:34 PM  
Generally speaking and from my reading and at least one HOA attorney: Find at least one decent human being to step up and be on the Board. This is most likely to avoid an Owner filing with the Courts there to get a Receiver appointed. A receiver is incredibly expensive.

Is this a condominium?
JohnT38
(South Carolina)

Posts:403


11/08/2020 3:39 PM  
Educate your owners on what receivership means and how it could negatively impact their home values and sales. Make it personal.
JensW
(Delaware)

Posts:8


11/09/2020 7:36 AM  
Many thanks. This may be a solution, at least temporarily - until all owners realize how expensive going into a Receivership status would be. Here is wording from our ByLaws: The Board shall be composed of no less than three (3), but no more than five (5) persons, all of whom shall be Owners. 
The ByLaws also have this wording: Any Board members who serves as an officer shall be permitted to hold more than one office if such is necessary to fill the principal positions of President, Vice President, Secretary and Treasurer.
JensW
(Delaware)

Posts:8


11/09/2020 7:43 AM  
No, we have 49 single-family homes, all on large lots. No clubhouse or pool. Thank you for reminding us how expensive a Court-appointed Receiver would be. Will try again to find a caring owner to step up and serve.
SheliaH
(Indiana)

Posts:3577


11/09/2020 12:47 PM  
Yes, you still need a HOA board because it's responsible for overseeing the overall direction and management of the community's resources. The property manager only handles daily operations and works at the board's direction.

There are many conversations on this website about receivership and the pitfalls - there are several, all of which will put a major beatdown on your wallet. Use some of those points to prepare a come to Jesus letter to send to all the homeowners and set a deadline - if someone doesn't volunteer by X date, the board (whoever's left) will have no choice but to seek receivership. Then do it. Talk to your association attorney about the potential costs and put that in your letter as well. Sometimes money will convince people when nothing else does. Good luck!
JensW
(Delaware)

Posts:8


11/09/2020 1:35 PM  
SheliaH; Many thanks. Great advice and helpful. We are working on it along this feedback and are now more hopeful. HOATalk.com has been so useful. Jens
AugustinD


Posts:4421


11/09/2020 1:44 PM  
Posted By SheliaH on 11/09/2020 12:47 PM
Use some of those points to prepare a come to Jesus letter to send to all the homeowners and set a deadline - if someone doesn't volunteer by X date, the board (whoever's left) will have no choice but to seek receivership.
I have seen the "come to Jesus" letter approach on this subject, informing owners of the cost of receivership. In the one instance I observed, the letter worked. Some Owners stepped up to serve on the Board.

One can google and find discussion of the costs of receivership. In the come-to-Jesus letter, perhaps cite a few web sites and quote a few key sentences on the costs. I recommend keeping the letter short and sweet but emphatic about the costs.
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