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Subject: Board President wants vote to cut her dues
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ElizabethC2
(Illinois)

Posts:5


04/28/2006 10:30 AM  

Hello. I'm new to the condominium community and a first time home buyer. In the past six months I have come to realize there is a lot to learn when it comes to living in a condo. The condo complex I live in has 18 units and a self managed association board. Currently, there is a very big issue on the table.

The condo board president wants to vote to cut her assessments in half for two months. The reason? She says she's been dealing with alot of issues and has spent an extra 13 hrs of work. Just to give you some background, the storage unit partially flooded with sewer water and two residents were broken into.
My question: Isn't it aginst the condo bylaws to cut an owners dues? If the positions are non-paid and voluntary why should someone get their dues lowered because of their "Voluntary" service?

Thank you for any input you can provide.

-Elizabeth
JulieS
(Georgia)

Posts:412


04/28/2006 10:59 AM  
The by-laws and covenants should be very specific regarding this issue. She is volunteering her time and therefore no compensation or benefit should come from serving on the board.
ElizabethC2
(Illinois)

Posts:5


04/28/2006 11:09 AM  
Thank you very much for your reply. Some people have already voted to allow this, what do reccomend we do next?
DavidF
(Texas)

Posts:8


04/28/2006 11:40 AM  
Posted By ElizabethC2 on 04/28/2006 11:09 AM

Thank you very much for your reply. Some people have already voted to allow this, what do reccomend we do next?


Elizabeth,

Don't take me wrong here, but do you have complete set of all your documents? By-laws, Articles of Incorporation, CC&R's (Covenants, Conditions & Restrictions)? And then if so, second question, have you read them? several times?

You will be surprised at how often the answer is in your documents.

-david


RosinaD
(California)

Posts:8


04/28/2006 12:11 PM  
In CA it is illegal to lower anyones dues for any reason. In our HOA, any board member who falls more than 30 days behind in dues must resign his/her position.

However, we have condominium insurance that we are legally bound to provide and the damage you describe sounds like something your insurance might pay for.

Sewers backing up also sounds like a local government issue. Perhaps you could seek some compensation there.
JulieS
(Georgia)

Posts:412


04/28/2006 12:24 PM  
If your documents are not clear on this, I would contact the attorney your association should have on retainer. Our documents clearly state that no board member shall receive any compensation or benefits. We can however be reimbursed for expenses related to the association for association use. I recently purchased a new basketball goal, tennis court items, etc., to be used by the association. I submitted the receipts in an expense report so that I could be reimbursed since I purchased the items on behalf of the association.

BrianB
(California)

Posts:2820


04/28/2006 4:44 PM  
many by laws make it illegal for board members to receive compensation for their LABOR (ie, the work they do). They can receive payment for expenses they incur (for example, if I purchase envelopes for mailings, printer ink, and some weed killer, I can expect the association to reimburse me those costs. Not, however, for the time it took me to make the letter, annual report, or crunch some numbers, hold a meeting, answer a complaint, etc.).

MichaelA1
(North Carolina)

Posts:11


04/28/2006 6:40 PM  
Our Condominium HOA is made up of 240 plus owners. The BOD is made up of 7 condo owners and 2 commercial property owners, non of which are paid for their services.
Because the vast majority of owners live away from the resort, travel expenses are reimbursed up to $500 for travel to Board meetings, as well as reimbursement for long distance calls, and other out of pocket expenses associated with our community. At no time is a Board member given any discounts or paid for vast number of hours put in each month. And yet a few owners still resent the fact that Board members are reimbursed for their travel and expenses.
In our situation, we are under going a major renovation with the resort and many of the Board members are spending many hours each week on behalf of the HOA. As a Board member and permanent resident, I know I put in about 30 hours per week just answering owners questions and helping with various tasks to do with the renovation or my committee projects. Board members who have other jobs and family are spending up to 20 hours per week. Granted this is abnormally high. Once our renovation work is completed hopefully we will see these hours drop down to normal. In the meantime, our board of 9 gives and gives with nothing coming in return except the gratification of doing a good job and the support of most homeowners.

Best regards,
Michael
SwanB
(Washington)

Posts:199


04/29/2006 5:46 AM  
Our assoc. bylaws do not allow monetary compensation for the hours spent by Board members. We can be reimbursed for expenses if, as previously noted here, one of us were to purchase office supplies for the printers or fax machines and turned in the receipts. Or, if one of us were a contractor and hired separately to work on installing the electrical components for a new electronic gate system after getting bids from other contractors in the area.

One thing we joke about as Board members when we receive the frequent complaints or 'out of touch' requests i.e. "I am smelling septic smell from my cabin. What are you going to do about it?" or "My windows won't open and always have; what are you going to do about it?" or "The river is too loud this winter; what are you going to do about it?"...is the fact that if our members think we aren't doing our jobs well enough, they can always dock our pay!!
Of course we are very careful not to say this within hearing distance of any member for fear they will think we are serious.

The reality of being on a Board is all the previous Board members who have been here, done this, right? And all the future Board members who will be here, doing this. My term is two years and I see a light at the end of this tunnel of all this hard work and, as a Board member I am making a difference and moving this assoc. forward. That is 'payment' enough for me.
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