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HOA board gone rogue. How to stop the spending?

  
  
  
  
  

Our current HOA board of directors decided to manage our pool facility rather than hiring a property management firm. By doing so, the HOA board has indicated to the homeowners that they have saved the association thousands of dollars.

I and other homeowners thought the HOA board volunteered to save the association money compared to an outside property management service.

Certain HOA board and spouses and friends are compensating themselves for the services provided and claim they are not.

Can the board members (in particular, the board president and vice president, their spouses, etc.) be compensated for their management services?  Can the HOA board president do this?

What actions can the homeowners take to address this issue? I believe there is no mention of compensation in the HOA bylaws. I also believe that our HOA association may not have HOA rules and regulations in place. At least, I have never seen a copy.

There has also been other questionable spending habits by this HOA board, such as using funds for restaurant board meetings, sandwiches and treats, giving bonus dollars to pool attendants and friends that volunteer, etc.

What measures can we take to stop these practices?

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Comments

It's difficult to really advise when I don't know the state you live in and the relevant state statutes. 
 
 
 
First, you need a copy of the HOA documents. This should consist of what is typically called CC&R's, or Covenants, Conditions and Restrictions. You most likely will also have something called Articles of Incorporation or something like it. This would define the structure of your organization. 
 
Most community documents state that directors and officers serve "without compensation." This does not mean that they should not be reimbursed for out of pocket expenses but that they cannot be paid for their service as board members. 
 
Now, if a board member is not performing their duties and have been hired to manage the pool or do work for the pool, while not recommended, they could be paid for it. I would discourage board members from doing that or show a clear vote of the board in which they recused themselves from voting. That includes if they advocate of have relatives or friends hired. 
 
Many times, people make assumptions or say "Rogue Board!" when they see something and don't have all the facts. You don't know what you don't know.  
 
Ask the board to meet with you to address your concerns and show you how and where they have spent money. Offer to serve on a committee for the pool if that is your primary concern. It is not unreasonable to ask for an accounting and an understanding of how things are operating. The worst thing you can do is go in with a confrontational manner or style that puts the board on the defensive. You might not be able to help this completely, but you can assist by stating your concerns and what you have heard or the rumors going around the association. The board may realize that they need to communicate what they are doing in a better way to the membership to prevent any misunderstandings.
Posted @ Tuesday, November 10, 2009 9:17 AM by Joe Schuirmann
I have just taken over as president of a 56 unit Condo and trying to find out about board votes as to unit owner's vote on how much the board can vote to spend. 
 
We just had a vote by the board to spend $18,000.00. Should this be a unit-owner vote, or okay to pass as a board vote? 
 
Thank you for your time. 
 
Jeanne Dunn 
 
PS I searched the Internet 718 but find on answer.
Posted @ Monday, December 07, 2009 6:13 AM by Jeanne Dunn
Is it legal for the Board Committee to pay themselves $50.00 per month for their duties for townhomes in the State of Illinois? I can't even get a dead bush replaced!
Posted @ Friday, August 06, 2010 9:40 AM by Jan
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