Condo Association Management Blog

We had board issues. Someone challenged that board based upon the by-laws and had an attorney write the Board a letter stating they were illegal, all decisions therefore were illegal. They threatened to file a suit. The board then hired their own attorney who actually told them the same thing and they were force to redo the election.  
 
 
 
Good luck.

Just FYI - In know attorneys cost a great deal. If there is any kind of law school in the area, check with them. Often, a law student will be happy to use an actual case for a class paper: they do all the research and provide you with the findings. They may charge, but it would be much less than an attorney. If you need to get an attorney after that, it saves $$$ because much of the research has already been done.  
 
What they did with mail-in votes is very likely against the bylaws, but you really need to check it out before going much further with this.

I'm impressed with the fact that someone wanted to be on the board so badly that they felt they needed to steal the election to do so! 
 
 
 
Oftentimes, the advice here is "hire an attorney." Keep in mind that in doing so, you are actually suing yourself as a homeowner. If you win your case as well as monetary damages, who pays? YOUR HOA, that's who! Of course, you may be able to collect against your D&O policy, but there is usually a deductible, so you still pay. 
 
 
 
You have to have cooperation or you will make others rich while running your HOA into the ground.

I would first talk with the property manager and management company. I find it hard to believe that a management company, that values it's reputation, would want to be a part of an election accused of ignoring the Bylaws and tampering with votes. 
 
 
 
Second, arm yourself with information. It is important to read and be familiar with all of your documents, not just the part of the Bylaws referring to election procedure. Sometimes, a Board member can be removed with a certain number of association member votes. Also, check to see if the election materials were sent out in a timely manner and in accordance with the documents. If this Board did tamper with votes than I suspect other areas of your documents were not followed as well.  
 
 
 
Third, I would attend all of the Board meetings and politely but firmly hold the Board accountable for their actions. Persistance and factual information will get your point across quicker and much more clear.  
 
 
 
Association attorneys' are excellent resources but, there is nothing wrong with acting frugally and trying less expensive avenues first. Attending the meetings and taking the time to talk to management may be more time consuming but, it could help this Board and future Boards abide more closely to the documents. Especially when they know they are being watched by a knowledgeable homeowner.

This is Directors & Officers Liability Insurance concern also. As an agent, I ensure that my applications are accurate and board dynamics are disclosed to the underwriter evaluating the risk, otherwise, if there ever is claim, coverage could be denied for material misrepresentation. Close cooperation with the property manager and a full understanding of who is on the board is key to avoiding a potential problem either at initial submission, renewal or in case of claim. 
In theory, Board directors are volunteers looking out for the Association's interest by keeping costs down and ensuring the property is well maintained for everyone's enjoyment. 
As with any group, there can be differences of opinion and factions created over the budgeting process. This political aspect of Condo living can be challenging in our society which promotes individualism over harmony. 
Also, because of the sometimes large amounts of money that flows through an Association (thousands or even millions of dollars), there can be a motivation to "get on the board" to steer a vendor contract to a friend or a relative.  
I am routinely asked to review an Association’s insurance program. Occasionally, I run across overpriced policies and, what a coincidence, the agent is a director or a relative of a director. 
INSURANCE OVERPRICING PREVENTION: 
Since insurance is usually the largest expense of an Association’s budget, I always recommend that Associations obtain a 2nd opinion on the current insurance program. If your current agent is doing a good job, he/she should have nothing to fear. I encourage my boards to ask another agent to review my packages since they always validate what I’ve done and say “you have the best pricing available.” 
I would say it is a red flag if there is resistance to making insurance documents available. 
ELECTION FRAUD PREVENTION: 
All States have an agency that regulates Condo Associations and they have an Ombudsman that can be contacted and that will provide someone to monitor and assist with an election for a minimal fee.  
In Florida, the Office of the Ombudsman can be found at:  
http://www.bpr.state.fl.us/condos/contact.shtml 

I'm surprised you are claiming fraud. Usually proxies are ripe for fraud not mail-in ballots. Proxies are given to someone else but a mail-in ballot is filled in by the member himself.

Without proof of tampering with the mail-in ballots you don't have a leg to stand on and I certainly you are NOT voicing this opinion openly (i.e. no where but here!). 
 
 
 
You can always ask that the ballots be recounted with a disinterested person present, that is if they have not already been destroyed. 
 
 
 
I see nothing wrong with having people visit the elderly and shut-in to assist them in filling out their ballot as long as they were not candidates or relatives of candidate. In fact I think it was a very nice thing to offer and probably helped to get more people to vote. 
 
 
 
You don't state where you are located but several years ago AZ prohibited proxys and now requires mail-in ballots. The reason is because of the high rate of fraud with proxies.

how long before an election ,should we know all the names of whos running for election.

When do your bylaws say notice of the election must be mailed? My bylaws are silent on when notice of an annual meeting must be made, however AZ state law indicates the notice must be mailed . . . "not fewer than 10 nor more than 50 days in advance". My BOD mails the notice together with the ballot one month b/4 the meeting. So,when you receive the notice, which should include a ballot, you will know who the candidates are. I have never heard of a requirement to inform the members of who the candidates are before the ballots are mailed out.

Hi, 
 
We have no method to determine candidates for election - the way this building has done it for the past 7 years is we get to the meeting and whomever wants to be elected has someone nominate them. So when ballots go out for proxy's it's a wild guess who is even going to be running. Of course, that's why it's so crazy here.  
 
Right now our President has said no to any Agenda items for the November Board meeting - so we walk in cold to the annual meeting to vote on the budget and a new board with only a copy of the proposed budget in hand. It's always a bad meeting since noone has any real infomation and can't ask questions until then.  
 
Any suggestions?  
 
Thanks.

Well, that method wouldn't fly where I live in AZ since state law prohibits nominations from the floor.  
 
 
 
Don't your bylaws state a nominating committee must be appointed? But even if they don't that is what the board should do. The Nominating Committee would send a message to the members that nominations ae being taken for how many board seats will be open. Then the committee chooses the candidates who's names will be placed on the ballot. When the notice for the annual meeting is mailed it should contain a ballot with the candidate's names. Nominations from the floor can still be taken but at least this way the members will have the names of those members who have agreed to run. 
 
 
 
Many BOD's schedule a time during the board meeting for member comments -- usually at the beginning or at the end of the meeting. This way the members attending the meeting have the opportunity to state their opinion on an agenda item or to talk about a concern they might have. At least it's an opportunity to get something "off your chest" especially since the BOD Pres is not willing to let the members place a topic on the meeting agenda.

ITS WORTH THE MONEY TO GET JUSTICE

sorry...correct spelling this time...I"m old now

We are not allowed to attend board meetings only 3 open meetings a year. Also we are not allowed access to the assoc. lawyer only a board member. In the voting packet mailed by the property management company which work only at the direction of the board, stated proxies are to be sent to the president of the board and all mail in ballots had to be signed and dated on the ballot itself. Then they were opened well ahead of the election. We had one board member voted in who had never attended a meeting in person. Also we had to sign our ballots when voting in person, or told our vote would not be counted if we declined to do so.

It is my humble opinion that condo election fraud probably happens on a more frequent basis than most are aware, but I'd also qualify that by saying that the likelihood of such shenanigans is usually proportional to the size of the budget. When you're dealing with big multimillion dollar budgets, and then sprinkle in the management companies, those management companies will jealousy guard that management (and possibly kickback) revenue stream with their lives, making sure that only those who are friendly to their cause are elected to the board. Sad to say, there usually isn't a lot that an owner can do about it unless they get a number of like-minded individuals elected to the board...which is unlikely to happen if the management company suspects a coup. It's a vicious circle, and only a huge investment in legal expense has a chance of helping get to the bottom of things, which few are willing to spend.