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Board controls condo association spending like a crime syndicate

Posted on Mon, Nov 08, 2010 @ 07:58 AM
  
  
  
  

My condo association board president is a contractor. He seems to get all contracts for improvements of common property whether he does work self or is the general contractor on bigger projects. He bills the association for work done, at very high rate compared to local construction cost. He has been the president or on board for over 15 years and has become quite wealthy doing just work at association, such as our new pool, beach stairs, public bathroom (built himself for $6,000?), clean up of failing roof of fitness center, employing wife and son at very high wages. A lot of projects he doesn't even get permits. Son is also paid for monthly pool duties when we have property manager and professional pool maintenance company come everyday. He pays his wimpy son 40-50 per hour for raking beach.

What can we do? Are there any state or federal laws broken. His two buddies are also on board and they just do what they want.  One is ex-police chief who is treasurer and buddy of president. They bully and control the property of over sixty $500,000 to $1,000,000 units. Quite the racket. They just fired a great property manager without reason or owner discussion at the September owners meeting. What can we do? How do we see financial records? Get removed from condo board or arrested for over fraud or misappropriation of funds?  People afraid of making allegations without proof and the dirty ramifications as he has keys to every unit. Can you please advise steps we can take. Feel helpless and discrimination in my own home. What can we do for our former wonderful, honest and handsome manager that just loved the beautification of property and took such great care of the owners, bless his heart (tears me up). Sincerely, Helpless on the lake.

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COMMENTS

First off what state are you in? How many people are on the board? How old are the properties? How long has the contractor been King of the land?

posted @ Monday, November 08, 2010 8:32 AM by Victor


We are in a similar situation!! the board has taken over and they are spedning, spending, spending. So musch so that our maintenance has increased to double, we have an assesment of about $800,000 that started out at $300,000, and a payroll of over $90,000 for a builing with about 80 units in Miami. We can't stop them they are already planning another increase for "their" employees of about 12,000 per month!!!!

posted @ Monday, November 15, 2010 7:28 PM by sylvia


I would contact someone atwww.davis-stirling.com 
 
They are the authority for California condo regulation, however I'm sure they could steer you in the right direction as far as how to approach it in the state that you're in.

posted @ Monday, November 29, 2010 4:55 PM by Jonny


We are in Minnesota and familiar with all the condo laws in our state. The bank president who conrols our board after taking declarant rights from the developer, does not appear to be concerned about the laws. We are forced to pay the management company for all kind of services that we do not request and pay billa for things that are not the financial responsiblity of a homeowners association. We are forced use the management company the bank has chosen and are not allowed to get any bids for contracted services. Basically the management company charges us for anything they want to and the board authorizes it.  
 
 
 
The bank owns 51 percent of the complex, appointed the board and allowed no voting by members at the annual meeting. We believe the bank is planning to sell their units to the management company/developer who runs fractional ownership resorts in the area. He will then continue to force owners help pay for expenses of the condo-hotel that is part of our association as he would then have the majority of votes.  
 
Is anyone else involved in a complex where units have been fractionalized and owners are forced to pay for hotel ammenties for those who rent their units? We were told we were buying a residential condo and only found out after we bought that we are in the same association with a fractional ownership condo-hotel.

posted @ Sunday, January 02, 2011 1:16 PM by Judy Gordon


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