Rent Real EstateAsk the HOA Expert
Question: Our HOA currently distributes a written directory including all residents and their respective addresses, work/home phone numbers and email addresses. Are there any privacy concerns?
Answer: Yes. Each member should be given the option of being included or not in a written request for information. Those that want to participate should authorize it with their signature. The information directory should be restricted to residents.
Question: The Board released a copy of the new annual budget with a “Miscellaneous Maintenance” figure which I questioned (like $3000 for toilet paper for the Clubhouse bathroom). I requested to see back-up information like receipts and purchase orders and the property manager refused. The Board President now tells me that any owner who wants to review back-up information must first send a letter to the board requesting approval. Really?
Answer: HOA members are entitled to know how budget numbers are developed. If the answer can’t be provided by phone, the normal procedure is to book an appointment and request review of specific records. The information should be set out where it can be easily reviewed, like a conference table. The files should not be taken off site but if copies are desired, the owner should pay a reasonable cost for the copying.
The Board and management should comply with requests for information without any approval process. This requirement only raises greater suspicion of mismanagement or fraud. On the other hand, just make sure to respect their time and not use your right to know as a means of harassment.
Question: At the last board meeting, an owner demanded that the management be fired. The Board President said that a ballot would be sent out to the owners, then, after the meeting, changed his mind. What’s going on?
Answer: The management company is hired and fired by the Board, not the owners. Homeowners should be allowed to attend Board meetings but they are not authorized to participate, make motions, vote, etc. If there is a concern about management, it’s appropriate for the Board to poll the owners to see if there is compelling reasons to terminate the contract. If the poll reveals a number of significant and recurring problems, the Board should discuss them with management and allow an opportunity to correct the problems. If management is unable or unwilling, the contract should be terminated, ideally, by mutual agreement within 60-90 days. This will allow the Board to locate and interview suitable replacements.
Management should only be terminated reluctantly. Being an HOA manager is not a popularity contest and managers will invariably step on some owners’ toes performing their duties...especially with rules enforcement and delinquency collections. That"s the nature of the job.
For more information on this subject, see www.Regenesis.net.