HOA Question Regarding Serving on the Board. UPDATE Post #17

[rgf207]

Long story short. I have served on my neighborhood's HOA board for 4 years. We are not an active board and don't have community participation. Essentially the only reason why myself and 3 other people do it is because nobody else will

Well today I informed our property management company that I would not be returning to the board in September for the next term.

I received an email back from the property manager saying I could not step down until I found a replacement. "It's not allowed" I took this position as a volunteer. It's not paid and I never signed anything. I'm trying to think of a nice way to respond saying that I don't care what she says, I'm not returning.

Any ideas? Has anyone heard of such a rule. Also, I"ve looked through our community bylaws and nowhere does it state anything like that.

 

[sam_gordon]

Long story short. I have served on my neighborhood's HOA board for 4 years. We are not an active board and don't have community participation. Essentially the only reason why myself and 3 other people do it is because nobody else will

Well today I informed our property management company that I would not be returning to the board in September for the next term.

I received an email back from the property manager saying I could not step down until I found a replacement. "It's not allowed" I took this position as a volunteer. It's not paid and I never signed anything. I'm trying to think of a nice way to respond saying that I don't care what she says, I'm not returning.

Any ideas? Has anyone heard of such a rule. Also, I"ve looked through our community bylaws and nowhere does it state anything like that.

To me, that's the key. While I don't think you have to, I'd reply back to the property manager saying you've read through the bylaws and don't see the requirement. Unless he can show you the requirement in writing, you will not be returning.

 

[brookmey]

There's no election? DH is a member of our HOA board and it was an elected position. The person he replaced had reached the end of her term, and like you, did not want to continue, so an election was held. I'm not sure what they would've done if no one ran for her position. But it seems to me that if your term is up, then it shouldn't be your responsibility to find a replacement.

 

[Northstar]

It sounds as if the property management is required to have an HOA, and has been listing you as on the board of directors.

You may have been misinformed about your responsibilities as a director. It's not just a "volunteer" if your HOA is a registered non-profit. You are taking on responsibility for overseeing the activities of the organization and making sure it's doing everything legally. If there are dues that the HOA receives and is responsible for spending, look out... the board of directors can't just hand responsibility for that money over to the property management company. That's how embezzlement happens.

Having the property management company tell you "it's not allowed" would have my fraud censors on full alert. Who doesn't allow it? You're the directors, you don't answer to the property management company... they answer to you.

 

[DEA]

You're covered by the Thirteenth Amendment on this one: No involuntary servitude in the US. Even if you had signed something, I don't think that they could force you to attend HOA meetings against your will.

 

[manning]

About the only place I know of where you can't walk away without penalty is a contract and I don't think this situation comes under that.

May not be necessary but to be on safe side write a letter of resignation. That way everyone have no doubts you quit.

 

[manning]

About the only place I know of where you can't walk away without penalty is a contract and I don't think this situation comes under that.

May not be necessary but to be on safe side write a letter of resignation. That way everyone have no doubts you quit.

 

[rgf207]

There's no election? DH is a member of our HOA board and it was an elected position. The person he replaced had reached the end of her term, and like you, did not want to continue, so an election was held. I'm not sure what they would've done if no one ran for her position. But it seems to me that if your term is up, then it shouldn't be your responsibility to find a replacement.

Yes there is an election but literally nobody shows up and nobody runs. I've been in there by default for 4 years since nobody else is there. I've reached the end though and I don't want to participate anymore.

 

[rgf207]

It sounds as if the property management is required to have an HOA, and has been listing you as on the board of directors.

You may have been misinformed about your responsibilities as a director. It's not just a "volunteer" if your HOA is a registered non-profit. You are taking on responsibility for overseeing the activities of the organization and making sure it's doing everything legally. If there are dues that the HOA receives and is responsible for spending, look out... the board of directors can't just hand responsibility for that money over to the property management company. That's how embezzlement happens.

Having the property management company tell you "it's not allowed" would have my fraud censors on full alert. Who doesn't allow it? You're the directors, you don't answer to the property management company... they answer to you.

This is very helpful information. Thank you. All I know is that the our community builder used this company to manage our HOA. We continue to use them. They collect the dues from members and provide us with monthly financials. Everything goes through them with our approval (lawn care, landscaping etc)

 

[BillSears]

Tell the property manager that you have selected him as your replacement. Now it's his job.

 

[Northstar]

Yes there is an election but literally nobody shows up and nobody runs. I've been in there by default for 4 years since nobody else is there. I've reached the end though and I don't want to participate anymore.

See, that's bad right there. Don't your bylaws specify what a quorum is? Don't they require you to have at least an Annual General Meeting where a quorum shows up in order for the election of officers to take place?
Don't the bylaws specify how long a term elected officers serve for, and whether they can serve indefinitely or have to step down after a set number of terms?

I'd send a letter of resignation to the board (to the secretary, if you have one) well before the Annual General Meeting.

If the other directors share your feeling that you've all done your time and can't continue, send out a letter to the whole membership telling them that none of you plan to re-offer at the next election, and telling them that this will mean no one is overseeing what happens to their dues and how the property manager is investing and spending the money.

 

[PaulaSB12]

Inform the property management that you are going to introduce a few new rules

1 all houses to be painted in tasteful fluorescent purple with pink spots
2 music to be played at loud levels for 18 hours a day
3 minimum of 30 hens and 3 cockerels to be kept in gardens

I think they might just find someone to replace you then.

 

[Northstar]

Inform the property management that you are going to introduce a few new rules

1 all houses to be painted in tasteful fluorescent purple with pink spots
2 music to be played at loud levels for 18 hours a day
3 minimum of 30 hens and 3 cockerels to be kept in gardens

I think they might just find someone to replace you then.

Look, the problem with the way everyone is looking at this is that it is NOT the property manager's responsibility, or right, to find someone to sit on the board of directors.

OP, you shouldn't have sent notification to the property manager that you were resigning. Equally, the property manager does not get to tell you "it's not allowed" because the property manager does not run the association... the homeowners, through their elected board, run the association.

It is the homeowners who are failing to take responsibility.

Honestly, though, every board I've ever sat on has had to twist arms to get people to step up and take office. OP, one good way to get someone to agree to sit on the board is to point out that it is a good resume-builder, especially for a SAHM looking to get back into the workforce. Because of the responsibility, it looks much more impressive than other forms of volunteer work.

 

[whoopsiedoodle]

Your HOA sounds like ours! In a neighborhood of over 300 homes there are never more than 30 people at the annual meetings. And no more than a handful of "absentee ballots" returned. but that doesn't matter when it comes to "electing" a board. It's based on who is there and who wants to step up. PPs are right that the property management company has no say in how you do things or if you decide to resign. They answer to you, not the other way around. Send a letter to the other board members saying you are steping down. If it works like ours than the VP should have to step up to President or find someone else.

 

[rgf207]

Thanks everyone for your help. Our HOA is really odd since nobody every wants to participate and nothing is ever enforced around the community because we don't have any power. It's a lost cause and since DW and I are having a baby in November, I really have had enough.

I'm going to reply to the lady's email telling her that I have no legal obligation to stay and I will be resigning effective immediately. I will also follow that up with a certified letter.

 

[HM]

I was on our Architectural Review Committee for the HOA. I did it for two years (one year position) and informed the Board that I would not be willing to do it for the following year. When I got to the annual meeting, the only people there this year were the Board members, the ARC members and the Property Management folks. The Board sent out a letter that homeowners could send back with voting rights given to the Director in proxy. Because of that, we did have a Quorum. But there was no one there to run for my office. So, it was vacant. I don't know if anything has been done since.

 

[rgf207]

Here's an update. I heard back from the management company today . They pointed me to the State of Maryland Statutes (specifically the following clause). I don't really understand how this obligates me to stay. Can anyone decipher this legalese?

2010 Maryland Code
CORPORATIONS AND ASSOCIATIONS
TITLE 2 - CORPORATIONS IN GENERAL - FORMATION, ORGANIZATION, AND OPERATION
Subtitle 4 - Directors and Officers
Section 2-405 - Directors holding over.

§ 2-405. Directors holding over.

(a) In general.- In case of failure to elect directors at the designated time, the directors holding over shall continue to manage the business and affairs of the corporation until their successors are elected and qualify.
(b) When director deemed holding over.- A director not elected annually in accordance with § 2-501(b) of this title shall be deemed to be continuing in office and shall not be deemed to be holding over under subsection (a) of this section until after the time at which an annual meeting is required to be held under § 2-501(b) of this title or the charter or bylaws of the corporation.

[An. Code 1957, art. 23, § 57; 1975, ch. 311, § 2; 1989, ch. 715.]

 

[Jestocost]

Here's an update. I heard back from the management company today . They pointed me to the State of Maryland Statutes (specifically the following clause). I don't really understand how this obligates me to stay. Can anyone decipher this legalese?

As I read it the statute would allow directors and officers to continue to serve under those circumstances, but does not require those directors to continue to serve. The former makes sense and the latter doesn't, IMO. The use of the term "shall" is somewhat confusing and I suspect that is the key to fully understanding the statutory language. However, I am not an attorney and this interpretation should not in any way be construed as legal advice. If you really want an answer you will need to consult an attorney licensed to practice in Maryland.

 

[tOSU]

Don't show up for any meetings or do any of the work.

 

[rgf207]

As I read it the statute would allow directors and officers to continue to serve under those circumstances, but I don't see how it could be interpreted to require those directors to continue to serve. The former makes sense and the latter doesn't, IMO. The use of the term "shall" is somewhat confusing and I suspect that is the key to fully understanding the statutory language. However, I am not an attorney and this interpretation should not in any way be construed as legal advice. If you really want an answer you will need to consult an attorney licensed to practice in Maryland.

That's how I read it too but I will check with an attorney to be certain.