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How to get rid of a HOA?

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Account Closed

Nov 16 '10, 10:02 AM


I live in a townhome condo complex in hawaii. Been an owner there since 1989. I've been on the board of owners twice. The current board and agent suck. Just got notice that they are getting a 1.5 million loan to replace siding. 10 year loan, my assessment would be $300 on top of an already hight $400 HOA fee! For 10 years!

I know it probably differs by state, but is there a way to fire the board and get rid of the managing agent. Maybe if I get a petition going? Emergency owners meeting to vote on removing the board and agent?

I hate condos!

TC



Bryan A. Donor

Real Estate Investor from Charlotte, North Carolina

Nov 16 '10, 10:44 AM


sorry to hear tom, that sucks....have no experience with hoa, but maybe at minimum, you could get them to reach out for more bids, to see if they can at least lower the loan amount and thus your assessment??



Bryan A., Carolinas Revitalization, LLC
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Account Closed

Nov 16 '10, 01:51 PM


The problem is that not all of the siding needs replacing. Mostly that facing windward (NE). But for aesthetic reasons they want to change it all. The original (1979) siding is no longer available. There is siding that is close, but differeent. But they want to replace ALL siding. I don't see the sense in replacing siding that is still perfectly good. The main function of siding is to protect the inner structure.

One of the directors wants all new siding because it will "increase the value" of the units. That's debatable since it will be very hard to sell their townhome after such a high assessment.

Most owners won't be able to afford it.

TC



Mitch Kronowit Donor

SFR Investor from Orange County, California

Nov 16 '10, 02:06 PM
1 vote


Gee, Tom, that totally bites. I've been a little disappointed with our HOA down in San Diego at times, but they never tried to pull something like this.

Read your HOA's bylaws and see what remedies are possible. Perhaps you can recall the board members or get an injunction from the court to stop the project. You should Google "fighting your HOA" or "suing your HOA". You'll get about 4 quadrillion hits because HOA's are so freekin' popular.

Best of luck. Please let us know how it turns out. Aloha.



DAVE Cutler

Real Estate Investor from Peabody, Massachusetts

Nov 16 '10, 02:57 PM


There should be something in the by-laws (If you dont have these check with your local registry of deeds) and sometimes by-laws are part of the declaration of trust document. How many units are there total? If you can get a majority of owners or trustees to disagree with the $1.5M loan decision you should be able to fight it. Another option would call a local Real Estate attorney that does a lot of work with condo associations. They should be able to chat with you for a minute about the situation and whether or not you would need their help further to seek a remedy. I dont think you would as long as a majority of the other unit owners feel the same way as you!



Account Closed

Nov 16 '10, 03:48 PM


There are 62 units. I plan to walk around and talk to neighbors. I already talked to a few. I think the HOA did mention that there would be a meeting and "vote" on the issue. So time to campaign I guess.

I'd really like to move back to the mainland and buy a house, but my wife is resistant.

Thanks for the advice guys!

TC



Bill Gulley

Real Estate Investor from Springfield, Missouri

Nov 16 '10, 07:37 PM
2 votes


The by-laws of the corporation will have a paragraph, Removal of Officers and Directors, or similar heading. If not, removal is by statute. Generally, it will take more than 50% of members or a higher % of directors, could be unanimous consent.

It also takes time, as you need to give notice of a special meeting for the removal of the officer, stating the time and place of the metting and purpose.

There can be some tactics involved, say you need to remove two or more, trying to can all of them at one meeting might be tough. Your will most likely need to vote on one member at a time and if it's the board voting, the others may have the right to vote. Officers considered for removal may not vote on the issue. So, when you begin, you might pick the worst one first and stay quiet about the other, the take them on later, so it could take time to pick them off one at a time. This can be done without an attorney, but considering the size and scope of the problem, probably best to hire one.

The other way as mentioned above will be to sue, having more than 50%.

Another tactic would be to notify the bank making the loan and inform them that this project is under protest and that action against the corporation is being taken....they won't make any loan until the matter is settled.

Was the bid for the siding accomplished according to the by-laws, were bids taken? Do you know of any relationship between any of the officers and the company doing the work? DId they take the lowest bid?

Work out comps on your building and value the units with the new expense, you might show MV being lower. You might ask an appraiser for a letter of opinion as to the impact to market value with the improvement.


Edited Nov 16 2010, 19:49 by Bill Gulley


Mark N.A

Real Estate Investor from North Carolina

Nov 16 '10, 08:50 PM


Thanks for all the input.

I manage a resort vacation condo unit on the coast where you might see the occupants three or four times a year for special holidays. Picture them all as having considerable disposable income.

Three years ago one of them wanted to install new pro-level surfaces on the perfectly-fine tennis courts. Done. Two years ago someone wanted an entirely new clubhouse built for one of the pools since the other two pools already had clulbhouses. And not a year goes by that the HOA votes to rip out large swaths of existing landscaping to replace it with something 'fuller' and 'prettier'. Did I mention new paint? The new paint flows like water around there.

All in the name of 'it will increase existing values'.

Don't get me wrong, the HOA members are all really nice people. But they sure do live in a different world than me.

Good luck with your efforts, TC, and please keep us posted on any progress.



Account Closed

Nov 17 '10, 02:13 AM


It is the managing agent that I want to get rid of, not necessarily the board members. Only the board can change agents.

Another problem is the lack of interest on the part of the owners. Only owners have shown up at annual meetings two straight years. Many ***** but won't get involved. And by getting involved all I talking about is getting off the couch, driving a mile down the road to a meeting. The culture here is to be complacent and not rock the boat.

We'll see if I can ruffle some feathers.

Thanks guys.

TC



Steve Babiak

Real Estate Investor from Audubon, Pennsylvania

Nov 17 '10, 02:23 AM


Originally posted by Tom Cullen:
It is the managing agent that I want to get rid of, not necessarily the board members. Only the board can change agents.

...

The executive board are the ones who have chosen the managing agent, and they probably also have to approve any expenditures proposed by the agent.

So, that takes you back to what Bill was saying, that the executive board will have to be changed ...



Steve Babiak, Redeeming Properties, LLC
Telephone: 6109082183
...


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