HOAleader.com - Tip of the Week - June 6, 2014
Published: Fri, 06/06/14
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Ferocious Recall Fight Fractures HOA: What Can You Learn?
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In this week's tip, we tell the tale of a recall battle at the 396-unit Palm
Harbor, Fla., condo association called Tuscany at Innisbrook. It's led to
the resignations of three board members, counter-accusations against the
leaders of the recall, and damage to the reputation of a 30-year community
association veteran.
The dissenters are led by Lisa Moser, a unit owner since 2005 whose day job is
as an IRS agent. The board's president during the dispute, Michael Perez, is
also the CEO of its management company since 2006, Ameri-Tech Community
Management, which Perez says manages 25,000 units in the Tampa Bay area.
Here's just the tip of the iceberg when it comes to allegations made by the
dissenters through Moser, and Perez's responses:
Accusation: Perez has served as president of the board while his company
operated as the association's manager, a fact Moser says she's known and
complained of for years but that more recent purchasers weren't aware of.
Response: Perez says his relationship with the management company was
fully disclosed and that he charges $5 a door, which he says is about half the
typical rate in his area. He also says his company actually has a policy
prohibiting employees from serving on boards of the associations the
company manages. He made an exception in this case when, during the
developer transition, as an owner he saw insider deals taking place with the
developer's board and became a board member to better protect the
association's interest.
Accusation: Another board member, Michael Guju, is the "in-house" lawyer
for Ameri-Tech, alleges Moser, and was appointed during a secret board
meeting without notice of his relationship to Ameri-Tech to the owners.
Response: Perez says Guju is, in fact, his company's counsel. But he says
Guju operates an independent law firm, and Perez's company simply has
Guju's law firm on retainer. In addition, Perez says Guju was appointed to
the board in an executive session of the Tuscany board and that his
relationship as counsel to Ameri-Tech was disclosed to owners. However, he
notes, notice isn't required to owners when the board appoints someone to
fill an empty board seat until the next election.
The allegations get much, much more serious. Head to our new article
for a rundown, along with lessons you can learn from this association's
unfortunate brawl: http://www.hoaleader.com/members/1016.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Recalls, Part II: What Can You Learn from this HOA's Bitter Recall Fight?
This is the second in a two-part series on what you can learn from board recall
fights. In this article, we discuss a risky conflict of interest and how to
distinguish between the two types of recall battles. The first lesson of the
Tuscany at Innisbrook recall ruckus is one even Michael Perez, CEO of
Ameri-Tech Community Management, which manages 25,000 units in the Tampa
Bay area, and former president of the Tuscany board, agrees with. Our
experts, though not commenting on the specifics of the Tuscany situation,
say it's unwise for management companies to open themselves up to claims of
conflicts of interest by allowing their employees to sit on the board of an
association they manage.
Click here to read full article:
http://www.hoaleader.com/members/Recalls-Part-II-What-Can-You-Learn-from-this-HOAs-Bitter-Recall-Fight.cfm
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Recalls, Part I: What Can You Learn from this HOA's Bitter Recall Fight?
This is the first in a two-part series on what you can learn from board recall
fights. In this article, we discuss the basic allegations against and
response from a board president in Florida who recently faced a recall
drive. If you want a sense of how nasty and divisive board recalls can be, look
no further than Palm Harbor, Fla. In a 396-unit condo association called
Tuscany at Innisbrook, a recall battle exploded, even featuring dueling
Facebook pages, one advocating for recall and the other supporting the
board. On April 27, 2014, a majority of owners claims to have voted to serve
recall notice on several board members.
Click here to read full article:
http://www.hoaleader.com/members/Recalls-Part-I-What-Can-You-Learn-from-this-HOAs-Bitter-Recall-Fight.cfm
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Special Assessments: How to Avoid Them When Possible, and Pass Them When
Needed
"Special assessment." They may be the two most dreaded words in the minds of
HOA owners. Just the mention of "a special" can infuriate homeowners and
give HOA board members heartburn.
The term doesn't have to provoke such negative reactions. When used
sparingly, wisely, and successfully, special assessments can strengthen
a community and build respect for a condo or HOA board that honors its
fiduciary duty.
Join us for an in-depth webinar on June 26 led by two community association
attorneys with extensive experience advising associations on the
benefits and pitfalls of special assessments. You'll walk away with
concrete information to help you avoid unnecessary special assessments
and, when special assessments can't be avoided, to get them passed with the
minimum of rancor.
Click here to read full article:
http://www.hoaleader.com/snip/165.htm
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When Disagreement is Called a Breach of a Board's Fiduciary Duty
In this week's tip, we offer lessons on how to make petulant board members on
the "losing" side of a board decision shape up. "The fiduciary duty of a board
member depends on the context," says Bob Diamond, a partner at the law firm
Reed Smith in Falls Church, Va., who helped write the Washington, D.C.,
condo act in 1976 and worked on the Uniform Condo Act, which 24 states have
adopted. "I have experience with people who are difficult being on boards,
and I've even seen some who are probably outright certifiable.
Click here to read full article:
http://www.hoaleader.com/members/When-Disagreement-Called-Breach-Boards-Fiduciary-Duty.cfm
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How to Handle a Sulking HOA Board Member
An HOAleader.com reader asks, "What are you to do when a board member doesn't
like the way a meeting on discussing of a financial matter doesn't goes his
way and knows at the next membership meeting he will be outvoted and then
proceeds to go on our HOA website and tries to make the board look like it's not
doing its fiduciary duty?" Here our experts offer suggestions for coaching
this board member to act more professionally.
Click here to read full article:
http://www.hoaleader.com/members/How-Handle-Sulking-HOA-Board-Member.cfm
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