HOAleader.com - Tip of the Week - December 2, 2016
Published: Fri, 12/02/16
==========================================
President Caught Red-Handed and Pays Back Assessments, But It’s Not Over Yet
==========================================
In this week’s tip, we answer a reader’s question about an owner’s push to open up his HOA’s financials that revealed that the current president hadn’t been paying assessments—for who knows how long? What next for that owner, HOA, and board?
Financial losses to associations are all too common, whether it’s through alleged ploys like that of this president or out-and-out theft.
“It seems like there’s always somebody associations are cleaning up after,” muses David C. Swedelson, the principal at Swedelson & Gottlieb, a law firm that represents associations in the Los Angeles area. “I had an association that didn’t know they were being raped and pillaged as this guy took $500,000 out of reserves. Then an IRS auditor bought in the association and asked to see financials. The guy refused to provide them. The IRS auditor ran for the board and found the theft. We collected the funds back from the insurance carrier.”
Steve Cheifetz, a partner at Cheifetz Iannitelli Marcolini in Phoenix, agrees. “I’ve seen where the association becomes a board member’s little fiefdom,” he says. “It’s easy to assume you’re entitled to this or that because you’ve put a lot of time in.”
The first step this board should take—if it hasn’t already—is to take away the president’s powers. “The board should immediately remove that person as president,” contends Swedelson. “They have the power to do that typically with just a vote of the board members.”
That, of course, doesn’t remove the president from his board position. But his authority is greatly diminished as a run-of-the-mill office holder.
“The second thing this board needs to do is to hire an accountant to do an audit to find out exactly how much this president hasn’t paid and for how long,” asserts Swedelson.
What’s the owner’s best route forward? And does this board president have any defense that could overcome his ouster and possible referral to the local prosecutor? Find out in our new article: http://www.hoaleader.com/members/2470.cfm
Best regards,
Matt Humphrey
President
==========================================
HOA Elections:
A Step-by-Step Guide to Plan, Properly Notice, and Execute Successful Elections at Your Homeowner Association
An Exclusive HOAleader.com Webinar
With Practical Tips for Condo and HOA Boards
Thursday, December 15, 2016
2 p.m. Eastern
Learn more or register now:
http://www.hoaleader.com/snip/253.htm
Members save $30!
==========================================
Recent articles posted at HOAleader.com:
==========================================
President Caught Red-Handed and Pays Back Assessments, But It's Not Over Yet
In this week's tip, we answer a reader's question about an owner's push to open up his HOA's financials that revealed that the current president hadn't been paying assessments--for who knows how long? What next for that owner, HOA, and board?
Click here to read full article:
http://www.hoaleader.com/public/President-Caught-RedHanded-Pays-Back-Assessments-But-Its-Not-Over-Yet.cfm
==========================================
President Doesn't Pay HOA Assessments; Who Knows for How Long?
An HOAleader.com reader writes, "I'm an owner in an 18-unit condo in Los Angeles. The president has been serving for more than 30 years with a vice president and a treasurer. However, he has been handling all financial activities, including both deposits and disbursing checks, with no others reviewing until I moved in three years ago.
Click here to read full article:
http://www.hoaleader.com/members/President-Doesnt-Pay-HOA-Assessments-Who-Knows-for-How-Long.cfm
==========================================
Can Your HOA Implement a Cat "Elimination" Campaign?
An HOAleader.com reader says his 600-home HOA instituted a formal plan to kill cats roaming the grounds, contrary to the CC&Rs, which permit cats to roam free. We tried to get in touch to gather more information, but our reader went silent.
Click here to read full article:
http://www.hoaleader.com/members/Can-Your-HOA-Implement-Cat-Elimination-Campaign.cfm
==========================================
HOA Elections: A Step-by-Step Guide to Plan, Properly Notice, and Execute Successful Elections at Your Homeowner Association
Stop us if you've heard this one before: You announce an HOA election providing proper notice, yet only a handful of owners show up to vote. You end up short of your quorum requirements, and you have to start all over again with your fingers crossed that next time, your luck will be better, and your election will be successful. Or instead, you hold your election, get definitive results--you think--but then the election gets challenged. We can help you do better!
Join us for an in-depth webinar on December 15 led by two community association lawyers who've devoted their extensive--and impressive--careers to solving the challenges HOAs face every day. You'll log out of the webinar with valuable, workable tactics you can implement immediately to make your election process smoother, more successful, and less contentious.
Click here to read full article:
http://www.hoaleader.com/products/hoa-elections-guide-webinar-a.cfm
==========================================
We Hate to Rain on the Cloud Storage Parade for HOAs, But
In this week's tip, we raise a warning of the risks of assuming cloud storage is the only type of storage you'll ever need for association records. It may not offer the security you need for HOA records. Whether you're storing your documents in a cloud probably depends on how you're managed.
Click here to read full article:
http://www.hoaleader.com/public/We-Hate-Rain-on-Cloud-Storage-Parade-for-HOAs-But.cfm
==========================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
http://www.hoaleader.com/public/department49.cfm
==========================================
Please feel free to forward the *entire text* of this email to others.
Copyright 2016, Plain-English Media, LLC
(866) 641-4548
http://www.hoaleader.com