APRIL THIS MONTH'S COMMUNITY LIVING Q AND A

These Q and A's are managed by Richard Thompson from www.regensis.net. Richard has been involved for many years with various aspects of community living. He provides consulting services to Community groups and industry vendors.

Question: I suspect our HOA president of embezzlement. He is also acting as the secretary and treasurer and claims he has over half the owners' proxies so no one can stop him. Help!

Answer:You have legitimate concerns and have the right to reasonable answers to those concerns. Make a written request for access to financial information (checking accounts, financial reports, etc.). If you are ignored or don't receive reasonable answers, you have the right to call a special owners meeting usually with a small percentage of owners requesting it to discuss the concerns. Also, convince the other owners to vote for you in the next election and ask them to give you their proxy if they aren't attending the annual meeting. Ask other concerned owners to run as well. Only if you displace this individual will you have chance for change.

Question:Our governing documents prohibit the use of clubhouse for any for-profit event. Many of our residents would like to have classes such as aerobics, art etc. However the instructors would charge and the board says that these types of functions are not allowed. Are there any guidelines to permit this type of use but still prohibit use for events where the primary intention is to sell something or other commercial uses?

Answer: If many owners support classes in the clubhouse and are willing to pay the cost, the board should establish a criteria which allows such events. The events should not monopolize the clubhouse in a way where non-participating owners are overly restricted from using the facilities.

Question: Can an HOA offer its members the option to pay higher fees in lieu of participating in maintenance activities? We have always tried to keep our fees low by sharing many of those tasks. And is there a way to ensure that prospective buyers understand that our HOA involves a commitment to make regular contributions of time and effort?

Answer: An underlying principle of owning property in an HOA is that the members get discounts through group buying power. But there is no obligation that any member has to do the work themselves. So, members cannot be surcharged for lack of participation. While it's nice that there are those that want to cut costs by doing the work, getting sustained cooperation and consistent results from all members is next to impossible. Encourage volunteers by asking each member to complete a small but meaningful task rather than volunteering for long term commitment. By year end, many small projects can be completed and, when combined, represent an impressive accomplishment. Recognize those that participate in the newsletter and board and annual meetings. Give awards and certificates. This will encourage others to step forward.

Question: Our Annual Meeting agenda is coordinated with the membership and suggested topics are placed on the agenda. However, at the Annual Meeting, members are allowed to make motions from the floor, get a second and vote. There is no thought given to the impact on the budget, management and execution. Is this approach correct?

Answer: While the Annual Meeting is the proper place to hold discussions, making and passing motions on the fly is inappropriate since absent owners are not able to weigh in and vote. Certain kinds of member motions may take a super majority or unanimous vote to pass which is rarely present at an Annual Meeting. All issues requiring a member vote must be noticed to the entire membership in advance of the meeting. The practice you describe should be stopped immediately.