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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 117367
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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My HOA increased our annual feed by 46% the property company

Customer Question

My HOA increased our annual feed by 46% the property company hired to oversee the HOA said that he only reports to the board
JA: Because real estate law varies from place to place, can you tell me what state the association is in?
Customer: so I am not getting my questions answeredxc
JA: Has anything been filed or reported?
Customer: no. I can tell you this that the maintenance staff was over budget by 66k when I asked if we increased the number of employees I was told no
JA: Anything else you want the lawyer to know before I connect you?
Customer: CA
Submitted: 10 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 10 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
What is your question for us about this matter? Was the increase done by the board in accordance with your bylaws?
Customer: replied 10 months ago.
l don't know... all I can tell you is that one of the board members is also head of maintenance and an employee of the HOA. He has increased the number of employees and for the 2015-2016 year maintenance payroll had a variance of 65k in the budget
Customer: replied 10 months ago.
he is also a homeowner\
Customer: replied 10 months ago.
isn't there a conflict of interest when a employee is on the board. it seems he can do whatever he wants
at the expense of the owners
Customer: replied 10 months ago.
I rather have your answers in writing than call
Customer: replied 10 months ago.
another thing... the property management told me he doesn't have to answer my questions because he works for the board. Is this true?
Expert:  Law Educator, Esq. replied 10 months ago.
Thank you for your replies. Sorry, experts are not employees of the site and we do not send phone service requests unless asked, you must have received an automated response from the site and you can ignore it.
It is a conflict of interest for a board member to be an employee and also to vote on any board matters over which he has control or interest as an employee. It is not a conflict of interest for an employee to merely be on the board.
As a homeowner, you have a legal right to inspect all financial records and even conduct your own audit of those records.
A board of directors on their own or through their appointed manager may run the association in day to day operations including hiring employees they believe are necessary, unless your bylaws say they do not have that authority.
Property management if they are hired to work for the board only owe answers to the board. However as a homeowner you are entitled to answers from the board. IF the board refuses to answer and refuses you access to records to inspect them and audit them, then you have a right to sue the board and HOA for a declaratory judgment (court order) to force them to allow you to inspect the records. You can also use the bylaws to your advantage to seek to remove board members in accordance with those bylaws or simply not elect the board members again. If you inspect the records and find they have mismanaged the funds, then as a homeowner you can sue the board for that mismanagement as well.
Based on the information provided, those are your options.