HOA procedural Questions

Hi,
This is my first time posting and my first time reaching out for outside perspective.
Background information. I've lived on my Condo for over a decade and been rather unimpressed (to phrase it kindly) with how things were run- specifically communication, but other things, too.

As a resident, every time I asked board information (Such as dates for board meetings), I wouldn't be told anything. When decisions were made, there would be no communication to the members, the newsletters were always the same info. In fact until I was on the board, I didn't even understand how our HOA structure was put together. I never wanted to push it as I didn't want to make waves or get into trouble.

Well 3 years ago, I finally stood my ground and pushed for information at an annual meeting, and next thing I know, I'm on the board. This is when things started to get... Interesting (trying to be kind again.)

The first year, my goal was to keep my head down and learn as much as I could. I am a question asker, and I have learned this is difficult for some people, so I worked really hard to not upset people. I was 'elected treasurer's because I had heard the word 'arrears' before- no really!! There were 3 of us starting a new board (the previous board members had quit for various reasons a year and a half previous- did I mention communication was terrible?) At that same meeting, our President (who got the job by walking into the annual meeting and having a boys conversation with the property manger) also told us, that we were 'not allowed to talk about anything to do with POA business". At that time I just thought that he had phrased not having a vote at the POA meetings, ECT, really weird- surely we were allowed to know what was being done with our money??

The second year my goal was to start asking questions and pushing for positive changes such as having homeowners know when there are meetings.
Well soon after, I learned our MGMT company was retiring and another had bought their contract. I was also told I wasn't supposed to know as that is POA information. So I was hoping this new company would help reset things, so I chill pilled it, and asked questions and did my best to have patience and grace while the transition took place.

That summed we did a walk through. I pushed for a through one, but long story short, nothing was followed up on. Financials are erratic as to when the board is presented them. I have asked for information about about our buildings and accounts and given non answers.

Jump to the fall,in the past we had out budget meeting in November. All of a sudden in the middle of October, we are told that the budget needs to be finalized by the 31st. A budget had been floated, bug I kept hearing it needed to be corrected so I didn't worry to hard, again, trying to give grace. Some line items jumped 20k, even though the past 2 years we had been under budget in these categories. I asked why the jump. That is when the meeting started to unravel- comments ranged from "you have to operate like a business' to 'its better to have money than not'. In the end I couldn't vote for a budget I didn't understand. Not in good faith at least. Secretary motioned to approve it. I shut my mouth and the President stayed that the budget passed and shut the meeting down.

No word for about 2 months.

President calls for a meeting and it gets scheduled for February at a restaurant - the MGMT company is buying dinner. I don't know why, but that also included alcohol. All of us gave shit in our lives, I've always tried to make sure that I don't bring it to the meetings aside from calling a spade a spade and owning my space/drawbacks. I have been trying to understand our financials and I keep getting half or non answers, so when we were asked to submit agenda items, I sent a list. I was sent an email back in response with some of the usual answers and when the agenda came out with non of my agenda items, I resubmitted them assuming they though my questions had been answered. I was flat put told we didn't have time. So I left it- we had other fish to fry. At the meeting, the president starts jumping and skipping around on his own agenda.

We start on a topic that is newish- we have some water main issues- it's gonna be an expensive project- I'm trying to get us to plan for it... Our MGMT company is trying to get us to plan for a 12k assessment. Our Secretary who is usually pretty quiet starts asking questions too... And our president starts ripping into her. Not ok in my book... So I stepped in, and told him to move on. At that point he spiraled and the meeting became a shit show about how I was out of place, he's gonna quit, and he storms out. The MGMT company rep brings him back in and starts talking about NA... I left at that point. Basically radio silence after that.

Now I am getting emails from the MGMT company asking for CD numbers. To approve invoices I have not seen- invoices that are more money than we take in each month and when I question them told these are necessary bills and that we are required to pay them- even though my only question is where is the invoice.

I could go on, but I think you get the picture.

Can someone provide me with some understanding of A) what I am missing - this doesn't seem normal to me B) questions I should be asking or C) Am I just an idiot here?

Thanks for your help,
A

This is not normal. This sounds like an association where people became used to low scrutiny, weak documentation, and informal control. Classic opacity issues. Then one director began acting like a real fiduciary and the system reacted badly. it's a governance issue.

We are in Minnesota.

I agree that I have been on the passive side- naturally I have a very strident personality and have actually been kicked off of other boards I have been on because of that, so I have been trying to not make THOSE same mistakes here and build more consensus, but more and more, I am seeing (I think) that consensus is not wanted.

We have a management company that has traditionally handled everything, and I think the original PMC was not a good advisor for our community. We are looking at several projects (Water Mains, potentially all the roofs) that will be Multi Million projects, and I think our Secretary is starting to see this unfold and it is scaring the shit out of her.

How would you recommend I move forward to start getting things under the control they should be under (not just what one person wants or one person to be the Karen Nightmare board member?) What resources could I utilize to be more knowledgeable about what is the right way for our board to go about things, or how will I know that I am not digging into my own controlling side? I truly do want to do right by my community, and I think I know where the law stands in general, but I know I don't know enough on HOW to get to that spot without over stepping my bounds or being gaslighted into believing I have.

Thanks for the input!!

I really don't have a problem with productive conflict, it it the asinine, childish, Middle School Queen Bee Conflict that just sends me spinning.

I really prefer abiding by the law- makes it easy to remember what I did!!! Same with telling the truth- I don't have to remember what I said when or to whom, I just tell what actually happened and it is the same!!

Forgive me if I am reading into what you said, or putting words in your mouth - truly not my intent, BUT am I understanding that you are recommending that I lean into RRO more? Are you recommending something else? Do you have a good source (or recommendation) for learning/practicing RRO to become more "fluent" in its utilization?

AnneB7 you said "All of a sudden in the middle of October, we are told that the budget needs to be finalized by the 31st. A budget had been floated, bug I kept hearing it needed to be corrected so I didn't worry to hard, again, trying to give grace. Some line items jumped 20k, even though the past 2 years we had been under budget in these categories. I asked why the jump"

If I were an officer and you were on my board here is what I would tell you:

* Leading the budget is your responsibility. And it's job as treasurer to know when the budget needs to be finalized, why are you letting other people tell you when to finalize it?
* Why are you letting other people float a budget, reign that in, get in front of it, whatever you have to do it is your office to be in control of the budget.
* It is your job to verify the budget is correct why are you letting other people tell you when it needs to be corrected.
* Trying to give grace does not apply it's a budget it must have the reasonably expected expenses by category based on plans and past spending.
* You as treasurer are supposed to study the expenses before the meeting and tell us why it jumped. You are supposed to deny expenses before they go over budget and bring them to the board for approval if the board wants to let something go over expense.

This is my opinion reacting to your statements on the topic of what a treasurer should be doing. Do this, and all the duties of treasurer, or have someone else appointed treasurer.

Yes it's kinda hard to figure out what to do.

I would flatly deny an request if it didn't have the attached invoice. Or if I wanted to be nice I might say - "I don't see an attachment, please attach it so I can review it and decide if it should be approved or not"

If the president was mad and told me grumpily "this bill has to be paid", I'd say I don't disagree, please encourage them to send me the invoice so I can follow procedures before approving it. And better believe I'm checking the invoice to see who it's going to and if it's the amount expected. Anything wrong or fishy I'm holding off.

Yes it might make people mad, but so what? I have a fiduciary duty to the members.

I also do not like the idea of the management company telling me as a board member what to do. The board hires the management company to do work. The board is supposed to direct the management company. Board members should find high quality sources and learn what they are supposed to do. I would NEVER ask a management company what I'm supposed to do. I might ask them if they now any high quality sources of training for board members but I would not get it from them.

That's just me. There are people on this form with much more board experience than me. I'm just talkative.

AnneB7 — one concrete thing that helped me in a similar spot: I started keepign a running written log of every time I requested information and didn't get it, including the exact email I sent and the non-answer I got back. Not confrontational, just documentation. When you eventually need to escalate — to the community, to an attorney, to the state — that log matters.

On the invoice thing, you're not wrong to hold the line. I've done exactly that. "I'll approve this when I see the actual invoice" is a complete sentence. If the president approves things unilaterally without treasurer sign-off, that's worth putting in writing: "For the record, I did not approve invoice X." Keeps your liability separate from his.