Time to talk about reform!
The first step is to determine what is missing that allows the fiduciaries to escape and continue to use their fiduciary positions to exploit homeowners.
Let’s start a check list:
1) election of board members.
2) criterion for eligibility to vote and also to serve
3) board rules
4) Insurance and bonding
7) custody of books and records
9) limitation on board action.
The declaration governs the election of board members and also their powers. It is my suggestion that after 1 year the developer loses the right to vote as to any property that he retains directly or indirectly. In addition unit owners are limited to one vote regardless of how many units they own. Mass ownership should be discouraged.
board members once elected must adhere to Roberts Rules, and must fully disclose any personal interest in the subject matter prior to any presentation of a motion, proposition etc. The board member who has a pecuniary interest may not vote for or against the proposition.
all board members must be bonded and be able to obtain errors and omissions insurance. Board members must attend in person all board members, unless excused by a majority of the board members. A quorum consists of x% of all board members. (There are no proxies and no exparte board meetings)
Books and records are kept at the office of the association and are available for copying and inspection by unit owners or their agents at all times (without exception) during business hours of the association. An independent audit shall occur at least annually and the results of that audit furnished to every unit owner immediately upon completion.
Board action is limited to regular business decisions that are no in excess of x dollars. Irregular or capital decisions are limited to y dollars. All other business decisions must be brought before a membership meeting. Business decisions such as engaging a manager, attorneys, accountants or similar professionals require a 67% vote and a quorum of all board members being present.
The HOA is a self governing enterprise. By amending the declaration, recording it, and following it no association need be victimized. Legislation is ify as the developers and the real estate professionals have a vested interest that they will not give up very readily. Also, if you look at the history of many (if not most) of the real estate professionals engaged in this business you need a strong stomach.