Question:
We live in rual Montana and leared our HOA board members we not voted in by commuinty and they have not called a vote for over three years. The self appointed (bilaws state the board is to appoint) HOA President and Self appointed Treasure are both husband and wife, he signs off on the expenses for the treasure – is this not a huge conflict of interest? Community members brought up covenants and voting rules. There was finally a vote via mail. New board has taken over and upon taking over has discovered some big discrepancies in the finances, many missing receipts for expenses, copies of invoices with paid checks over important billing work explanation and no original to verify expenses. Also, HOA President was voted on board again because ballots said votes could be cumlative yet bilaws state clearly votes are non cumulative. He announces his step down in a mailer as the day before the new board is to vote on board member positions (bilaws state that the board votes on who holds what board positions) but is acting as President but understood by community he is not until reappointed by other board members. There is also money paid to a credit card in a large amount, as well as cash withdrawls without documentation. What is the community and newly appointed board to do if they suspect fraud or misuses of money/power?
– Gina
Answer:
Hi Gina,
It is general practice to discourage spouses from serving on the HOA board at the same time. However, Montana currently does not have a law expressly prohibiting this. You should check your governing documents to see if they contain a provision regarding spouses on the board or members of the same household serving on the board. As for the ballots vs. your bylaws, your election procedures should follow the bylaws.
If you suspect that fraud has taken or is taking place in your HOA, report the potential crime to law enforcement. The authorities should be able to send the case to the county district attorney’s office. It is advisable to gather evidence to support your claim.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
