Condo HOA Question (real estate, foreclosures, leasing agent) - Atlanta - Georgia (GA) - City-Data Forum

rogers111 · 03-22-2010, 05:26 AM

I have a question about our condo board. We have a real estate agent serving as the president of our HOA board. We originally had a 25 percent cap on rental units. That was thrown out the window and it's closer to 40 or 50 percent. The question I have is that she represents several owners who rent and who are selling their units. Is this a conflict of interest? She votes on policy and I believe she collects commission from those client relations. Is this correct?

noah · 03-22-2010, 07:47 AM

How was it thrown out the window. If it was truely in the CC&R's that would require a vote of all homeowners.

It may seem like a conflict of interest but if the owners voted her onto the board and are aware then whats the issue. Obviously she is an owner herself so I would imagine she has an interest in seeing the condo do well.

rogers111 · 03-22-2010, 08:18 AM

Thanks for your response. We haven't had a quorum and the developer left us with a loose interpretation of the CC&R's. There is selective enforcement of the docs and fines are being assessed selectively as well. No condo units are selling. The only thing that is moving are rental units. If she is promoting those units and getting a commission from that could that not be considered questionable?

noah · 03-22-2010, 08:40 AM

It doesn't matter what the developer left in the CC&R's, the only copy that matters is the one that was filed with the county/city. So if its not in that version then it isn't the current board its the developer who is to blame. Of course you can't do anything except put it to a vote. In the environment if you have tenants and dues are being paid your better off leaving things as they are.

Certainly it could make one question her motives. Has she attempted to do things that were bad for the association. Do you attend the board meetings, have copies of the budget and minutes. The only issue seems to be that she is acting as a property manager or leasing agent and serving on the board. It may work or it may not depending on the person and their character I suppose. In many condos people like to complain but don't act and few people are willing to get involved and volunteer their time. Most that serve on the board have good intentions, they are owners too.

Quote:

Originally Posted by rogers111

Thanks for your response. We haven't had a quorum and the developer left us with a loose interpretation of the CC&R's. There is selective enforcement of the docs and fines are being assessed selectively as well. No condo units are selling. The only thing that is moving are rental units. If she is promoting those units and getting a commission from that could that not be considered questionable?

rogers111 · 03-22-2010, 08:51 AM

Again, thank you for getting back with me. I appreciate the insight. Meetings aren't open to the general membership. Very little communication is given to owners. I've not had luck getting any documents from meetings or business related dealings. A reserve study was conducted, but we aren't allowed to see it. Information is closely guarded and the apathy at the property because of bad history / foreclosures / economy / construction issues / personality issues (list goes on) has made it an uncomfortable situation. It would seem that if banks would not refinance current owners based on a high rental rate it's impacting owners. She gains commission from promoting rentals - possibly questionable. I guess more research with an attorney or filing an ethics complaint might be an option.

noah · 03-22-2010, 09:23 AM

Regarding refinancing: The current Fannie Mae guidelines say over 50% owner occupied qualify so you'd have to be over 50% renters, best to check with a lender on it. There are other issues of concern such as the HOA's reserve amount as well which you will find in the financials.

Meetings should be absolutely open. What do your docs call for. And you should definitely be able to request minutes, budget etc.

Do you have a management company who manages the property or is it just the board. Request the documents you would like?

If you can't get anything then at the next annual meeting run for the board, talk to your neighbors and see how they feel, start a movement to take back your condo and have more transparency. Its amazing how changing a few board members who really want to put the time in and make things better can make a huge difference. Many other condos are in tough spots right now too, especially with foreclosures.

Quote:

Originally Posted by rogers111

Again, thank you for getting back with me. I appreciate the insight. Meetings aren't open to the general membership. Very little communication is given to owners. I've not had luck getting any documents from meetings or business related dealings. A reserve study was conducted, but we aren't allowed to see it. Information is closely guarded and the apathy at the property because of bad history / foreclosures / economy / construction issues / personality issues (list goes on) has made it an uncomfortable situation. It would seem that if banks would not refinance current owners based on a high rental rate it's impacting owners. She gains commission from promoting rentals - possibly questionable. I guess more research with an attorney or filing an ethics complaint might be an option.

RainyRainyDay · 03-22-2010, 09:31 AM

Does the OP actually see a problem with the tenants, other than the possible violation of regulations? Would it be better for the property, overall, to have a lot of units sitting empty, rather than tenant-occupied? Would the owners who currently have their units rented be forced into foreclosure without the rental income?

Just saying. Be careful that what you wish for is what you really want.