Home Owner Association Incorporation

[crin63]

Elections, boards and offices are not being done properly. Most of the CC&R's are being ignored. Does that open up the individuals of the Home Owners Association to lawsuits should someone get hurt on the premises? If basically everything is being mismanaged by the current board and officers does that create a risk to the individual homeowners?

[Mr. P]

Elections, boards and offices are not being done properly. Most of the CC&R's are being ignored. Does that open up the individuals of the Home Owners Association to lawsuits should someone get hurt on the premises? If basically everything is being mismanaged by the current board and officers does that create a risk to the individual homeowners?

What type corp. C, S or LLC? HOAs are nothin but the local busy body know it alls who wanna control what everyone does.

CC&R's???

[PostmodernProphet]

Elections, boards and offices are not being done properly. Most of the CC&R's are being ignored. Does that open up the individuals of the Home Owners Association to lawsuits should someone get hurt on the premises? If basically everything is being mismanaged by the current board and officers does that create a risk to the individual homeowners?

when you say hurt "on the premises" what do you mean....are there common areas?.....logically, there could only be liability if the ignored matter was related in causing an injury.....if a lawsuit was brought against an association for failing to maintain a sidewalk, for example, all homeowners would have to pay an assessment to cover the damages.......but just failing to hold an election when it was due would not be enough to create liability.....

[crin63]

What type corp. C, S or LLC? HOAs are nothin but the local busy body know it alls who wanna control what everyone does.

CC&R's???

Its a nonprofit corporation. CC&R Condominium Constitution & Rules. There are only 9 units but no one wants to actually be responsible to take care of anything. They all want to just sit back and relax but in the mean time the fencing is falling down, some gates don't open, some don't lock, the driveway is crumbing and cracked, and so on.


when you say hurt "on the premises" what do you mean....are there common areas?.....logically, there could only be liability if the ignored matter was related in causing an injury.....if a lawsuit was brought against an association for failing to maintain a sidewalk, for example, all homeowners would have to pay an assessment to cover the damages.......but just failing to hold an election when it was due would not be enough to create liability.....

All driveways, walkways, and a fenced in area are all common areas. The HOA provides for the homeowners insurance from the drywall out on all 9 units, plus everything outside of the personal areas (backyards). There are several known trip hazards, gates that wont lock or wont open, and so on.

No one appears to have read the rules, declarations or bylaws including the board/officers. They just kind of do whatever they feel like doing, like not pay the HOA bills or fix anything. The treasurer has all the power currently, he decides what gets fixed, if it gets fixed, has single signature authority to do whatever he wants too with no oversight or accountability. Well he did until I won the treasurer position.

From my understanding, if the board of a corporation doesn't perform the duties required of them in the bylaws then they open themselves up to become personally liable. Piercing the corporate veil. Maybe its different with a nonprofit HOA. My other question would be if the insurance company could refuse to pay in a lawsuit brought about by negligence of the board.

[PostmodernProphet]

Maybe its different with a nonprofit HOA.
the most significant difference would be whether it would be worth the time to pierce the corporate veil if there were no corporate profits to seize.....


My other question would be if the insurance company could refuse to pay in a lawsuit brought about by negligence of the board.
no, but they might refuse to continue being the insurer.....

[Psychoblues]

HOA's are so damned fraudulent!!!!!!!!!!!!!!!!

They purport to protect the value of your property. They are freaking liars!!!!!!!!!!!!!!!!!

:beer::cheers2::beer:

Psychoblues

[actsnoblemartin]

aint that the fucking truth mate

cheers :dance:


HOA's are so damned fraudulent!!!!!!!!!!!!!!!!

They purport to protect the value of your property. They are freaking liars!!!!!!!!!!!!!!!!!

:beer::cheers2::beer:

Psychoblues

[Psychoblues]

Seriously!!!!!!!!!!!!


aint that the fucking truth mate

cheers :dance:

:beer::cheers2::beer:

Psychoblues

[crin63]

the most significant difference would be whether it would be worth the time to pierce the corporate veil if there were no corporate profits to seize.....


no, but they might refuse to continue being the insurer.....

I was under the impression that the point to piercing the corporate veil was to go after the personal assets of the owners or board members since personal asset protection is part of the reason to incorporate.

[PostmodernProphet]

yes, but it is also a big investment in attorney fees with a low level of success....thus, it is only likely to be used against folks with very deep pockets in high damages situations....thus, more often in class action suits or multi-million dollar loan defaults than in personal injury cases.....

just make sure that the bills that get ignored don't include the insurance premiums.....and perhaps look into a good umbrella policy for yourself......