Bad Board – What To Do When the HOA is Corrupt

Homeowners Take Back Their Los Angeles Lofts

Just outside of Downtown Los Angeles, a distinctive historic converted loft condominium building commands notability and respect by loft lovers for its big, beautiful modernized old industrial style live/work residential lofts with plenty of natural light and views. They also come at a lower price per square foot than lofts in Downtown Los Angeles. That’s why many residents work in and around Downtown L.A., but they drive just a couple extra miles to save a bundle and avoid DTLA commotion. #lofts

But a different kind of commotion is stirring inside the loft community as a small group of owners and residents gathered in a dimly lit loft unit (under abruptly-halted home improvement construction) to share their despair and to devise a strategy for taking action to counter the unacceptable conduct of HOA Home Owners Association board members.  A few days later, the group held a tactical barbecue, where they were able to attract dozens more signatures on petitions to overturn offensive new rules and to prevent future actions by offending HOA board members.  The group has no complaints about the two newer board members who were recently elected with the hopes of countering the old board’s offensive activities.  #hoa #board

At what appears to be “Resistance Barbecues,” the group members cited specific examples of their own harassment experiences with members of the HOA Board.  The group asked that we do not reveal the contents of the 2nd petition that was circulated and signed called for three old HOA board members to take a particularly strong action.  It communicated the belief that they have routinely violated governing documents, rules and California laws.

The catalyst for the community resistance movement —  It came on the heels of a particularly concerning new anti-harassment rule.  Because the board has been passing so many rules perceived as benefitting themselves and their buddies, while attacking their perceived enemies, the new anti-harassment rules are viewed by many as a the straw that broke the camel’s back.

Members of the group agreed that the board has failed to govern themselves and each other.  The homeowners are upset by what they consider to be ongoing unethical and abusive behavior by these board members towards residents, employees, and vendors.  The homeowners articulated in writing that they no longer have faith in the board members’ ability to govern their HOA.

The new proposed rules concerning harassment are cited as one of many instances in which the board members have used their position in attempts to stifle and penalize residents who find fault or who even inquire about the goings on of the HOA board.   The growing group of men and women who live in the community feel that they are the ones being harassed and attacked in many ways.

Sounds like sh*t’s about to get real.

Several complaining homeowners have described the board’s behavior as violations of board of directors’ code of conduct.  

From failing to maintain common areas to manage vendors properly, the board is accused of giving preferential treatment for themselves, along with misappropriating legal advice to board members, breaching fiduciary duties and disclosing confidential information to unauthorized individuals.  The number of accusations is dramatic: threatening, bullying association members, residents and guests.  The group cites the board’s failure to conduct themselves with courtesy toward homeowners, residents, guests and others, to act with proper decorum and to make books of account open to inspection.

Of particular concern to residents are new anti-harassment rules that pit board members against residents, empower the board to define what constitutes harassment, and to even levy fines and collect attorney’s fees from anyone they deem guilty of harassment. The offensive new rules act to prohibit association members from communicating with others, violating the right to free speech.  A resident can be fined if they or a guest says anything or even waves to an unfriendly neighbor, vendor or board member. Several attorneys have called the new rules “unprecedented” and “crazy.”  The new rules are clearly designed to give the HOA board members powers to increase harassment of foes, while attempting to limit homeowners rights to hold the board members accountable.

Anti-Harassment Rules Used By Board to Harass Homeowners

The accusations get more dramatic and personal. At the heart of the matter is the allegation that the old board members have been actively harassing many of the residents.  The anti-harassment rules are seen not as reducing harassment, but actually stepping up harassment of residents by the HOA board.  This is evidenced by the fact that the new rules state that “the board of directors shall be treated with courtesy and respect by owners (including their tenants, residents, guests, occupants, and all other persons affiliated with the owner’s unit),” but nowhere does it state that board members must treat homeowners or residents with courtesy and respect.

Homeowners further protest that the HOA board members have treated others with the poorest of etiquette.  It has been reported that old HOA board members have gone as far as:  demanding contractors to stop work and leave the property;  stalking or following residents; attempting to enforce rules or laws not within their given scope of powers.

VULGAR, SEXIST AND DEROGATORY NICKNAMES

These board members are also accused of acts that are too vile to mention on the L.A. Loft Blog. At lease one member of the all-male board has been quietly accused by several female residents who feel they have been personally victimized or mistreated. The L.A. Loft Blog has been asked by victims not to detail the incidents.

Uh, Oh!  Sounds like trouble.

As if they anticipated that hoards would finally revolt against their misdeeds, it looks like the board members have undertaken extensive precautions to entrench themselves in an attempt to ward off the inevitable dissent.  The board repeatedly took to: changing election rules to shrink the pool of potential nominees to ensure their own re-election; changing election rules to prevent nomination of specific shareholders that these board members had personal conflicts with;  violating the election rules by not mailing out candidate nomination forms in a timely manner AND violating the election rules by not following proper election deadlines (David Stirling Act of the California Civil Code).

According to California law, any business conducted by the board since the recent election could be null and void, including the new anti-harassment rules.  The board delayed the most recent election, apparently so that the old board members could finalize all the decisions regarding how to spend the money from recently settled construction defect lawsuit before new board members could have a say.

Other observed shenanigans by the three board members include:  changing from monthly board meetings to quarterly for the purpose of excluding association members from participating and voicing their opinions, publicly shaming unfavored residents and many other incidents that the group may reveal at a later time.

The board has repeatedly changed rules to help themselves and their friends, and while delaying and litigating against unfavored residents who are attempting to complete legitimate home improvement,  the board simultaneously allowed and encouraged their favored residents to produce extreme daily ongoing construction noise and unlawfully zoned manufacturing noise by their comrades, sending a nerve-jangling 80 decibel blast (picture a large truck driving through your home) of thunder into the units of disfavored resident’s 24 hours a day, 7 days a week, without permits.  The board also tacitly permitted a neighbor to flood the unfavored resident’s loft.

Loft residents have reported that the old board members have approached residents with requests similar to: “You must be nice to me if you want me to help you.” Individuals of the dissenting group agree that the board has been playing favorites, unethically and illegally giving preferential treatment to themselves and their friends, then going overboard by passing rules and taking unethical actions targeted toward residents who do not provide favors to the board. They say that the board is failing to fulfill its fiduciary responsibilities to all owners and has failed its legal requirements to represent the interests of all residents. The HOA board is accused of being unfairly overly aggressive at enforcing construction rules and noise rules against one unit while ignoring construction rules and noise rules for their friends in other units.

Just this week, dozens of owners and residents began to take action based on their agreement that the board has failed to meet its legal requirements.

Whether or not all of these complaints and allegations pan out, California condo homeowners may overrule HOA board rules and may also lawfully kick out undesired board members with or without just cause.  Quick agreement already accomplished by so many residents alludes to that fact that it’s only a matter of time before the offensive new rules are overturned, and the offending board members are replaced.  While the local political turmoil has been a point of personal anxiety for some, others at the loft condo building won’t notice a thing other than that they continue to enjoy their big, beautiful, economical lofts. For those concerned, barbecue season has just begun as the heat is raised on the board.  The petitions circulate. The writing seems to be on the wall, stating that it’s curtains for the old board members who have worn out their welcome at this confident and ultimately comfortable loft community.  |  COMMENT

IF you must recall an HOA board member, read this first:
https://www.hoaleader.com/public/333.cfm

Petition to Recall https://www.davis-stirling.com/HOME/Petition-to-Recall

Responding to a Recall Petition

Copyright © This free information provided by Corey Chambers and the L.A. Loft Blog. We are not associated with the homeowner’s association or developer. We do not represent the HOA or management.  Incidents in this article have been reported to us by residents. Information, complaints and allegations are based on information provided to the L.A. Loft Blog by involved residents and homeowners, and do not necessarily reflect the views or opinions of the L.A. Loft Blog or its authors. To protect privacy, photos do not necessarily depict real persons or documents involved. For more information, contact (213) 880-9910.  |  COMMENT