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An HOA meltdown on the OBX?

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  • An HOA meltdown on the OBX?

    Ocean Villas II in Nags Head has had an excellent hands-on HOA for many years, but it is on the verge of imploding, over personality conflicts revolving around a fired former manager on one hand, and a drive for power by the current HOA president. Some of those internal problems led the neighboring resort, Ocean Villas (''I'') to pull out of a joint management arrangement in May. Ocean Villas II's members have been using Ocean Villas pool for several years, since a nor'easter took OVII's pool, but when Ocean Villas offered to resume a cash arrangement for pool use that had been in place before joint management, the OVII president did not even call a board meeting to respond. Instead, without asking his board, he had the resort join the YMCA (4 miles away) and offer YMCA pool passes (3 per unit) to members and exchangers. That has not gone over well with their members.

    Ocean Villas II has had an excellent treasurer, a former bank vice president, who takes his job seriously and knows the resort budget like the back of his hand, and has served in that capacity for most of the last 15 years. He was the one who caught some discrepancies that led to the firing of the former manager, which got him crosslegged with the HOA president, a strong supporter of that manger. The president ordered that the treasurer's access to the resort's financial records be severly limited. Unable to do his job the treasurer resigned that post earlier this year but remained on the board.

    When the issues involving the former manager surfaced, one other board member, the 1st Vice President, got heavily involved, insisting that she had to go. He, too, got on the president's bad list for that stance. The 1st VP is a lawyer and former state legislator, who headed up the resort's hurricane recovery program after Hurricane Isabel, where he did an outstanding job. Ocean Villas II was the first resort with severe damage to reopen, and in spite of being underinsured, the 1st VP's negotiating skills resulted in top notch repairs with no special assessment on members.

    Now the president is seeking to purge both of these directors. He has called a special membership meeting for next Saturday to remove them from the board. But that is not all he wants to do. The notice says the meeting will ''vote on whether an Officer or Officers other than the president of the Corporation may be relieved by the President of all responsibilities, priveleges and authority which has been expressly or by implication conferred upon such Officer or Officers''.

    OVII has always had a lot of ''general proxies'' to the board. In the last newsletter a month or so ago, they included a general proxy form which they urged members to sign and return, but at that time had not revealed the scheme to remove the two directors. They did not include a proxy form with the notice of the special meeting. They also did not state any reason to remove the two directors.

    The president must have already counted noses on the board voting those proxies. There is one other longtime board member who I cannot imagine going along with this scheme, but there are also three newbies on the board who seem to be heavily influenced by the president.

    A snap meeting with short notice will likely mean a small turnout, except that furor over the loss of pool privelges MAY bring out more members than they expect.

    The fly in the ointment may be poor math. The by-laws require that notice be ''delivered. . . not less than 10 days prior to the meeting''. The faxed copy of the notice I have been sent by a member is dated July 27 for a meeting on August 5. A copy of the envelope it came in was also faxed and it is postmarked July 28. Somebody can't seem to count. That means a likely delay and an opportunity for a counterattack, and the president's own record is what in military terms would be called a target rich environment.

    What is ironic on this blunder on notice and meeting dates is that the president spent $5,000 of HOA funds to hire a lawyer to guide him through purging these two directors. The board has not met since that expenditure to approve or disapprove it.

    If people don't come to their senses and cool this thing down, I would expect a very stormy annual meeting in October. Blindsiding members this way on the proxies, I would expect for one thing there will be alot of members revoking those general proxies.

  • #2
    Thanks, please keep us post, so we know the results.

    Jya-Ning
    Jya-Ning

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    • #3
      This thing gets more and more curious. Apparently the president is now telling members that this is a board meeting rather than a membership meeting, even though the notice was apparently mailed to all members and clearly states that it is a notice of a meeting of owner/members. Further, the by-laws provide that it is a members meeting, not a board meeting, that has authority to remove directors, and removal of two directors is clearly part of the agenda sent in the notice. The president is telling people that no one but board members will be allowed in the meeting and that anyone else will have to wait outside to hear the result. That, in itself, would violate North Carolina law on homeowners associations which require that at least part of the board meeting be open to all members. I hear that quite a few membes plan to attend. It looks like a real mess is brewing.

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      • #4
        This could get as hot as the weather we have been having this week in NC!!!!

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        • #5
          No membership meeting was conducted, due to objection interposed after it was called to order over the improper notice. There was about two hours of discussion, however. The board did meet, thereafter.

          The 1st Vice President sent a written resignation, saying that due to the infighting and backbiting, it was no longer productive to serve, and added that he was disposing of his weeks and washing his hands of the resort.

          The former Treasurer is sticking to his guns, and got an acknowledgement that they really didn't have any reason to try to force him off of the board. He did, however, say that due to the current climate on the board, he was not presently inclined to seek another term on the board..

          The 1st Vice President's seat on the board was filled by a past HOA president, who is likely to be a postive force for the resort. That is probably the most positive news out of those meetings.

          The 1st Vice President has been working, largely pro bono, on a fairly substantial claim against a contractor on their air conditioning systems. In his resignation letter, he said he was getting out of that, and offered to pass on the files to a new attorney. In the battles with each other, the board apparently forgot that matter, and I wonder if it will just be abandoned. Their new attorney, who was hired for the infighting, announced that he was not involved in the claim with the contractor, and there was no move to hire him on that.

          It appears that the president may not seek another term in that office, although he may try to stay on the board. At least one other board member was also indicating that she might not run again.

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          • #6
            Thanks. Sorry to read this. Wish the situation get better.

            Jya-Ning
            Jya-Ning

            Comment


            • #7
              On the bright side, the annual meeting is in October, and if they can get the right type of new blood on the board - people without chips on their shoulders or personal agendas from some of the things that have gone on, then they should be able to get things back on track. This resort has a nice location with spacious newly renovated (except one which is scheduled for next year) and well equipped units. It would be a real shame to see this turmoil and political vendetta continue.

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              • #8
                HOA Meeting

                When was this meeting? Who knew about it?
                Also.. can not get to the OV web site anymore...

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                • #9
                  Originally posted by duckduffer
                  When was this meeting? Who knew about it?
                  Also.. can not get to the OV web site anymore...
                  I believe the meeting was held on August 5, 2006. I am not affiliated with OVII so I can't give you any information.

                  The website provider changed companies and some of our webpage is in cyberspace. Hopefully we will be online soon.

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                  • #10
                    This split was a good thing. At OVI, we now have a more private pool, which is great, and our maintenance fees will only go up $6. Well worth it!

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                    • #11
                      The annual meeting resulted in the election of the leadership's slate. Odd man out was former OVII HOA president Tommy Hawkins who wanted back on the board. The past treasurer, Mike Cowan, did not seek another term.

                      The election of officers saw Sue Shule, one of those who espouses a more moderate position, wanting to put an end to some of the dissention at the resort, ended up president. Jim Bostansic, the most knowledgable of the resort's finances of those now on the board, and another more moderate personality, ended up treasurer. There already seem to be some changes from the way the past president did things, but the past president still has allies on the board so I guess things are not completely out of the woods. One of the allies of the past president has been asked to resign from the board and did. Hopefully this will open a place for another moderate.

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                      • #12
                        Any update on the OVII pool & BOD dilema?

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                        • #13
                          Sue Shull's leadership seems to have been a plus so far, reducing the infighting. They did lose two key board members, who have totally bailed out of the resort. Also, I did note with curiousity that in the space of a few weeks earlier this year, three past HOA presidents deeded back their weeks. One was from the two board members purged last year, but I have not heard anyone who knows why the other two did so. It may just be coincidence, as otherwise there probably would have been more talk about it. Shull also seems more active in reselling HOA inventory, a key for any resort. Not a single week was sold by the HOA on her predecessors watch from what appears on the Dare County website. He had fired the HOA's former broker which had been right active in resales.

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                          • #14
                            Originally posted by Carolinian
                            three past HOA presidents deeded back their weeks.

                            I wish I'd have known them, I'd have gladly bought 1 of those weeks. It would have been better than just giving it back for all parties!

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