Community Association Board Insurrections: A Grave Threat to Stability and Legal Integrity

Written by Mitchell Drimmer

March 26, 2024

During meticulously planned budget sessions for the fiscal year 2024, community association boards often grapple with a unique challenge: the covert attempts of misinformed factions to illegally overthrow the existing board. This alarming situation can have dire consequences like an insurrection, ranging from severe community division to financial mismanagement and operational chaos.

Community Association Collections: An Imperative Responsibility

Critical concerns such as delinquency problems and cash flow issues lie at the core of this issue. These challenges demand meticulous management by a duly elected board to safeguard the stability of the community. However, when faced with unauthorized takeovers, comprehending the gravity of the situation becomes paramount. An improperly installed board lacks the legal authority to retain licensed professionals, be it lawyers or collection agencies, to engage delinquent owners. In such scenarios, the rights of both the board and the delinquent owners are compromised, highlighting the inappropriate and damaging nature of such actions.

Taking control of the board without adhering to the association’s meticulously crafted Bylaws and State laws strikes at the heart of legitimacy. Bylaws, fundamental documents governing the association’s operations, cannot be disregarded without dire consequences. Any deviation from these established rules creates chaos within the community, eroding the foundations upon which the association stands.

Unlawful takeovers not only jeopardize the legal standing of the association but also pave the way for severe legal repercussions, including lawsuits and fines. The aftermath is often marked by intense conflict and division among community members, leading to a breakdown of trust and cohesion within the association. Such actions, driven by a lack of adherence to democratic processes, further deepen the rifts within the community, highlighting the imperative need for legal rectitude and adherence to established protocols.

What to Do in the Event of a Board Insurrection in Your HOA

Improperly elected boards, devoid of proper oversight and adherence to democratic norms, tend to make decisions that wreak havoc on the community’s finances and operations. Delinquency problems and cash flow issues exacerbate under such circumstances, leading to the potential mismanagement of funds and resources. The resulting financial instability threatens the very core of the community, casting a shadow over its prosperity and well-being.

Addressing an unauthorized takeover necessitates the expertise of legal professionals specializing in community association law. These seasoned experts provide invaluable guidance on the following:

  • Navigating the intricate legal landscape, 
  • Upholding the association’s Bylaws, and
  • Restoring the integrity of governance processes within the community.

Community members must recognize that drastic actions, such as takeovers, only compound existing problems. Upholding the principles of legality and democracy is not merely a choice but a duty. By addressing challenges through legal and democratic avenues, communities can pave the way for the leadership they deserve, fostering an environment of stability and prosperity for all.

Is your association recovering from the disastrous impacts of a board insurrection? If so, contact us today for a free analysis and information on “How the Future Collects.”

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Auto Submit by Axela Technologies streamlines the collections process by automating the task, reducing the manual effort management requires. The association sets a threshold amount for delinquencies, and if a property hits this amount, the association is notified that said property is being staged to be sent into collections.