Legal Question in Real Estate Law in California
I am a board member of a 414 condo HOA in california. The president is a contractor. He hires his own contractors and many times, he does not go through the proper procedures by having all work orders filter through our management company. The president owns 6 units in our complex. Recently, two of his units had slab leaks with over $24K in repairs, including new floors and vanities. The leak was not reported through our management company so we cannot be sure there was even a leak to begin with. We have a policy of obtaining 3 bids for work over 1,000. In the event of an emergency, we have 3 vendors that are pre-approved to perform the initial repairs, but the leak must be reported to management first. The new flooring would have to be board approved (cc&r's state that it is the homeowners responsibilty, unless the association was grosely negligent in reponse to the leak). All the vendors the president uses in our community are either members or make donations to the presidents charity. We only found this out because I researched the charity when I became suspicious. He did not disclose this to the board. I believe this is a huge conflict of interest that warrants disclosure. One other board member agrees with me and the other two board members are not understanding the importance of disclosure. They blindly follow the president. What can I do as a board member when I am outnumbered?
1 Answer from Attorneys
What you discribe are violations of law that can be addressed my a lawsuit or advisement of problem and demand for change.