HOA president is a likely drunk; how should you handle him?
President of homeowner’s association authorizes improper expenditures
Dear Doug,
I’m on the board of directors of my homeowners’ association. Receipts from our management company for which reimbursement was requested included a $20 bottle of tequila. I showed this to the board and told them there was no way should we pay for this. The president of the association joked, “Tequila is best with lime, so we should add a bit so they can buy some limes, too,” and authorized the reimbursement.
It’s not the first time the president has authorized questionable reimbursements. Looking at past records, I found authorized reimbursements of over-the-counter drugs, candy, cigarettes, party supplies and pet food.
The management company claims the board authorized all these purchases and, therefore, they must be proper. The president protects the company—nobody is answering any questions from me—and the board’s majority does nothing. Yet, there are no minutes, motions or votes that ever authorized such purchases. I’m livid, but what can one board member do about this ongoing theft?
Signed,
Concerned over lawsuits by fellow homeowners
Dear Codependent,
Other columnists might say that if there was ever a reason for non-board homeowners’ association members to regularly demand to see association files and minutes, this is it. They would point out the entire board is exposed to liability for inappropriate actions by the management company, president and other complicit board members. This is true even for something as seemingly inconsequential as a $20 purchase. Such columnists would suggest that you insist on an independent audit. The fiduciary duties to homeowners extend to everything spent, whether by employees, third party vendors or a management company.
Other columnists might add that the president appears to not “fully comprehend” his duties. Nonsense. Of course he understands; he, along with the owners or employees of the management company, are very likely alcoholics and, as such, are much more likely to spend other people’s money inappropriately. The fact that booze was improperly purchased with other people’s money increases the odds to a near certainty.
The insidious problem is you are dealing with probable alcoholics who are, therefore, capable of anything. By interfering with their criminal behaviors and, potentially, with their perceived right to drink, you are at great personal risk. You need to be on guard for violations of your property, including vandalism and theft, as well as physical harm. More disconcerting, the risk of harm extends to your family. Protect yourself and them in any way you can until this is dealt with and, if there are any threats or actions taken against any of you by the president or his minions, don’t hesitate to report it to proper authorities.
(Source for story idea: The Los Angeles Times, “Associations: Funds were misspent on tequila and pet food,” by Donie Vanitzian JD and Zachary Levine, Esquire, January 26, 2014.)