Board fails to execute motion adopted by association - what now?

[anon]

Background:  A condominium association had their 2019 annual meeting January 8, 2019 with a quorum present as required by their bylaws. During this meeting a motion was made to direct the board to submit a supplemental budget for owner ratification/rejection by April 8, 2019 to fund siding replacement and improve the association's financial condition. The motion was seconded, friendly debate ensued, and a vote was taken. The motion passed unanimously. The board has sole responsibility for preparing association budgets per the bylaws. Washington State condominium statutes and condominium covenants apply to budget preparation. RONR 11th ed. apply to conduct of association and board meetings per the bylaws.

The board immediately appointed a finance committee to recommend a supplemental budget. The committee surveyed owners to determine their preference from several funding options using an estimated cost based on three bids obtained by the board. A committee report with a recommended supplemental budget was submitted to the board at the end of February. The board did not raise a motion for adoption nor did they respond to an individual owner complaint made via correspondence immediately after the deadline for board action had passed. The board then hired a professional building inspector and obtained a report in April 2019 that recommended immediate siding replacement to prevent continued damage due to water penetration. In August 2019 the board ordered an updated professional reserve study (a funding plan) that deferred siding replacement for 17 years and identified significant costs for immediate and on-going siding repairs. November 2019, the board submitted their 2020 budget proposal for ratification/rejection at a special meeting of the owners. The 2020 budget did not contain funds for siding replacement nor improve the association's financial condition. Nonetheless, the 2020 budget was ratified as there was no motion by any owner for rejection.

Opinion:  Condominium's are democratic organizations and the board must act on behalf of the owners and in their best interests. When polled, 41.42% of the association owners indicated they were willing to pay a special assessment for siding replacement, 45.15% did not want a special assessment, and a crucial 13.43% remained silent. An overwhelming majority were against taking a loan using association reserve funds as collateral. Since the poll in February, owner interest has changed hands creating additional uncertainty with regard to support for a special assessment (19.54% against and 4.95% for special assessment sold their units). The goal was to have the association vote on a special assessment for siding replacement, but the board must prepare a supplemental budget for this to happen. Rejecting the 2020 annual budget would not have achieved the goal and it would have made things worse by requiring default to the 2019 budget with 15% lower income. Things have deteriorated over time due to the association's poor financial condition and deferral of repairs.

Question:  What if anything should be done at the 2020 annual association meeting to address the board's failure to execute the motion owners adopted at their 2019 meeting?

a.  Run for election to the board and try to influence the adoption of a 2020 supplemental budget for owner ratification of a special assessment.

b.  Censor the board at the upcoming 2020 annual association meeting for failure to act on an owner adopted motion (assuming this motion won't be in order until after elections since the bylaws prescribe orders of the day, placing elections ahead of unfinished business).

c.  Both a and b above.

d.  Do nothing (accept the situation, avoid the added responsibilities of being on a board, and sell when you find a better home).

Any other suggestions?

Edited December 24, 2019 at 08:32 PM by anon
typo (enured vs ensued)

[Joshua Katz]

If the members feel strongly enough about it, they can use the disciplinary process in your bylaws or, absent one, the process in Chapter XX to remove board members.

[Richard Brown]

Anon, following up on the comments by Mr. Katz, I think you have a copy of RONR, but in case you don’t, you might start with frequently asked question # 20 on the main website regarding the removal of officers: https://www.robertsrules.com/faq.html#20

Other forms of discipline can range from simple censure  to expulsion from membership.

Your question is rather lengthy and complex. Because most of us are preoccupied with Christmas, you might find more responses immediately after Christmas. Or even later on Christmas day as some of us get restless and come to the forum as a form of escape or relaxation. 

[Josh Martin]

On 12/23/2019 at 7:27 PM, anon said:

Question:  What if anything should be done at the 2020 annual association meeting to address the board's failure to execute the motion owners adopted at their 2019 meeting?

a.  Run for election to the board and try to influence the adoption of a 2020 supplemental budget for owner ratification of a special assessment.

b.  Censor the board at the upcoming 2020 annual association meeting for failure to act on an owner adopted motion (assuming this motion won't be in order until after elections since the bylaws prescribe orders of the day, placing elections ahead of unfinished business).

c.  Both a and b above.

d.  Do nothing (accept the situation, avoid the added responsibilities of being on a board, and sell when you find a better home).

Any of the above would be in order (although in I believe you mean “censure” rather than “censor”), and another option would be to try to remove the board members from office, if not all of the terms of office end at this annual meeting. If they all end at this annual meeting, simply electing other board members is likely simpler.