FIDUCIARY DUTY of our Board of Directors

 

Websters defines fiduciary as a trustee (noun), and as follows: involving trust, especially with regard to the relationship between a trustee and a beneficiary (adjective). In other words, it is a relationship where one party is legally accountable to the other to serve its interests before their own.

BoardSource says it this way:

Fiduciary duty requires board members to stay objective, unselfish, responsible, honest, trustworthy, and efficient. Board members, as stewards of public trust, must always act for the good of the organization, rather than for the benefit of themselves. They need to exercise reasonable care in all decision making, without placing the organization under unnecessary risk.

Being a fiduciary obviously includes the financial aspects of a nonprofit. Each board member has a responsibility to ensure, to the best of their ability, that all funds are handled and accounted for in a transparent and compliant manner. 

 

Ask yourself if not allowing home owners to see financial reports, while being presented during the monthly meetings, that deal with the handling of our money is complying with the legal requirement described above. What are they hiding ?

WHO works for ...... WHO

The board of directors, in the interest of handling the day to day affairs and needs of our neighborhood can hire a property manager to help in this and pays them and has to supervise the proper performance of their duties. The board has and continues to fail in this legal obligation while mistakes are being made and we keep having to pay and are expected to put up with this, while we have rights they don't want us to know about, by covering up for each other. 

 

The board of directors and the property manager are here to protect and uphold the best interest of this community and you ?! They are not here to decided what they want to do, like give the property manager the right to pay for things up to 500.00 of your money without even asking the board.

 

Think of this next time you get a fine or violation letter and remember that we have written rules and deed restrictions, that often don't include these and/or how they are handled. It is your right to know where this violation is in our bylaws and or deed restrictions and not just because the letter says "the board said so" and you have to comply.

Hello neighor ....

This site is dedicated to bring you information about your rights and what is going on in our neighborhood and help you be informed about the effects of what you are not being told. If you decide to join this effort and be a part of the proper care of our neighborhood, then I ask that you read these truthful and revealing postings about what you may not know AND SHOULD

I have seen many changes in how our neighborhood has been looked after over the last 30+ years and have tried to be involved in what goes on and also served on the board of directors on few separate occasions. I have learned by bitter experience that there are things done in the name of serving this community, that are not in our best interest, by the people who should know better and are duty bound to make sure to protect our best interest.

IT has been said .... if you are not part of the solution, then you could be part of the problem ?!

EXPENSIVE but poor TRASH SERVICE

Our sub-standard trash service has been costing us $20,000.00+ /yr more than we should/could be paying based on contracts we received from other trash companies and could not execute. We are locked in a contract that is self renewing, automatic price increases and a cancellation option that would cost us over $40,000.00 

What could all that money have bought our neighborhood if not wasted on this? The board of directors and the management company is supposed to know, who is responsible for this and how this is to be in our best interest and yet refuse to give out this information or an answer when asked to do so. This is a breach of their fiduciary duty towards our neighborhood.

SWIMMING POOL season

We had signed the contract in March 2022 and made the first scheduled payment in April for the upcoming pool season, which we did not get to have this year ? As of April 18th, 2022 PMI (property manager) had failed to send in and finalize the contract as requested by the pool company to prevent this problem and then blamed the pool company for this during our annual meeting in May 2022.

During the July meeting (2 months past the opening date), there was no news or evidence of our money having been fully refunded and in the August meeting the board refused to answer this question and made the statement that if anyone wants to know, they have to go pay for reports and wait to get an answer.

 

THE BOARD of Directors - vs - YOUR RIGHTS

We live in a deed restricted community and elect (5) home owners to serve on the board of directors to handle the affairs of our neighborhood and to always protect and serve our best interest. This FIDUCIARY DUTY is required of them in our (CC&R) governing documents and the laws of state of Texas  and it is our right to demand and hold the board accountable in all of their functions and decisions and all who they hire and/or enter into contract with. 

There has to be monthly meetings, open to all home owners who wish to attend, to explain the subject and nature of the board's votes during the period of time since the last meeting and for this purpose, (PMI) our property manager presents reports that should list all spendings and payments and the board is responsible for the validation/verification of all this information. There have been mistakes that have cost our neighborhood funds as a direct result of the board's failure to do their job to protect our money and this problem still continues in the ongoings of these monthly meetings.

Accountability and transparency is what is lacking and will prevent mistakes and misappropriations like what the board is continuing to cover up and hide from public knowledge. Paying for things from our subdivision funds that shouldn't have been ?! Our CC&R contain the rules for the spending of our neighborhood money and they are not always being followed.

The board has now taken a position of denying the right of home owners to be able to see these reports as they are being presented and wants home owners to send written request and pay for these reports to review them ...... What are they hiding and don't want you to see?  It's our neighborhood, our money and our right to know.

Be a part of the solution, tell others and make an effort to attend these meetings and ask questions about your neighborhood. Did you know that you have the right to vote the board out if they don't do what's expected of them ?! They don't own our neighborhood and are a home owner just like you.