One Hat at a Time — Why Your HOA President Can’t Be the Treasurer Too!


Reality Check: The Law Isn’t Optional-In Eastridge Hills, where each homeowner has a significant financial stake, leadership should be by the book—literally. But recently, that book’s been ignored.

Let’s break it down:

California Corporations Code § 7213(a) clearly states that in a nonprofit mutual benefit corporation (like our HOA), the same person cannot hold any two of the following roles: President, Secretary, or Treasurer.

“The same person may not hold any two of the offices of president, secretary, and chief financial officer (treasurer), unless there is only one shareholder or member.”

Translation? Unless this community is a party of one (spoiler: it’s not), no single individual can wear multiple executive hats.

Now here’s where things get especially concerning.

For more than six months, our Eastridge Hills Board couldn’t agree on how to fill a vacant Board seat. During that time—on the advice of the Kelly Management Company—the Board continued to operate. They signed contracts, filed government tax returns, approved fines, and made decisions with one person doubling up as both President and Treasurer.

That’s not just sloppy governance. That’s illegal.

It wasn’t until a group of concerned homeowners representing 5% of the voting members submitted a formal petition for an open election that the issue was brought into the light. The Board’s response?

They didn’t hold an election. Instead, they swiftly appointed a former Board member whose term had already expired—a move that sidestepped the entire petition and reeked of backroom maneuvering.

(Kudos for creativity. But sneaky doesn’t mean savvy.)


⚠️ Consequences: When the Hat Trick Backfires

This kind of maneuvering invites real risk:

• 💥 Board actions could be invalidated if legally challenged

• 💸 D&O insurance might not cover decisions made while in violation of the law

• 🔍 Community trust erodes, as transparency gives way to “musical chairs” appointments

Let’s be real: you wouldn’t want the same person spending community funds and auditing their own ledger. That’s not accountability—it’s a loophole in loafers.


📣 Call to Action: Pass the Hat, Protect the House

This isn’t about politics—it’s about protecting our property values, legal standing, and community credibility.

If our HOA is serious about responsible governance, then:

✅ The person who is acting as president or VP needs to be someone other than the treasurer

✅ Vacant Board seats should be filled openly and fairly

✅ Petitions from homeowners must be respected—not evaded

The law isn’t optional. Neither is your voice.

Let’s hold our Board—and our management company—accountable to the standards that keep Eastridge Hills strong, transparent, and legally sound.


Because even in a gated community, we don’t gatekeep democracy.

This post represents the opinion of residents and is intended to promote informed discussion. All referenced events are public record.

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