HOAleader.com - Tip of the Week - September 18, 2020
Published: Fri, 09/18/20
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OK or Not: Condo/HOA Pool Used for Private Lessons Taught by Directors
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In this week's tip, we answer a reader's question about an HOA's murky relationship with a youth swim instruction business operated by two directors, that uses the HOA's pool, and for which the HOA receives none of the proceeds.
Let's all first admit that this doesn't look good. "I read this and thought, 'Oh, man,'" states Katie Anderson, PCAM, AMS, CMCA, the founding owner of Aperion Management in Bend, Ore., which manages about 60 condo, HOA, and townhome associations.
"It's always best to err on the side of transparency," she states. "As a board member, you have a responsibility to be above the fray and to avoid even the perception of self-dealing. You need to be as transparent as possible. You have to show you're putting everything on the table and in the minutes and identifying what those conflicts could be and how they're being resolved."
That said, one of our experts says that, while there are a few issues there that need tidying up, the big picture is that this might be perfectly acceptable. "This doesn't bother me at all," says Daniel J. Miske, CCAL, a partner at Husch Blackwell in Milwaukee who represents 650 associations at any given time.
"These directors are providing a community swim clinic, and they're not getting rich, even if they don't have to pay anything for the use of the pool," he argues. "But if those directors abstain from voting on this matter and aren't part of the voting process, that's your directors making a decision that the swim clinic is better for the community as a whole and that the clinic needs to have exclusive access to the pool for that purpose.
"So I'm OK with that as long as these two directors are abstaining from voting and aren't in the room when the vote on this matter is taking place," Miske concludes. "And this activity isn't under the table because this reader knows all about it."
On the other hand, this may not be perfectly acceptable. "I wonder whether the association is authorized to run swim clinics," muses Hal Barrow, founder of Barrowlaw, a suburban Philadelphia law firm that has represented hundreds of associations. "Operating an amenity like a recreational pool isn't the same as operating an aquatic club—and community associations are generally not in the business of operating swim clubs.
That's not the only reason this might be questionable. Read more, plus what might make a difference in whether this is permissible, in our new article:
https://www.hoaleader.com/members/4194.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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What's Exactly Is the Condo/HOA Lawyer's Role?
An HOAleader.com reader asks a basic but interesting question: "Our HOA uses dues to pay for the retention of a lawyer. If there's a dispute with a homeowner, the board uses that lawyer to fight 'on the board's side' against the homeowner. Doesn't the lawyer represent the members? Isn't it their role to help settle disputes without taking sides?"
Click here to read full article:
https://www.hoaleader.com/members/Whats-Exactly-Condo-HOA-Lawyers-Role.cfm
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Would These Twists on Political Signs Still Violate Typical Condo/HOA Policies?
The vice president of the Camino Ramon Terrace HOA in California has a Black Lives Matter and an anti-Trump sign in her car. The HOA sent an email notifying her that the signs aren't permitted in the HOA and must be removed. Her response? The HOA has no control over signs in cars parked in the HOA. Is she right?
Click here to read full article:
https://www.hoaleader.com/members/Would-These-Twists-on-Political-Signs-Still-Violate-Typical-Condo-HOA-Policies.cfm
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HOA Reserves and Other Funding Options: Tips for Everyday Smart Money Management and Blunting the Economic Effects of the Pandemic
Condos and HOAs are working hard to stay financially secure in the face what was a peak of tens of millions of Americans hit by pandemic furloughs and layoffs. Listen to this webinar recording and get practical tips for navigating this extraordinarily challenging time.
Click here for more info:
https://www.hoaleader.com/products/hoa-reserves-funding-options-covid19-b.cfm
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COVID-19: The Effect of Shutdowns on Condo/HOA Water Supplies
Buildings that have been closed may be breeding grounds for illnesses. A reader has asked us to check it out: "I'm an HOA board member, and we've had our clubhouse facility closed for the past three months. I just read that idle water systems (pipes, tanks, etc.) might be breeding grounds for Legionnaires' disease. Have you heard of this, and, if so, do you know of any actions we should be taking before we open the clubhouse again?"
Click here to read full article:
https://www.hoaleader.com/members/COVID19-Effect-Shutdowns-on-Condo-HOA-Water-Supplies.cfm
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A Case Study in How HOA Boards Can End Up At Odds--and How to Fix It
An HOAleader.com reader asks, "We're one month into a new board with four new members. Three board members vote as one. I posted some of the improper things on social media to tell the members what's going on. Nothing confidential.
Click here to read full article:
https://www.hoaleader.com/members/Case-Study-in-How-HOA-Boards-Can-End-Up-At-Odds-and-How-Fix-It.cfm
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