HOAleader.com - Tip of the Week - January 22, 2021
Published: Fri, 01/22/21
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Holdover HOA Board's Actions Could Be Fraught with Peril
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In this week's tip, we address boards that don't have elections—whether because of a pandemic or nobody in the membership is pushing for them—and whether that decision will turn out to be a costly one.
The issue arises as a result of a question from an HOAleader.com: "Covenants and bylaws state an annual meeting is to be held every March to elect new board members with terms being one year. Our HOA didn't hold an annual meeting this past March, so terms expired, but there wasn't an election.
"Are board members still able to conduct themselves as the board, and are they covered by indemnification policies? Or are they now no different than a member?"
Many boards have figured out how to have elections during the pandemic. "We're having elections," reports Barbara Holland, CPM, regional director for FirstService Residential in Las Vegas. "That said, if for some reason, your board missed an annual meeting, our state laws says you have X amount of time to have a meeting. So this board needs to look at their state law and the governing documents to be sure they understand those types of provisions.
"But I think there's no reason you can't do meetings and elections using WebEx, Zoom, or some other platform," she adds. "You can go through the normal process of sending out information in a way that follows state law, and you can mail out ballots.
"Then, as far as counting the ballots, our state requires real people not running for the board to open the ballots," says Holland. "We've hosted meetings to do that where people are spaced six feet apart, and we've used videoconferencing so that residents can see that these people are counting the ballots properly.
"The pandemic hasn't stopped us from doing our elections," she notes. "If an owner told the Nevada real estate division, which governs community associations, 'Hey, this community isn't having elections,' our real estate division would get involved and require the board to hold an election."
However, for one of our experts, this is a closer call. "I think the answer here depends," says Alessandra Stivelman, who is board-certified in condo and planned development law and a partner at Eisinger Law in Hollywood, Fla. And two more of our experts don't even think this is a close call—they think this board could land in deep trouble. Find out why in our new article: https://www.hoaleader.com/members/4261.cfm
Best regards,
Matt Humphrey
President
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SPECIAL REPORT
The Duty of Condo/HOA Boards to Provide Safety and Security for Residents: How To Identify Your Role
An Exclusive HOAleader.com Special Report
With Practical Tips for Condo and HOA Boards
What if there's a burglary within your community? What about a sexual assault? A murder? Those can be tragedies, but they also happen outside community associations, so does that mean you don't have to think twice about how crime might affect your community?
Actually, it's complicated. In our comprehensive report, The Duty of Condo/HOA Boards to Provide Safety and Security for Residents: How To Identify Your Role, we've sought the advice of legal and community management experts nationwide. The communities they advise have faced nonviolent and violent crime, and those communities have turned to those experts for guidance on this challenging issue.
Learn more:
https://www.hoaleader.com/public/safety-security-for-condo-hoa-residents-report.cfm
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Recent articles posted at HOAleader.com:
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How to Read Your Association's Financial Reports (and Fulfill Your Fiduciary Duty)
Watch this information-filled webinar led by two community association management experts. These two veteran industry leaders will cover the major financial reports for community associations, recordkeeping, how to spot potential fraud, and many other pressing financial topics.
Click here for info:
https://www.hoaleader.com/products/hoa-financial-reports-fiduciary-duty-b.cfm
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How Not to Dismiss Your Condo/HOA Owners' Concerns
Warning: Do not dismiss owners' concerns because you think you've heard them all before. We recently got a letter with an interesting twist on our usual approach. A reader wrote, "Any help for those of us homeowners who have issues with the indiscretions of that governing body... such as not following the existing rules?"
Click here to read full article:
https://www.hoaleader.com/members/Reader-Asks-How-Can-I-Make-Condo-HOA-Board-Follow-Rules.cfm
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Sign of the Times? Ousted HOA Board Goes "Scorched Earth"
An HOAleader.com reader asks, "Our community in Florida recently had our annual election, which resulted in the total replacement of the entire board of directors. I'm now the president. The former board all decided to step down at once, and their hand-picked successors lost the election, with a single exception.
Click here to read full article:
https://www.hoaleader.com/members/Sign-Times-Ousted-HOA-Board-Goes-Scorched-Earth.cfm
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Construction Contracts: Protect Your Condo/HOA from These One-Sided Traps
In a December HOAleader.com article, one of our experts lamented construction contracts: "I tell every single client: I'm not trying to drum up business. Please send construction contracts to us," requested Jennifer Horan, a shareholder in the Naples, Fla., office of Becker & Poliakoff, who has represented condos and HOAs for more than 15 years. "Those are even more terrible than management contracts," she said at the time. What's so bad about them? Here are our xperts' tips on strengthening your association's position in a construction contract.
Click here to read full article:
https://www.hoaleader.com/members/Construction-Contracts-Protect-Your-Condo-HOA-from-These-One-Sided-Traps.cfm
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Does a Condo/HOA Board President Vote on Issues Before the Board?
This question never goes away. In our new story, our experts explain whether a condo board president or chair should vote in every matter before the board or refrain from voting unless there's a tie.
Click here to read full article:
https://www.hoaleader.com/members/Does-CondoHOA-Board-President-Vote-on-Issues-Before-Board.cfm
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