HOAleader.com - Tip of the Week - August 26, 2022
Published: Fri, 08/26/22
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HOAleader.com - Tip of the Week - August 26, 2022
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In this week's tip, we answer a reader's question about whether a board must remain impartial when owners vote on an issue in the community.
Specifically, an HOAleader reader asks if it's OK for a board, after its first attempt to pass an amendment failed, to set up a committee to advocate for the amendment. But we also wonder about the same question when there's a board election taking place.
Generally, with proposed amendments to governing documents, the board has already done some groundwork and has even probably voted among its own members. So advocating for a proposed amendment makes sense.
"I think boards absolutely can and probably should advocate for amendments," says Elina Gilbert, a shareholder at Altitude Community Law in Lakewood, Colo., who has specialized in community association law for 22 years, it's a definite yes. "In 99.9 percent of the cases, the board is the party that's proposing the amendment to the homeowners. Obviously, it's advocating for it, and they need to explain to owners why it's a good idea."
That's also typically the process for amendments coming to homeowners in Florida. "When a board does present an amendment, and if the board votes and says it's in favor of it, we can say the board recommends voting in favor of the amendment," reports Jennifer Biletnikoff, a shareholder in the Naples, Fla., office of Becker & Poliakoff, who has represented condos and HOAs for more than 15 years.
"And in reality, the board better well have actually recommended that amendment—at least the majority of the board better have recommended that amendment," she adds. "So they definitely can advocate for a proposed amendment."
Zuly Maribona, LCAM, the Bonita Springs, Fla.-based senior vice president and partner at KW Property Management who oversees the company's southwest Florida, Jacksonville, Orlando, Tampa, and North Carolina operations, agrees. "I think the board can cautiously recommend an amendment to the governing documents," she says.
"I've seen situations where it has been said that the board is in favor of this amendment or that the board encourages owners to vote in favor of this amendment, and here's why," explains Maribona. "So owners are given background.
What about elections? Including when the board has it on good authority that a candidate will be awful as a board member? Read more in our new article: https://www.hoaleader.com/members/4568.cfm
Best regards,
Matt Humphrey
President
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Click here for more:
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Click here for more:
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