In this week's tip, answer an HOAleader.com reader's question about whether the board president is required to share every complaint received with all the board members and officers.
This is definitely a gray area, though in general, our experts say HOA leaders should err on the side of transparency.
To start with, be sure you understand your state law, which may affect how much information leaders are entitled to receive. “In California, we have a code that directly addresses the issue,” explains Jasmine F. Hale, CCAL, a partner at Berding & Weil based in Walnut Creek, Calif., who advises condos and HOAs throughout California. “At least for directors, with a few case law exceptions, they have
an absolute right to corporate records.
“There are certainly times where boards will form executive committees or delegate certain issues to a specific director or a group of directors,” she adds. “That can be for sensitive issues. The
board may have delegated this reader's particular issue to this director because the board ostensibly has a right to do that. But that shouldn't affect other board members' ability to access records.
“There's clearly a tension here that
should be explored,” states Hale.
However, Arizona law differs. “I don't think there's an affirmative obligation in Arizona to pass on every complaint the president receives,” says Melissa S. Doolan, an attorney at The Travis Law Firm in
Phoenix, who has represented community associations for the last 15 years.
“But it would be helpful for the other directors and officers to have a sense of what's going on in the community,” she notes. “It's a good practice to let everybody
know the complaints or concerns the president has been hearing in the community.
“I'd suggest at least, ‘This topic came up, and it's something we may need to discuss,'” Doolan says. “Or it could be, ‘I'm letting everybody know this came
up, but I don't think it's an issue. If you disagree, please let me know.'”
Depending on the community, however, a president out for her daily walk may meet 20 residents and hear 3 complaints. And that's just one day's interactions with
owners. Multiply that by 30. At the next monthly board meeting, does she have to tell the full board all 90 complaints she heard?