HOAleader.com - Tip of the Week - September 28, 2012
Published: Fri, 09/28/12
=================================================================
Did This HOA President Go Rogue?
=================================================================
In this week's tip, we answer a reader's question about whether a
board president acted properly in signing a landscaping contract
without allowing the board to review it first.
Let's be frank. When a president does this, he defeats the
purpose of having a board. "It would be an unusual case where the
president has the ability to act entirely unilaterally," says
Raymond Daniel Burke, a principal at Ober Kaler, a law firm in
Baltimore, who represents an average of 20 community associations.
"The whole concept of a board is to allow oversight of all board
members. The other way has the potential for favoritism with
contracts."
Of course, the reader needs to conduct a close reading of the
association's governing documents. "Whether the president acted
improperly typically depends on what the documents say--the
authority they give the president--and whether the board has
authorized the president to do that," says Samuel "Sandy"
Moskowitz, a partner at Davis, Malm & D'Agostine PC in
Boston who represents 30-40 community associations at any given
time.
"Sometimes a board will say, 'We want you to investigate a new
landscape company, and we'll authorize you to sign a two-year
contract with a company of your choosing so long as the monthly
fee isn't more than X.' You'll have a board vote prior to the
time the contract is negotiated authorizing the president to take
some action."
In our reader's case, the president put the board in a bind.
"That's just really not a good situation," says Elizabeth White,
a shareholder and head of the community associations practice at
the law firm of LeClairRyan in Williamsburg, Va. "You have to see
what the bylaws say in terms of the scope of the president's powers.
But most bylaws are pretty short. In some states, some implied
powers go along with those powers, but they don't usually extend to
unilateral actions like binding the association to a contract."
The president's unilateral action isn't the only problem here.
There may also be a conflict of interest. Find out more, including
whether the board can undo the contract, in our new article:
http://www.hoaleader.com/members/763.cfm
Best regards,
Matt Humphrey
President
=================================================================
Free Group Membership Upgrade
HOAleader.com members can now get a free upgrade to group
membership.
With a group membership, the rest of your HOA or condo board--up
to 9 additional members--will get their own member accounts.
It's a fantastic value.
Make your job easier. Help the rest of your board get up to
speed on HOA management best practices by adding them to your
HOAleader.com membership today for no cost.
Already a member? Create complimentary accounts for the other
members of your HOA board now:
http://www.hoaleader.com/members/main.cfm
Not a member yet? Sign up now with our low individual rates and
then add your fellow board members for no additional cost:
http://www.hoaleader.com/details.cfm
=================================================================
Recent articles posted at HOAleader.com:
================================================================
How Far Does an HOA President's Power Extend?
Discussion Forum Follow-Up
Can a president sign a landscape contract without the board's approval? And
did the president of this reader's HOA have a conflict of interest here? Our
experts provide answers.
Click here to read full article:
================================================================
Small HOA, Big Problem: Too Much Inclusion?
The good thing about some small associations is that they allow all owners to
get involved in decision making. The bad thing? They allow all owners to get
involved in decision making. In this week's tip, we weigh the pros and cons of
small-HOA boards over-sharing with owners.
Click here to read full article:
================================================================
Small-HOA Challenges: The Pros and Cons of Getting Everybody's Input
One common problem at small condo and homeowners associations is that it
takes seemingly forever to make decision because many small-association
boards solicit input from all owners on major decisions--even if their
governing documents don't require them to. Here we discuss the benefits and
drawbacks of that practice.
Click here to read full article:
================================================================
Can't Fill That Open HOA Board Seat? Try These Suggestions
In this week's tip, we give you two suggestions for coping when you can't get
anybody to run for an open board seat.
Click here to read full article:
================================================================
What Happens When Nobody Runs for the HOA Board?
An HOAleader.com reader wants to know what happens when nobody runs for any
open board seats. Here our experts give the lowdown.
Click here to read full article:
=================================================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
http://www.hoaleader.com/public/department49.cfm
=================================================================
Please feel free to forward the *entire text* of this email to
others.
Copyright 2012, Plain-English Media, LLC
(866) 641-4548
http://www.hoaleader.com