HOAleader.com - Tip of the Week - July 19, 2013
Published: Fri, 07/19/13
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HOA Boards: Investors Need Not Apply?
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In this week's tip, we broach the touchy topic
of restricting board membership to association
residents.
Some states permit associations to require board
members to be community residents. Florida,
however, probably isn't one of those states,
though it's not completely clear.
"I don't think there's any definitive law in
Florida whether you can or not," says Alessandra
Stivelman, an associate attorney who specializes
in community association law at Eisinger Brown
Lewis Frankel &Chaiet in Hollywood, Fla. "Our
statute says you can't serve if, for example,
you're a felon or 90 days delinquent. But
residency isn't listed among the reasons to
prohibit someone from board membership. Because
of that, I and my colleagues don't believe you're
allowed to have that requirement to be on the
board of directors."
In California, such a restriction would probably
be permitted. "There's no requirement by law in
California that board members have to be residents
of the community," says Andrew Schlegel, CCAM(r),
executive vice president of community management
for Orange County and Los Angeles at Merit Property
Management in Aliso Viejo, Calif. "If those
requirements exist, they'd probably be in an
association's bylaws. Some associations spell out
in their governing documents that board members
have be owners, not just residents. But I don't
think I've ever seen any one saying they have to
be living there as a resident."
Residency, schmesidency! Minnesota doesn't even
require board members to be members of the
association, says Nancy T. Polomis, a partner at
Hellmuth& Johnson PLLC who advises homeowners
associations. "There's nothing in the law that
addresses it in Minnesota. Since they're not even
required to be members of the association, board
members could have no skin in the game."
That doesn't mean that Minnesota governing
documents can't include those provisions.
"Usually when I'm drafting documents, I'll put
a provision in that requires board members to
at least be members because I think that's
important," says Polomis. "And sometimes when
I'm rewriting governing documents, at the
board's request, I'll put in the residency
restriction."
OK, so your state may permit you to keep
nonresidents off your board. Should you?
Get the skinny in our new article:
http://www.hoaleader.com/members/872.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Special v. Emergency Assessment: What's the Difference?
In this week's tip, we address a reader's sneaking suspicion that the HOA
board pulled a fast one. It first tried to pass a special assessment, which
failed. Then it imposed an "emergency" assessment on owners. Is that legit?
Click here to read full article:
http://www.hoaleader.com/public/Special-v-Emergency-Assessment-Whats-the-Difference.cfm
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Emergency Assessments: Are They for Real?
An HOAleader.com reader has complained that the home owners association
board tried to pass a special assessment, failed, and then imposed an
"emergency" assessment on owners. So what's an "emergency" assessment and
when can you impose one?
Click here to read full article:
http://www.hoaleader.com/members/Emergency-Assessments-Are-They-for-Real.cfm
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Six Red Flags Your HOA Manager is Too Tight with Vendors
Is your homeowners association manager benefitting more from vendor
relationships than your HOA? Managers who are affiliated with or work
exceptionally closely with vendors can be great, or they can end up costing
your HOA extra money it should never had to have expend. Here we offer six
signs that your management company is getting the better end of the deal when
it comes to your HOA's vendor relationships.
Click here to read full article:
http://www.hoaleader.com/members/Six-Red-Flags-Your-HOA-Manager-is-Too-Tight-with-Vendors.cfm
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Discussion Forum Follow-up:
Is This HOA Board Legit? Can It Get the Bank to Pay Up?
A reader asks, "This is complicated, but here's the story: We have a defined
condominium of 30 units; 2 were completed 4 partially completed, and the
rest unbuilt. One of the completed units was sold and was paying the condo
fees established by the developer. Then our developer went into
bankruptcy, and that was followed by the bank foreclosing on the
developer..." Here our experts explain whether this board's actions have
been valid and what, if anything, this HOA can do to get the bank to start
pulling its weight.
Click here to read full article:
http://www.hoaleader.com/members/Is-This-HOA-Board-Legit-Can-It-Get-the-Bank-to-Pay-Up.cfm
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HOA Board Members Sued for Antitrust Violations: Will It Succeed?
In a South Carolina case, Brandriff v. Dataw Island Club Inc., association
board members were sued in federal court by owners for antitrust
violations, among other things. The case was eventually dismissed, but
it's been refiled in state court, where it's wending its way through the
system. Here, we break down the allegations and explain what's at stake.
Click here to read full article:
http://www.hoaleader.com/members/HOA-Board-Members-Sued-for-Antitrust-Violations.cfm
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