HOAleader.com - Tip of the Week - July 18, 2014
Published: Fri, 07/18/14
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HOA Board Member: Do You Have Any Individual Authority?
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In this week's tip, we mull over a theoretical--yet very practical--debate
in the community association industry.
Here's the background. At a recent California community association
forum, a friendly professional disagreement arose over a manager's
contention that individual board members can't act on anything because
individually they have no standing to act. He insists individual board
members can act only when they comprise a board, which requires a quorum. A
lawyer who represents associations and owners pushed back, arguing that's
not reasonable.
The manager who triggered the debate is Doug Christison, an industry
veteran and president of the Christison Co., a community association
management company in Pleasanton, Calif.
He starts by explaining the difference between administration and
management of an association. "Those two words get mixed up often," claims
Christison, who says the board is the association's administrator, and it
hires a manager to handle the day-to-day management of the association.
"The primary role of the board isn't the management of the association per
se. It's not the day-to-day actions. It's for the oversight of people who are
assigned or accountable by either some sort of a contract or agreement to do
those actions."
With that in mind, can an individual director act outside of the board? "The
answer is yes, if the board says so," contends Christison. "The board can do
pretty much what it sets up its rules to do. It's a written exercise, and that
language becomes the guidance for the management to take and run with.
"That often becomes where the problems arise because without an individual
charter or authority somewhere written down, individuals tend to expand
their scope of authority beyond what the other members intended," says
Christison. "So for the board members to step in and start taking executive
authority, like directing a landscaper, that's where, at least under
California law, they've entered into dicey area. That's because, as
directors, they then end up overseeing themselves.
Want an extreme but actual example? And want counterpoints to Christison's
opinion? Get them in our new article:
http://www.hoaleader.com/members/1035.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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HOA Board Member: Do You Have Any Individual Authority?
In this week's tip, we mull over a theoretical--yet very practical--debate
in the community association industry.
Here's the background. At a recent California community association
forum, a friendly professional disagreement arose over a manager's
contention that individual board members can't act on anything because
individually they have no standing to act. He insists individual board
members can act only when they comprise a board, which requires a quorum. A
lawyer who represents associations and owners pushed back, arguing that's
not reasonable.
Click here to read full article:
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Individual HOA Board Members: Your Authority is Limited
At a recent California community association forum, a friendly
professional disagreement arose over a manager's contention that
individual board members can't act on anything because individually they
have no standing to act. He insists individual board members can act only
when they comprise a board, which requires a quorum. A lawyer who represents
associations and owners pushed back, arguing that's not reasonable. Here
we explain the disagreement and weigh both sides.
Click here to read full article:
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Easier Enforcement of Your HOA's Rules: Steps to Create Enforceable Rules,
Effective Fines, and a Fair Violation Process
Enforcing rules doesn't have to be a pitched, tense, and unpleasant battle
between your homeowner association board and your homeowners. With some
smart planning, you can make enforcing your HOA's rules fairer, quicker,
easier, and less stressful.
Join us for an in-depth webinar on July 31 led by two community association
experts: a lawyer with more than a decade of hands-on experience in advising
associations on how to create and enforce rules, along with a veteran
association manager with insights on the day-to-day operations of rules
enforcement. You'll get practical ideas, systems, and processes you and
your condo or HOA board can begin to take advantage of the minute the webinar
ends.
Click here to read full article:
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Your HOA Need Quick Cash? Know the Risks Before Turning to "Factoring"
In this week's tip, we discuss the pros and cons of a tactic you can use to get
quick funds when your HOA finds itself strapped for cash. It's called
"factoring," and there's a ready market if you're interested.
Factoring, most simply defined, means selling your accounts receivable in
exchange for a fee, whether it's an immediate fee or a fee paid if the
purchaser eventually collects the debt.
Click here to read full article:
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Does Your HOA Have a Kid-Related Rule Like This One? Rethink It.
In May, the U.S. Department of Housing and Urban Development announced
a settlement with a Denver-area apartment complex over its rules
governing kids' behavior in the complex. The settlement requires the
owners to, among other things, build a $10,000 playground.
Click here to read full article:
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