HOAleader.com - Tip of the Week - December 26, 2014
Published: Fri, 12/26/14
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Emergency Situation: Only One HOA Board Member Remains
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In this week’s tip, we deliver a rapid response to a reader who’s the last
person standing on an association board. What can a lonely board member do to
get others to serve—and fast?
The easiest thing—and we use that term advisedly—is for our sole remaining
board member to appoint a fellow board member, and then for the two of them to
appoint another, and so on. (Of course, first he has to convince them to
serve, but we’re assuming he’s got some sympathetic neighbors who are
willing to step up.)
In most states, if there are board vacancies, the majority of the board can
appoint people to fill those vacancies.
“In Illinois, the condo property act and most declarations state that where
there’s a board vacancy, the majority of the current sitting board can
appoint someone to fill in,” says Kelly C. Elmore, a Chicago-based
principal at Kovitz Shifrin Nesbit, which represents thousands of
community associations throughout the metro area. “If it’s just the one
individual who’s on the board, he’d be the majority. So he could go ahead and,
at his discretion and if he can convince them to serve, appoint someone.
“This is a big problem in a lot of associations,” adds Elmore. “And some
boards end up having to operate with just three members of a five-person
board.” That’s also permissible in Florida. “Generally, yes, this board
member can appoint people to serve,” says Ben Solomon, an attorney and
founder of the Association Law Group in Miami Beach, Fla., who for more than a
decade has advised more than 500 associations and also represents
developers through his second law firm, Solomon & Furshman LLP.
“Associations’ bylaws will speak regarding vacancies. The most common
provision is exactly that: Any vacancy can be filled by a majority of the
remaining directors. If there’s one board member, that’s a majority.
Still, that board member needs to make those appointments as diligently as
possibly.”
Head to our new article, Board Member Needs Immediate Help: Can This
Situation be Fixed?, http://www.hoaleader.com/members/1111.cfm, for
suggestions from our experts that may help our reader begin to reduce his own
burden and quickly begin adding new members to the association board.
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Solo Board Member Needs Immediate Help: Can This Situation be Fixed?
An HOAleader.com reader writes, "Our association has struggled for years
to get members to volunteer for the board or for that matter anything else. We
began one year ago with the five members that are required for the board.
Since that time, one by one they have either quit, moved, or given up and
walked away disgusted with the amount of work that's needed and the abuse and
disrespect of the members of the community.
Click here to read full article:
http://www.hoaleader.com/members/Solo-Board-Member-Needs-Immediate-Help-Can-This-Situation-be-Fixed.cfm
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Want to Report HOA Delinquencies to Credit Agencies? May Not Be Wise
An HOAleader.com reader asks if it's permissible for an association to
report delinquent assessments and property liens associated with
delinquent assessments to credit reporting agencies. In this week's tip,
we explain that the answer is unclear in many states. But others sometimes
can, or do, on your behalf.
Click here to read full article:
http://www.hoaleader.com/members/Want-Report-HOA-Delinquencies-Credit-Agencies-May-Not-Be-Wise.cfm
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Can You, and Should You, Report HOA Delinquencies to Credit Agencies?
An HOAleader.com reader writes, "Are HOAs capable of reporting delinquent
HOA assessments and/or property liens associated with delinquent
assessments to credit reporting agencies?"
Here we discuss whether you can do that and, more importantly, whether it's a
good idea.
Click here to read full article:
http://www.hoaleader.com/members/Can-You-Should-You-Report-HOA-Delinquencies-Credit-Agencies.cfm
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Does Helping Owners Share Rides Drive Up Your HOA's Risk?
You've heard it here from our experts before: Again and again, they say,
"Stay in your lane!" By that, they mean that your HOA shouldn't undertake
activities that fall outside the scope of the association's stated and
legal mission.
Click here to read full article:
http://www.hoaleader.com/members/Does-Helping-Owners-Share-Rides-Drive-Up-Your-HOAs-Risk.cfm
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Florida Court Rules Against Bank: How Major is the Ruling for HOAs?
A Florida appellate court has held in Bermuda Dunes Private Residences v.
Bank of America that Bank of America took title as first mortgagee to a
property--and paid less in delinquent fees to HOAs as a result--though it
didn't have the rights as the first mortgagee. How big is this ruling for HOAs
in Florida and beyond?
Click here to read full article:
http://www.hoaleader.com/members/Florida-Court-Rules-Against-Bank-How-Major-Ruling-for-HOAs.cfm
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