HOAleader.com - Tip of the Week - September 14, 2018
Published: Fri, 09/14/18
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When You Need to Buck Up and Do Your Condo/HOA Board Member Job
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In this week’s tip, we raise a touchy subject: Are any of your board members afraid to do their job?
We’re talking about abstaining from votes. When is it wise? When is it a cop-out for a board member not to vote on a difficult issue? How should an abstention be “counted” in terms of a vote?
We’re going to come right out and say it: Our experts have seen board members abstain, and the only conclusion they’ve been able to reach is that the board member was being a bit cowardly.
“I’ve seen it when I believe the board member is afraid,” says Rian W. Jones, a shareholder and the civil litigation chair at the law firm of Epsten Grinnell & Howell in San Diego. “It’s usually political. They’re afraid a faction of the homeowners is going to be against them if they vote.”
Some states have laws governing this. Brad van Rooyen, founder and senior member of Tampa, Fla.-based HomeRiver Group and its national specialist for community association management and the president of Home Encounter, notes that Florida law has codified the practice of abstentions.
The law in a nutshell says board members are permitted to abstain only when there’s a conflict of interest, which they must announce. “Abstentions aren’t valid to avoid offending a person or group,” he says.
In California, Jones says an abstention is warranted and necessary if board members have a personal interest in the outcome of the vote. “Then they should abstain or they should also abstain even if there’s a perceived conflict of interest,” he says.
Another lawyer who’s seen board members take the easy way out of a vote with an abstention is Elizabeth White, counsel at the law firm of Sands Anderson PC in Williamsburg, Va., where she leads the firm’s national community association industry team.
“There are only two instances I can think of off the top of my head that allow board members to abstain,” she states. “Their fiduciary duty requires that they participate in the decision-making process.
Read when it maybe — just maybe — is OK to abstain (it’s probably not best practice even then) and how abstentions are counted, in our new article:
https://www.hoaleader.com/members/3789.cfm
Best regards,
Matt Humphrey
President
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Special Report Download -- BRAND-NEW!
Board Member's Guide to Managing the Most Challenging People Issues at Your HOA or Condo
Surely you've heard this mantra spoken by HOA insiders: The biggest challenges boards face are "the 3 Ps," which stand for Parking, Pets, and People. Here, our editorial team has tapped into the expertise of legal and management experts nationwide to provide you with information on best practices for handling the most difficult people challenges in your community.
Members can download the report now:
https://www.hoaleader.com/public/3783.cfm
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Recent articles posted at HOAleader.com:
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What's Abstention, When Should It Be Done, and How Do You Count It?
Board members sometimes abstain from votes. When is it wise? When is it a cop-out for a board member not to vote on a difficult issue? How should an abstention be "counted" in terms of a vote? Here are answers.
Click here to read full article:
https://www.hoaleader.com/members/Whats-Abstention-When-Should-It-Be-Done-How-Do-You-Count-It.cfm
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Tired of Being Attacked as a Board Member? How One Board Fought Back
In this week's tip, we give you a heads up on a case with an issue that many boards complain about: "This owner is slandering us; can we respond?" The case is Kulick v. Leisure Village Assn., and let's state up front that it's an unpublished opinion. That means the court says this case shouldn't be relied on as precedent for future litigation. But it's still instructive.
Click here to read full article:
https://www.hoaleader.com/public/Tired-Being-Attacked-as-Board-Member-How-One-Board-Fought-Back.cfm
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Court Upholds Association's Right to Dispute Homeowner's Newsletter Attacks
A California appellate court has backed an association's efforts to defend itself against a homeowner's claims that the board election was rigged and that the board was acting improperly.
Click here to read full article:
https://www.hoaleader.com/members/Court-Upholds-Associations-Right-Dispute-Homeowners-Newsletter-Attacks.cfm
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You're Really Fighting Over This? Owner Refuses to Pay $176 for a Smoke Detector
In this week's tip, we address a tale that will probably sound familiar: You had to do something; owners are supposed to have reimbursed the association for doing that thing. An owner refuses, giving a bogus excuse.
Click here to read full article:
https://www.hoaleader.com/public/Youre-Really-Fighting-Over-This-Owner-Refuses-Pay-176-for-Smoke-Detector.cfm
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Condo Owner Refuses to Pay for New Smoke Detector: Lien Her?
An HOAleader.com reader asks, Maryland state passed a law that all smoke detectors more than 10 years old had to be replaced. The board of directors researched and got bids for replacements. Owners were notified by email explaining price and schedule and billing procedure and asked to respond if questions.
Click here to read full article:
https://www.hoaleader.com/members/Condo-Owner-Refuses-Pay-for-New-Smoke-Detector-Lien-Her.cfm
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