HOAleader.com - Tip of the Week - October 26, 2018
Published: Fri, 10/26/18
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HOA Finance Committee? Gone! Social Committee? Gone! How to Evaluate Your Committees' Work
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In this week's tip, we weigh the wisdom of a Florida board's decision to, without notice to members, disbanded all its committees, returning their responsibilities back to the board.
Let's start with this: Florida boards could probably do this. "There's no requirement in Florida to maintain committees," states Lisa Magill, of counsel at Kaye, Bender & Rembaum in Pompano Beach, Fla., who advises Florida community associations. "Everything is dependent on the authority from the governing documents.
"Committees are there to ease the burden on the board," she adds. "You have some that will do certain investigations on your behalf and report back to the board or committees that take on pet projects, such as the social committee. But if the board thinks they can take the whole responsibility on themselves, that's their prerogative."
In Illinois, the governing documents and state law would affect this decision. "Some declarations establish certain committees as part of the declaration," according to James P. Arrigo, an attorney at Rathje & Woodward in Wheaton, Ill., who has counseled and represented HOA and condominium associations ranging from 6 to 1,600 units for more than 14 years. "They'll say, 'This is what it is and how it's to be comprised.' So in Illinois, you potentially run into a problem if you disbanded a committee mentioned in the documents."
If a committee is included in the governing documents, Arrigo advises that you also consider whether it's properly composed. "All associations are nonprofits, and the state's nonprofit corporations act was changed so that that if a committee wields any authority of the board, it must have a specific membership of no fewer than two members of the board and no fewer than the majority of the board," adds Arrigo. "So it comes down to what the declaration says. If it's mandated by the covenants, allow it to continue, but you may need to amend your rules to comply with the statutes in the state to make sure membership on the committee complies with what the law requires."
California has a similar legal structure. "In most of our documents, the only committee that would have power of its own is the architectural review committee," reports Susan Hawks McClintic, co-managing shareholder and the chair of the community association transactional practice group at the law firm of Epsten Grinnell & Howell in San Diego. "It's rare to have others have any of their own decision-making authority.
"Also, under California law, a committee can't exercise decision making power of the board unless it consists solely of board members," she says. "But if the bylaws grant another committee their own authority, the board doesn't have control over them."
So you may have the authority to erase all your committees from existence. Should you do that? And if so, how should you do it? Find out in our new article: https://www.hoaleader.com/members/Youre-All-Powerful-Condo-or-HOA-Board-Just-Disband-All-Your-Committees.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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You're the All-Powerful Condo or HOA Board: Just Disband All Your Committees!
We've heard of a board in Florida that, without notice to members, disbanded all its committees, returning their responsibilities back to the board. Permissible? Good idea? Here are the pros and cons.
Click here to read full article:
https://www.hoaleader.com/members/Youre-All-Powerful-Condo-or-HOA-Board-Just-Disband-All-Your-Committees.cfm
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Condo and HOA Violation Hearings: 4 Experts Explain Who Can Attend
You've noticed up a violation against a member, and you show up to find the member has brought a lawyer. Is that OK? What about a spouse? A fellow member for moral support?
Click here to read full article:
https://www.hoaleader.com/members/Condo-HOA-Violation-Hearings-4-Experts-Explain-Who-Can-Attend.cfm
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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 November 15 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 and recognized educator with insights on the day-to-day operations of rules enforcement. You'll get practical ideas, systems, and processes you can begin to take advantage of at your association the minute the webinar ends.
Click here to read full article:
https://www.hoaleader.com/products/easier-enforcement-hoa-rules-a.cfm
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How to Protect Yourself and Your HOA from the Neighborhood Sociopath
Did you miss yesterday's HOAleader.com webinar? If so, you missed a great, informative presentation on an extremely challenging topic. But it's not too late! Order the recording and watch the webinar on demand.
Run into any owners or residents who show contempt for and consistently disregard your HOA's rules? One in 25 people is a sociopath, or a person who regularly exhibits asocial or antisocial behavior. Sociopaths look like your everyday neighbors, but they can be scary and intimidating--and they can turn your HOA into a battleground. Learn how to wisely and safely handle the most difficult owners and residents you'll ever face, led by two community association experts with decades of hands-on experience in advising associations.
Click here to read full article:
https://www.hoaleader.com/products/protect-hoa-neighborhood-sociopath-b.cfm
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The Best Advice for Future Condo/HOA Board Members from 7 Board Experts
Surely, as an experienced board member, your thoughts on how to be a good board member have changed from your first day on the job-? Here, seven nonprofit board members and HOA experts give their best advice for the people who will someday step into your shoes
Click here to read full article:
https://www.hoaleader.com/members/Best-Advice-for-Future-CondoHOA-Board-Members-from-7-Board-Experts.cfm
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