HOAleader.com - Tip of the Week - June 14, 2019
Published: Fri, 06/14/19
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Delegate Some of Your Condo/HOA Board Duties, They Said! And Then They Said, "But Not Those!"
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In this week's tip, we hope to help you ease some of your burden as board members.
Overstressed board members should always ask themselves: Are we doing all we can to reduce our workload (translation: stress level!) and bring others into leadership at our community?
One way to achieve that goal is to know what responsibilities you can delegate and what it's improper for community association board members delegate. There are times when it's genius for you to create a committee that takes some of the weight off of your board. And then there are times when you may be delegating responsibilities you really shouldn't.
This is one of those critical areas where our mantra "Check your state's law and governing documents" is especially important to follow before you take any action.
Here's a great example of why that's so important. In January, a new law took effect in California that holds boards to a very strict regimen of reviewing financial information. "Previously, the law held that boards must do a review of the association's financials quarterly," reports David C. Swedelson, the principal at Swedelson & Gottlieb, a law firm that represents associations in the Los Angeles area.
"The legislature changed that review to monthly, and they also specified that the treasurer and one other board member must do this review and that it must take place outside the board meeting—board members can't just come to the board meetings and assume that requirement is met," he says. "Many, many associations likely aren't going to do this. But the reason for the new law is that there's been lots of embezzlement, and that's in part because many board members say, 'Let the management company do the finances.'"
Your governing documents will also likely have a say in your ability to delegate. "The bylaws in Pennsylvania specifically provide what a board can't delegate," notes Edward Hoffman Jr., founder of Barrow Hoffman, a law firm based in Warminster, Pa., who has represented community associations for more than 15 years. "They say they can delegate everything except for these enumerated functions, and then they're listed. Also, the common-interest community statues in Pennsylvania allow for delegation of some functions to a managing agent."
That's also true in Florida. "In the bylaws, there's usually that breakdown of each officer and what their responsibilities are," explains Bill Worrall, vice president of FirstService Residential in Hollywood, Fla., which manages 1,300 condominium and homeowner associations totaling 310,000 residential units. "They might mention the treasurer and state that the treasurer should review the association's financial statements and give the treasurer's report."
Check out our new article, https://www.hoaleader.com/members/3930.cfm, for concrete tips on what's smart, and where you can run into trouble by pushing duties down the line.
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Pop Quiz: What Information Should Condo/HOA Board Members Share with the Entire Board?
An HOAleader.com reader writes: "I'm an officer of a Virginia condo board. Right now, residents send complaints directly to the president of the board. He almost never shares them with the rest of the board. Most of them are about our general manager, who isn't doing a good job, but since we don't hear these complaints, we have little information to act on.
Click here to read full article:
https://www.hoaleader.com/members/Pop-Quiz-What-Information-Should-CondoHOA-Board-Members-Share-with-Entire-Board.cfm
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7 Provisions You Might Want to Tuck Into Your Condo/HOA Rental Policy
In this week's tip, we get you started on drafting a policy governing rentals so that everybody is on the same page when it comes to what's required and permitted when owners do just that.
Click here to read full article:
https://www.hoaleader.com/public/7-Provisions-You-Might-Want-Tuck-Into-Your-CondoHOA-Rental-Policy.cfm
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7 Smart Provisions to Include in Your Condo/HOA Rental Policy
You're all set--your condo or HOA has decided to allow owners to rent their unit. That doesn't end the process, though. It's a good idea to create policies governing rentals so that everybody is on the same page when it comes to what's required and permitted when owners do just that.
Click here to read full article:
https://www.hoaleader.com/members/7-Smart-Provisions-Include-in-Your-CondoHOA-Rental-Policy.cfm
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Florida's New Law on Term Limits Is Muddy; Could Your Condo/HOA Adopt Similar Restrictions?
There's a new Florida law limiting the length that condo board members can serve. But it's got many people confused because it's not clear when the term-limit time clock begins under its provisions. What's a Florida condo board to do? And what about boards outside Florida? Is it wise to adopt term limits?
Click here to read full article:
https://www.hoaleader.com/members/Floridas-New-Law-on-Term-Limits-Muddy-Could-Your-CondoHOA-Adopt-Similar-Restrictions.cfm
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Oops! When You've Been Doing Things Wrong at Your Condo/HOA for Years
An HOAleader.com reader has an interesting dilemma. "We have a small subdivision in Idaho. The developer designated a small common area when the property was originally developed. Due to a recent survey done by a new lot owner, it was discovered that the majority of the area isn't owned by the HOA but by the individual lot owners it runs across of. Can the HOA continue to force members to pay dues and use the funds for the maintenance of the non-owned area, even if it's in the CC&Rs?"
Click here to read full article:
https://www.hoaleader.com/members/Oops-When-Youve-Been-Doing-Things-Wrong-at-Your-CondoHOA-for-Years.cfm
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