HOAleader.com - Tip of the Week - August 9, 2019
Published: Fri, 08/09/19
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Here's What Condo/HOA Transparency Looks Like
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In this week's tip, we tackle that all-too-common refrain: Be more transparent!
Your response is probably: We're transparent! How much more transparent could we be, for crying out loud?
To answer that question, we're taking a step back and asking our experts what they think it actually means for boards to be transparent.
"I love this topic," says Molly Peacock, counsel at Rees Broome in Tysons Corner, Va., who's represented condos and HOAs for nearly 15 years. "It's akin in my humble mind to public relations, which isn't a legal question. However, many homeowners who are disgruntled believe transparency is a legal right and that board members are committing illegal acts if they're not so-called 'transparent.'"
What makes for transparency will differ among the states because state laws might have requirements for boards on this front.
"They do throw that word 'transparency' around a lot — even board members do that in an effort to be more transparent," states David Firmin, managing partner at Altitude Community Law PC in Lakewood, Colo., with satellite offices in Loveland and Colorado Springs.
"In Colorado, we want associations to operate in the sunlight," he says. "That means decisions must be made at open board meetings to make sure owners know what their boards are up to. That's what that term means to me. Decisions shouldn't be made by email or at unnoticed board meetings. Do your business in an open board meeting."
It also means to shy away from trendy ways to exclude members that have been popping up across the country. "Use your ability to conduct business outside a meeting sparingly," says Firmin. "A very popular tactic is 'working sessions.' The board wants to get together but doesn't want interruptions from homeowners. But that's a meeting, and you need to make it open to owners.
"You can have a working session and prevent owners from interrupting in other ways," he notes. "The statute in Colorado says owners have an absolute right to address the board at a time determined by the board but not later than a final action. So if you're having a meeting and you're not making motions, owners can sit and listen.
"But you really do need to make that effort to keep these meetings open and noticed," advises Firmin. "Also, you need to let the owners know when you're meeting and let them attend. To me that's as transparent as you need to get."
The opposite is true in Michigan. Check out our new article, What It Means for a Condo/HOA Board to Be Transparent, https://www.hoaleader.com/members/3962.cfm, to find out more, including why a Facebook page doesn't qualify as transparency.
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Can You Use Condo/HOA Special Assessment Money for Reasons Other Than Those You Stated?
An HOAleader.com reader writes, "My association agreed on a special assessment to start repairs on our shared well. After collecting the first $14,000 toward repairs of the well system, our treasurer says he used $7,000 of that money to pay old bills. Is that legal? We also had approximately $20,000 in reserves at the time he did this."
Click here to read full article:
https://www.hoaleader.com/members/Can-You-Use-CondoHOA-Special-Assessment-Money-for-Reasons-Other-Than-Those-You-Stated.cfm
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Click here to read full article:
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Click here to read full article:
https://www.hoaleader.com/members/When-Condo-Board-Should-Intervene-This-Right-Situation.cfm
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Click here to read full article:
https://www.hoaleader.com/members/What-Consider-Before-Your-CondoHOA-Implements-Key-Fob-System.cfm
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Condo Board Seeks to Shut Down Former Board Member Through Eviction (Yes, Eviction)
Is there a lesson in a case before a Chicago trial court? In this messy fight, a condo board is suing a former board member/owner for costs it has incurred in responding to his frequent lawsuits, requests for records, and so on. But it's also suing to have this owner evicted.
Click here to read full article:
https://www.hoaleader.com/members/Condo-Board-Seeks-Shut-Down-Former-Board-Member-Through-Eviction-Yes-Eviction.cfm
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