At the heart of volunteerism is the notion of doing something for the common good. For many, choosing to live in a co-op or condo community is also choosing to volunteer for board service, helping to guide and govern the community they call home. But with that impulse to serve the common good lurks the […]
D&O the Right Thing
Homeowner associations rely on members to volunteer time, talent and energy. They do this for no pay however there is still legal exposure for mistakes or errors made. Directors & Officers Liability insurance is designed to protect and defend HOA volunteers and is often included in HOA insurance packages. It also can be purchased separately. […]
Condominium Officers Directors and Managers Who Solicit Offer to Accept or Accept Kickbacks Now Commit a Felony (FL)
Florida lawmakers revised Chapter 718, Florida’s Condominium Act, once again following the 2024 Legislative Session through House Bill 1021, which was signed by Governor DeSantis and became effective July 1, 2024. One of the most surprising revisions to some, was the addition of criminal penalties for certain conduct in violation of Chapter 718. Read the […]
The Role of Fairness and Empathy in Homeowners Association Boards
Homeowners Associations (HOAs) play a crucial role in maintaining the harmony and aesthetics of residential communities. At the heart of every successful HOA is an effective Board of Directors entrusted with the responsibility of making decisions that impact the lives of community members. In this blog post, we’ll explore how embracing fairness and empathy can […]
D&O 101 — Protecting Your Board
At the heart of volunteerism is the notion of doing something for the common good. For many, choosing to live in a co-op or condo community is also choosing to volunteer for board service, helping to guide and govern the community they call home. But with that impulse to serve the common good lurks the […]
Directors & Officers Insurance: The Lowdown on D&O (NJ)
At the heart of volunteerism is the notion of doing something for the common good. For many, choosing to live in a co-op or condo community is also choosing to volunteer for board service, helping to guide and govern the community they call home. But with that impulse to serve the common good lurks the […]
Indemnification of Board Member-Plaintiffs Must Be Expressly Stated, NJ Supreme Court Says
The case revolves around a dispute between Patrick Boyle, a trustee and unit owner of the Ocean Club Condominium (OC Condominium), and the Ocean Club Condominium Association (Association). After a disagreement over the Association’s financial management, the Board of Trustees (Board) expelled Boyle. Boyle filed a complaint challenging his removal and sought indemnification for his […]
Roles and Responsibilities of HOA Board Officers
The Homeowners’ Association (HOA) board officers play a crucial role in managing and maintaining the communities they serve. Their responsibilities extend beyond simple oversight; they encompass strategic planning, financial management, and community relations, all aimed at fostering a thriving, harmonious environment. This article explores the general responsibilities of HOA board officers and delves into the […]
A Guide To HOA Board Responsibilities
Serving on the board of a homeowner association is a high calling. Well meaning volunteers are elected to roles that are critical to the well being of the HOA. But what exactly is a board member supposed to do to fulfill this charge? Read the article…………………………….
Director Elections—What Could Possibly Go Wrong?
Director elections are one of the most important powers association members have, so it makes sense that owners take elections seriously. Whether voting in an election and/or running for the board, the process and its results are personal to association members. Therefore, any appearance of impropriety or error in the process is oftentimes met with […]
Board Member Code of Conduct (FL)
The law specifically provides that Board members have a fiduciary relationship with the owners and requires Board members to disclose conflicts of interest. However, the law does not specifically address acceptable (and unacceptable) behaviors for discharging these responsibilities. As such, a Code of Conduct for Board members is a good idea to have so that […]
Treasurer’s Payment Mistake Requires Defense Coverage Under Property Association’s D&O Policy
A federal court recently ruled that a carrier must defend its policyholder against a claim involving the treasurer’s erroneous payment to a scammer. The ruling shows that a “wrongful act” under a D&O policy need not be an egregious act of wrongdoing, that coverage may hinge on whether extrinsic evidence can establish coverage, and that […]
Business Judgment Rule: How to Protect Your Board (NY)
The recent case of Levy v. 103-25 68th Ave. Owners, Inc. offers some valuable insights for property managers and board members within cooperative housing communities. In June 2018, the Levys commenced this action against the co-op defendants and the occupants of the neighboring apartment, alleging, inter alia, that the co-op defendants exceeded the scope of […]
Understanding the Key Roles of Officers in a Community Association Board of Directors
Community associations play a vital role in maintaining and enhancing the quality of life in their respective communities. At the heart of every community association is its board of directors, comprised of dedicated individuals who serve in various officer roles. In this article, we will delve into the responsibilities and functions of these officers, shedding […]
Understanding the Key Roles of Officers in a Community Association Board of Directors
Community associations play a vital role in maintaining and enhancing the quality of life in their respective communities. At the heart of every community association is its board of directors, comprised of dedicated individuals who serve in various officer roles. In this article, we will delve into the responsibilities and functions of these officers, shedding […]
Related Claim Provision Bars Coverage for Discrimination Claims Asserted Over a Six-Year Period (IL)
Applying Illinois law, the First District Appellate Court of Illinois has held that a related wrongful acts provision barred coverage for a series of “claims” made over the course of six years because the claims—as the insured conceded—arose out of the same claim. Steadfast Ins. Co. v. State Parkway Condo. Ass’n, 2023 WL 4105252 (Il. […]
Approving and Signing Association Contracts (OH)
Associations act through their boards of directors. This means that, for an association to take any action, the board of directors must collectively vote to approve that action. As it relates to contracts, boards of directors should vote to approve contracts and document all votes approving contracts in the association’s minutes. The minutes should read […]
The Cheshire Cat and Insurance Carriers
Insurance carriers are like the Cheshire Cat. They lure customers with catchy advertisements, and then issue policies filled with complex and confusing terms. After major losses, they arrive on the scene, then suddenly disappear, citing one or more policy exclusions in complex terms, a la the Cheshire Cat. Read the article………………………..
Why D&O?! (CO)
Putting it in today’s terms, one of my biggest “cringe” moments being an HOA insurance specialist is when a Board of Directors decides they do not wish to procure Directors and Officers Liability Insurance (D&O). In my mind, (and I’m sure many of you share this same opinion), this coverage is absolutely necessary to protect […]
HOA Homefront — How do we handle delinquent members and delinquent directors? (CA)
Q: I’m a new elected board member. As I’m looking over homeowners’ delinquency information, I’m concerned that several incumbent board members are delinquent. Is there any Civil Code that a board member should be current in their HOA dues? Read the Q&A……………………………….
Many Community Association Directors Are Not Permitted to Vote by Proxy (WA)
Directors of condominium and homeowners associations may sometimes want to vote by proxy rather than attend a board meeting. However, Washington state law does not permit many of them to do so. Read the article………………………..
I am a Volunteer, so I am Protected, Right?: Understanding Director and Officer Liability Insurance for Community Associations
Community associations (“Associations”) act through their board members and officers, who are volunteers and are generally willing to serve because they care about their communities. Notwithstanding their status as volunteers of nonprofit corporations, board members can, and often are, targets of member lawsuits Read the article………………………..
‘Wrongful Acts’ Includes Both Negligent and Intentional Acts (IL)
The United States District Court for the Northern District of Illinois, applying Illinois law, has held that an insurer had a duty to defend an insured condominium association and its board members against an underlying lawsuit because the association’s board members allegedly committed “Wrongful Acts” under the directors and officers coverage part of a business […]
Directors & Officers Liability: Defense Costs
Let’s continue our deeper dive into some more complicated aspects of insurance policies with the Directors & Officers Liability (D&O) policy. For a community association, this is the professional liability policy for the board of directors and helps to protect the association and the board members from liability incurred as a result of the decisions […]
Is It Safe To Run For The Board? Broad Protections Afforded To Directors In A Litigious Age (MI)
The vitality of community associations is directly related to the quality of its volunteer board of directors. However, in this litigious age, potential directors may be concerned about the personal liability faced when their every decision may be questioned by countless other members. Confronted with that daunting prospect, interest in serving on the board may […]
Receiverships in HOAs and Condos (OR)
Volunteering to serve on the Board of a Community Association can, unfortunately, often feel like a thankless job. In many cases, conflict among the Directors, or between owners and the Board, can make service to the community an extremely stressful experience. Several of our clients have reported that they are finding it difficult to recruit […]
HOA 101: Understanding the Role of the Vice President
A critical part of any homeowners’ association (HOA), the board of directors ensures community guidelines are followed, the neighborhood is maintained, and improvements are funded and supported. In short, the HOA board is there to better the community on behalf of its residents. Read the article………………………..
Directors & Officers (Insurance)
This month, we take a look at the Directors & Officers policy. As a liability policy, it serves to defend the board of directors should someone file a lawsuit against them. I know, the thought of someone being so offended by something a community association board says or does that they sue is ridiculous (just […]
Does My HOA Really Need Directors and Officers Insurance?
Inflation is noticeable everywhere today and HOAs are not immune to the pressures caused by higher relative costs. One common remedy to these pressures is cutting costs and one area where it is always tempting to do so is in insurance premiums. However, skimping on insurance coverage now can generate significant costs down the road. […]
If You Play the Business Judgment Card, I’ll Play the Interested Director Card (MD)
In Cherington Condo. v. Kenney, No. 157, Sept. Term, 2021, 2022 WL 959967 (Md. Ct. Spec. App. Mar. 31, 2022), the Board of the Cherington Condominium Association in Montgomery County voted to require that all residents pay for the maintenance of outdoor spaces around the townhouse units. Read the entire article……………………………….
Director Compensation: Do I Get Paid for This? (FL)
Q: I am considering running for the board of my condominium association. However, there is a lot of work involved in being on the Board. It can be a thankless position, which discourages many owners from volunteering. Can we compensate the members of the board as a way to encourage people to serve? Read the Q&A……………………………….
How Can the Board of Directors of an HOA Be Held Liable?
An HOA board of directors has a fiduciary responsibility to the association. They’re tasked with upholding the governing documents and the rules of the association. There’s also the business judgment rule that says if the board receives expert advice on a topic, and they follow that expert advice, it provides them with a level of […]
D&O Insurance: A Rundown For The HOA Board
The leaders of an HOA community can run into all sorts of legal trouble, jeopardizing their personal assets and interests. This is where D&O insurance comes in. Read the entire article……………………………….
Defendants in Civil Actions May Assert the Business Judgment Rule Without Pleading an Affirmative Defense (FL)
On February 23, 2022, the Florida Third District Court of Appeal issued its opinion in New Horizons Condominium Master Association, Inc. v. Harding, and held that under Florida law a defendant does not waive the protections afforded by the business judgment rule even if the defendant did not plead the rule as an affirmative defense. […]
What Is a President-Elect?
Because bylaws sometimes have a position called “President-Elect,” I am occasionally asked about the precise responsibilities of the office. A question back has to be “What responsibilities do the specific bylaws provide for the office?” That’s because there is no standard list of duties for a President-Elect in Robert’s Rules of Order Newly Revised, as […]
Board Member 101: Best Practices (IL)
Board members who are elected to represent their condominium, homeowner (HOA), and townhome community association carry a weight on their shoulders to ensure they are acting in the best interest of their fellow neighbors. Read the entire article……………………………….
D&O Insurance For HOAs: Your Complete Guide
Insurance is one of the most essential purchases any homeowners association can make. Boards, in particular, will benefit from D&O insurance. Unfortunately, many boards don’t even know what this type of policy covers and how much coverage is enough. Read the entire article……………………………….
Insurer Owes Duty to Defend and Indemnify Nuisance Litigation (CA)
A federal district court, applying California law, has held that an insurer owed a duty to defend and indemnify an insured in an underlying nuisance litigation under a not-for-profit D&O policy, as the policy’s pollution, property damage, breach of contract, and prior acts exclusions were not implicated. The Crosby Estate at Rancho Santa Fe Master […]
The Recall Of Directors (CA)
A number of years ago, I published an article on recalling the Board. Although the procedures are still a creature of statute, changes in the Davis-Stirling Act with respect to elections have had some impact on the recall procedure, particularly when one keeps in mind that the typical recall meeting actually involves two matters: the […]
Directors and officers coverage poised for change (ON)
When the dust had settled after the partial collapse of Champlain Towers South in Miami earlier this year, the story that emerged was one of total disarray inside the condo board. Although the board had called for structural repairs back in 2018, those repairs were to be paid for through special assessments imposed on the […]
What Does The HOA Vice President Do?
Every homeowners association is governed by a set of board members. While the structure of the HOA board can vary from community to community, the positions more or less remain the same across a majority of them. Generally, the HOA board is headed by the president, followed by the vice president. If you intend to […]
Don’t Sweat the Threats (parts 1-4)
This is a four part series that explores the protections the law provides for those who serve their communities as association directors and officers in North and South Carolina. Part 1 – The Business Judgment Rule Part 2 – Director & officer Immunity Part 3 – Director & Officer Indemnification Part 4 – Director & […]
Understanding the Board Treasurer Role and Best Practices
The board treasurer manages the association’s finances and must exercise prudent judgment with investments, evaluate the maintenance costs, and ensure that association funds are always protected. It is a crucial role that comes with large responsibility. While there are several nuanced aspects of the board treasurer position, the following can provide a foundational understanding of […]
What Do They Do? A Deep Dive Into the Roles of HOA Board Officers
Every homeowners’ association (HOA) is required to have an elected board of directors that acts on a community’s behalf. Often, there’s a misconception that all board members do is measure budget performance and create and enforce rules. Read the entire article……………………………….
6 Crisis Management Lessons From The Florida Condo Collapse
The tragic condominium collapse that occurred recently in Surfside, Fla., has shed light on the importance of crisis management. Identifying threats before they arise can be a challenge. Emergencies can be difficult, if not impossible, to anticipate, but how to respond to them can be thought out beforehand. Proper planning is the first step in […]
Roles of association officers
Q: Can you provide a description of the role of officers in homeowners associations? Read the Q&A………………………………
North Star: The one question every board member should be asking
Homeowners associations are representative democracies where powers are delegated to elected officials (the board of directors) and limited powers are reserved to the membership. In this governing model, the answer to a simple question can serve as a board member’s North Star: What is best for the community? Read the entire article……………………………….
7 Tips to Better Run a Homeowners Association
Running a homeowners association is no easy task. Every real estate investment someone makes matters to them and residents want an HOA that will live up to the expectations of their property. There is a lot of responsibility involved and a lot of people looking to you to run things correctly. If you’re in charge […]
An Introduction to Serving on an Association’s Board of Directors (CA)
Serving on the Board of Directors for your Association presents itself with certain challenges. These can be compounded greatly simply because there is no user-guide or manual available to answer some of the fundamental questions one might have. This article is designed to help new and old Board members to understand exactly what it is […]
How do you know if your condo or homeowners association is well-managed? Here are some tips (VA)
How do you know if your homeowners or condominium association is being successfully managed? It can sometimes be hard to determine if a community with an association is being run well. Read the article……………………………………….