Do you have great ideas about how your community can be managed more efficiently? Would you like to become more involved in your HOA’s daily operations? Do you have the time, dedication and enthusiasm to regularly volunteer your skills for the benefit of your community? If so, then you’re a perfect candidate to run for […]
The Business Judgment Rule Is Both Shield and Sword (NY)
Many members of co-op and condo boards sleep well at night because of the Business Judgment Rule. It shields boards from second-guessing and legal challenges – provided they act in good faith and in the lawful and legitimate furtherance of a corporate purpose. But boards need to remember that the protections of the Business Judgment […]
Do condo and co-op board members have to disclose conflicts of interest? (NY)
The state legislature recently passed a law that will make life a little more difficult, and legislators hope, a little less ripe for self-dealing, for co-op and condo board members. “The law, which goes into effect January 1st, requires co-op and condo board members to disclose any potential conflicts of interests to their fellow owners […]
How to Resign From an HOA Board Gracefully
Deciding to resign from an HOA board can sometimes be a difficult decision. However, at times, it can often be the best choice for both you and the board if you are finding your schedule no longer allows for the added responsibilities or there are conflicts that inhibit the ability of the board to function […]
4 HOA Accounting Principles Board Member Should Know
One of the fundamentals of community management is the HOA accounting. As a Board Member, you may or may not have a background or experience in reading and understanding financial reports. Here are some things every board member should know about HOA Accounting. Read the article……………..
Problem Boards: What To Do When Your Board Breaks the Rules
A condominium, cooperative or homeowners’ association elects a board for a specific purpose: to manage the community’s day-to-day business, oversee special projects, and draft and uphold the rules and regulations that keep life orderly and harmonious. In fact, the board has an inflexible fiduciary duty to act in the best interests of the community as […]
4 Signs You Might Be Hurting Your HOA
Despite the best of intentions, many times an HOA board actually becomes the downfall of their association. How does this happen? Well, there are a lot of different ways for things to go awry, but here are 4 clues that the HOA board might actually be causing more problems rather than solving them. Read the […]
Preventing Community Association Fraud: Part One – The Board’s Role
As a homeowner who lives in an association, you put a lot of trust in the people designated to manage your association’s money. So it can come as quite a shock if you discover that one of those people has been stealing from your association’s funds. Fraud can leave you and your neighbors feeling betrayed […]
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? Here’s a handy guide: Read the article………………
HOA Volunteer Immunity and the Standard of Care
Unfortunately, one of the most persistent and justifiable worries of volunteer HOA board directors is their vulnerability to lawsuits. In order to gauge one’s own vulnerability, it’s important to consider the many layers of potential immunity and general protection that apply to one’s unique situation. These include the federal Volunteer Protection Act of 1997; one’s […]
Recruiting Directors In Your HOA
From time to time, it is necessary or desirable to recruit new directors. It may due to a vacancy or an upcoming election. Often volunteers are reluctant to commit until they fully understand the scope of the job and time commitment. Here is a sample solicitation letter that outlines director duties: Read the article…………..
Standing to Sue While Sitting on the Board
Standing is a party’s right to make a legal claim in Court. When the judge comes out to sit on the bench, she will read the cases and the parties or their attorneys come forward as called. “Standing” is the right to seek a legal remedy as shown by the facts alleged. Judges ordinarily decide […]
Strata management could be hindered, not helped, by your business skills
You might think that all those skills you acquired climbing the corporate ladder and studying for your MBA make you the perfect candidate for your strata committee. But while some attributes help in both fields, others have a downside that can lead to strata disaster. The first four, listed below, fit into the downside category, […]
How to Handle Neighbor Disputes in Your Homeowners Association
You have two residents in your community who for whatever reason do not get along. Unfortunately they live right across the street from one another! Your homeowners association manager receives phone calls and emails from these two weekly. Bill calls to complain about the lights on in Dan’s home. Dan calls to complain about cars […]
Conflicts of Interest (IL)
The Illinois Condominium Property Act (the “Condominium Act”) does not provide complete guidance on when a board decision may be invalidated due to a conflict of interest. Therefore, a court, when deciding if a decision should be set aside due to a conflict, looks to the General Not for Profit Corporation Act of 1986 (the […]
Kickbacks: Don’t get accused of taking them (FL)
Despite all the great work done by volunteer condo and HOA board members, the actions of a few bad apples have resulted in law changes that could label a casual lunch meeting an illegal kickback! Board Members (and Managers) cannot accept anything of value from someone providing or proposing to provide services to their association […]
6 Tips on How to Become a More Effective Board Member
Serving on the board of your homeowners association (HOA) or condo community association can be a very rewarding experience. You’re able to have a greater impact and influence on how things are run and be an integral part of decision making. But given the importance of these tasks, it is a job to be taken […]
HOA Board Liability
As a board member you obviously care about your community and its well-being – good for you! Your community will benefit from your dedication and personal investment. But something you and your fellow board members should consider is personal liability for accidents that happen on association property. Generally, individual board members aren’t found liable. However, […]
Encouraging Board Participation How to Attract Talent
With so many people leading busy, sometimes hectic, lives that revolve around work, kids, social functions, and other obligations, it’s often very difficult for co-op/condo/HOA administrators to find residents willing and able to serve their community as board members (or ‘directors’ or ‘trustees,’ depending on what part of the country you’re in). Board members are […]
Creating an HOA Board Member Code of Ethics
As you create your HOA board, your goal is to create a solid platform for providing the best possible living experience for all of the members of your community. Unfortunately, there will be times when there is conflict within the HOA–or worse, times when members have a conflict of interest. Creating a solid HOA board […]
Five Best Practices for Improving Condo Board Communication
Funny, isn’t it, how a flock of geese can manage to communicate well enough to prevent mid-air collisions but people find this task very difficult. Communication is always one of those things that get forgotten. Who has time to be writing to owners letting them know what’s going on? After all, directors are volunteers and […]
How to Find New HOA Board Members
Many homeowners association boards ask us how they can get more people involved in their community’s HOA management. The inherent issue is that an HOA board is pulling from a group of people who already lead busy lives. Serving on the board is a volunteer position with no pay and no huge incentive, other than […]
Musical Chairs & Management Stability
To be on a board of directors for a community association is not an easy job. Yes, “job.” Although these are positions filled by volunteer owners, it is a job. Many community associations share this job with the assistance of a professional management company and a Community Association Manager (CAM). In Illinois a CAM must […]
Tag, You’re It – Welcome to the Board of Directors
Congratulations! You’ve been elected as a member of your community association’s board of directors. Now what? Serving as a member of an association’s board of directors puts you in a powerful seat while also conferring a great deal of shared responsibility. Don’t let this scare you! With some preparation and teamwork your term as a […]
What board directors should ask condo auditors
An independent Chartered Professional Accountant (CPA) prepares, audits and issues the financial statements of a condominium corporation. In doing so, he is reporting to the owners of the condominium units the state of the financial position of the corporation. However, before issuing the final report, he needs the approval of the board of directors, who […]
Consider This Before You Hire An HOA Attorney
Just look at any HOA forum and you can see that HOAs face a wide range of issues. Some are pretty common, while others are simply dumbfounding. While reading and participating in these online forums, I often see questions that should be directed to HOA attorneys. The responses to these questions will often encourage them […]
7 Risks of Being a Self-Managed Homeowners Association
Many HOA boards think they have it all together and can easily manage the homeowners association on their own. But can they really? While there are various factors involved when it comes to whether or not a homeowners association can successfully be self-managed – such as how involved the board members are, the size of […]
Tips to Prepare Your Association for Summer
Summertime is fast approaching, and so are all the joys of having fun under the Southern California sun. Thanks to the warm weather and clear skies, summer is the perfect season to make major headway on HOA management projects. Make sure you’re prepared to make your summer the most productive possible with these expert tips. […]
Business Judgment Rule Doesn’t Apply When the Board Acts Outside its Authority
Is an HOA Board of Directors (“Board”) entitled to protection under the Business Judgment Rule (“BJR”) when it applies an unambiguous view restriction contained in the governing documents in a manner other than written? Read the article…………….
10 Tips to Improve the Lives of Condo Owners… and of Condo Directors
Condo democracy has had a fair bit of bad press recently. Vote rigging, fraudulent proxies and director collusion made headlines in May. But is it really all gloom and doom in condos under Ontario skies? In this post, we provide 10 tips to improve condo governance and reduce frustration associated with condo living. Read the […]
Condo board members not personally liable for bad decision
Q: Our condo is having some work done, and the job will cost substantially more than what the board told us. Now it looks like there will be another special assessment to cover the additional costs. I think the board members who chose this contractor should have to pay the difference from their own pockets […]
Community Association Board Members Can be Considered Limited Purpose Public Figures in Defamation Cases
There is a growing body of case law around the country which would make it more difficult for an allegedly defamed community association board member to successfully pursue his or her day in court. Is a community association board member an average, private citizen or is a community association board member really a special category […]
Condo Boards Beware: Risks Outweigh Advantages of Using E-mail to Discuss Association Business
It is a sign of technology’s fast and firm grip that few of us can remember a time when we communicated by mail (letters inserted in envelopes, affixed with stamps and delivered by the post office) rather than e-mail, delivered instantly to one recipient or dozens of them by pressing the “send” button on a […]
Avoiding Conflicts of Interest as an HOA Board Member
When you’re an HOA board member, you hold a great deal of responsibility for your association in your hands. You want to be sure that you’re handling that responsibility correctly–and avoiding conflicts of interest is one of the key ways to make that happen. Thankfully, it is possible to allow your own issues to be […]
Harassment in Associations – Boards Must Act
It has been illegal for a condominium board to discriminate against a unit owner on the basis of race, color, religion, national origin, sex, familial status, and disability. What if a resident complains that other residents or even board members are the resident because of membership in one of these groups? In the past, a […]
Making Transparency a Priority in Your HOA Board
Nothing will sink your HOA board faster than secrecy. While there are times when confidentially is necessary, most often HOA board business is public information and required to be easily accessible to homeowners. Boards should always focus on clear communication with open door policies to eliminate suspicion and resentment. Here is a list of the […]
How an HOA Board Can Still Govern When the Board President Passes Away
Finding members in your homeowners association who want to volunteer on the HOA board can be hard – finding a member to step up and become the board president is even harder. So, what do you do when the current president passes away, you don’t have a lot people in your community involved with the […]
Crystal Vision: Why Communication Between a Board and Management Company Matters
As a board member, you want your community to grow and thrive. Having a vision for your community—the aesthetics of it, its reputation, the kinds of programming it offers and amenities it provides—is critical to its long-term well-being. A well-crafted vision will transcend board and resident turnover and keep your community on track. Read […]
What Does it Mean to be a Fiduciary?
In simplest terms, to be a fiduciary to another person or party is to be in a position of trust. For example, a patient trusts her doctor to make the correct diagnosis. A parishioner trusts his priest to keep his confessions confidential. And if you are our client we hope you will trust us, as […]
You Won the Election, Now What?
Congratulations! You threw your hat in the ring, ran a vigorous issues-based campaign promising to shake up the establishment, and ultimately won a seat on your association’s board of directors. Once the champagne stops flowing, consider the following tips to get your term off to a productive start. Read the article…………..
3 Common Questions About an HOA Board of Directors
The Board of Directions of an Association is responsible for protecting, maintaining and enhancing the community. Knowing who the members of the Board are and having a basic understanding of what they do is a good way for all members of the Association to stay informed. Read the article…………….
The Role of the Community Association in Neighbor vs Neighbor Disputes
Neighbor vs neighbor disputes are frequently a part of life in community associations. Common examples may include an owner allowing his dog to use his neighbor’s yard or an owner dumping trash on his neighbor’s yard. Although they may initially be trivial, these neighbor vs neighbor disputes can escalate into bitter personal rivalries. While many […]
When private interests infiltrate the condo board
Why does one become a director? It’s generally not the applause, the pay cheque, or the pleasure of being bombarded in the elevators by other residents’ questions. Some directors cite interest in playing their part to help their home thrive, others blame their neighbours’ persistence, and others are there to fix some old mistakes. Regardless […]
HOA Board Directors: Lone Ranger or Tonto?
Being a person that wants to serve and protect your own interests, you get yourself elected to the board. At the first board meeting, the president gives you a pep talk about not giving instructions to contractors or discussing board issues with other members unless you preface comments with “the board policy/decision is…”. You bristle […]
The Board Member’s Toolbox for Building Community
As a Board member, it can sometimes be easy to focus on the operational functions of managing an Association rather than the larger picture: creating a Community that Homeowners and residents love to live in. Vendors of all sorts must be hired and paid in a timely manner, mailings have to be prepared and sent, […]
When Boards Have to Fight for What’s Right (NY)
Sometimes, co-op and condo boards have to be willing to fight for what’s right. That was certainly the case for Larry Kelter, who got hit with a one-two punch after becoming board president at the Hamlet at Windwatch, a 228-unit homeowners’ association (HOA) in Hauppauge, Long Island. Just months after becoming president, the 62-year-old novelist […]
Fiduciary Duty and Community Association Board Members
We frequently talk about the fact that homeowner association board members have a “fiduciary duty” to the members. What exactly is it? Is it spelled out in the law? What sort of actions would violate that duty? A fiduciary duty arises out of a relationship in which one person or entity is entrusted to make […]
The Rogue One: Directors Gone Bad
A condo director unilaterally fires the property manager, hires himself in her place, enters into several other contracts without discussing it with the other directors, bullies the other owners, sues the corporation, and causes thousands of dollars in damages. It seems like an unbelievable plot for a movie, but this one is based on a […]
Serve on the Board – or Pay Up
Here’s a novel way to fill those unfillable vacancies on a co-op board. Many co-ops struggle mightily to find people willing to take on the thankless job of board service. That’s not surprising. The job comes with some to-die-for perks, including long hours, endless meetings, heavy fiduciary responsibilities, late-night phone calls from angry neighbors and, […]
One Board President’s On-the-Job Training
John F. Kennedy said, famously, that there’s no school for presidents. The only way to learn the job is by doing it. The same goes for presidents of co-op and condo boards. Just ask Darren Arithoppah. Like many of the residents at the 157-unit condominium at 140 East 56th Street in New York City’s upscale […]