Palm Springs Villa II Homeowners Association, Inc. v. Erna Parth Court of Appeal, Fourth Appellate District (June 21, 2016). The “business judgment rule” refers to a judicial policy of deference to the business judgment of corporate directors in the exercise of their broad discretion to make corporate decisions. Under this rule, a director is not […]
The Game Of Association Life
Just like in the Game of Life, a board has to have a plan to succeed. Whether it is taking the quick route by attacking an issue head-on, or taking time to get educated on the issue first, a board has to carefully and strategically plan its course if it has any hope of successfully […]
Five strata leaders to avoid
As we choose our national leaders, it’s a good time to consider who we elect as strata chairman, or woman. Most are plugging away, doing all the stuff that nobody else wants to do, unappreciated and unrewarded. But others’ motives aren’t so selfless. Here are five leaders to avoid if you possibly can. Read the […]
Did You Know You Can Budget For Education?
One of the greatest investments a society can make is in the education of their young. The same principles apply to members of a condominium or HOA board. Educating those who have volunteered their time; charged with making decisions that impact the entire community, one of the biggest personal investments for most, should be a […]
Does The Business Judgment Rule Protect Directors Who Violate Governing Documents?
In Palm Springs Villas II Homeowners Ass’n, Inc. v. Parth, 2016 Cal. App. LEXIS 485 (June 21, 2016), the Court of Appeal considered whether the business judgment rule is available to a director who violates the corporation’s governing documents. Read the article………….
Coping with Change in your HOA
Change can be tough, and while it makes some people nervous, it also provides HOAs with the opportunity to improve their community. So, to help you manage change in a positive way, we thought we’d share a few helpful tips and tricks. Read the article………….
Tips if being on a homeowners associations board
There are lots of homeowners associations in our valley and I am sometimes asked what legal issues those considering a run for the HOA board should be aware of. I first ask them if they have the time and if they have a fairly “thick skin.” Read the article…………..
5 “Don’ts” for Your Board of Directors
Don’t cut off utilities for delinquent assessments Read the entire article……………………………….
Stopping Trouble From Derailing Your Association
Every association faces trouble in one form or another over the course of time. Some boards do a good job of preventing trouble, resulting in few occurrences, while other boards seem to constantly be battling trouble, both on their board and in their association. Similar to the board game, board members often get into “trouble” […]
Encouraging Community Association Members to Be Familiar with the Governing Documents May Reduce Violations
“How do you get them to read?” Sterling Jenkins, CEO and Co-Founder at Gladly, who has both lived in and managed community associations, recently posed this question to the Community Associations Institute group on LinkedIn. Mr. Jenkins acknowledged the importance of community association’s governing documents, but that so few people who live in associations actually […]
Running for the Board of Directors in Your HOA
Question: I want to run for election to our Community’s Board of Directors. What exactly does the Board do? What can it not do? Please advise. Read the Q&A……………
4 Signs Your HOA Board is Becoming Fatigued
Board members have a lot of responsibility, but just like anyone, they can become fatigued and tired of running the HOA. When that happens, however, the neighborhood suffers, so it’s important to understand the signs of HOA board fatigue, so you can stop it fast. Read the article………….
Basic Responsibilities That Come with Being an HOA Board Member
Your community within your homeowner’s association is more than just a neighborhood. In many ways, it’s a lot like a business. Collectively, the regular assessments that each homeowner pays amounts to tens of thousands of dollars that need to be budgeted carefully and spent wisely. Read the article…………..
The Top 10 No-No’s for Board Newbies
With the co-op and condo board election season now in full swing, it’s a safe bet that many boards will soon be welcoming neophyte members. Here are the Top 10 mistakes newly elected members should avoid: Read the article…………
Glass House Management in Your HOA
Homeowner association boards are elected to handle HOA business. Some do it better than others because of training and natural ability. While good business practices are fundamental to getting the job done right, “people” practices are equally important. Read the article………….
7 Mistakes New HOA Board Members Should Avoid
Congrats, you’re the newest HOA board member in your community! Chances are if you made the move to get elected to the board, there was a reason why you wanted to get involved in your community—whether there were specific changes you wanted to be a part of or you just wanted to volunteer to make […]
How to Be the World’s Worst HOA Board Member
You don’t want to be that guy (or gal) do you? You know the one – unreliable, uninformed, and unmotivated. It seems like every Association or organization has this type of person that everyone just puts up with or secretly doesn’t like at all. Do yourself a favor: look at the following list and be […]
The Business Judgment Rule
Board members often ask us, “What is the standard of conduct for the board of a common interest community?” The standard of conduct is known as the Business Judgment Rule. According to this rule of law, actions taken by directors of a nonprofit corporation in good faith, that are within the powers of the corporation, […]
How to Improve Your HOA’s Written Communication
The key to an effective homeowners association is top-notch communication. That includes correspondence between community members, board members, your homeowners association management company, and vendors. Read the article………….
How to Deal With Board Conflicts
Boards are made up of different people with different personalities and opinions. Ideally, the board should be a group of people who work together efficiently despite differences in opinions. However, the reality is that conflict between individual board members occurs from time to time. When this happens, it is important to remember the big picture […]
Forming a Consensus in Your Homeowner Association
When it comes to decision making in homeowner associations, parliamentary procedure (Roberts Rules) is often the basis for making them. It provides a systematic and efficient way to get business done. However, parliamentary procedure is based on the democratic notion of “majority rules”. Sometimes you win and sometimes you lose. While the system works pretty […]
Fiduciary Duty and What it Means for Your HOA Board
Just try saying that five times fast. Not only is it a serious mouthful, it also carries serious legal obligations and potential consequences. As board members, your community has entrusted you with the “power” to make decisions on their behalf and in the best interest of the community. It is your obligation to remove your […]
An HOA Board’s Fiduciary Duty: The Key to Avoid Conflicts of Interest
In general terms, fiduciary duty is the highest standard of care imposed under law, and it occurs when one or more persons are responsible for the money or property of another. The fiduciary is expected to be honest, free from fraud and faithful to his or her obligations. Read the article………….
How to Deal With Upset Residents
Dealing with people who are upset is difficult. It’s easy to let their anger overpower you, causing you to become defensive or just as angry. However, when your residents are complaining about something, it’s not a time to become defensive. You need to acknowledge their complaint and try to do your best to solve it. […]
Best Practices for Board Members
If you’ve never served on a Homeowners Association board, it’s important you understand what your duties, responsibilities and obligations are and that you are, in fact, acting as a fiduciary on behalf of your fellow owners. First and foremost, you must take your responsibilities as a board member seriously, always use good judgment, avoid conflict, be […]
The Fear of Change In Your HOA
There is an expression, “If you ever truly want to understand something, just try to change it.” When a new board takes charge, pumped full of ideas and enthusiasm, it’s often met with resistance. Do these sound familiar? Read the article………….
Is Your Community Association Board Making Sound Decision on Your Behalf?
The directors of Florida community association are obligated to discharge their responsibilities to the community in good faith. Board decisions are generally protected by the “business judgment rule” and the theory behind the business judgment rule is that Courts should not substitute their judgment for the judgment of the elected or appointed board members.
Which Hat? HOA Board vs. Good Neighbor
Most of us wear many different hats in our daily lives. Perhaps you juggle the hats of a spouse, parent, worker, friend, HOA Board member, neighbor, etc. Keeping your personal and professional lives separate is challenging. Many HOA Board members find it even more difficult to separate Board responsibilities from simply being a homeowner. If […]
Unresolved Problems
This video will provide the necessary information needed when dealing with unresolved problems in your HOA. It not only covers the basics involved, but also includes different ways to handle these issues. For example, the issues could range from communication breakdowns and inadequate funding, to covenant enforcement. Watch the video………
Five Symptoms of Chronic HOA Board Fatigue
Most management companies claim to perform the “same tasks,” but the approach they take and whether or not they actually perform those functions are another question. Every day we get phone calls and emails from HOA board members who are frustrated with their current management companies. Often, they’ve been with one company for years, and […]
Board Members Should Never Use Their Board Position for Personal Gain
Ohio community association board members are unpaid volunteers. Most association governing documents clearly stipulate that the board members “shall serve without compensation” or “shall be unpaid volunteers.” Under Ohio nonprofit corporate laws, board members are required to perform the duties of a director in good faith (known as the duty of care) and in a […]
Core Values and Expectations for HOA Board Members
Board members come together from vastly different backgrounds to focus on the common goal of serving their community. Some are inclined to research the smallest decision while others make decisions based on experience. This diversity helps bring different perspectives to the table for better decision-making. Regardless of their approach, Board members should share some core […]
Boards Don’t Need to Go Nuclear When Dealing With a Bad Apple
It seems that every co-op and condo building has at least one: the bad apple, the shareholder or unit-owner who turns life sour for everyone else. Co-op boards have a powerful weapon in the battle against problem shareholders – eviction for objectionable conduct – but before going nuclear, boards should take three simple steps: study […]
Legal Obligations for HOA Board Members
Many HOA Board members don’t fully understand the legal obligations that come with serving their community. You rarely see one document that completely lists all responsibilities. State law may determine some. Governing documents outline others. And other regulations can further complicate the question. It’s little wonder that a lot of confusion surrounds legal obligations. Here’s […]
HOA Board Code of Conduct
As a member of a volunteer homeowner association board, it’s important to codify the goals and behaviors an effective director should strive for. It not only serves as a constant reminder for those that are serving but can also help screen out director candidates with hidden agendas. Consider adopting something like this: Read the article……….
How Do You Know Your HOA Manager is Giving You Good Information?
If you’re a member of an HOA board, one of the reasons you chose to hire a property manager to help your community association is because you can’t keep up with all of the information you need to know. New and updated laws, reserve studies, annual meetings, trends, and resources are all things you need […]
Onboarding Techniques for HOA Boards
A new HOA Board member’s effectiveness directly relates to your onboarding techniques. It’s much more than an introduction and welcome. Starting your new HOA Board members off on the right foot sets them—and the entire Board— up for success. Here are some ways to maximize your onboarding techniques. Read the article………….
Why It’s Imporant an HOA Board Pays Attention to the Open Meeting Act
A good number of Board members understand that being a leader within their homeowners association can be a very rewarding yet sometimes thankless job. If they have been on the Board for any length of time, they also know that change is inevitable. Read the article………..
The Seven Steps After You’ve Read the Monthly Management Report
As a board member, reading your building’s monthly management report isn’t enough. It’s just the beginning. Once you’ve finished reading the report, here are seven steps you need to take every month. Read the article…………
Structuring Your HOA Board
Successful homeowner associations need a strong Board of Directors. Members understand their role and responsibilities. They have a roadmap. They work individually and as a team to manage association business as set forth in the governing documents. Does your HOA Board’s structure accelerate or hamper your progress? Read the article………….
Change For the Better in Your HOA
Boards of homeowner associations are often challenged to change the status quo for the better. A common scenario includes a newly elected board that promises to start enforcing rules or architectural policies. Problem is, there are HOA members that like it just fine the way it is and they loudly resist the board’s proposed changes. […]
Board Transparency: Let It All Out — Really?
In town and city government, elected officials and committee volunteers are duty-bound and legally required to maintain open meetings and treat every line item of taxpayer funds as public information. Condominium communities, and the way they’re operated, are often compared to municipal governments, but there’s nothing “public” about them, really. Read the article……….
Us Versus Us: What to Do About a Bad Board
Infighting: The thought of it in a condo community makes everyone cringe, from residents to board of trustee members to property managers. It also puts those involved in an awkward position. Although it isn’t a common occurrence, thankfully, conflict can happen even within associations that have been typically harmonious. Sometimes problems arise within the board […]
Housing Counsel: The Business Judgement Rule
Q: What exactly is the “business judgment rule”? I have a problem with my condominium board, and the condo attorney keeps referring to this as a defense. Can you explain? Read the article………….
10 Quick Ways to Transform Difficult Board Members into Positive Forces
The great thing about community association boards is the variety of people who volunteer their time to serve the association. They bring with them different perspectives, divergent attitudes, and refreshing points of view. Read the article………….
Four Tips for Establishing Board Member Succession in Your Community
Thriving business organizations plan for succession. It’s built into their corporate strategy – team members with potential are identified early on, and then groomed for the leadership positions they’ll someday hold. Read the article………..
Is Your Board As Effective And Healthy As It Can Be?
How well is your community association board functioning? Do your meetings feel fluid and productive, or are you stuck in a rut? Do the residents in your community or building trust your board, or are people starting to raise questions about how operations are run? Read the article………….
How to Create the Right Board Member Dynamics for your HOA
The greatest strength of your board is the diverse perspectives of all of its members. Unfortunately, sometimes this can also present the biggest challenges. Read the article………….
Five Steps HOA Board Members Can Take To Identify and Resolve Conflict
You are serving on a homeowner association (HOA) or community association board and discussing hiring a new lawn care provider. Seems simple enough, right? Oh, except that there is a bitter divide between several members arguing about two competing companies. Read the article………………
Four Tips to Avoiding Common Board Member Mistakes
Learning from our mistakes is probably the best way to ensure we won’t repeat them. But sometimes it’s better to avoid making mistakes in the first place. We know that’s not always possible (hey, we’re human), but becoming aware of the minefields that lay ahead goes a long way to helping us choose better paths. […]