To achieve effective communications between homeowners and their homeowner association, it is important to understand the authority that belongs to the property management company, the board members individually and the board as a whole. For example, the management company may be able to solve a problem quickly while at other times, management may not have […]
CAI Blog Series: U.S. Constitution, Tenth Amendment
The First and Second Amendments to the U.S. Constitution get a lot of attention. Freedom of religion, speech, and the press, as well as the right to bear arms are no doubt important. However, it got me thinking: Why don’t we talk about the other amendments as much? Wait, what are the other amendments? Sure, […]
Duties, Standards of Conduct, and Liability of Directors in North Carolina Condos/HOAs
Congratulations! You’ve just been elected to your HOA/condo association board of directors. Your new position shows your fellow members respect you and trust your judgment. By the way, did anyone describe your duties or mention that you could be financially responsible for actions? Read the article………………
Roof Rights Come With Rules and Responsibilities (NY)
For residents of New York City co-ops and condominiums, roof access is a cherished amenity. When that access is the exclusive right of one unit, the amenity becomes a treasure. But it’s worth remembering that private roof access is not the same thing as roof ownership. The people enjoying exclusive access to the roof are […]
HOA Board Responsibilities – It’s Not as Difficult as You’re Making It.
Many HOA board members feel stressed, overworked, and underappreciated. I say “many” because there are a some who seem to handle their HOA board responsibilities with relative ease. What makes the difference? Are “those people” smarter, more skilled, or does their community have fewer challenges? All of the above may be true, but in many […]
Best Practices For Homeowner Association Directors and Boards
The typical community association is governed by a board of directors comprised of volunteers who are elected by their fellow owners. The directors manage the corporate affairs of, and set policy for, the association, and as a result, they often become the main focus of dissatisfied members. This can lead to directors being sued individually […]
What does it mean to be on the Board of Directors of your HOA? Fiduciary Duties (Part 1 of a series) (VA)
Board members are told that they have fiduciary duties to the community association, but what does that really mean? Fiduciary duties arise because the members of the association entrust a board member to act in the best interest of the association when handling the association’s business. There are three components that are important to understand […]
Fiduciary Duties: Directors & Officers Owe Them, But Does the Association Owe Them Too?
It is the time of year when community associations across the state are electing members to serve on their board of directors. When considering whether or not you would like to put your name in the hat as a candidate for a director seat, you should consider the responsibilities you will have to take on […]
Help for New HOA Directors
Many board members want to serve their communities but don’t always know what is involved in HOA management. This week, we’ll share an overview of the roles, duties, and responsibilities associated with being a new director. In an HOA, all board members have an individual role with different responsibilities. The president of an HOA’s main […]
Roles and Responsibilities of a Board for a Condo Association
Serving on the board of a condo association is a great way to become involved with your condo community. Your election by fellow association members means you’ve received their vote of trust to oversee association matters in a responsible manner. Let’s look at several roles and responsibilities of a board that accompany a board position: […]
New Jersey Condominium Act Establishes Association’s Duty To Residents
In a December 29 decision, the New Jersey Appellate Division has held that not only does a condominium association have a statutory duty to maintain the common areas of the condominium, but also that this duty includes the identification and correction of dangerous conditions. Further, this duty extends to residents regardless of whether they are […]
The Limits of Board Powers: What You Can – and Can’t – Do
It is not easy being a trustee. There are meetings to attend, documents to review, decisions to make, and neighbors to mollify. There are also a number of rules and regulations that must be followed in order to ensure that the individual and collective actions of a board meet all legal and ethical requirements. Read the […]
HOA Board Training 101
When new board members join it is important to make sure they receive some basic training to help them succeed. As a veteran board member it can be easy to assume that most duties are self explanatory, but if you don’t take time to train your new board members, you’re doing them and the entire […]
The Limits of Board Powers: What You Can – and Can’t – Do (NY)
It is not easy being a board member. There are meetings to attend, documents to review, decisions to make, and neighbors to mollify. There are also a number of rules and regulations that must be followed in order to ensure that the individual and collective actions of a board meet all legal and ethical requirements. […]
Duty of Care Existed for Condo Association in Case of Missing Handrail, Court Says (NJ)
A New Jersey appeals court ruled that a condominium association’s duty to ensure that common areas are kept in safe conditions included the use of a center handrail on a wide staircase, and didn’t hinge on the plaintiff’s legal status. A three-judge Appellate Division panel, in Lechler v. 303 Sunset Avenue Condominium Association, said an […]
Project Management: What Every Board Member And Manager Needs To Know
Your association is gearing up for a large project. Maybe it’s time to re-do the clubhouse or plan for that $2M dollar concrete restoration project that was put off for far too long. Other large scale projects can include painting, concrete restoration, interior restoration, deck/paver repair or replacement, and foundation repairs, and so much more. […]
Does a Colorado HOA and/or the members of its board owe fiduciary duties to the general members?
Does a Colorado homeowners’ association and/or the members of its board of directors owe fiduciary duties to the general members? It’s a simple question with a somewhat complicated answer. To start with, a fiduciary is a person who is required to act for the benefit of another person on all matters within the scope of […]
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 […]
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 […]
What Happened When a Texas Homeowner Association Opted to Sign with a Single Hauler
Ever think that your homeowners or condo association is plowing ahead with an ill-considered project? Ignoring its own rules? Now and then, here and there, many people feel this way, but at the same time they are daunted by the time and effort to take on the governing board. To cheer one’s hopes, here’s a […]
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, […]
HOA Living: Homeowner Rights and Responsibilities
If you are looking at buying an HOA property, or if you already live in one, then you want to know what your homeowner rights and responsibilities are. Well, we can help you with that. Read on for the list of things you’ll want to keep in mind when it comes to HOA rights and […]
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 […]
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 […]
How Should Boards Handle the Reporting of a Crime?
A burglar slipped into a Hudson Heights co-op as a shareholder was leaving the building, then proceeded to steal a laundry cart and some packages. The theft was reported to police, but it took the co-op board almost two weeks to notify shareholders, and the notice downplayed the event and failed to give a full […]
Why Every Condominium and Homeowners Association Should Trademark its Name and Logo
Over the past decade, the popularity of living in a common interest community, particularly condominium and homeowners associations, has risen significantly. According to recent statistics provided by Community Associations Institute, there are over 340,000 community associations, over 26 million housing units, and over 68 million residents living in these associations in the United States. As […]
What’s Covered by Your HOA and What Isn’t
Many homeowners who live in HOA’s come to us seeking clarity about who is responsible for what in terms of their homes, yards, and amenities. We hear all sorts of questions, including things like: Am I responsible for trimming the trees near the sidewalk? (Answer: Depends on whether the tree is within your property lines) […]
Homeowner Rights & Responsibilities
As a homeowner in your Association, you have certain rights—and responsibilities. You have the right to… ?A responsive and competent Community Association. As a member of a Homeowners Association or Condo Association, you are entitled to have your issues addressed and correspondence answered. Honest, fair, and respectful treatment by Community leaders and Managers. Community Associations […]
The Business Judgment Rule
Community Association board members frequently ask, “What is the standard we’re held to when we vote and make decisions?” The standard of conduct in Oregon and Washington is colloquially known as the “Business Judgment Rule.” Application of the Business Judgment Rule comes into play in nearly all board decision making from deciding how far to […]
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………….
Ruling Reminds Associations of Significant Consequences Resulting from Failure to Maintain Common Elements
Maintaining the common elements and areas is one of the primary functions and responsibilities of community associations. Last year’s ruling by the Seventh Judicial Circuit Court’s Appellate Division illustrates the potential consequences that may arise in the event an association does not adequately address complaints by unit owners regarding nuisances resulting from the improper maintenance […]
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, […]
Defalcation and the Hazards of Board Membership – Lessons from the Fifth Circuit (TX)
Do you serve on your condominium’s board as a fun way to meet your neighbors and test out your governance skills? What seems like a low-commitment diversion can balloon into a stressful time suck – or worse. You may be held personally liable for breaching fiduciary duties to your condo. And if you fall into […]
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………….
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.
Duties of the Managing Agents and Liability for Failure to Carry Out Those Duties
A managing agent’s duties to the association can arise out of the common law relationship of an agent to a principal, or by virtue of the contractual relationship between the managing agent and the association, or both. In the same manner that the board has a fiduciary duty to the association and its members, the […]
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 […]
Do The Right Thing How To Avoid Personal Liability As A Condo Association Director
In Florida, the “officers and directors of the association have a fiduciary relationship to the unit owners.” F.S. §718.111(1)(a) In its most basic form, a fiduciary duty is an obligation to put the interest of someone else above the self-interest of the fiduciary. In the condominium director context, the director is the fiduciary and breaching […]
What is your Association’s Purpose?
We all know and love our HOAs, but do we really understand an association’s purpose? There are two essential purposes which lie at the heart of every association: Read the article………..
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………….
Slip and Fall on the Condominium Premises (MI): Does the Condominium Owe a Statutory Duty to its Co-owners?
What happens if a Co-owner slips and falls on the condominium premises? Does the Co-owner have a right to sue the Association or its property manager for failing to maintain the common areas in reasonable repair? Can the Co-owner recover from the Association (i.e. all of the other Co-owners) for damages sustained on the condominium […]
Homeowners Association Boards– Things You Should Know About Fiduciary Responsibility
In the United States, HOAs are plentiful and some communities even have more than one. Some have great difficulty in finding volunteers and homeowners are often put into a position of saying yes just to fill a vacancy for a friend. Other times, highly successful individuals in the corporate world put themselves at risk because […]
Upholding Your Fiduciary Duty: Transparency is the Best Path for Boards
Being on the board of a co-op or condo is a big responsibility— one that shouldn’t be taken lightly. While some people may run for a board seat just to have the title, they need to be prepared to govern fairly and make decisions that are in the best interest of the community as a […]
Although Individual Board Members Owed a Fiduciary Duty to Individual Condo Owners, the Corporation Did Not (NY)
Condominiums—Homeowners Associations—Business Judgment Rule—Plaintiff May Assert Claim for Breach of Fiduciary Duty and Punitive Damages Against Individual Members of a Board of Directors, But Not Against the Corporation Itself—Although Individual Board Members Owed a Fiduciary Duty to Individual Condominium Owners, the Corporation Did Not Owe Such Duty Read the article………..
Sarasota Judge rules Colony Association must repair units
Sarasota Judge Rochelle Curley agreed with Sheldon and Carol Rabin and entered a final judgment on May 13 ruling that The Colony Association had failed in its fundamental duty to maintain the 237 units at the long-closed resort and that immediate actions must be taken to remedy the situation. Read the article…………
Insurance Complexities Create Challenges and Liability Risks for Condo Boards and Managers
“My condo community is insured for full replacement value,” the board’s president announced confidently. “Our manager assures us,” he added, “that we have all coverage we need.” I hear these confident assertions often, and they make me shudder. Many condo associations have learned through painful experience that their full replacement policy may not fully cover […]
Do board members owe a duty of care and loyalty to their association?
A community association is a corporation, in many ways similar to any other corporation, be it a for-profit or not-for-profit company. In exercising decisions, for the most part, the community association’s board members must adhere to the “business judgment rule.” As I like to explain it, this means that the board member’s decisions might be […]
Case Tests Homeowners’ Associations’ Icy Sidewalk Liability (NJ)
The New Jersey Supreme Court is considering whether homeowners’ associations and their maintenance contractors can be held liable for injuries caused when they fail to clear snow and ice from sidewalks that they own and have pledged to maintain. Read more……….
In a Heartbeat – Is an HOA liable if it provides an AED?
It happens in a heartbeat – literally. Sudden cardiac arrest is a leading cause of death among adults over the age of 40 in the United States and other countries. Studies have shown, however, that when bystanders intervene and start cardiopulmonary resuscitation (“CPR”) or utilize an automated external defibrillator (“AED”), four out of ten victims […]