Don’t Make Decisions Unless a Quorum Is Present
Remind the association’s board of directors: Before making any decisions or taking any actions at a meeting, make sure a quorum is present. A quorum is the number of people who must be present for the board to take any official actions. Your association’s governing documents and/or your state law will explain how many people make up a quorum. Some board members mistakenly believe that a meeting can proceed without a quorum present as long as no one objects. But, with very few exceptions, actions taken at meetings where a quorum isn’t present are invalid.
Comply with Fiduciary Duty by Improving Board’s Decision-Making Process
While board members have what’s known as a “fiduciary duty” to the association, some members—especially those who are at odds with choices the association has made—mistakenly think that the board should serve their particular interests. That goes squarely against the concept of fiduciary duty—that is, a legal obligation imposed on all board members to be loyal to the association.
Recognize Warning Signs, Get Help for Elderly Members
Although many elderly members in your community are capable of living independently, sooner or later you may have an elderly member who has trouble coping with day-to-day concerns, such as managing money or keeping his unit tidy. An elderly member who has trouble coping may neglect normal upkeep in his unit. Oversights can lead to property damage and safety concerns. For example, the member may eventually stop cleaning, let his bathtub overflow, or leave the gas range on—putting himself, other members, and your condominium building at risk.
Purchasing Property at Foreclosure Sales
Q: A home in our community has been foreclosed on by the association after the owner failed to pay assessments for a long period of time. The association wants to buy the foreclosed lot. Is there a rule regarding how much money an association is allowed to spend buying a foreclosed lot? There also are past-due real estate taxes on this lot. How much can an association spend paying the past-due real estate taxes owed on a lot if obtained in its own foreclosure action?
Association Didn’t Respond Properly to Flag Complaint
Facts: A homeowner flew the American flag on a flagpole in front of his house. The association sued the homeowner to enjoin him from displaying the flag. The homeowner asked a trial court for a judgment in his favor without a trial. The trial court ruled in favor of the homeowner without specifying the grounds upon which it made the decision. The association appealed.
Decision: A Texas appeals court upheld the lower court’s decision.
Federal Court Couldn’t Rule on Homeowners’ State Claims
Facts: Two homeowners sued the association. They asked for a temporary restraining order to stop the association from locking them out of their home due to the foreclosure on their home. They claimed that the president of the association began harassing one of the homeowners due to her nationality and language barrier.
Add Amenities that Reflect Members’ Interests, Lifestyle Trends
By Andrea Brescia
As times and social tastes change, your board might explore adding amenities to keep your community association current and in line with newer associations. The amenities that were in place when your association was founded might not be completely satisfying to your membership today—or attracting new buyers.
HUD Orders Association to Pay in Discrimination Case
The U.S. Department of Housing and Urban Development (HUD) recently ordered a condominium association in Puerto Rico to pay $20,000 in damages plus a $16,000 civil penalty for refusing to allow a resident with disabilities to keep his emotional support animal.
Target Key Issues When Amending Governing Documents
Eventually, a community association will face the question of whether to update its governing documents. Laws change, and with that, governing documents are superseded. Should your declaration be changed with every new law? When is the right time to address previously unforeseen quality-of-life issues? How do you update your governing documents so that they provide the framework for your association’s current and future needs, without creating unexpected problems?