Question: A newly elected board is taking over for directors that have been in charge for years. Is it time to audit the books?

Answer: An audit is entirely appropriate by a CPA who is knowledgeable about HOA operations. An audit will not only expose improprieties and mistakes but offer advice for better practices and updates on tax law. Audits should be done at least every three to five years. Get several quotes since audit costs can vary a lot.

Question: Our homeowner association charges "impact fees"related to construction traffic for new homes and the damage done to the roads by the heavy equipment. Is that acceptable?

Answer: If there are documented costs for road repairs which can be attributed to construction, the HOA has every right to be reimbursed.

Question: Our governing documents state that a director can be removed for "just cause". What is considered as just cause?

Answer: Here are a few situations that could be considered to be "just cause" for removal of a director:

• Guilty of criminal action involving the HOA business.
• Guilty of blatant conflict of interest (like funneling HOA business to a relative or friend).
• Undermining board actions and policy with the membership.
• Failing to attend meetings.
• Carrying out a hidden agenda.
• Disruptive behavior at meetings.
• Violation of important rules.
• Delinquent in HOA assessments.
• Embezzlement

Being aware of these conditions and catching them early is best for all.