Question: As Board President, can I abstain from voting on a particular issue? There are several residents that could be offended by my vote.
Answer: The President is entitled to vote but doesn't need to unless there is a tie. If there is a tie, you'll need to vote to break the tie unless you have a real conflict of interest or fear of personal legal consequences. These reasons should be stated at the meeting and included in the meeting minutes should the vote be questioned later on.
Question: A newly elected Board is taking over for directors that have been in charge for five years. Is it time to audit the books?
Answer: Since it has been some years and there is a new Board, it is entirely appropriate to have an audit done by a CPA who is knowledgeable about HOA accounting. 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 and should be reserved for since they are fairly expensive. Don't hesitate to get 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: Yes. If there are documented costs for repair of roads which can be attributable to construction, the HOA has every right to be reimbursed.
Question: Our current bylaws state 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 Board director:
- Guilty of criminal action involving the HOA business.
- Guilty of blatant conflict of interest.
- Undermining Board actions and policy with the membership.
- Failing to attend meetings.
- Disruptive behavior at meetings.
- Violation of significant rules.
- Delinquent in HOA assessments.
- Embezzlement.
Being aware of these conditions. Catching them early is best for all.
For more Ask the HOA Expert, see www.Regenesis.net.
Published: October 20, 2004
Use of this article without permission is a violation of federal copyright laws.
 Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues.Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at . |
