Residential Real EstateAsk the HOA Expert
Question: At our annual meeting, the procedure for voting in person and voting by proxy was different. Those who attended the meeting registered by signing in. Proxies were only counted if the signature on the form matched the signature of record. Is this standard procedure?
Answer: Presumably, whoever was monitoring sign in recognized the owners who were signing in. Signatures on proxies could be forged by someone trying to manipulate the election. While this is not common, it is a good idea to verify the identity of both attendees and proxy signers to make sure there is no election fraud.
Question: Does the board president have more authority than the other board members?
Answer: Yes, the president does have the authority to make decisions on behalf of the board as long as those decisions are in keeping with the approved budget, governing documents, established board policy/procedure and state statutes.
Question: Is it permissible for the board to convene a "brainstorming session" simply to talk as long as no decisions are being made?
Answer: Theoretically it sounds okay but brainstorming generally leads to decision making. And the board needs to be careful about perception. If these sessions happen too often, it will appear that they are merely being called something other than a meeting to circumvent being open to all members.
Question: Do you have any thoughts on how the sub-prime lending crisis, sky-rocketing foreclosures and general downturn in the economy will affect HOAs? In our community, houses are staying on the market a very long time. More people are falling behind on their HOA fees and a number of homes are on the verge of being foreclosed. As a board member I don"t wish to add to their hardship but feel we need to be doing something.
Answer: Home related expenses should be at the top of the bill stack and the HOA has the legal authority to enforce payment. The board should have a fair and firm collection policy which is consistently and uniformly enforced.
Failure to enforce collection puts the financial burden on the paying members. While it"s fine to be personally compassionate, the HOA is not a bank or charity. If some members are in financial trouble, they need to take whatever action is necessary to reduce their debts. The board should protect the HOA"s interest by filing a lien and getting a judgment if necessary. Your attorney may have other suggestions to improve collections.
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