SELECTING A
NEW
PRESIDENT
QUESTION: Our president resigned. Does
the vice president assume the presidency or just until a fifth person is brought
onto the board and the board votes on a president?
ANSWER: The vice president becomes the acting president until such time as the
board elects a new president. The board can elect new officers at any
time or it can wait until it adds a fifth director to the board.
LOSS ASSESSMENT
INSURANCE
QUESTION: In spite of the fact that we
hold title as condo owners, insurance companies will not
write "loss assessment" policies for us because our units are detached. Do we
have another option?
ANSWER: A
condominium is a condominium, whether attached or detached.
Unfortunately, it is common for detached condominium units to be
misidentified and for insurance agents to treat them as single family residences.
The problem can be resolved by providing the agent with a copy of the CC&Rs
showing the language identifying units as condominiums. If necessary, you can
provide the condominium
plan as well.
ROBERT'S
RULES OF ORDER
QUESTION: If it is not stated in the
bylaws, does the association need to follow Robert's Rules of Order?
ANSWER:
Unless the governing document state otherwise, there is no requirement that
board meetings operate under Robert's Rules of Order or any other parliamentary
procedure.
Membership Meetings. Annual and special meetings of the membership,
however,
must be conducted in accordance with a recognized system of parliamentary
procedure.
Civil Code §1363(d). Although Robert's Rules of Order is the most widely
used system, others may be used.
BOARD MEETING AGENDA
QUESTION: If
there are multiple items to be discussed under a category on our agenda (e.g.,
the
Monitoring Committee), do we have to list each individual item or can the agenda
just show "Monitoring Committee"?
ANSWER:
All items scheduled for discussion should be listed. If you plan to discuss and vote on
particular issues, the
membership needs to be alerted so they can attend. By itself, "Monitoring
Committee" has no meaning. If the board plans to vote on the installation of
security cameras in the common areas, listing that as an agenda item is much
more meaningful.
FOUR DAYS
MEETING NOTICE
QUESTION: What is the proper method of
calculating the required four days notice period to members for board
meetings?
ANSWER:
Unless the governing
documents require longer notice, members must be given notice of the time and
place of board meetings at least four (4) days prior to the meeting.
Civil Code §1363.05(f). If the board
meeting is scheduled for 6:00 p.m. on Friday, notice should be posted by no
later than 6:00 p.m. on Monday.
Calendar Days. Calendar days are used
since the statute does not state business days. That means Saturdays and
Sundays are counted. If the board's meeting is on Thursday at 6:00 p.m., notice
should be posted by no later than 6:00 p.m. Sunday. The statute does not
exclude holidays, which means they are counted as well. If President's Day,
Martin Luther King Day or any other holiday happens to fall inside the four-day
period,
the holiday is counted as a normal calendar day.
NO ANNUAL
MEETING
QUESTION: If the election procedures for
an association indicate that the term of the board is one year, and then the
board proceeds not to call an election in time for a new board to take office
after that one year period, does the old board stay in power absent a new
election? If so, what recourse do the owners have if there was no new election?
ANSWER:
Yes, the board stays in power. If the board fails or refuses to hold an annual
membership meeting within 15 months of the association's last regular meeting,
owners can bring an action against the board in superior court. In such cases,
the court may summarily order the meeting.
Corp. Code §7510(c).
FEEDBACK
Power-Hungry Boards. 
Litigious
owners are oftentimes driven to action because of a power-hungry board that has
overstepped its authority and/or a complacent board that refuses to carry out
its fiduciary duty to enforce its governing documents. -Mike
H.
RESPONSE: Truly bad boards are the
exception, not the rule. When they occur, however, such boards should be removed
from office at the earliest opportunity. This should be done politically
whenever possible; the courts should be a last resort.
Ruinous Litigation.
We are involved in ruinous
litigation in our tiny HOA. Why would anyone want to buy into an HOA? Most
are probably okay but as we've seen you just need one bad actor and you have a
catastrophe. I warn away everyone I know. -Lois W.
RESPONSE:
It's one of those unwritten rules of the universe that every association gets at least one bad
apple, whether on the board or off. Large associations are able to absorb the
cost of a dysfunctional owner but in small associations their behavior can be
catastrophic.