HOA SPONSORED
WEBSITES AND CHAT ROOMS

Benefits. More and more associations are discovering the benefits of internet websites. They provide easy 24-hours per day access to the association's CC&Rs, Bylaws, Rules and Regulations, Architectural Standards, minutes, financial statements, and newsletters.

Notice of Meetings. Posting meeting information on a website is quick and convenient but it does not replace other modes of notice. Currently, the only authorized methods of notice are: (i) posting the notice in a prominent place in the common area, (ii) by mail, (iii) by delivery of the notice to each unit, or (iv) by newsletter or similar means of communication. Civil Code §1363.05(g)

Problems. Websites also expose associations to potential liability from defamation, theft of personal information, invasion of privacy, and "rights" organizations seeking litigation targets. To minimize such risks, associations should divide their websites into two sections: (i) one that is open to the public, and (ii) a second members-only, password-protected section.

Members Only. The public portion of the site can have a welcoming page with a description of the development and pictures of the project. The members-only section should contain the governing documents, financial statements, minutes, names of board and staff members, etc. To avoid potential liability, boards should NOT post the names of delinquent owners; employee disciplinary actions, executive session minutes, or attorney-client privileged communications.

Chat Rooms. Association sponsored chat rooms and bulletin boards allow members to get to know each other and let off a little steam. Unfortunately, they are frequently taken over by small groups of disaffected owners who engage in personal attacks, gossip, obscenities, hostile diatribes, and defamation. If the chat room/bulletin board is sponsored by the association, it becomes potentially liable for publication of such materials. As a result, associations should avoid chat rooms and bulletin boards.

Competing Websites. Owners sometimes create competing websites that often contain useful information and provide an avenue for dissenting points of view. Such websites have a right to exist. However, they do not have the right to mislead the membership by using the association's' name, logo and symbols. Such misrepresentation creates potential liability for the association--especially if the board knows of the deception and does nothing to stop it.

Updated by ADAMS KESSLER 8/11/2008