Where should delinquency reports and discussing delinquencies be held,
in an open meeting or executive session? For privacy reasons, I think it
should be in executive session.
: Discussion of delinquencies should should be done in both open and closed sessions of the board.
Delinquency reports should be in open sessions because members have a
right to know the finances of their association. It allows them to
monitor whether or not the board is taking care of business. Failure by
the board to collect assessments means budget shortfalls, deferred
maintenance, special assessments, and/or increased dues for the
membership. If I were a member, I would want to know if my association
had a $500 delinquency problem or a $50,000 problem.
Moreover, the Davis-Stirling Act requires that the decision to record a lien
for delinquent assessments be made in an open meeting and recorded in
the minutes of that meeting prior to recording the lien. (Civ. Code §5673
.) Confidentiality is maintained by referencing units/lots by their assessor's parcel number
Delinquency reports should also be on the agenda for executive session
meetings. Once an owner is delinquent by at least $1,800 or the
delinquency is at least twelve months old, the board can initiate
foreclosure proceedings. (Civ. Code §5720(b)(2)
The vote must be held in executive session and recorded in the minutes
of the next open meeting. As with liens, boards maintain confidentiality
by using the assessor's parcel number to identify the property. (Civ. Code §5705(c)
: Associations needing legal assistance can contact us
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