Our board is considering renting our common area for film shoots. We
have done this twice in the past with disastrous results of massive
intrusion and abuse of our lovely pools and clubhouse, and cars and
trucks and food preparation and consumption. We own 1/240th of the
common areas. We are nonprofit also! Does the board have the right to
rent it out without a majority vote?
: Just because an association is
nonprofit does not mean it is prohibited from receiving income
from sources other than
assessments. The most common non-assessment income for HOAs is from interest on reserves, clubhouse rentals, laundry
machines, etc. That means an association can derive income from filming in the common areas.
. Although you own a portion of the common areas, the membership's authority
over the common area is quite limited. Your duly elected
representatives (your board of directors) oversee the common areas. As
such they have authority to rent them out if they believe doing so
benefits the association. The challenge is balancing the net after-tax
income against the inconvenience of a film shoot.
I've learned from past film projects involving movies, TV shows and
commercials that they take longer than the company claims and the film
crews (and their hoards of support staff) trample everything in sight.
As a result, I prepare "Film Agreements" to protect my clients from the
negligence that seems to surround some (but not all) production
Associations that allow filming should have legal counsel prepare an
agreement to address filming dates and times, protection of the
association's name and image, potential damage and injuries, hold
harmless and indemnity provisions, and insurance. If done properly,
filming can produce significant income for the association with only
moderate inconvenience. If done improperly, filming can be a major
: Associations needing legal assistance can contact us
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