Recall elections of individual Board members or of the entire Board are a source of great contention, divide and added expense for HOA’s. Prior to the passage of SB 323, which took effect January 1, 2020, recall petitions and elections were already complicated. To add to this complexity, since SB…
Articles Posted in Boards of Directors
Re-Opening HOA Facilities on an Honor System
We have previously blogged about successfully re-opening the common area amenities during the COVID-19 pandemic. Homeowner Associations (HOAs) are tasked with various responsibilities, including the health and safety of their memberships. California has made it clear that all businesses and facilities must follow the industry guidance to reduce the risk…
The Business Judgment Rule: Inapplicable as to Decisions Made Under a Material Conflict of Interest
*New Case Law Under the Business Judgment Rule, volunteer directors are shielded from liability for decisions made when those decisions are (1) consistent with the director’s duties, (2) made in good faith, and (3) in a manner it believes to be in the best interests of the HOA and its…
Damage to Party Walls – Who is Responsible?
*Asked & Answered Asked – Our association has two homeowners that have requested the association’s intervention to assist with resolving a dispute that has arose from damage to a shared wall. Should the Board get involved? Does the Association have any responsibility to cover the cost to repair the shared wall?…
The Rule of Judicial Deference: Protecting HOA Decisions Based on Reasonable Investigation and Made in Good Faith.
*Unpublished Opinion Volunteer officers and directors of a common interest development (“HOA”) are required to make decisions which often have significant legal and financial implications for the HOA and its membership. Because they are unpaid volunteers, officers and directors are afforded certain protections against personal liability similar to those afforded…
Managing the Coronavirus – A Discussion of Preliminary Board Concerns
Over the last few business days, our firm has received several calls regarding the Coronavirus (COVID – 19). We understand the obstacles created by COVID – 19 because successful association governance depends upon engaged community involvement and personal interaction. The purpose of this blog post is to provide a brief…
Overzealous Board Members: Understanding the Scope of the Board’s Authority to Enforce the Governing Documents
Homeowners associations (“HOAs”) are governed by a group of volunteer members known as a “Board of Directors” (“Board”). Their primary responsibilities include: (1) managing the common areas, (2) managing the HOA’s finances, (3) setting policies to assist in the operation of the HOA, and (4) enforcing those policies along with…
Workplace Harassment in a HOA Environment
*New Library Article! Workplace harassment and hostile work environments are nothing new for management professionals. Emotionally charged conversations can become uncomfortable and antagonistic for many managers. Unfortunately, such dialogue frequently crosses the line from demanding direction to demeaning personal attacks. Previously, employer liability for employee claims based on nonemployee conduct…
Recent California Court of Appeal Ruling Limits Anti-SLAPP Protection for Actions by Board of Directors
*Unpublished Opinion The recent unpublished opinion of Chemers v. Quail Hill Community Association et al. (2018) shines some light on the oft-misunderstood California Anti-SLAPP statute and its effectiveness as a defense for actions by a homeowners association’s board of directors. The Fourth District California Court of Appeal held that certain…
AB 2912: New Protections Against the Misuse of HOA Funds
*New Library Article! Assembly Bill 2912 (“AB 2912”) was recently enacted by the California Legislature. Its changes to the law, which take effect January 1, 2019, are intended “to protect owners in a [HOA] from fraudulent activity by those entrusted with the management of the [HOA’s] finances.” To that end,…