Author Archive for Carl Buellwinkle

15
May
11

Do Community Associations Need Proper D & O Coverage?

Directors and Officers liability coverage insurance is needed so Board members don’t worry about their personal assets being at risk. Board members volunteer their time. They take on the responsibility to make decisions for the association. Board members are required to interpret the association’s governing documents. They have a fiduciary duty to make decisions that they believe to be in the best interest of the association.
Even with the best intent sometimes these decisions can lead to lawsuits alleging breach of contract.
A good D & O policy will protect the homeowner association Board members. Have your insurance agent meet with the Board and review the D & O coverage so eveyone sleeps at night….

12
Mar
11

Is an association required to make disclosures to prospective buyers?

No. a recent California Appellate Court decision confirmed that an association’s disclosure obligation is to the owner. Associations should only provide information to the owner, who may be required to provide that information to the buyer. If an association does make disclosure to the buyer, and if the information is wrong, the association could be held responsible.

12
Mar
11

Do board members get to ignore the rules?

No! Board members do not get to ignore the rules. They are tasked with enforcing the association rules. They need to set a good example by carefully following all the rules. They do have the power to change rules but they must follow all the rules like all homeowners..

17
Jan
11

THE FORECLOSURE NIGHTMARE…

Currently many banks have issued foreclosure suspensions. What does this mean to the HOA?
This means the homeowner can live in the condo or home for free. They have stopped paying the mortgage and then they have stopped paying the monthly homeowner assessment. In the past the HOA could expect a speedy foreclosure process by the bank resulting in the HOA getting paid the monthly assessments.
Now the HOA must pursue the foreclosure themselves. This is the quickest and cheapest alternative. The homeowner will quickly realize that to stay in the home they must pay the assessment with the savings from not paying the mortgage. Then the homeowner can wait and see what the bank will do.
The HOA’s can break the foreclosure suspensions. They have no choice!!!

12
Dec
10

Can an Association pay for lunch or dinner for the Board of Directors?

If the Board members are given lunch or dinner or are reimbursed they are not considered paid Board members. Board members are volunteers and at times miss meals to attend Board meetings. If they are fed they are likely to not be distracted by being hungry and can focus on the business at hand. Patience is improved and they make better business decisions.

12
Dec
10

Campaign Ballots

Is it appropriate for the Board of Directors ro send out recommendations to the members as to which way to vote?
Boards can send out factual information about ballot proposals but not their recommendations. To maintain fairness the election material mailed to the members must remain neutral.
Apart from the official mailing Board members have the right to campaign at their own expense. They can support or oppose candidates, amendments, assessments, etc. It is not recommended that they use association funds.

10
Oct
10

No Quorum = No Election?

If you have no quorum at the annual meeting, you have no election?
Correct!
Without a quorum there is no meeting. The ballots received by the inspector of elections shall be treated as a member present at a meeting for purposes of establishing a quorum.
You must then refer to the By-Laws to follow the procedure for adjourned annual meeting when there is no quorum present.




Pan American