Kimberly
Once again Vision community managers have no idea what they are talking about. While SB2298 was signed by the governor it is not effective until 90 days after the legislative session ends. Additionally, if the streets were city property they cannot be given to the community. The declarant can and did own the land under the streets and dedicated the streets to the city when he developed the land. That is irreversible. Under the current law the association loses the ability to regulate the streets if they record a revision to the declaration. Most HOA attorneys argue that the language in the law only applies to new communities because that works in their favor but that is not what it actually says. The new bill will allow any association to hold a vote of the membership to determine if they want the association to continue regulating the streets. While a far cry from what this bill started out as and what we wanted the legislature was not willing to go that far and ban all control of streets not owned by the association. Once that bill becomes law and in effect your community will have to vote on the issue. My advice is to start working and getting sentiment of all your neighbors to support the ending of association control of city streets. Your associations and Vision’s irrational and inconsiderate application of the restriction should actually work in your favor.
The bill has a deadline and you can bet that the association will try and use that deadline to their advantage to maintain their control as long as possible. Please remember that you have the power to call for a meeting of the members to vote on the issue. But you must make sure that you have enough votes to end the control. You only get one shot at the issue if a vote is held and the majority of those voting approves retaining control over your streets the issue is permanent and under the new law can never be revisited.

Dennis

Jamie,

Such a practice is not illegal only because there is no specific law preventing it. Corporate law allows for these social events as a business expense and most if not all of these communities are incorporated as a non-profit corporation. But it is totally inappropriate for the association to use community funds for social activity that is not available to all members. While these communities are incorporated for convenience, they are in no way normal corporation as their entire income arises out of assessments on the homeowners to pay for the expenses of the community to maintain common property and manage the affairs of the association. Your articles of incorporation most typically have a provision that prevents any association funds from being used for the benefit of any individual homeowner including board members. If the board wanted to provide alcohol for this event at their own personal expense it would be totally appropriate.

Dennis

Hello, Dennis.

I called the liquor control board to have my question answered, as Mr. Mangan did not respond to my email.

The duty officer confirmed that only board officers need to be named on the liquor license. Directors who do not hold an officer title are not required to be listed and therefore avoid the intrusive fingerprinting and background check. Thought this information might be helpful to other people.

Thanks,
Ann

DPK
The association has the right to assess the members for their normal operating budget and to account for their contributions for the general or specific reserves. A sidewalk assessment must be deposited in a reserve account to be used only for sidewalk repairs. They can have any number of reserve accounts, but reserve account money cannot be intermingled with operating accounts. Some associations have borrowed from reserve accounts to address unexpected operating expenses and then paid that back the following year from the operating budget. As none profit corporations, they cannot make a profit and when they use reserve money to coverup a total lack of control over their operating budget they can and will get in trouble by the IRS. The sidewalk fund is simply being used as a slush fund that allows the association to ignore any proper budgeting consideration of diligence.
The association only has the right to assess the owners what they predict they need to run the association for a year. They can establish any number of reserve accounts but must dedicate those accounts only to the stated purpose of that account. See the IRS rules for filing Form 1020 or 10209H, relative to reserve accounts and taxable income.

Dennis

Fred,

Everything in this statement is correct and normal except for one issue. If the board decides to increase the number of board positions, they are never allowed to appoint that position. New board position must always be elected by the members. The board can fill vacancies for the remaining term of an existing position but not a newly created position. The appointment of a board member to fill a position that was never elected by the members would violate state law.
The concept of allowing the members to decide the term limit for the new position simply places that position in the rotation with the other directors. The board is free to add positions within the limits specified in the bylaws but they must be elected and the members decide how this new position will fit in the rotation of three year terms.

Dennis

Newly elected board members take their positions at the end of the members meeting where they were elected, and the existing board member’s term end at that meeting. Any other interpretation of these provisions would be illogical and force other specific provision to be meaningless. Clearly the language relevant to the first meeting of the board is confusing at best, but that provision is usually relevant to the election of officer positions for the newly elected board and does not in any way extend the term of the previous sitting board members. In all cases when a new board member is elected the term for the sitting board member terminates. There is no relevant provision for inauguration in Common interest law.
Dennis

Priscilla

For the board to hold an informal workshop they must comply with the open meeting laws and notice that meeting at least 48 hours prior and allow any member to come and participate. If they do that, then it is consider a formal meeting of the board and they can take action, whether they call it that or not.

Dennis

If you qualify to use that form than you are entitled to file under those provisions of the IRS code otherwise you must file form 1120. HOA’s are one of the few organizations that are allowed to file their taxes under two separate sections of the IRS code.
Dennis

I am not sure that ANY homeowner wants to litigate. First, there are many other things to spend our money on. Second, there are many other things we would like our HOA dues spent on. Like you said, the homeowner loses. It is time consuming and an emotional drain.

Unfortunately, many homeowners must resort to filing a small claims case or ADRE as a means to talk to their Board. When emails were ignored and requests for a hearing at an open meeting were denied, I took my issue to Small Claims Court and was made whole. I do not regret this as I saw no other way.

Whether it is small claims court, or ADRE, Boards should look at this as an opportunity to connect with their homeowners. Meet and resolve the issue. Small Claims court and ADRE can be dropped as resolved, with no guilt needing to be admitted by either party. Boards need to realize that taking an action like this is a cry to be heard. When the homeowner can represent themselves in both Small Claims Court and ADRE, it is very wasteful that Boards can spend homeowner dues on lawyers to defend their actions. The Board is who takes this to litigation, the homeowner often wants mediation.

Many homeowners back down and let another fight the battle against a rogue tyrannical Board. I know I let Mr. Fish do this fight for me. I grew tired of the attacks by the Board. I am sure the current Board members watch these posts……they are as much at fault, if not more, as they have the choice to litigate or not, a choice to use HOA dollars to defend actions they should defend themselves or simply to mediate with the homeowner. If Boards want to heal the community, they have the power to do so. Yes, they can have you come to an Open Board meeting and help this.

The new board