Community Association Governance

Governing Documents, CC&Rs, Bylaws, Rules and Regulations

Business Judgment Rule Protections Can Vanish Amid Conflicts of Interest

Conflicts of interest can strip board members of the protections they otherwise might have under the business judgment rule. A case involving a California HOA recently drove that point home. “The case really demonstrates the limits of the business judgment rule and how it’s very easy to step outside the limits of the law if…

3 Tips for Effective Conflict Resolution

Conflicts, whether between the board and owners or among owners themselves, are inevitable. But successful resolution isn’t. Some of our experts have advice on how managers can help their boards handle these disputes so they don’t spin out of control. 1. Focus on the facts. “You have to get rid of the emotional baggage,” says…

Closed Session Dos and Don’ts

Closed sessions are among the most frequently abused governance tools in community associations, according to Kelly Richardson, a partner in the law firm Richardson Ober De Nichilo in Pasadena, Calif. “I frequently see boards conducting discussions in closed session where the topic really should be reserved for open session,” he says. Read on for some…

Building Bridges: How to Help Divided Communities Get Along Better

Community associations that harbor acrimony and hostility are among the most difficult to manage and govern. With the country seemingly at odds more than ever, managers need to step up and do their part to promote healing in divided communities. The State of Affairs “Associations are becoming more polarized,” says Brad van Rooyen, national VP…

What Community Association Managers Worry About These Days

With COVID-19 vaccinations widely available and government restrictions dramatically loosened, community association managers have more bandwidth to deal with matters that might have been neglected during the pandemic. We asked some of our experts about the issues they were now turning their attention to. Unfortunately, while COVID concerns have receded, they’ve been replaced with a…

Don’t Get Stuck Paying Attorney’s Fees

When associations sue owners, they typically rely on language in the governing documents that provides the owner must pay the association’s costs if it prevails. But the Missouri Supreme Court recently ruled that an HOA that successfully sued an owner over unapproved construction was on the hook for its own nearly $84,000 in attorney’s fees.…

Nuisance Provisions Can Help Curb Behaviors That Go Beyond Mere Annoyance

It’s one thing when a tenant occasionally doesn’t clean up after his dog. It’s another, says Scott Weiss, of counsel for the Nashville, Tenn., law firm Ortale Kelley, “when you have repetitive violations of the governing documents, drug dealing, loud parties, or damage to common elements or other owners’ property.” The natural step when a…

Conflicts Kill Business Judgment Rule Protections

Conflicts of interest can strip board members of the protections they otherwise might have under the business judgment rule. A case involving a California HOA recently drove that point home (Coley v. Eskaton). “The case really demonstrates the limits of the business judgment rule and how it’s very easy to step outside the limits of…

On the Radar: Current Issues Confronting Community Association Managers

With COVID-19 vaccinations widely available and government restrictions dramatically loosened, community association managers have more bandwidth to deal with matters that might have been neglected during the pandemic. We asked some of our experts about the issues they were now turning their attention to. Unfortunately, while COVID concerns have receded, they’ve been replaced with a…

Watch the Words: HOA’s Court Victory Doesn’t Assure Recovery of Attorney’s Fees

When associations sue owners, they typically rely on language in the governing documents that provides the owner must pay the association’s costs if it prevails. But the Missouri Supreme Court recently ruled that an HOA that successfully sued an owner over unapproved construction was on the hook for its own nearly $84,000 in attorney’s fees…