Rent Real EstateAsk the HOA Expert
Question: One of our board members, also the newsletter editor, was recently out voted 6 to 1 on a motion. She recently published an editorial in the newsletter criticising the board"s decision and for over a month continues to bring up new objections. Advice?
Answer: The association newsletter is not the proper forum for airing grievances, especially for a board member. She should be warned not to repeat it or be removed from this position which she is clearly using to undermine the board"s decision. If she decides to continue her campaign privately, it"s appropriate to ask for or force her resignation from the board.
HOAs are representative democracies and as such, majority rules. That means someone may not always get their way. If this director can"t work within the system as designed, she should not participate. She, of course, is entirely entitled to her opinion...just not in the way she goes about making it known.
Question: Can Board Members who are absent from a regular board meeting, give a proxy to another Board Member to vote on matters before the board at the meeting?
Answer: While proxies are allowable at the Annual Homeowner Meeting, they are not allowed at board meetings unless the governing documents say so. If not, only directors present at the meeting may participate and vote.
Question: The board overspent the operating budget due to unforeseen circumstances so took money from the reserves to cover the shortfall. Do we have an obligation to pay it back?
Answer: Reserves are intended solely for capital repairs and replacements according to the IRS. They are not a slush fund for operating budget shortfalls. While seasonal demand and emergencies may require a temporary loan from reserves, the money needs to be repaid. As of January 2002, Oregon law requires that the board must approve a resolution authorizing the loan that includes a reasonable repayment plan. Other states may have different statutorial requirements but reserves, as a general rule, should be spent only for what they were intended.
Question: What rights do homeowners have to see ballots cast at the annual meeting? We have a homeowner who is demanding to see the votes and some feel uncomfortable with that.
Answer: Unless the vote is handled by a motion to approve the slate of candidates by acclamation (unanimous vote), ballots should be kept secret. But someone (not running for election) has to count them. Why not appoint this person to the election committee to assist in ballot counting? Kills two birds with one stone.
For more information on this subject, see www.Regenesis.net.