Governance

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My son’s latest obsession is chess. He joined the chess club at school, got a new chessboard, downloaded chess apps to all the electronics he could get his hands on, and started reading strategy books. On a snow day like today, it’s no surprise that we’re spending part of the time playing chess. In the midst of our moves, I can’t help but think how the game of chess translates to the business of community associations. Whether in chess or association decision-making, the following tips come in handy:

Know the moves. Chess involves a finite number of pieces, and the basic moves are easy enough to learn. As a board member, the “pieces” and moves at your disposal are much more numerous and complex. You will need to understand the moves available to you under your association’s governing documents. You’ll also consider what the association’s budget can support, the politics and dynamics of the community, options presented by vendors, and advice from attorneys, engineers, accountants and management.Continue Reading Does Your Association Board Operate Like a Chess Master?

As many of you have heard, there is a new collection option called G.A.P. ("Guaranteed Assessment Program") being marketed to associations throughout Colorado. It’s presented as insurance that pays the association a portion of assessment fees in exchange for a yearly premium based on a percentage of the association’s annual budget and associated risk. At first glance, this may seem like a cost effective and innovative way to collect delinquent assessment fees. However, when exercising your due diligence, here are some things that your board of directors should consider:Continue Reading G.A.P. Insurance: Exercise your Due Diligence before Signing Up

Have you heard the story of the community association members who knew one of their board candidates was convicted of a felony related to fraud or embezzlement yet elected that person anyway? Did you hear the part about how that board member later ran off with a substantial amount of the association’s funds? Maybe it’s just an urban legend among community association professionals. Or maybe it’s true. Either way, how does your association help to ensure the election of board members who will represent the association’s best interests?

As community association lawyers, we often get questions about how to place limitations on who can serve on an association’s board of directors. Sometimes boards do not want to allow owners with delinquent accounts to serve on the board. Other times, board members know that a person with a criminal record intends to run for the board. In other situations, current board members want to prevent people with different viewpoints from getting elected to the board.Continue Reading Don’t Elect the Convicted Felon

Nearly every time someone asks us a question regarding their association’s obligations, their individual duties, the proper method of taking action, or virtually anything related to association activity and governance, we begin our answer with, "Well, it all depends on your documents."

Of course, certain things are dictated by law, but more often than not, your documents spell out the detailed issues that aren’t specifically addressed by statute. Your documents – your Declaration, Bylaws, Articles of Incorporation, Rules, and Policies – dictate how your association must respond to various situations. If you want to hold a special meeting – look to your Bylaws. If you want to know how many directors you need to have – look to your Articles of Incorporation and Bylaws. If you want to know whether you are responsible for maintenance – look to your Declaration.

Unfortunately, some documents can be awful.Continue Reading Are Your Documents Awful?

Have you ever had an opportunity to review minutes of a meeting, and from what is written, you are able to create a mental picture of who was actually speaking and what they were saying? Not only that, from the words written, you can glean the emotion with which everything was said and delivered. That’s all well and good for writing a novel, but it is the exact opposite of what should be done when preparing minutes.

Minutes should be minutes, not hours. That’s what we say when we are provided with a copy of the minutes of a board meeting or members’ meeting and they go on for pages and pages, with a transcription of everything said and the demeanor in which it was said.Continue Reading Minutes Should Be Minutes, Not Hours

In my posting yesterday, I blogged on 2012 New Year Resolutions for directors of HOAs with an emphasis on their personal development as leaders of their communities. In that posting, I invited board members to provide me with governance topics they would like us to blog on. One of the first responses I received was a great one that dealt with the often misunderstood topic of executive sessions. Continue Reading HOA Boards and Executive Session: What You Need to Know

Last year at this time, I blogged on recommended New Year Resolutions for HOA boards. In that posting, I focused on boards taking a serious look at the fiscal health of their communities and their plans to fund reserves. While that posting was based upon policy issues, I thought it would be worthwhile this year to address the individual development of directors with a focus upon excellence. With that in mind, here are some New Year Resolutions directors of homeowners’ associations (“HOAs”) may want to consider:Continue Reading 2012 New Year Resolutions for HOA Directors

Back in 2005, the Colorado General Assembly passed Senate Bill 100 which requires that every homeowners’ association (“HOA”) in Colorado must adopt 8 Responsible Governance Policies. Since that time, an additional policy has been added to the mix and the requirement for the “conflicts of interest” policy has been further refined. 

As a reminder, here are the 9 Responsible Governance Policies each HOA must adopt and comply with: Continue Reading 2012 HOA To Do List Reminder: Review and Comply with Responsible Governance Policies

On a yearly basis, the boards of homeowners’ associations (“HOAs”) are faced with making important and sometimes costly decisions on behalf of the communities they govern. When retaining the services of professionals and vendors to provide services for your association – it’s essential to exercise due diligence to ensure your association is properly protected. Here are some important reminders:Continue Reading 2012 HOA To Do List: Exercise Due Diligence Before Executing Contracts