Governing and overseeing the operations of an HOA is a significant responsibility for board members which can sometimes seem a bit overwhelming. In addition, some board members have never served on the board of a nonprofit corporation or have little experience overseeing the business aspects of an association. As a result, attending educational sessions can be an extremely helpful resource for directors.
The Rocky Mountain and Southern Colorado Chapters of Community Associations Institute, management companies and law firms like WLPP routinely provide education for boards. While for the most part these educational sessions are provided free of charge, sometimes there is a small fee for attendance. The Colorado Common Interest Ownership Act ("CCIOA") addresses the ability of associations to reimburse board members for educational expenses.
CCIOA, at C.R.S. 38-33.3-209.6, provides that the board of an HOA may authorize " . . . reimbursement of board members for their actual and necessary expenses incurred in attending educational meetings and seminars on responsible governance of unit owners’ associations. The course content of educational meetings and seminars shall be specific to Colorado . . ." In addition, the classes are required to reference applicable provisions of CCIOA.
Here are a few important things for boards to consider when reimbursing directors:
1. Boards should adopt a policy addressing the procedures for requesting reimbursement and requiring that reimbursements be pre-authorized by the board.
2. Boards should budget each year for reimbursement for educational expenses. In addition, boards are permitted to account for these costs as a common expense.
As always, stay tuned for more information you need to know about CCIOA!