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Can board members of home owners association be sued individually?
Wiki User
∙ 11y ago
Yes, in some cases.
The first task is to identify the section(s) of the governing documents that board members violated, and produce proof that the parties have attempted to work through their differences given the processes described therein, and in the state law that covers your type of association.
Most associations carry master insurance policies with Directors and Officer's (D&O) coverage.
When the board is sued, and when D&O coverage is in place, often the D&O coverage provides for hiring counsel for the board. Upon further investigation, when/if during the discovery process, valid evidence shows that board members have acted outside the boundaries of their governing documents and state law or have violated them, the D&O coverage may not cover the situation -- for counsel or for judgement amounts.
Depending on the D&O coverage, board members individually may or may not be covered.
Finally, your counsel can advise you as to the wording of your complaint, and whether or not you can/should include board members personally as named defendants in your suit -- or not, depending on the situation.
NB: Be aware that if you bring suit, and you lose, you will be responsible not only for your fees and expenses, but for the board's fees and expenses spent to defend itself in your matter.
Wiki User
∙ 11y ago
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Can home owners association board exempt themselves from new rule they created?
No. The association board members, presumed to be owners in the association, are governed by the CC&Rs, the By-laws and the rules the same way all owners are governed. Often, sadly, board members choose to ignore these agreements that they make with all other owners, especially when they are elected by members. Read your governing documents to determine how to gather owners to collaborate with each other to document rules violations by board members and keep that documentation in board meeting minutes. Sheding light on these issues, sometimes is curative.
Owners and board members don't agree?
Often owners and board members don't agree. Your governing documents that bind the conduct of the board and all the members of the association (owners) indicate in some way how issues are to be handled. Note that members (owners) elect board members, and there are some issues upon which only board members -- not owners -- vote. If owners want to overturn a board vote, your governing documents may describe a percentage of owners who can vote to overrule a board vote. Sometimes this is a simple majority, sometimes a plurality is required and other times a vote must be a 'super-majority'. Owners in opposition to a board vote can educate themselves about how to bring the issue back to the board meeting agenda and vote to overrule the board's vote.
Can someone be on the board of the home-owners association if they do NOT even live in the complex?
It depends on the rules and bylaws of the specific home-owners association. Some associations may allow non-residents to serve on the board, while others may require board members to be residents of the complex. It is best to check the association's governing documents to determine the eligibility criteria for board membership.
Can the board president dismiss a member?
It depends on whether the member is a member of the board, or a member of the association. If, for example, the developer is the board president and has appointed a member of the board who serves at the pleasure of the developer, the developer may indeed be able to dismiss such a member. Your governing documents detail whether or not this is possible and the process by which it is completed. If a board member has been elected by the members/ owners, then no: the President board member may not dismiss another board member. Board members can only be recalled by a vote of owners. On the other hand, if owners are members and not members of the board, then, no: all owners are members of the association until their property is sold to another buyer. They cannot be dismissed by anyone. Your governing documents are clear, and if they are silent, your state law governing associations is clear about the rights of boards and their responsibilities and authorities, depending on the status of the association. As well, if the association is a corporation, state law governing that type of corporation may apply.
Do the members of the Board of Regents get paid?
Yes, members of the Board of Regents typically receive compensation for their service. The specific amount of compensation can vary depending on the institution and region. They are usually compensated for their time and expertise in overseeing the operations and policies of the institution they serve.
CAN family members be on the same condominium board?
Read your governing documents to determine the qualifications for sitting on the board. Usually, election to the board is reserved for unit owners, and each board member must own at least one unit. Ownership is represented by a 'name on the title or deed to the real property'. If each family member owns a unit, there may be no issue. If, however, the family members share the same unit, then the issue arises that each unit only has one vote, and this is true, too, of board members. Finally, it's a good idea for family members who qualify to vote individually to be able to demonstrate impartiality when voting in an association when/if multiple members occupy board seats.
What are the duties of homeowner association board members?
The association is (usually) a non-profit corporation, so board members are volunteer corporate officers. Their duties are spelled out in your governing documents. In addition, the state law defines the duties of the individual offices of corporations. State law may also define the legal responsibilities of board members. For example, in Washington State, the duties include the preservation, protection and maintenance of the real estate assets owned in common by the association's owners. The Community Association Institute publishes a series of best practices reports, which outline options for board members. These offer ideas for governance, community, and finance, all of which are the responsibility of the board. See below, for more detail from CAI.
Can you be incorporated as an HOA and your members are in the Property Owners Assoc?
If your question has to do with the legal name of the association, the Articles of Incorporation list that name. There may be an informal name used to describe the association that the board uses in informal situations, which should be used with consistency.
How can you fire your condo association?
Condominium ownership is a form of real estate ownership that provides for common areas owned by all owners who also own a unit. The association is the business of operating the community, and can be a corporation, commonly, a non-profit corporation. Every owner is given a set of governing documents -- at least CC&Rs and By-laws -- so that an owner understands the legal obligations of ownership. The By-laws detail the operation of the association, and includes the process by which leaders -- the board of directors -- are elected. As well, a recall of board members is possible and the process is also detailed in the By-laws. No, you cannot 'fire' the association. You can elect board members, and recall board members. These people can 'fire' association managers and other vendors.
If an Home Owners Association has lost it's structure can it's authority be revoked?
Your association is a legal entity, possibly a non-profit corporation. According to its governing documents, there is probably no description for the corporation having 'lost its structure'. The association, however, may have 'lost control' of its power and ability to manage the assets owned in common. If you mean that all the board members resigned, or you have fewer board members than the association needs to conduct the association's business, then it is up to the membership -- home owners -- to elect a new board, or new board members. By reading your governing documents, you can better understand the authority of the board, and how to challenge such authority. Your question is probably based more specifically on a situation that you've chosen not to include in your question. However, when the precise violation, governing failure, or arbitrary ruling can be defined, and its basis in actions described in the governing documents, the membership will be better able to understand how to move forward. Finally, your situation may require the advice of an association-savvy attorney who can help you sort it out.
Can an association board raise assessments because of an improvement without the majority vote of members?
A mid-year adjustment in budgeted amounts to annual assessments can be approved by the board, given that power written in your governing documents. Look for it to verify that such assessment adjustments are possible in your association. Usually, members of an association are offered the option to ratify any/ every budget, in which case, read your documents carefully to fully understand how members can collect to deny budget ratification. For example, the board approves a budget and notifies the members of the new budget. Unless a percentage of owners -- see your CC&Rs -- appear at the ratification meeting to oppose a budget, the budget is ratified.
Who assesses condominium owners?
Condominiums are corporations that operate living quarters, the shared exteriors and amenities for which are owned by all members of the condominium association. (The interior of the living units are owned individually). In order to operate the condominium property, individual unit owners pay monthly assessments to the association. The association uses these assessments to pay its bills, including insurance premiums, landscaping and property management services -- and more if the property has other amenities (pool, golf course, etc.), and to make a monthly contribution to reserves, which the association uses to pay to replace real estate assets at the end of the asset's useful life. The association is led by a board of directors. Part of their job is to develop an annual budget and collect assessments from every owner so that the expenses based on the budget can be paid.
