Board Responsibilities
Q. Our association has had a do nothing board for several years. We recently had an election and most of the board has been replaced. We are facing neglected maintenance issues and collection issues. As the new President of our association I am concerned that our new board meets all its responsibilities. Is there somewhere I can get information or courses that can help me? We would welcome any suggestions.
A. We applaud your volunteerism and desire to get your association on the right track. There are a number of resources that are available to association board members. We have seen that some of the most frequent complaints from owners in associations is lack of action or secretive actions by their boards. Under current statutes governing the operations of community associations, it is not proper to conduct business “behind closed doors”, unless it specifically qualifies for executive session discussion which is outlined in the statutes mentioned below.
First you need to get a copy of all documents which have been recorded which affect your association. This includes the declaration, bylaws (for condominiums), plats, and plans (for condominiums). Also there are likely to be architectural guidelines (for Home Owners’ Associations) and rules and regulations – these are generally not recorded documents. We find that many times boards do not have access to all relevant documents, especially plats. A title update from the time of the formation of the association will insure that you have all recorded documents and amendments to those documents.
Second, you need to obtain a copy of either the Virginia Condominium Act or the Virginia Property Owners Association Act depending on the type of association of which you are a member. Both are available on the Virginia General Assembly web site. You will also want to download the Nonstock Corporation Act while you are on the site if your association is incorporated. If you would rather have printed copies, contact the Department of Professional and Occupational Regulation, Post Office Box 11066, Richmond, Virginia 23230.
The third is to contact the Community Associations Institute (www.caionline.org) or at 888-CAI-4321 to join that organization and to obtain a copy of a catalog of educational materials. CAI is the largest organization in the United States serving the interests of community association members and the professionals that serve them.
There is also a local chapter of CAI that is at 757-558-8128 or www.sevacai.org. The local chapter sponsors regular seminars on various topics related to community associations. It also holds an annual CA DAY that will be held this year on Saturday, March 31. This one day gathering covers a variety of topics and a chance to meet with both service providers and other homeowners in community associations.
The fourth step is to have your association board meet with the professionals that serve you – your manager, attorney and accountant. This will give all of you an opportunity to become informed about some historical matters which will likely dictate some of your needs for current action.
This meeting should be followed by a series of board meetings to review your current contracts with various vendors, the current state of your finances, common area maintenance, rules enforcement and other issues which may have been brought to your attention by the professionals. Be sure to follow the rules and post a proper notice to all homeowners of all board meetings. They are entitled to attend, but not participate beyond the brief owners’ forum which is required to be included on the agenda at each board meeting.
By combining the outside resources that are available with the ones you have within the association, you should be able to acquire the knowledge that you and the other board members will need to learn about your fiduciary duties and responsibilities and to fulfill those responsibilities.
You can learn more about this and other association topics at an all day event sponsored by the Community Associations Institute which will be held on Saturday, March 31, 2007 at the Chesapeake Conference Center. This one day event covers a variety of topics and a chance to meet with both vendors and other homeowners in community associations. More information can be obtained by calling the local chapter at 757-558-8128 or checking the CAI website at www.sevacai.org.