‘Dictator’ Makes the Decisions for Resort Board

QUESTION: I own property in a ski resort area in Northern California where most of the owners have other homes for their primary residence. Even though I am on the board of the homeowners association, a lot of decisions are being made by one of the board members (a full-time resident) acting on her own without prior board authorization. At each quarterly board meeting, we learn about more unauthorized decisions.

Her decisions sometimes affect the level of comfort and enjoyment of our owners, such as the cancellation of contracts or services. Since a large number of owners are only here for short intervals, they are either unaware that this board member is acting alone or they feel powerless to stop her. Other board members either support her actions or do not wish to confront her since it hasn’t helped in the past. By the way, she even controls the content of the minutes since she is the secretary. What can I do?

ANSWER: A community association is supposed to be a democracy. In a democracy, people have the right to opt for non-participation. In the situation you describe, the democratic process is slipping because of this lack of participation, and your association is on the fast train to dictatorship--and it isn’t even the president who is the dictator!

First, every board of directors should have directors’ and officers’ liability insurance. Many CC&Rs; (covenants, conditions and restrictions) require it.

Second, you need to determine how much support you will have when you challenge “the dictator.” If you do not have support from other board members and homeowners, you may want to resign in order to protect yourself from liability.

Remember that all board members may be liable for the mistakes of one board member, especially if those mistakes are challenged by an irate owner. If you decide that you want to continue to be on the board, you may want to consult your CC&Rs; to see if the documents specify how to remove an errant board member. If your association is incorporated, the California Nonprofit Corporation Code, Section 7222, also stipulates methods of removal.

Finally, you should insist that the board meeting minutes reflect your disagreement with any action that has been taken without proper authority. You may want to consult an attorney.

10-Year-Old CC&Rs; May Need Updating

Q: I live in a condo development (149 units) in Oceanside. Ten years have gone by and we haven’t revised our CC&Rs.; They reflect what the developers wanted. Since they are out of the picture, shouldn’t our association make a complete revision?

A committee has been formed to review the CC&Rs; and bylaws and make recommendations for revisions. I would appreciate learning about any literature or guidelines that would be helpful to us.

A: After 10 years, your documents probably warrant a review and may need revision. If only a few sections require changes, I would urge you not to start over but to simply amend the portions that are outdated.

Consult the California Civil Code, sections 1355 and 1356, that govern amending association documents. Seek the guidance of your association attorney before you begin, and rely upon the attorney for the actual wording of the amendments and the approval process. If member approval, notification and recording is not done properly, the amendments will likely be invalid.

Community Associations Institute provides an information packet entitled “Amending Your Bylaws” that tells how other associations have successfully amended their bylaws.

It is available from CAI at a cost of $10 for members or $15 for non-members. For a limited time, CAI will extend the member rate to Condo Q&A; readers. Just send your $10 check made out to CAI--Greater L.A. Chapter, to this address: “Amending Your Bylaws,” CAI, P.O. Box 84303, Los Angeles 90073. Allow four weeks for processing and mailing.

Furniture Paint Color Rule Termed Frivolous

Q: Our condominium complex has just been painted white, and the board has issued a new set of rules and regulations, one of which specifies that all patio furniture must be white. However, this rule applies only to half the members whose private patios are visible from the street. Owners whose patios face the back (which includes all members of the board) have no color restriction for their patio furniture. How frivolous can a board be when making new rules?

A: A board should never be frivolous. Your board probably thinks that this new rule is perfectly fine, but in your opinion their action is frivolous.

Rules should always serve the common good and benefit the association. Here is what I recommend to boards that are contemplating adopting rules. The following questions should be considered:

1. Is it the proposed rule legal?

2. Does the board have the authority to adopt rules?

3. Is the proposed rule needed?

4. Is it reasonable and fair?

5. Is it enforceable?

If all these questions can be answered affirmatively, then, after deciding on the clear and concise wording of the rule, the board should notify the owners of the proposed rule.

Then owners should be given an opportunity to give feedback to the board before the rule is adopted. The board should seek this input in order to remove opposition and build consensus. Many associations hold a hearing before adopting any new rule or policy.

If the board votes to adopt the rule, abide by the legal documents’ specifications for the notification of owners and residents. Be sure to provide ample notice and clearly state when the rule takes effect.

Did your board make prudent decisions when adopting the “white patio furniture rule”? Did the owners have an opportunity to give their opinions about this rule? If not, the board may have a tough time enforcing it. If you cannot abide by this rule, request an open hearing where you and the rest of the unhappy owners can talk with the board about it.

Readers with questions or comments can write to her in care of “Condo Q&A;,” CAI, P.O. Box 84303, Los Angeles 90073.