‘Troublemaker’ Should Not Be Excluded

QUESTION: My wife and I live in an area with a property owners association. The architectural review committee reviews and approves or disapproves home plans that are submitted by owners wishing to build a home on their property.

The architectural committee and the board of directors hold secret meetings and owners are not allowed to attend unless they are invited by the president. Minutes are not available even after repeated requests. I believe that this conduct is immoral and possibly illegal. What are my options?

ANSWER: After reviewing the exchange of correspondence between you and the board president, it is clear that the board views you as a troublemaker.

Perhaps you are a “pain in the neck” for the board, but in my opinion that does not give them the right to exclude you and all the rest of the owners from their board meetings. The president is using Roberts Rules of Order in a way that stifles owner communication.

Most attorneys say that community associations are not governed by the Brown Act, which requires open meetings for city councils and other governmental bodies. However, since your property owners association is a nonprofit mutual benefit corporation, the board would be wise to publicize its meetings and allow owners to attend.

As an owner, you have a right to attend the meetings unless the board is discussing personnel issues or legal issues that might result in litigation or items that require discretion to protect the privacy of individuals.

You should be allowed to attend the meetings, although you do not have the right to participate in the discussion or disrupt the meeting in any way. Read your association bylaws to find out about the procedure for conducting board meetings.

I always advise boards to publicize their meetings and allow some time at the beginning of the meeting to hear owners’ comments or questions.

Boards that hold secret meetings are often accused of having something to hide. Your board has compounded the problem by refusing to allow you to have access to the minutes.

Now they are probably offended by your criticism and wishing that they could resolve the matter, but it has escalated to open animosity. If they are unwilling to allow access to the board meeting minutes or allow your attendance at meetings, you can take legal action. Contact a attorney to discuss your options.

Regarding architectural committee meetings, it is not unusual for committee members to meet on short notice to consider matters that must be resolved within a short period of time.

Architectural committees are often pressured to act on a moment’s notice and approve plans and improvements because the owner has already scheduled the contractors. That isn’t the way the procedure is supposed to work, but if you ever serve on an architectural committee, you will find out how difficult it is to hold scheduled public meetings.

Treasurer Has Right to Get Full Accounting

Q: I am the treasurer of my homeowner association. The management company controls the bank accounts for both the operating funds and the reserve funds. They write the checks and sign them and then provide a monthly financial statement showing income and expenses.

I have asked to see copies of the bank statements, but the manager says that the financial statement prepared by the management company has all the information that I need. Should I demand copies of the bank statement?

A: Yes. You are relying too heavily on the honesty and integrity of the management company. As a board member and the treasurer of the association, you and the rest of the directors have a responsibility to see that the funds are properly handled.

The reserve account should be under the control of board members. Here in California, two board officers or directors must sign any checks or withdrawals from reserve accounts. Board members should never remove funds from the reserve account unless approved by board action and written in the minutes.

The association should carry fidelity bond insurance on the individuals who have access to the funds. If possible, obtain a fidelity bond that also covers the manager.

Request copies of all bank statements. California law requires that the board of directors review the “account statements prepared by the financial institution where the association has its operating and reserve accounts.” For further information, go to the public library and read California Civil Code, Section 1365.

Hickenbottom is past president of the Greater Los Angeles chapter of the Community Associations Institute (CAI), a national nonprofit research and educational organization. She welcomes readers’ questions, but cannot answer them individually. Readers with questions or comments can write to her in care of “Condo Q&A;,” Box 5068, Thousand Oaks, Calif. 91360.