New Open Board Meeting Legislation

Started by BeegeeM • 5 replies • 1829 views

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BeegeeM (Texas)
Posts: 6

Posted:

I have been advised that the Board must consider all of the following in an "open meeting" in front of the membership:

Fines
Damage Assessments
Foreclosure Initiation
Enforcement Actions
Appeals from an ACC denial

However, our current management company is saying that we do not have to consider these things in an open meeting and these things must be discussed specifically in an "executive session". Without breaking the new legislation how do we know what we can and cannot discuss in an executive session and what must be discussed in our open meeting?

Thanks,
Beegee

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I believe in openness/candidness so my answer is that all things can/must/should be discusseed in the open but prior to legal action, then only discussed in general.

Example 1:

Statement: 10% of our members are deliquent in their dues and we are working to collect such.

Question: Who is deliquent?

Example 2:

Statement: We have to address/clarify this issue as we have a member threatening legal action about it.

Question. Who is threatening?

TimB4 (Tennessee)
Posts: 21,046

Posted:

BeeGee,

That is only partially correct.

Per the language in in HB 2761 the Association is required to have open meetings. However, the board may go into executive session to discuss those things. Additionally, since some of those issues (fines, delinquent accounts, etc.) may be considered private, the board may have use executive sessions.

Note, executive session is entered into and returned to an open meeting.
Example of minutes of a meeting for the purpose of fines:

Board opens meeting
Quorum is present
Approval of past minutes
Board adjourns to executive session to discuss infraction of . . . .
Board returned from executive session.
Motion to fine made by, seconded by, passed by a vote of x to x.
The (President, Secretary, treasurer, etc.) will notify the member of the ruling by certified mail.
Meeting is adjourned.

I only found a link to H.B. No. 2761. I don't think the TX legislature has updated that statute on their website yet.

Tim

JohnC46 (South Carolina)
Posts: 14,265

Posted:

EDIT

What I was trying to say was that I would not discuss actual names in public unless some "legal" action has been taken.

The fact that someone has threatened to sue over an issue should not prevent openly discussing the issue just do not name names. Once sued then I say make it public who is suing and what they are claiming is fine.

The fact that dues are say 20% behind does not mean name those behind but open discussion on how to get the dues up to date is fine. I say if a lien is filed then make it publically known who the lien was placed against is fine.

While I see and understand the use of Executive Session it is one thing people get uptight about as they think the BOD is hiding things and if trust is already an issue it gets only worse. Be very careful in your use of such.

To explain the use of Executive Session I used to give the following example. We want to discuss changing/renegotiating our landscapering firm contract but one of the landscapers employees is a homeowner here and has the right to attend BOD meetings as do all homeowners. Thus he could report back our discussions and place us at a disadvantage.

To repeat. Be very careful in your use of Executive Session especially when there are already claims of "hiding" things.

JM10 (California)
Posts: 503

Posted:

Things that are public knowledge should be fine to discuss, but it depends upon your state.

I feel transparency is important. To give a good example of how meetings should address executive session issues, look at the legislative bodies (public). In California, the common interest development civil codes were based on the sunshine laws.

I looked at the local community college meeting minutes (also your city government) and this is how things should be written up and unless your city is super corrupt (like Bell in Southern California), then the meetings should also give you a good idea of how open meetings should be run.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

We always discussed these items openly. It is every owner's rights to know how their money is spent and how the board manages it. Owners are stockholders and have the right to know the good and bad. We just did NOT mention people's name but refer to their LOT numbers. Only the board got a copy of collection reports but every one got an expense report. Collection reports could cause vigilantism if not handled properly but were discussed in front of every one sans names...

My best advice ever got was that as a board/President of a HOA was that the money of the HOA is NOT my money but ALL money. That means it is an open checkbook for all the members to see. Trying to keep it under control as to what you view isn't the way a HOA needs to work. It has to be a democracy as best as that can work...

Former HOA President

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