Limitations of Articles of Incorporation

I hope someone has knowledge about what limitations are placed on the board of directors by the articles of incorporation. Our association's articles of incorporation (filed with the secretary of state) state that our association has three purposes: 1) provide an owners association for the owners of land within the development 2) provide what road maintenance shall be required 3) administer the rights of the association under the CC & R's.

Sounds simple enough. Here's the catch: a former BOD procured an old fire truck from a local volunteer fire department that replaced it with a newer one. The new board, after reviewing the Articles of Incorporation, believe the fire truck is not authorized and want to sell it. Past directors, as well as a few residents, are saying the fire truck is not only legal but necessary and should not be sold. We live in a rural part of Montana and the chance of a forest or brush fire is indeed a possibility.

Since there has been no formal fire fighting training for any of the fire truck drivers(or even if there was)the board is fearful of the liability against the association should a resident be injured or killed while driving the truck or fighting a fire.

So three questions arise: 1) Based on the articles cited above can the association legally own and operate a fire truck? 2) "If" we can own and operate the truck would we(the association or BOD) have any liability for injury or death of an operator if they signed a waiver and operated the truck voluntarily? 3) Could a home owner sue the association if they felt the fire truck did not perform properly (ie: no training for operator or truck performed poorly) and their home was lost? PS: the closest "real" fire truck is 16 miles away so in all likelihood the association truck would be first on the scene.

Thanks, Bill in Montana

Thanks Kirk. What are your thoughts on wheather the association can legally own and operate a fire truck based on the articles? Some here feel we can do anything we want not prohibited by the CC & R's while others feel we follow the Articles and just maintain the roads and enforce the CC &R's. To push the envelope, so to speak, it has even been suggested that if we are going to have a fire truck we may as well get an ambulance and train some EMT's or advanced 1st aid responders. Where do you draw the line?

Bottom line after all the legal debate is that the association doesn't have enough money to maintain the roads and is voting on a special assessment this next week. It is an interesting time for our asociation. Bill

I'd have to guess that between the CCRs and ByLaws, your Board must have some powers to take actions for the "welfare" of the HOA. Please advise. But for right now, let's assume your Board arguably excercised within its authority.

Larger issues, as others have noted, include myriad liability and cost questions that must be addressed.

Last time I saw one of our local fire trucks, I was amazed at how complicated it appeared. Scores of dials, meters, tech stuff. I would also have to guess that operating one would require some serious training and possibly licensing, which also must be addressed.

Out of curiousity, how much did yours cost? And what are the maintenance costs (including insurance)? And where is it garaged? And does it carry its own water or just pump it from a local source? And...I could go on forever. This is realy fascinating.

Where do you draw the line is always a good question and only one that can be answered by the people involved. Most volunteer fire departments get started because people realize that they have inadequate fire protection. Then they realize that they also don't have adequate ambulance services.

But as you start down the road, more and more questions come around. Like what does this cost? Can we afford it? And you should consider the question: Can we share this expense?

I think you should start with gathering information first and foremost. In the meantime the fire truck should probably be maintained to protect the investment. It won't help if it isn't able to roll. And you will have a harder time selling it if that should be the decision.

But if you want a volunteer fire department, you should form one for a variety of reasons:
1) There is federal grant money available for them.
2) They qualify for many other financial benefits.
3) They have their own insurance.
4) They qualify for training.
5) They can buy other needed equipment.

In thinking of special assessments, you also need to consider the ongoing cost of all of this. But don't forget the roads since you need those to get all services to your house no matter what else happens. Have you looked into turning over the roads to the county? Consider that you already pay the county taxes for road maintenance.

Your comment, "can do anything we want not prohibited by the CC & R's"
If the CCR's don't state that YOU CAN do something, then silence is not
golden. Seems to me the Assoc. BOD would be treading on very thin ice.
Edie