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Subject: TENN LAWS
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Author Messages
ElizabethI1
(Tennessee)

Posts:1


07/24/2010 10:17 AM  
We are a new HOA and the Board is over-riding all owners. I really would just like to know right now if there is a "sunshine" law in Tenn. reguarding the board meetings. The President told me they just get together and discuss the problems being a new HOA. Thank you.
DonnaS
(Tennessee)

Posts:5671


07/24/2010 12:19 PM  

Elizabeth,

Tennessee does have a Sunshine Law but it does NOT include for private association meetings, which a HOA is. You said that you are a new HOA which normally would have new governing documents (your CC&R's) Those Bylaws will spell out how your association and Board meetings are to be held. Do you have a set of documents and HAVE YOU READ THEM?

Anyhow, look under the Bylaws on members meetings also read the charter of Incorporation papers which will tell you about members and who they are. The answer given to you by the President is really an unacceptable answer. Members are those who elect Boards and this President is asking to get informed on how to run things according to rules for HOA's And NO, Tennessee does not have State laws for hOA's other than the condominium act.
StaceyQ
(Tennessee)

Posts:3


07/26/2010 6:47 AM  
Elizabeth

Do you know if your HOA has been registered with the TN Secretary of State as a Non-profit Corporation? It's quite easy to find out.

Most hoa's in TN are structured this way and there ARE TN laws which govern this type of business structure with regards to board members, meetings, records, etc.
MaryA1


Posts:0


07/26/2010 7:45 AM  
Stacey,

IMO, the nonprofit corp statutes would not include a "sunshine" law. That type law is usually reserved to public bodies and HOAs. The nonprofit corp statutes apply to corporations only.
DonnaS
(Tennessee)

Posts:5671


07/26/2010 8:13 AM  

Stacey,

The only HOA laws that the State of Tennessee have is the revised "Horizontal Property Act which was changed as on January 1st, 2009 to the Tennessee Condominium Act. Tennessee does not habe HOA laws for stand alone homes or developements. At a recent Neighborhood Watch meeting at which or County Sheriff was present, someone asked him about HOA laws of which his reply was, "There Is None"
The Non Profit Corporation laws do not address HOA's as well. We are pretty much governed by or own CC&R's and other documents written specifically for your individual HOA. So basically, if the Board is not following your docs, then it is pretty much up to the homeowners to enforce them thru legal means.
StaceyQ
(Tennessee)

Posts:3


07/26/2010 10:37 AM  
Well, I have worked about a dozen cases in a legal capacity for an attorney in Nashville over the past ten years and every single hoa was formed under the non-profit corp. act. IF the hoa forms under that structure, they must follow those bare-bones statutes. Nothing written in the CCR's can supercede those statutes. Your correct when you say there are no "hoa laws" but, like I said, if your hoa is registered with the Secretary of State as a non-profit corp., those scant statutes rule the day. The Secretary's website has a free search function to view those hoa's.

For example, there is pretty straightforward language in the statutes which state that a financial statement must be furnished to a member upon request no later than 30 days after said request. The statutes are pretty slim but they must be followed IF the hoa is registered with the state in that way.

DonnaS
(Tennessee)

Posts:5671


07/26/2010 11:10 AM  

Stacey,

You have no arguement from me on the non profit corp rules. For lack of individual HOA laws, those laws are followed but most States now have adopted specific HOA laws because of the uniqueness of HOA situations. Meetings and general governing laws are okay from the Non Profit Corp laws but joint ownership like a HOA should have it's own set of laws. Just my opinion.
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