šŸ’¬ Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚔ Takes 30 seconds

Already a member? Log in

LoriS4 (Florida)
Posts: 1
Posted:
Is a homeowner's membership or dues payment into an HOA
equivalent to membership in a corporation ? Are we
stockholders ?

What I don't understand is - if we are all members of
this association and the payment of lack of payment or
foeclosures is a part of doing business - why is it these
discussions have to be private ? Are we all members /
shareholders of this corporation and should business be
opnely discussed in a factual matter - I just don't get
the secrecy behind executive sessions prior to litigation.

Please explain.

L
JanetB2 (Colorado)
Posts: 4,219
Posted:
Meetings should be open except for potentially as stated in the following statute. This is to protect certain attorney-client privilege information. Also, certain records are not made available to everyone because they will fall under Federal Laws / State Laws protecting privacy. Keep in mind until a court case is filed, anything prior is privilege information and not public information. Once a court case is filed it then in many states it becomes public.

ā€ƒ720.303 Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls.—

ā€ƒ(2)BOARD MEETINGS.—

ā€ƒ(a)A meeting of the board of directors of an association occurs whenever a quorum of the board gathers to conduct association business. All meetings of the board must be open to all members except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege. The provisions of this subsection shall also apply to the meetings of any committee or other similar body when a final decision will be made regarding the expenditure of association funds and to meetings of anybody vested with the power to approve or disapprove architectural decisions with respect to a specific parcel of residential property owned by a member of the community.

I know it can be frustrating; however, keep in mind if you were in a situation you would want certain items potentially kept confidential.
ThomasD2 (California)
Posts: 208
Posted:
I am not as good as many here on quoting Davis-Stirling, but I know that except under very special circumstances meetings concerning HOA business have to be announced and open. And just because your HOA may be incorporated does not mean it has shares of stock like a public company. I know that if my own HOA had shares of stock Jim Cramer would certainly say "Sell, sell, sell!" Booyah, Tom
SusanW1 (Michigan)
Posts: 5,202
Posted:
No - you are not stockholders corporation. (Look at an Articles of Incorporation form; it asks what kind of corporation you are forming)

You are a member corporation, headed by an elected board which serves the non profit corporation, designated by the IRS as such.

Brush up on your non-profit corporation laws and you will see the "structure" of the corporation.

Your state also has some pretty extensive governing documents that deal with HOAs, too.

šŸŽÆ You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • āœ“ Ask follow-up questions
  • āœ“ Share your experience
  • āœ“ Get expert advice
  • āœ“ Access 350,000 discussions
Create Free Account →

⚔ Takes 30 seconds

Already a member? Log in here