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JenniferA3 (Florida)
Posts: 3
Posted:
We have a board member who has taken on promoting our property with an owned and operated website of their own. This is a personal endeavor to attract renters and buyers. The problem is this owner also seems to think they need to inform owners and potential buyers of our rules, regulations and board discussions. This individual is posting official board business discussed in board meetings before minutes have been approved. Do we have any recourse with the actions this board member is taking?
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By JenniferA3 on 04/07/2013 7:02 AM
We have a board member who has taken on promoting our property with an owned and operated website of their own. . . . This individual is posting official board business discussed in board meetings before minutes have been approved. Do we have any recourse with the actions this board member is taking?

In general, you are likely not going to be able to stop him since they have a Constitutional right to free speech (with very few limitations, like yelling fire in a crowded theater when there is no fire).

One thing to remember, every individual serving on the Board is likely wearing two or three hats. Each of those hats represent different responsibilities, authority and access. Members of this forum often bring up the difference between Directors and Officers. However, one thing to remember is that each individual is also likely a member of the Association as well.

Unless the business was done in executive session, any member would have been able to attend the meeting and know the same information as the Board (official or not). Therefore, as a member, he is allowed to tell others his understanding of the issues.

Quote:
Posted By JenniferA3 on 04/07/2013 7:02 AM

The problem is this owner also seems to think they need to inform owners and potential buyers of our rules, regulations and board discussions.

I would expect that the Board would want the members and potential buyers to be informed of the Association rules and regulations of the Association. Typically, it's the members or potential buyers (ok, Board members too) lack of knowledge and understanding of the rules/regs that causes issues. Therefore, to make sure that the information is out there should be a good thing.

As for Board discussions - since FL has an open meeting law, I defer you to the first section of my posting.

Question:

Does the Association have an official web site?

If it does, you should incorporate the rules/regs into that site.
My Association not only includes all of it's governing documents but also links to the applicable laws. We include past copies of newsletters and copies of all approved minutes. If the meetings are more than 3 months apart (like the annual) we include draft minutes as well.
Perhaps, you could see if that individual would be willing to work on the official web site.
Perhaps you could see if this individual would be willing to draft a policy resolution on what should and should not be included on the Associations website.

If it does not, perhaps this individual could be persuaded to assist in setting one up.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I think this is a situation for a little education and a change of perspective. The board member may think they are doing something "good" and they are on some level. However, they just have the wrong perspective. I would make mention that any person who is NOT an owner has no right to the information within the HOA. This isn't being "secretive" or hiding anything. It's just that one does not offer information out to people who are basically just "walking down the street".

You may want to define that distinction at a meeting. Yes, the CC&R's are PUBLIC information and available at the courthouse. However, renters are not bound to them only the owners. It is the owner's responsibility to have the rental contract state the renter has to abide the rules of the HOA. That is still information between the owner/renter to discuss and not involve the HOA.

Some people really thrive on "transparency" but don't realize that renters and potential buyers are not open to it. They are NOT members. They are not members until the owner signs that sales contract. The renter is never a member. So they can be aware of the rules of the HOA but not the financials of the HOA until they are former members.

I would put it in context of the "Walking down the street and stops to ask about the house". What information would you give that person? That is what you should post on your website for public consumption. I used to put out a brochure. Which did include the basic rules, contact information, and what your dues covered. That should be enough information for buyers/realtors.

Former HOA President
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Oops meant to say "Formal owners"...

Former HOA President
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By MelissaP1 on 04/07/2013 7:34 AM

I would make mention that any person who is NOT an owner has no right to the information within the HOA. This isn't being "secretive" or hiding anything. It's just that one does not offer information out to people who are basically just "walking down the street".

However, depending on State Laws, this information is may be required to be disclosed to potential buyers of the property and, in some States, the potential buyer has a right to refuse the deal after x days upon receiving the information if there is something in there they don't like.

Therefore, one needs to check and comply with your State laws.

Quote:
Posted By MelissaP1 on 04/07/2013 7:34 AM

I would put it in context of the "Walking down the street and stops to ask about the house". What information would you give that person?

I do agree that some information should be in a members only area.
Debates on what that information should or shouldn't be could certainly be had (and has been done on this forum in the past).

MelissaP1 (Alabama)
Posts: 13,836
Posted:
It depends on if it is the HOA's responsibility to reveal certain information or the owner who is selling. In many states it is viewed as the "Buyer ONLY" to be informed. Meaning that the buyer is responsible for finding out the rules of the HOA since the CC&R's are PUBLIC records on file at the courthouse. A few states it makes it the seller responsible for giving a copy of the rules to the buyer previous to purchase. Otherwise it is just a "courtesy" for anyone else involved to share information.

The HOA typically does not involve itself in any sales/rental contracts of the members. I would make it an option within your own HOA on what your HOA would feel comfortable with supplying to a potential buyer if they were to inquire. The HOA isn't going to pursue a potential buyer and find them too often. By laws, meeting notes, and financials may be internal member only information. However, your HOA may want to make a general form of overall statistics such as the number of units, the rate of collection, or other generalized financial related information one may want to know prior to moving in.

I think it is a courtesy thing on the most part for the HOA and seller in many cases. It's not something that most of the time can turn into a legal responsiblity. If it is, then that would be addressed during the process if your state has such a requirement for the seller to provide information.

Former HOA President
JenniferA3 (Florida)
Posts: 3
Posted:
The information being shared on the board members personal website is official board business conducted during board of directors meetings. The information is yet to be recorded in the minutes for owners to be informed and up to date. As I see it this information should not be posted in such a public forum and should only be available to owners with password access. Posting such information before it has been approved by the board is in violation.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By JenniferA3 on 04/07/2013 9:14 AM

The information being shared on the board members personal website is official board business conducted during board of directors meetings.

That is understood.

What has not been posted is if this information is from an Executive session or an Open meeting session.

If it's from an executive session, then there are certainly potential issues for the Association. If it's from an open session, why would this be an issue?

Quote:
Posted By JenniferA3 on 04/07/2013 9:14 AM

The information is yet to be recorded in the minutes for owners to be informed and up to date.

Again, if this information was from an open meeting, then anyone (member, director, guest, MC, etc.) who attended the meeting would already have had access to this information and would be free to repeat their interpretation of it to others.

If this information was from an executive session, then those who attended should not repeat it to others.

Quote:
Posted By JenniferA3 on 04/07/2013 9:14 AM

As I see it this information should not be posted in such a public forum and should only be available to owners with password access.

I do believe that the minutes should be in a members only section.
So I agree, in spirit, with what you said.

However, I actually was able to make changes within my Association by attending meetings and then publishing what happened in a non-association newsletter delivered to members. I used this as a way to educate and inform the members of what was actually happening within their Association. This resulted in many good changes occurring within my Association. Therefore, if the Board isn't doing anything wrong and the information is being truthfully reported (no embellishment) then I see nothing wrong with how this information is getting published.

Quote:
Posted By JenniferA3 on 04/07/2013 9:14 AM

Posting such information before it has been approved by the board is in violation.

In violation of what exactly?

Please cite the section of State law that is applicable.
OR
Please cite the section of your governing documents that is applicable.

CarolR11 (Colorado)
Posts: 2,563
Posted:
Jennifer, is what the person posting actual draft minutes of the open meetings? Or his/her interpretation of what actions were taken, i.e., decisions that the made?

if it's actual draft minutes, I'm with you that they should not be made public. In CA, draft minutes may not be shown to Assoc. members--at their request-- until 30 days after the relevant meeting and then must clearly be marked DRAFT. If a buyer actually opens an escrow, they can upon request review approved minutes just as they're able, in CA, to review rules & regs, reserve analyses, audits, CC&Rs, etc.

Is this director a realtor? Is s/he an officer on your board?

IMHO, draft minutes should not be available to those outside your HOA. If nothing prevents it, your Board can vote to instruct the director to stop publishing the board's action before the meeting minutes have been approved.

In our HOA, approved minutes only are in a secure members-only area.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
to attract renters and buyers.


The nerve of some people, trying to attract people to the community. Shut it down now. LOL.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
This individual is posting official board business discussed in board meetings before minutes have been approved. Do we have any recourse with the actions this board member is taking?


Sounds to me they are just reporting, like a newspaper reporter. They are not official board minutes if they have not been released by the board. They are simply someone reporting what they heard. There is nothing you can do about that.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Jenn

Your attitude of wanting to stifle/suppress information is what makes many dislike BOD's and associations.

Stop trying to control.

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