Executive Sessions and Foreclosures

A lot of questions here... What is the situation? May be better to explain the situation than give straight answers to your questions. That is because each situation differs on how it is dealt with. There's not always a "set" rule because each situation is different.

Executive session means different things to each HOA. Usually the results of what is discussed in executive session should be noted in the HOA's meeting notes. Not exactly what was discussed for personal reasons, but the final decision made. Example: One person is late on their dues. It turns out they were in the hospital getting a Vasectomy. That's private and personal information. The HOA should note that they decided to waive the late fee on this person per their situation. That is the result of the meeting was to "forgive" late fee and be noted.

As for the PM being in the meeting... The relationship between the PM and board can become somewhat "symbiotic". I like to say. The reality is that the PM is a HIRED CONTACTOR to do what the board wants them to do. That may range from running the show to managing the money. Many times the relationship line gets blurred because there are no "professionals" at the healm of your HOA board or membership. If your board is comfortable with the PM at the meetings, then I can't say it's wrong. It may be they just don't know any better. In HOA terms, that's often the best you got.

My advice on who talks to the lawyer. It should be an assigned officer preferably the President. There should be only one source talking and communicating to the HOA lawyer. The HOA lawyer represents the HOA as a WHOLE NOT as individuals. Limiting who talks to the lawyer saves time and money. The board can discuss the matter openly if they want. I always did without revealing names. Just that legal action was being taken. That's all that is needed to be known. The HOA is involved in a legal action and this is what it is. The details of which should be kept between client/lawyer and those involved. Report the money spent and the results in the notes.

I've done a foreclosure. It's just a "stop the bleeding measure". A HOA should never ever do a foreclosure on a house already in bank foreclosure. They are just doing the work of the bank as the bank always gets paid first even if the HOA does the foreclosure. It's just the HOA has a chance of getting a new buyer in that will pay the dues. Don't think it's a get rich plan at all. Should read the other posts about this subject. There are plenty.

Hope this helps some. Each HOA is different so the more details, the better the advice. Good luck!

It would depend on the topic of discussion. We are self managed, however we did have a contractor provide bookkeeping services for us. When the issue involved late assessments, the bookkeeper would be included in the executive session to answer questions.


The Board may invite anyone they feel is relevant to the issue being discussed into executive session. However, the more they invite in, the less likely what was said will stay private.


Although a Board may go into executive session, they are typically not required to. Not going into executive session simply means any other member may be in attendance at the meeting to observe.

Now, since decisions are to be made in open sessions, if there is no other member at the meeting, then the reality is that there is no real difference in going into executive session or remaining in open session. This is because minutes should reflect the decisions and not the discussions.


This would depend on the terms of the contract with the MC, if the non-board member was the subject of the executive session, the issue being discussed, etc.


As posted earlier, the Board may invite anyone they believe is needed to attend the executive session. The more in attendance means the less likely the information being discussed will remain private.

My Assocaitoin does not have "member at large" on our Board.


We are self managed. However, I suspect that they may be the liaison between the Board and the attorney.


Depends on the issue. For collections, it's the Treasurer because they have most of the first hand knowledge. For all other issues, it's the President. Note: we do not have a PM or MC.


I suspect that some would. I don't think it's the best thing to do but it does happen.
Each Board has to make that decision for themselves.