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RayC4 (Virginia)
Posts: 173
Posted:
With regard to states with 'Open Meeting' requirements for the BOD, is there any reason why these rules would not apply to HOAs still under Declarant control? I think not, but I ask because so many on this forum continually say "the Declarant can do anything he wants..." (prior to his turning over control to the member homeowners).
RogerB (Colorado)
Posts: 5,067
Posted:
RayC4, I believe all Board meetings should be open except during an executive session of a meeting. Meanwhile, a Declarant usually does what ever they want because it is difficult for unorganized apathetic homeowners to challenge them.
RogerB (Colorado)
Posts: 5,067
Posted:
RayC4, I believe all Board meetings should be open except during an executive session of a meeting. Meanwhile, a Declarant usually does what ever they want because it is difficult for unorganized apathetic homeowners to challenge them.
LarryB13 (Arizona)
Posts: 4,099
Posted:
In Arizona we have an open meeting law for HOA's and another nearly identical one for condo associations.

In theory, when the Declarant holds a meeting of the board of directors it is subject to the open meeting law. The problem in this state is that the declarant is not required to announce board meetings or post an agenda, so the chances of attending a meeting of the Declarant's BOD is unlikely.

You are making an assumption that the Declarant-controlled association holds board meetings. The Declarant is not likely to even have a formal meeting of his board of directors. He is not in the business of making decisions by committee. In the case of my own association when it was under Declarant control, all the directors worked for the Declarant's real estate firm; they may have had a board meeting every time they passed each other in the hallway.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Ray

Larry hit the nail on the head. Typically a Declarant will only have an Annual Meeting which is dictated via most Articles of Incorporation. Most docs give the Declarant the voting power thus the bottom line is they control no matter the wishes of the owners.

I am on our HOA Advisory Board. It is a Declarant appointed board and has no power. We get together when the Declarant feels like it. Fortunately 95% of our owners are happy and satisfied with how the Declarant operates. We are undergoing a transition to we owners on 01/01/2014 but that is another subject.

RayC4 (Virginia)
Posts: 173
Posted:
Quote:
Posted By LarryB13 on 09/18/2014 7:52 AM
they may have had a board meeting every time they passed each other in the hallway.

Precisely the problem. In our state, the statutes related to open meeting requirements even state that 'avoiding the membership' etc is part of the reason for the laws. So, for example, 'notice' of BOD meeting and its agenda must be given to all members who may attend (but not participate). Under those rules, a significant decision made in the 'hallway meeting' (let's say for a major expenditure that affects members) imo is clearly not proper. In a Declarant control situation, I'm not sure whether it's legal....

I understand the 'power' issue -- the members have none. But does that entitle the declarant to make end-runs around the open meeting statutes?
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By RayC4 on 09/18/2014 8:20 AM

But does that entitle the declarant to make end-runs around the open meeting statutes?

In my state, it does.

From ARS 33-1804:
"C. Notwithstanding any provision in the declaration, bylaws or other community documents, for meetings of the board of directors that are held after the termination of declarant control of the association, notice to members of meetings of the board of directors shall be given at least forty-eight hours in advance of the meeting by newsletter, conspicuous posting or any other reasonable means as determined by the board of directors." [italics added.]

The above exempts declarant-controlled boards from giving notice of its meetings.

Paragraph D of the same statute exempts a declarant-controlled board from other certain other provisions of the open meeting law, including having an agenda.

So, yes, the declarant is entitled to make an end-run around the open meeting statutes.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Ray,

In VA the Declarant still has to comply with the applicable statutes.

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