Proposed Board Accountability Rules

Hello, our newly elected board is about to revise the Rules and Regulations. We had such a horribly abusive board that I want to help ensure that some kind of accountability is put in place beginning with this board. At some po9int our CCRs will be revised as well but for now, I am hoping to get something like the following in place. I am posting it here in case anyone has some insight or suggestions on how to improve it. And maybe it can help other boards put something similar in place as well. Thank you!

BOARD ACCOUNTABILITY RULES

These rules are open for discussion and refinement, but for the sake of justice and restoration of peace and trust and dignity for all members, and to start a precedent that future boards can build upon and carry forward, please do establish board accountability rules.

1. Any violation by a board member or the board as a whole of any rule, ethics statement, or bill of rights will result in a $500 fine payable by the HOA to the member filing the grievance upon written recommendation/judgement of the Accountability Committee (see #5 below). This fine is akin to the $500 per incident fine allowable in Small Claims court for certain HOA violations (see California Civil Code #5235 as an example).


2. No letter, fine, violation, suspension, litigation or any other action against a member may be taken without discussion, motions made, and the majority approval of the board, recorded in the Minutes at open or executive session.

3. All board members and the management agent must sign the attached Ethics Policy (modify as needed).

4. The board shall adopt a Homeowner Bill of Rights as part of the Rules and Regulations, such as

https://www.calhomelaw.org/PDF/CID HOMEOWNER BILL OF RIGHTS 2001.pdf

or

http://www.hoacorruption.com/homeowners-bill-of-rights-1

5. The board shall appoint an ACCOUNTABILITY COMMITTEE. An Accountability Committee shall be established to review all matters relating to complaints, grievances, and potential fines or violations by the board against members or by members against the HOA and board members. Ideally, this committee will not be members of the HOA but respected members of the community at large.

Board Complaints

Step 1: Board initiates complaint to committee on established form (to be developed).
Step 2: The committee shall review, discuss, request additional information as needed, and vote on a recommendation to the board as to how to proceed.
Step 3: The board will review, discuss, request additional information as needed, and vote on the committee’s recommendation. Before any action is taken against a homeowner (letter, fine, suspension, etc.), a majority of the board must be in agreement and their vote recorded in the appropriate Minutes.

Homeowner Complaints

Step 1: Homeowner initiates complaint on established form (to be developed).
Step 2: The committee shall review, discuss, request additional information as needed, and provide a recommendation to the board and homeowner as to their findings and judgment.
Step 3: Any judgment by the committee against the board on behalf of an owner will be binding. Recommendations may include requests for apology to fines up to $500 immediately payable by the HOA to the owner.

Thank you for your prompt reply, Tim. We really do have a lot going on and we need to put in place some kind of workable accountability, which does not yet exist in any of our governing documents or rules and we have no real enforcement policy. Though some aspects of the Bill of Rights and Ethics may conflict with law or not be practical, we need some kind of consequences for board abuse because taking any matter to superior court is out of the question for 99% of members. Do you have an example of enforcement policies in your HOA that can help with this?

I also concur with Tim and GenoS. I have no issue with #2 and #3. #4 should read homeowner rights and RESPONSIBILITIES because you can’t have one without the other. I believe CAI’s homeowner rights speaks to this as well.

Regarding your property manager, it may be helpful to establish some sort of whistleblower policy – you could Google that topic for suggestions on what it could contain. Regular audits would also help keep them in check.

I would also urge that your board establish a policy requiring initial and continuing education – and this should apply to standing committee members, as well. A primary reason bad boards exist is because a lot of them really don’t know what the hell they’re doing or understand the consequences of decisions that aren’t completely thought out.

For that matter, neither do the homeowners – why not start every year with a basic overview as to what homeowner rights and responsibilities are, as well as a type of education seminar for the board members? Post your policies where people can see them (newsletter and website) and run periodic reminders.

As for board member education, there are a number of ways to get it – books, magazines, webinars and local CAI seminars (if you have a chapter in your area) and the association should pay for it. There are books, magazines, webinars and maybe even local CAI seminars you can attend and the association can pay for it.

But mostly, I hope your homeowners have learned their lesson about staying vigilant. I have said and will continue to say there’s no way 3, 5 7 or however many board members you have can intimidate an entire community unless that community allows it, either by not standing up to them or “bending over” and taking it, so to speak. Or shutting their eyes and covering their ears, yelling “la-la-la” I don’t see or hear anything (therefore it’s not happening).

If you have, say, a 50 house community with a 5-member board, simple math dictates that the remaining 45 have a lot of power. All they have to do is use it. If your homeowners don’t learn from your most recent experience, all your board accountability measures won’t mean a damn thing.

#2 already is state law in CA. Please visit davis-stirling.com to learn about the protections already in place in our state. Check Main Index under Fines, maybe. There is strict procedure. Owner discipline is done in executive session and the vote and decision is recorded in the minutes, of course.

You also discuss this under “Board Complaints.” All this does is re-invent the wheel. I don’t believe you’ll get support to do what’s already the law in CA. It seems to me that the Board needs to learn existing laws first, before they try to craft a bunch of new “rules.”

I agree with the other. These are overkill and will drive new board members crazy when they are trying to learn your existing documents and existing CA law.

Accountability Committee: this simply should be homeowners who pay attention, attend meetings, read minutes and keep their Board in line. It sounds like it would have too much power. And would it be protected by some sort of insurance in case it errs??

Remind us, Leilani: Are you on the Board?