Prior board decisions

Started by KarenH19 • 7 replies • 417 views

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KarenH19 (Maryland)
Posts: 26

Posted:

I am back in the board and found that the prior board held closed meetings and voted to change assessment dates. Does the new board need to have a open meeting (with community) and vote weather or not to change the date of assessments?
Thanks for any help.

AugustinD
Posts: 5,144

Posted:

Hi KarenH19,

-- Is this a condominium?

-- Can you explain what you mean by "change assessment dates"?

-- The Maryland nonprofit corporation statute permits action without a meeting as long as certain conditions are met. See Maryland statutes section 2-408, https://codes.findlaw.com/md/corporations-and-associations/md-code-corps-and-assoc-sect-2-408.html

KarenH19 (Maryland)
Posts: 26

Posted:

Assessment usually went out dec1st due dec 31st it was agreed by board at a closed meeting to change date to Jan at due Jan 31st. The new President was told that any issues that were previously voted by the board at a closed meeting that should have been done at a open meetings g needs to be again voted on by the new board at a open meeting. Note. Minutes from this meeting was not shared with the community.

CathyA3 (Ohio)
Posts: 6,299

Posted:

I think it will depend on whether the assessment dates are spelled out in your governing documents. If so, the board has no authority to change them - it would require a vote from the membership to amend the language. So the real issue wouldn't be whether it was done in a closed meeting but whether the board has the legal authority to do it at all. I suspect they don't since assessments are generally part of the contractual obligations that all owners are subject to.

Having said that, it's not unusual for associations to approve payment plans for annual assessments so that people can pay quarterly or even monthly. It's often easier for people to come up with small chunks of money, and having payment plans tends to keep owners from becmoing delinquent on assessments. Nothing nefarious going on, just practicality.

(These sorts of plans are also common in HOAs that have both single family home sections and attached home sections where the attached homes receive exterior maintenance and pay a monthly assessment for this in addition to the annual assessment that all owners pay. In at least one HOA that I know of, the townhome owners were allowed to pay the annual assessment in monthly installments along with their regular monthly assessments.)

KarenH19 (Maryland)
Posts: 26

Posted:

The can change the date per our documents. I just don’t think we need to vote again on the matter that was previously voted on by the prior board regardless if it was done in a closed or open meeting. Am I correct?

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By KarenH19 on 11/02/2020 7:57 AM
The can change the date per our documents. I just don’t think we need to vote again on the matter that was previously voted on by the prior board regardless if it was done in a closed or open meeting. Am I correct?

I think your focus should be on reasonably preventing litigation. Was the closed meeting vote on the assessment date well-publicized? If so, I suggest the Board not have a second vote.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Karen,

Sometimes it is how it is written in your docs ... can you provide short excerpt from your docs where this is discussed?

My current neighborhood CCRs say, "... The annual assessment shoaled be assessed on a calendar year basis and is due and payable on such date(s) and payment schedule ...."

This is pretty clear. Calendar year.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Whoops - too quick.

So, while clear the assessment is from 1 Jan - 31 Dec, the point at which it is paid says in same CCRs is " ... due and payable on such date(s) and payment schedule (e.g. monthly, quarterly, semi-annually or annually) as set for by a Resolution of the Board ..."

Meaning, Board, by voting, can move dates around, and decide to accept payment timing four different ways.

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