Liability of All Resident Events at Clubhouse

About five years ago, an ex-board member talked to the Board about creating a Use Agreement for events that are attended by all residents but not officially promoted by the Board. This idea leaked out to residents. We never saw the proposed use agreement but did learn that it would mean one resident would be required to sign off that he/she is solely responsible for any event attended by other members of the same HOA. We believed this would be illegal and expected that was the result when the Board and the ex-Board member did not speak about it further. That Board retained a lawyer and often asked questions so seemed that it went away because it was illegal.

Now the use agreement concept is being discussed again. Our HOA clubhouse was promoted as a gathering place for neighbors. For over ten years, our CCRs have always stated that the rental agreement is waived when there are a majority of HOA members attending an event that the HOA Board has not promoted. So if a group of guys see the clubhouse is open (no rentals on the calendar) and they meet to watch a game, they are free to do so. Or it could be a group getting together for Bunco or Bridge. It is not a private party. Other residents could walk in, join in or hang out in the clubhouse a the same time. Sharing the space as neighbors in the same HOA. Now the current board wants to make one resident sign off for these type of casual events. Of course they might not be privy of smaller gatherings but there are times when people want to get together for a Game Night or Couples Dinner. The HOA is not paying for these types of gatherings. (Note: When a resident throws a private party and invites friends outside the HOA there is sole responsibility of that person renting the facility.)

Since we are all residents and collectively own the Clubhouse this does not seem legal. We all pay insurance for the facilities with our HOA dues.

We believe this is a step too far on member liability and illegal. Could an HOA lawyer chime in? Or is there someone who has been through this? We are in Idaho. Thanks for your help.

B.

No one thought about asking the association master insurance policy carrier about this???? The board could do that - why not suggest it? The insurance might even have some tips on what a use agreement might say, and then you could have the association attorney draft something for the board to review.

As far as liability goes, it may depend on the type of event being held, and it may be enough to establish some rules and incorporate them into the rental agreement. For example, if alcohol will be served, require that the homeowner ensure everyone there is 21 or over (how he/she does that is up to them). Or if the clubhouse is next door to a community pool, you may need rules regarding its use, such as stating it's a use at your own risk pool and therefore, the association will not be held responsible for accidents that result in injury or death.

It's great to have insurance, but you need to read between the lines, as there are behaviors that might allow the insurance company to deny the claim - has anyone read the policy? If you're on the board, all of you should read it. If not, and you're concerned about this, maybe YOU could volunteer to take a look and write down questions you'd like the insurance company to answer. Once you understand how the policy works, you can talk to them about reducing the association's risk (they'll probably appreciate that because risk reduction could result in fewer claims to review).