💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

ClarkeS1 (Michigan)
Posts: 16
Posted:
Have lived in HOA's before in other states but this one has me a little concerned.

In this community the five member board of directors meeting monthly and provide minutes of the meeting to all the owners; but non-board members do not attend the monthly meetings.

Owners only go to the Annual meeting when the Board needs the owners to vote on something. The board indicates that they do not approve anything, other that bills etc during these monthly meetings and just handle things that come up during the month that requires them to get involved and inform the members what going on in the very small community.

This seem odd to me but this state doesn't seem to have open meeting laws. Just wondering if this is normal and legal? Looking for info before I buy into the HOA and request that I'd like to attend the monthly meetings.
AugustinD
Posts: 1,027
Posted:
Is this a condominium?

What year was the HOA (or condominium) established?

(Some people use "HOA" and "condominium association" interchangeably.)
AugustinD
Posts: 1,027
Posted:
I checked the Michigan nonprofit corporation act and the Michigan condo act, along with a few web sites addressing whether Michigan HOA/COA board meetings must be open to owners. It appears that Michigan is one of a handful of states whose laws do not require board meetings to be open to owners. This 2016 article discusses this: https://micondolaw.com/2016/05/12/is-a-community-associations-board-of-directors-required-to-make-board-meetings-open-to-association-members/

ClarkeS1, if the bylaws have no requirement for board meetings to be open to owners, then I think you are out of luck.

A member of your HOA/COA likely could request the minutes of the board meetings, under a records request pursuant to your bylaws; the nonprofit corporation statute; and the condo statute.
MichaelT21 (Arkansas)
Posts: 462
Posted:
I'm a little confused.

When non-board members attend a board meeting, they observe but do not participate. While it's good for transparency to allow non-board members to attend, their attendance has zero impact on the decisions that are made.

In most HOAs, the Board makes the decisions. Non-board homeowners generally do not make decisions. I have heard about some HOAs where non-Board members introduce motions at annual meetings, but I think this is rare.

So I am not exactly following your post.
LetA (Nevada)
Posts: 2,679
Posted:
Request a copy of the HOA's financials. Make sure the financials are healthy. Well funded reserve account. Make sure the main account has about 3 months cash on hand to pay bills.
Check to see if there are any lawsuits against the HOA like bad foreclosures, Check to see the bad debt. deadbeats that don't pay their assessments. These financial documents must be provided to
any prospective buyer.
ClarkeS1 (Michigan)
Posts: 16
Posted:
All owners want to do is attend meeting and understand what's going on.

The Annual Mtg is run by the ono-board members (owners) and not the Board members and they make motions etc ... this is standard practice. Monthly MTGs are normally Board Mtgs.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Ok, let me understand.

You are looking at modifying your governing documents to have new owners pay a transfer/preservation fee (which may or may not make a difference to buyers).
You are also looking at moving.

Is this correct?
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By ClarkeS1 on 09/09/2022 2:51 PM
Have lived in HOA's before in other states but this one has me a little concerned.

In this community the five member board of directors meeting monthly and provide minutes of the meeting to all the owners; but non-board members do not attend the monthly meetings.

Owners only go to the Annual meeting when the Board needs the owners to vote on something. The board indicates that they do not approve anything, other that bills etc during these monthly meetings and just handle things that come up during the month that requires them to get involved and inform the members what going on in the very small community.

This seem odd to me but this state doesn't seem to have open meeting laws. Just wondering if this is normal and legal? Looking for info before I buy into the HOA and request that I'd like to attend the monthly meetings.

I second other recommendations to check out the financials, especially the reserves. The latter is where prolonged financial mismanagement often shows up. On the other hand, if there are minimal to no amenities and the streets are public (not owned by the HOA), then the need for significant reserve spending goes down.

Check the Michigan laws regarding open meetings. It sounds like Michigan does not require them, but the board provides minutes of the meetings to the owners. If Michigan is not an open meeting state, owners can request that they be allowed to attend but the board can say no.

The board's summary of what they do sounds pretty normal. Board meetings sound terribly interesting to those who can't attend, and people tend to assume that those in charge are hiding something if the meetings are closed. In my experience, once a board does open up the meetings to the membership, a few members lose their heads and start to think they're in charge, and after about a year of turmoil, things settle down - after which few to no homeowners attend the meetings which are in fact pretty boring unless some new issue arises.

Another thing to keep in mind is that in closed meeting states, boards can also take action via email if something arises between meetings. One of the negative effects of requiring open meetings is that it slows things down even more than in closed meeting states. Discussion of anything that isn't an emergency must be deferred to the next board meeting that is properly noticed - and for those who complain that it takes forever to get things done in HOAs, this is one of the reasons.

I wasn't sure what you're asking for in the last paragraph. Are you asking to attend the meetings before you sign a contract to buy, or after you're an owner? Board meetings are not public, even in open meeting states, so prospective buyers have no right to attend. After purchase is a different matter.

Your description didn't raise any red flags to me. My state has not required open meetings up until a recent change in the law, and even now it defers to language in the community's bylaws. Your description could easily apply to my community, which on the whole is pretty well managed with healthy financials.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I am thinking Clarke believes owners participate in the decision making more then they do. He should be reminded that typically the BOD cannot make Covenant nor Bylaw changes so owners do get involved in the major decisions, just not in the daily operating procedures.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By TimB4 on 09/10/2022 1:53 AM
Ok, let me understand.

You are looking at modifying your governing documents to have new owners pay a transfer/preservation fee (which may or may not make a difference to buyers).
You are also looking at moving.

Is this correct?

Tim,

I think you meant to respond to the "rip off the buyers" thread.

Escaped former treasurer and director of a self managed association.
AugustinD
Posts: 1,027
Posted:
Like TimB4, I would like some clarification. Is the OP (ClarkeS1) presently an owner in a HOA; on this HOA's Board; and this HOA's board is considering an amendment that would, if passed, require a one-time capital reserve contribution from buyers (as described in another recent thread the OP began)? At the same time, is the OP considering buying into a second, different HOA (per this thread)?

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here