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ShelleyR (California)
Posts: 1
Posted:
I have been a California homeowner volunteer on several HOA standing Committees. Question: Are such Committees legally required to have Charters per Davis Sterling? I am not able to find an answer. Thank you.
TimB4 (Tennessee)
Posts: 21,061
Posted:
For legal answers, you will have to consult an attorney.

That said, I found nothing about a charter requirement on the Davis-stirling site committee page.

Logically, there should be something that specify the purpose and size of the committee. This may be a simple notation within a board meeting minutes, a formal resolution or a full blown charter.
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By ShelleyR on 09/22/2023 7:40 AM
I have been a California homeowner volunteer on several HOA standing Committees. Question: Are such Committees legally required to have Charters per Davis Sterling? I am not able to find an answer. Thank you.

See CA Corporations Code sections 7210 and 7212
MarkS42 (North Carolina)
Posts: 70
Posted:
It is not legally required to set up a Charter but there are other things legally required for committees with decision making authority. Setting guidelines, limits and expectations is advisable

CA Civil Code § 5210 (b)(5) requires that the Minutes of Committee meetings with decision making authority be available to members upon request 15 days following approval of minutes
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By ShelleyR on 09/22/2023 7:40 AM
I have been a California homeowner volunteer on several HOA standing Committees. Question: Are such Committees legally required to have Charters per Davis Sterling?
The statutes do not require a charter. However, to the extent the bylaws, covenants and statutes permit xyz committee, IMO best practices is to create xyz committee by board resolution. The resolution should IMO state the applicable, bylaw, covenant or statute that authorizes the board's creation of a committee; the purpose of the committee; how the committee will go about its purpose, including reports at each board meeting of any committee activity.
BillD16 (Texas)
Posts: 973
Posted:
Quote:
Posted By ElleN on 09/22/2023 1:18 PM
Posted By ShelleyR on 09/22/2023 7:40 AM
I have been a California homeowner volunteer on several HOA standing Committees. Question: Are such Committees legally required to have Charters per Davis Sterling?
The statutes do not require a charter. However, to the extent the bylaws, covenants and statutes permit xyz committee, IMO best practices is to create xyz committee by board resolution. The resolution should IMO state the applicable, bylaw, covenant or statute that authorizes the board's creation of a committee; the purpose of the committee; how the committee will go about its purpose, including reports at each board meeting of any committee activity.

This matter came up for me recently here in Texas. I couldn't find any law or anything in the governing documents about charters, but it's a fairly easy sell as a "best practice" and also a step towards "institutional memory." I mean, it's difficult to argue that a Committee shouldn't keep a list of its duties and reason for existence?

Ah, but they *do* argue against it. In my neighborhood (and I'll be blunt at the risk of being offensive) there are some people who have issues with 'their' Committee being 'subservient' in any way to the Board. I think there are some gender issues mixed up in it, too (ie, ladies who object to having to report to the Board). I can only ask you to believe me when I say that there is no basis in fact behind any of these issues.

My personal hard-ass take on it is: anybody can go out and organize a Committee, on any topic. But if they want money from the HOA - they need to file a Charter.

Bill

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”
TerriS6 (California)
Posts: 3,284
Posted:
Committees are subservient to the board. If the board is all male, females can run for the board. No whiners allowed.
KerryL1 (California)
Posts: 14,550
Posted:
Committees can be of great help to Boards and property managers. In my HOA, of the 30 residential directors who've served over the past 16 years, all but three came up through the committee system. Committee service shows them a slice of the association's activities & budgets. They usually attend board meetings too, so gain a bit of knowledge that way. They also are a source of camaraderie and shared specific interests among owners, which I'm thoroughly convinced, helps keep apathy at bay.

In CA, committee meetings are not required to be open to all Owners, but I'd encourage Boards to require than (except, possibly for the Finance
Committee) to involve as many owners as possible le in the life of their HOA.

But they, in all honesty, must be rigidly managed or they can run amok with demands, and with some thinking they know "more" than the board. Over many years, our boards have disbanded two committees because they were such pains and kept trying to exceed their charters, demanding the
board make huge expenditures, etc. They both, by the way, were landscaping committees.

If some owners truly want to serve, the below might be useful.

The most important reason for HOA committees having board-approved "charters" or whatEVER a Board wishes to term them, is because the Board is completely responsible for committees' conduct and activities. For that reason and to Bill's point, to cover the Association's rear-end, committee charters MUST be specific about their purpose & duties. The Board MUST have the power to form and disband committees. The committee MUST offer something that eases management's workload or that of the Board or otherwise adds something positive to the HOA. The Board appoints committee members and the committee chair (as recommended by the committee).

I'm guessing every state's nonprofit corporations codes permit Boards to delegate many tasks to managers, committees, officers, etc. Our HOA's Bylaws on this point are pretty silent except to say the Board may delegate some tasks to committees. I suspect most say this. They do not require any particular committee so any committee may be formed. (Our CC&Rs require an Architectural Committee since we're a condo building). Our old developer- written bylaws required a "nomination comimttee," but we, like most nowadays, dumped that one.

From Terri's citation: Calif. "Corporations Code §7210. Corporate Powers Exercised by Board. The board may delegate the management of the activities of the corporation to any person or persons, management company, or committee however composed, provided that the activities and affairs of the corporation shall be managed and all corporate powers shall be exercised under the ultimate direction of the board."

I've formed and served on several committees over 16 years and monitored them as an active board members for 14 years in my HOA. Anyone in the USA who's interested should visit https://www.davis-stirling.com/HOME/C/Committee-Menu. this Calif. HOA attorneys' website has everything you need to know, and most info is NOT specific to Calif. It's really invaluable re: this topic.

Any little gaggle of owners might like to form a "committee." But they must be willing to do the work that'd helpful and not a pain or hindrance to the HOA's purpose. To keep members in line. IMO, a committee should have a minimum of 3 members for its own voting purposes. There's a great deal online about HOA committee charters from which to draw. Their charter, imo, must include:

A purpose or goals. It must note that their rule is advisory only (unless like the ARC in my HOA, or, perhaps a Social Comm. with a budget, they have $-spending authority)

If and how much budget they have, and how to record their expenses. In Calif, committees with $-spending authority must write minutes of their meetings.

That members must attend monthly comm. meetings during normal business hours and management and the board president must be invited as non-voting ex-officio members. Members should be informed that neither can always (or even often) attend.

The committee must submit a report with recommendations to the board x days before the board's regular meeting to be presented at the board meeting by the committee chair or a member.

Only the committee chair may meet with management. We, for instance currently have four "standing" committees, Social, 8 members; Finance, 5 members; Building, 3 members; (aesthetics incl. landscaping); and ARC, 3 members. Imagine if each "stops by" the mgmt. office for a "few minutes" once a month!

It's best if each committee has on it a board member OR the Board appoints a non-voting "board liaison" who interacts with the committee chair and attends some meetings. That director's main role is to advise the Committee usually about budget topics.

Charters must say if members must be owners. We, for instance, invite renters to be members of the Social Committee.

I've been meaning to respond to BillD of Texas similar post but have been on a fine beachfront staycay for a few days.

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