Board business at member meeting?

You should schedule a separate board meeting. It could be right after the annual meeting. But it must be distinct from the owners' meeting.

About 'granting an exception' to the rental cap:

The board does not have the authority to violate the covenants. If the wording in the covenant (for the rental cap) says the Board can grant exceptions, then okay. But lacking this wording, the board cannot ordinarily lawfully waive the enforcement of the covenants. In un-ordinary situations, involving say a resident with a disability, it's possible the board might be able to lawfully waive a rental cap.

Thanks.

I kind of thought this should be handled separately from our annual member meeting.

Now you and the other responder have me wondering if we can grant an exception to the cap stated in our CC&R's. I don't see any mention of how to handle making any exceptions.

I think I may have to call the attorney who updated our documents in 2021 to get her take on this. We do have detailed language about rental caps (25%) and we are currently at 25% units being rented.

Do not be casual about this. The qualifying phrase at the above web site "if circumstances warrant" is a land mine.

Boards cannot do anything they darn well please and assume that a court would agree that what they did is lawful. Case law is full of disputes where boards violated their own covenants and ended up costing the HOA a fortune.

Educate me a bit on CA HOA law. What does the HOA board have to do with a rent cap?

It's a complicated CA thing. To learn more than you want to know, visit https://www.davis-stirling.com/HOME/H/HOA-Rent-Restrictions-Prohibitions. You might find this site interesting, Dean, because many of the topics are helpful even when you're not in a CA HOA. Examples are RFPs/contracts, sample agendas and meeting minutes, and more. Poke around their fine Index.

The site is named after the CA HOA legislation called the Davis-Stirling Common Interest Development [CID] Act. Judge Stirling is a partner in the HOA law firm that compiles this excellence resource.

I reached out to my attorney's office and was told she would get back to me next week. Stay tuned....

Nah. You all are going to do whatever. But you have not spoken of any extraordinary circumstances. The covenant is clear. The covenant does not conflict with Ca's new state law on rental restrictions (as far as the cap goes).

The request by the one owner must be denied, because granting it violates the covenants.

When I said I contacted an attorney I meant I contacted the HOA's attorney. I don't have a personal attorney.

And this D-S link makes it appear that boards can grant waivers. I don't think we should but it may be allowed. I'll know more after speaking with the HOA's attorney. https://www.davis-stirling.com/HOME/E/Exceptions-Variances-Waivers

I think I'm reading it differently than you are.

The full text is:

"Defined. A "waiver" is the voluntary, intentional surrender of a known right, claim or privilege. When it comes to CC&R restrictions, boards can grant an exception, variance, or waiver to the association's right to enforce the restriction if circumstances warrant.

Guidelines. Unless the circumstances are extraordinary, the granting of a waiver will often result in other requests for similar waivers. The following principles should guide the granting of waivers:
1. The waiver should not be a major deviation from your CC&Rs or rules, such as allowing an owner to have two 80-pound Pit Bulls in a condominium complex that restricts owners to one 20-pound dog.

2. The waiver should not change the character of your community (allowing a French Tudor house in a Spanish style community).

3. The waiver should be in the minutes of an open meeting with a full explanation of why the waiver was necessary and proper.
Under the Business Judgment Rule, directors must make their decision in good faith and in the best interests of the association.

Failure to Enforce. Failure by an association to enforce its restrictions can result in legal action by members against the association for its failure to enforce the rules or an involuntary waiver of the associations right to enforce its restrictions.

Recommendation: If a member requests an exception for themselves from the association's architectural guidelines or recorded restrictions, boards and architectural committees should seek legal counsel before granting the request."

It says "...boards can grant an exception.. if circumstances warrant". I don't know why you are saying you find my statements curious. I'm just stating what I am reading. I have said I am waiting for legal advice. I am not saying we should or shouldn't and I have said that I am inclined to disapprove the request if it's even allowed.

Ellen,

It feels like you're trying to pick a fight. I don't need this. I've explained several times that I reached out here for advice and I am reaching out to the HOA attorney. Nobody has said that our board feels like it can do whatever it wants.

I don't feel like your input is constructive any longer.