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LoriM15 (Florida)
Posts: 1,009
Posted:
I went to a webinar on the proposed new FS 720 legislation yesterday and one of the attorneys had a great suggestion. Part of the proposed new legislation (may or may not be signed into law by the governor) is that every HOA must have a website with the governing documents behind a member-only portal. We already have that (as did 70% of the people on the webinar according to a poll) but the attorney suggested that HOAs put every document that is called out in the open records part of the statute, not just your governing documents, onto the website. That way, when an owner sends a document request, you can respond saying that it's on the website and you don't have to waste board or PM time responding to the request.

Florida has a list of specific items that are supposed to be open records. I assume other states do also. For condos, under FS 718, apparently they are required to do the same thing and this works for them also.

It's a lot of work up front to get the items on the website, but that transparency may prevent a lot of homeowner lawsuits.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Here is my controversial response. CC&R and Articles are public documents. By laws are HOA owned if exists. It is not the responsibility of the HOA to provide. A few states require sellers to provide buyers the documents. Otherwise it is on the buyer to get a copy as they are public. By laws only when HOA member.

Having the documents available or provided by the HOA in various forms gives impression of the HOA responsibility. This then opens up the argument of potential lawsuit because angry violating member threatens to sue over claims not received. How many times we hear that?

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
I understand Melissa's concerns, but I have to agree with Lori. In fact, having this on the website should bring the disclosure responsibility back to the seller - either give the buyer a link to 5he website to read this stuff or download the information and hand it to him/her so they can read it.

Hopefully this law allows for a public portion of the website so people can see the documents (bylaws, CCRS, rules, property manager information and perhaps the current year's budget), and everything else is only accessible to homeowners. You can always add a disclosure saying the information is subject to change, so potential buyers should contact the seller with questions. That will make the seller do whats necessary to keep up with what's happening in the community.

The HOA should ensure what's posted is complete and accurate, but even then, the seller should be asking questions instead of assuming anything because mistakes can be made.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
LoriM15 (Florida)
Posts: 1,009
Posted:
Another part of this proposed legislation is that you have to provide every existing owner and new buyer with the governing documents. The state law already says you have to provide a copy to new buyers if you are the seller, but his rule would put the responsibility on the HOA also. The HOA will have to send a link to the website to existing owners who have opted in for electronic communication or a letter and a copy of the documents to those who have not. I'm not clear if that is a yearly thing or just once after the legislation becomes law.

The other part of this legislation is a records retention policy. Most records will now have to be kept for at least 7 years. The attorney suggested that every HOA have an official records retention policy posted on their website.

CathyA3 (Ohio)
Posts: 6,299
Posted:
We do that in my community. The web portal has the CC&Rs/bylaws, financial records, current budget, and list of owners with addresses. Owners also can look at their current accounts, make a payment, add and review service requests, file a complaint about another owner's alleged violation, ... and probably one or two other things that I've forgotten about.

It saves so much time if the manager or the board can direct people to the web portal. And it guarantees that people are getting consistent information in writing - if individuals are providing answers, it's always possible that they'll leave something out or misstate something or the owner doesn't understand what they're being told.

Aside from the expense and the need for someone to keep the portal updated (wh9ch can be a thing), I can't see why an association wouldn't want to do this.

TimB4 (Tennessee)
Posts: 21,059
Posted:
We had the governing documents on the public side.

Realtors loved it as perspective buyers could review the documents and make an informed decision on the purchase.
It also limited the number of offers that were rescinded after a reading of the documents.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I would never make the HOA responsible for providing the documents. It should stay public or seller.

Former HOA President
CathyA3 (Ohio)
Posts: 6,299
Posted:
I actually do agree with Melissa's comments, up to a point. In general, I think that the person or entity that has a legal obligation to maintain a document or information should be the ones required to provide it (or make it available). It's because of control. For instance, micromanagers want to make the decisions but hold employees accountable when their decisions cause problems - this doesn't work because often the employees don't have the tools they need to make things happen a particular way.

So back to HOAs. If an entity has no control over the information and its accuracy, they should not be legally obligated to provide it.

The HOA maintains the association's financial records, so the HOA should be the ones required to make them available.

CC&Rs are recorded, meaning the county recorder is the one who should provide these documents - and many have websites where the public can download them. If the HOA provides them on their website, that's a convenience. But what happens if the HOA's website has incomplete or out of date CC&Rs - can it be held legally accountable if people make decisions based on this inaccurate information? ANd if the HOA's website has a disclaimer saying essentially "use at your own risk", what sort of message does that send?

HOAs that have a reliable supply of responsible and capable board members and community managers can maybe maintain complete and accurate information on their websites. But what about all of the rest of them? I'm guessing that there are a lot more of the latter than the former.

I think I've talked myself out of supporting the legislation...

ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By MelissaP1 on 04/18/2024 7:28 AM
Here is my controversial response. CC&R and Articles are public documents. By laws are HOA owned if exists. It is not the responsibility of the HOA to provide. A few states require sellers to provide buyers the documents. Otherwise it is on the buyer to get a copy as they are public. By laws only when HOA member.

Having the documents available or provided by the HOA in various forms gives impression of the HOA responsibility.
I do not understand CathyA3's qualified support of the above.

The CCRs and Bylaws are records of the association. For one thing, every state requires (by statute) a HOA/COA corporation to make these records available upon request of an owner.
ElleN (Idaho)
Posts: 4,420
Posted:
I back the proposed Fl legislation at least as far as records go. Why? Because denial of records is one of the leading complaints owners have.

Boards are overworked and underpaid. But my sympathy for these volunteers stops the instant they deny records to which owners are lawfully entitled. Transparency is everything. The agreement on access to records is universal, every single state's legislature having passed legislation requiring that certain records must be available for inspection, at no charge (or nominal charge), upon request.

I saw that the proposed criminal penalty (for denial of records) has a high bar for prosecutors to meet. I am not worried so much about it.
KerryL1 (California)
Posts: 14,550
Posted:
As partially with Tim, our HOA's CC&Rs and Rules & Regs posted on our public website. Among our sets of Rules are ARC Guidelines, also posted on the public site. This benefits every one!

We also do this to let prospective buyers know in advance "what they're getting into." They can see how many pets we allow, what is needed to add a hard surface floor, whether they can do short-term rentals, and what the HOA insurance covers. Our 80 page CC&Rs, 20 page Rules and dozen-page ARC Guides are a hella lot to read at the closing meeting. We want prospective buyers to be as thoroughly informed as possible before they buy.

In addition, we have about 25% renters, so we want all docs easily accessible to them too even though our CC&Rs "require" owners provide the gov docs to their tenants.

We do have full-time onsite manager & asst. so updating these and the many items in the protected website is pretty easy.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I say show everything to anyone at any time.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By ElleN on 04/18/2024 10:52 AM
Posted By MelissaP1 on 04/18/2024 7:28 AM
Here is my controversial response. CC&R and Articles are public documents. By laws are HOA owned if exists. It is not the responsibility of the HOA to provide. A few states require sellers to provide buyers the documents. Otherwise it is on the buyer to get a copy as they are public. By laws only when HOA member.

Having the documents available or provided by the HOA in various forms gives impression of the HOA responsibility.
I do not understand CathyA3's qualified support of the above.

The CCRs and Bylaws are records of the association. For one thing, every state requires (by statute) a HOA/COA corporation to make these records available upon request of an owner.

Well, it is "qualified". I'm mostly thinking out loud here and don't have strong opinions one way or the other. When I created our community's website, we did make the CC&Rs available. But we were still selling at that point, I had access to the most up-to-date amendments, and this was a convenience for buyers and realtors.

One thing that stops me is that many states require sellers to make this info available to potential buyers, not the association - or it's up to the buyer since the information is public. I guess that makes sense, since the buyer isn't a member of the association yet and the association has no obligations in what is a private transaction between buyer and seller. On the other hand, the association has to provide estoppel letters, so there isn't a clear-cut dividing line.

What I still can't get past is the potential for an HOA to provide incomplete or inaccurate information, which is a definite possibility for communities still under development (*) or ones with boards/managers who aren't totally on the ball. So if the law passes, does this create a new source of liability?

(* Has anyone polled the developers in Florida to see what they think?)
BillD16 (Texas)
Posts: 971
Posted:
Quote:
Posted By CathyA3 on 04/18/2024 8:37 AM

Aside from the expense and the need for someone to keep the portal updated (wh9ch can be a thing), I can't see why an association wouldn't want to do this.


Just want to chime in: there are two aspects to this. 1. Keeping up to date with all of the documents, and 2. Maintaining and updating the usernames and email addresses and passwords etc that make the portal ā€œresident-onlyā€. Even when properly implemented, #2 can require some significant effort.

Bill

HOA Board ex-President
Austin, Texas USA

ā€œYou can’t put too much water in a nuclear reactorā€
CathyA3 (Ohio)
Posts: 6,299
Posted:
A well-designed website will allow users to register and maintain their own passwords (such as providing options in the case of forgotten passwords). The important thing will be verifying the initial request for access (to keep out people who aren't owners) and removing owners who have sold their homes.

As Bill noted, it can be time-consuming and requires a level of knowledge that the average Joe may not have.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Ironic enough the CC&Rs and Articles are not records of the HOA per se. They are records filed to form the corporation and then restrictions on use of property. They are the documents filed to form the HOA and be operational.

The reason they are public is to avoid lawsuits. Who wants to be sued for not providing a copy? Having them as public means no one is responsible except the buyer.

The states whom make it the seller responsibility is just an attempt to shield the HOA from a lawsuit.

If you are not responsible for providing them then you will win a lawsuit.

Talk about preventative action a HOA can take to protect itself...

Former HOA President
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By MelissaP1 on 04/18/2024 1:49 PM
Ironic enough the CC&Rs and Articles are not records of the HOA per se.
Nope. Try again. Or just keep posting these falsehoods so people know that not only do you not own your mistakes. You repeat them over and over again.
WendyM5 (North Carolina)
Posts: 1,522
Posted:
why do any of these documents need to be password protected? 99% of membership doesn't want to read them. Why would anyone else want to???

vis ta vie
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Neither do you Ellen. Again why make something public privately owned? I would never take on the responsibility of providing documents to anyone.

Let us review how many people post how they never got the documents of the HOA so they think A rules do not apply to them. B. They are going to sue someone because they did not get a copy.

If you can tell me A or B has never once been posted here then call me a liar.

Former HOA President
KerryL1 (California)
Posts: 14,550
Posted:
I've thought about that too, Wendy. But our Bylaws, Articles of Incorporation, Election Rules are all on the protected site. One reason why I don't think they need to be on the public site is that then it gets overly cluttered with things that renters and perspective buyers don't care about. At present our public site is petty. "clean" with info provided.

To be clear to BillD, the protected site is not for "residents," but for Owners only. Residents can be owners or renters. 25% of our Owners live off site, so are not residents.

I worry about the association Membership list being on the protected site. because it DOES change frequently. Even with onsite mgmt. staff, updating it frequently might be lead to errors. So, I think following statute and the Association (via mgt. in our case would provide such list within x day to ownrs who proprely request it. This gives the PM time to make sure the list is up to date. I do think I recall a caveat when they sent out the list that there might be missing data.
KerryL1 (California)
Posts: 14,550
Posted:
I've thought about that too, Wendy. But our Bylaws, Articles of Incorporation, Election Rules are all on the protected site. One reason why I don't think they need to be on the public site is that then it gets overly cluttered with things that renters and perspective buyers don't care about. At present our public site is petty. "clean" with info provided.

To be clear to BillD, the protected site is not for "residents," but for Owners only. Residents can be owners or renters. 25% of our Owners live off site, so are not residents.

I worry about the association Membership list being on the protected site. because it DOES change frequently. Even with onsite mgmt. staff, updating it frequently might be lead to errors. So, I think following statute and the Association (via mgt. in our case would provide such list within x day to ownrs who proprely request it. This gives the PM time to make sure the list is up to date. I do think I recall a caveat when they sent out the list that there might be missing data.
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By MelissaP1 on 04/18/2024 4:43 PM
Let us review how many people post how they never got the documents of the HOA
Many people say this. Then when they are asked a few questions, they admit they got the documents.

I am posting to try to keep the thread clean and not let your latest gross falsehood sit here without being rejected.

You are going to spout whatever false news and false information. It's so important for HOA/COA members to see the illegal nonsense some directors pull.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Quote a law Ellen where it says I am full of it. There are no laws outside of those with seller responsibility at closing to provide the documents.

Show me a law anywhere on this planet that states a public document is the responsibility to be provided to a member of the public by the HOA or other involved with sell of a home in a HOA.

I will be waiting... Let us be clear a buyer is NOT a member of the HOA. They are a member of the public. Once they are owners then the HOA may provide a copy free, online, or charge. It does not make them responsible for providing. It is a courtesy.

Former HOA President
KerryL1 (California)
Posts: 14,550
Posted:
Melissa often has written that she does not read her state's statutes because she's not a lawyer. But HOA Law in Alabama was changed eff. 1/16. Since Melissa was President waaaay before that, she does not know that now in her state and in her very own HOA (formed after 1/16?) the HOA MUST provide the governing docs to members AND "potential purchasers!" Or, the HOA must direct them to the public site location of the records.

And despite Melissa's insistence innumerable times that bylaws are "not public" records, apparently they ARE in Alabama and must be filed with the appropriate gov. entity. There are, in fact, many, many documents to which potential buyers may have access.

Melissa also frequently insists that tenants have numerous rights. In this same HOA legislation, though, we see that HOAs may actually fine not ONLY owners but renters as well! So she needs to stop saying: "You must hold owners [sic] feet to the ground [sic]."

In case Melissa is interested in pulling herself out of a pre-2010 twilight zone, she might take a look at https://www.sos.alabama.gov/business-entities/homeowners-associations HB241: For HOAs formed 1/16 or later. Sec, 14 (a) is useful.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
By laws are different than CC&Rs. Which by laws are not public. If your hOA has by laws yes they provide them. Which is what I have said several times.

It is CC&Rs and Articles that are recorded public documents.

Former HOA President
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By WendyM5 on 04/18/2024 3:12 PM
why do any of these documents need to be password protected? 99% of membership doesn't want to read them. Why would anyone else want to???

The CC&Rs and bylaws don't - which is why Tim said they can be in public area of the website.

Other parts of the website can include information that's specific to an individual: current account info, history of violations, history of service requests, etc. Some of this needs to be kept confidential, and the rest of it is none of anyone else's business. Hence the individual logins/passwords. Also, whenever you allow others to post anything on a website, even if it's only sending requests to the board or manager, there is always the possibility of misuse. Associations have to have a Terms of Service agreement that's enforced, which means you need to have a record of a user's activity on the site in order to prove that they've violated the Terms.

Which reminds me, any community with a website should talk to their insurance agent to make sure the association is protected against liability resulting from people's use of the information on the website. This isn't the sort of thing most people think about when they create websites, but website insurance is a thing.
KerryL1 (California)
Posts: 14,550
Posted:
Melissa, fromm https://www.sos.alabama.gov/business-entities/homeowners-associations#:~:text=The Alabama Homeowners' Association Act,Alabama Title 35, Chapter 20.

P. 1.Filing the Supplement to Certificate of Formation of your Homeowners' Association:
In accordance with Alabama Code §35-20-5, you are required to file a Supplement to Certificate of Formation with the Secretary of State ….

"The following additional or supplemental documents are required to be filed with the Secretary of State….
Articles of Incorporation (Certificate of Formation)
BYLAWS, resolutions, or other governing documents of the Association
The original covenants, conditions, or conditions or restrictions adopted by the Association
Other information or documents required by Alabama Code 1975 §35-20-5(c) and listed on page 2 of the Supplement to Certificate of Formation form."
TerriS6 (California)
Posts: 3,284
Posted:
Only members are allowed to attend meetings but our board posts minutes of meetings in the public area. But they don't post the minutes of all meetings. They spend $800./year on the website and can't even post all the minutes in the correct place.
KerryL1 (California)
Posts: 14,550
Posted:
Melissa: DO read Elle’s above: Wisc. statutes requires that bylaws are required for incorporated orgs. like SusanL's HOA.

Melissa, DO read my post of ā€œOpen Records on Website,ā€ 04/19/2024 2:36a, showing that even your state requires that HOA bylaws be filed with the Sec'y of State. HOA bylaws, then, ARE public documents in Alabama.
KerryL1 (California)
Posts: 14,550
Posted:
Sorry my most recent post belongs in a different thread. ut it' e interested to see if Melissa finally admits that in AL, HOA bylaws are PUBLIC records. I agree that they're not in every state.

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