MEMBERS IN GOOD STANDING

This is 2nd year our PM has included wording in cover letter announcing our upcoming election that a homeowner must be in "good standing" and current in their assessments and not have any fines, liens, etc., placed against their account in order to become a board member. Although I am in favor of this can an announcement like that be upheld especially since I have been unable to find anything remotely worded to that effect in our Decs/By-laws or, in our Homeowner Rules and Regulations Manual?
Presently, there are 2 board members who are delinquent in their assessment....one for over 2+ years and doesn't appear to be getting caught up in arrears. I questioned the PM about this and was told that one Board Member is on a payment plan arrangement. Regardless, I don't believe that as a qualification to circumvent established rules...whether it is in print or not and, I have never heard in any Board Meeting that that criteria changed.
Also, I recall another homeowner asking what is the length of time permitted to be on a payment plan in arrears and was told homeowners are given 6 months to become current in arrears and must also remain up-to-date in current month's assessment as an answer. So, does this make board members exempt from the very rules they create? If the general membership is not privy to whom is on the delinquent list let alone the amount owing, is there still a way the general membership (or a Board Member=me) can tell that board member to step down or resign or, inform the membership to maybe have to hold a special meeting to accomplish that? Has anyone had to deal with this situatino in their association community??? -Renee

I can't speak for Illinois but, in most states, homeowners do not have to be in good standing to serve on the Board. Unless the HOA has a written Bylaw or rule against it, it is allowed. In your case, it appears that the delinquent Board Member can be on the Board, regardless of whether he missed one payment, hasn't paid for an entire year or never paid.

You say that you could not find a Bylaw so payment plan arrangements are irrelevant. Even if there was a Bylaw, it would depend on how the Bylaw was written. Payment plans might not be considered delinquencies.

Payment plans are usually negotiated between the Board and the delinquent homeowner on a case-by-case basis. The Board might generally agree to limit plans to 6 months but they are not required to and, even if they do, they can make exceptions.

Board Members are not exempt from the rules that they create but the Board has the power to change rules and deal with unusual situations.

You can privately tell the Board Member to step down and resign at any time. Can you publicly denounce him, tell others that he is delinquent and publicly ask him to resign? It depends. In some states, being delinquent is a privacy issue. In some HOAs, delinquency is confidential to the Board. You might get away with it but maybe not and the person or the HOA might sue you.

In many HOAs, a Board Member can be recalled for any reason, including no reason. So, even if the Board Member was not delinquent, you could still recall him.

In my experience, people who want to do recalls over delinquencies usually have some other axe to grind. Most HOAs lack volunteers to serve on the Board so a great but delinquent Board Member isn't worth recalling. But, if you have something else against the guy, use that as the reason. If he makes lousy decisions, is absent a lot or whatever, have somebody launch a recall campaign against him because he makes lousy decisions, is absent or whatever.

I live in Nevada and we have had similiar situations. According to our law, it state members that are in arrears can serve on the board if they disclose this information on their ballot prior to the counting of the votes.