Post by Admin on Oct 15, 2013 23:08:08 GMT -5
Here is a summary of much-needed and belated legislation that begins the process of bringing HOA laws in line with those of condos:
Cross-post from AnonNews
September 11, 2013
All HOAs must register by November 22, 2013 to the Department of Business and Professional Regulation. Registration begins online on October 1, 2013. The Association’s legal name, federal employer identification number, mailing and physical addresses, the total number of parcels, and the total amount of revenues and expenses from the Association’s annual budget is information that will be included online.
Records must be maintained for 7 years, within 45 miles of the community, or within the same county; and allowing that they be recorded electronically. Copy costs are reduced to 0.25 per page and personnel costs for requests that exceed ½ hour or more than 25 pages are $20 per hour.
New board members must certify that they have read the governing documents and must uphold them to the best of their ability within 90 days of election or appointment.
Associations must obtain a Fidelity Bond/Crime and Fidelity Insurance, but there is no minimum coverage amount. It can also be waived by a majority vote at an annual or special meeting of the members.
In order for a contract to be approved with board members, a 2/3rds vote must exist and it must be found fair and reasonable. Once approved, the board must disclose the contract at the next member meeting and any member can make a motion to cancel. If it is canceled by a majority vote, the contract is void.
Officers, directors, and property managers are prevented from receiving any goods or services without payment except for meals, not to exceed $25, as part of a business meeting or items at trade fairs or education programs. If this is violated, it can mean immediate expulsion from their respective position.
If any director or officer is charged with a theft of Association funds, he/she must be immediately removed from office. If the charges are later dropped against this person or if they are acquitted, they must be reinstated to office.
I found the new provision on contracts to be of interest and intend to make further inquiry about this to see if it applies to ALL contracts entered into by BOD on behalf of SLohA.
Cross-post from AnonNews
September 11, 2013
All HOAs must register by November 22, 2013 to the Department of Business and Professional Regulation. Registration begins online on October 1, 2013. The Association’s legal name, federal employer identification number, mailing and physical addresses, the total number of parcels, and the total amount of revenues and expenses from the Association’s annual budget is information that will be included online.
Records must be maintained for 7 years, within 45 miles of the community, or within the same county; and allowing that they be recorded electronically. Copy costs are reduced to 0.25 per page and personnel costs for requests that exceed ½ hour or more than 25 pages are $20 per hour.
New board members must certify that they have read the governing documents and must uphold them to the best of their ability within 90 days of election or appointment.
Associations must obtain a Fidelity Bond/Crime and Fidelity Insurance, but there is no minimum coverage amount. It can also be waived by a majority vote at an annual or special meeting of the members.
In order for a contract to be approved with board members, a 2/3rds vote must exist and it must be found fair and reasonable. Once approved, the board must disclose the contract at the next member meeting and any member can make a motion to cancel. If it is canceled by a majority vote, the contract is void.
Officers, directors, and property managers are prevented from receiving any goods or services without payment except for meals, not to exceed $25, as part of a business meeting or items at trade fairs or education programs. If this is violated, it can mean immediate expulsion from their respective position.
If any director or officer is charged with a theft of Association funds, he/she must be immediately removed from office. If the charges are later dropped against this person or if they are acquitted, they must be reinstated to office.
I found the new provision on contracts to be of interest and intend to make further inquiry about this to see if it applies to ALL contracts entered into by BOD on behalf of SLohA.