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Guidelines
for Board Members
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Community Associations Exert
more control over their residents than any
governmental entity. This
governance limits 
individual control over certain aspects of the unit
and common property and imposes restrictions and other rules that must
be followed by all residents. Even though the objective of living in a
good, clean neighborhood, with certain benefits and restrictions on the
use of one's property may be shared by everyone, people have different
opinions as to what this means and the best way to accomplish such an
objective. The Community Association Corporation's legal power allows
it to govern every aspect of life within the community. The Community
Association's legal power is vested in the Corporation's Directors and
Officers, and more than often the board directs the Lawyer or Billing
Company to act with the Executive Power of the board.
In theory, Community Associations
are governed by majority rule, but due to the 
complacency and
ignorance of the majority of members, the active and vocal minority
governs many Community Associations. Acrimonious fights over the most
trivial of items have been known to pit neighbors against one another.
There are numerous stories of residents driving around their community
looking for infractions by other residents and of spying done by the office secretary. Since no knowledgeable membership or government
agency is overseeing the professional conduct of the board of
directors, officers or employees in a Homeowners Association, many of
theses associations' board members and employees become
cliques.
These board cliques then make
rules that
over restrict the community. They often
may fail to follow the governing documents
and the State Laws they are obligated to operate within, respond to resident complaints,
make adequate disclosure about financial affairs and/or contemplated
property improvements to the membership. Often, a position on the board
, employee or an influential committee may be used for personal vendettas
or the arbitrary exertion of power
over the property owner paying the bills leaving little
recourse for the injured party but needless and expensive litigation.
The typical Texas
Homeowner's association cliques
are often
formed
around an autocratic Board President/Officers, director,
employee or committee chairperson who may choose for whatever reason to
govern outside of his/her authority and/or the published
association's governing documents. Other passive association directors,
officers and/or committee members, in many cases through simple
ignorance of their own governing restrictions and/or the law, just sit back and go along with the
autocrat in the lead.
The profile of a typical clique
director, officer or committee member who
is at risk for being sued for fraud, negligence, or breach of fiduciary
duty may be an association officer, director or committee member that has
one or more of the following traits:
- A director, officer or chairperson, whose only qualification
for being elected to office was volunteering to run for the
office.
- A director, officer or chairperson, who won't attempt to find
out what member's rights are. A director, officer or chairperson,
who won't try and find out what Under the Texas Property Code, the
Texas homeowner's law mandates.
- A director, officer or chairperson who won't try and find out
what the association's Restrictive Covenants, Articles of
Incorporation, by-laws and rules (governing documents) define the
association's restrictions and responsibilities to be.
- A director, who allows the majority of the association's
directors to meet and discuss association business without
notifying the membership and or records motions and individual vote
in minutes.
- A director, officer or chairpersons, who enjoys making just
the members they don't like, adhere to the association's
restrictive covenants.
- A director, officer or chairperson, who will not accept
responsibility for controversial decisions made on behalf of the
association.
- A director, officer or chairperson, who does not tell other
members the truth about association business decisions. Committee
members don't usually have liability insurance protection.
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How do you avoid being held
personally liable for fraud, negligence and breach of fiduciary
duty? Don't become a member of the clique!
If you are a board member, officer or committee member, know your
limitations and responsibilities under The
Texas Property Code and your association's governing
documents. If you are a director or committee member, vote
independently in accordance with first, those lawful governing
provisions you are bound by law to honor and second, your conscience. If the directors are
found guilty of fraud or negligence, a Texas court may appoint a
receiver over the association.
Written by Tommy Jones, a licensed Florida
Community Association Manager (CAM) and Information System Analyst who
consults, investigates and analyzes Florida Community Association
corporations official records for legal firms and for pro se members.
Mr. Jones is recognized by the Florida Courts as an HOA Expert.
© Copyright 1999 by Tommy Jones, All Rights
Reserved.
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