Reader Questions - Are Closed Session Meetings OK?

Dear Mr. Richardson,

Our board meetings consist of two parts. A closed meeting is convened with the board members and the manager discussing “sensitive” matters such as homeowner complaints, fines, and liens. An open meeting follows, with time allowed for input from any homeowner. Does the closed “executive” meeting run afoul of the Open Meeting Act?

Thanks for your excellent input,

R.M., San Marcos

Dear R.M.,

The “Open Meeting Act (Civil Code 4900-4955) at Civil Code 4935 provides that certain specific matters may be discussed in closed session. Closed sessions are necessary. They protect the confidentiality of certain discussions which could harm the association or embarrass individual members if disclosed. Such matters include discussion of HOA employees, disciplinary hearings, contract negotiations, delinquency payment plans and litigation discussions. If one fell behind in one’s assessments, and had to come talk to the board to explain and ask for a payment plan to catch up, one would not want the entire association listening in on the discussion.

Unfortunately, some boards, managers, and even lawyers permit overuse of closed sessions. Closed session (aka “executive session”) can be used only when authorized by statute. A closed meeting is a secret meeting, and boards need to protect their integrity by deliberating in the open and making sure that only the allowed matters are discussed in closed session.

Thanks for your question,
Kelly

Dear Kelly,

In a recent column in the paper, a questioner said “PRIOR to open board meetings, our board has closed door meetings.” That doesn’t pass the smell test to make homeowners sit around waiting for the open meeting. Our board starts with the open meeting, so homeowners know when to be there at a given time. Only after do we go to executive session. OK, so those with disciplinary hearings have to wait, but usually they never show up anyway.

N.S., Temecula

Dear N.S.,

Boards often schedule closed session meetings before the announced regular open session meetings, but it can often be difficult to predict how long a closed session will take to complete. Sensitive issues can require further deliberation, or hearings can run longer, leaving homeowners waiting outside for the main meeting to start.
Boards often begin with a closed session because they want to handle sensitive issue deliberations first, to make sure they are not skipped if directors are tired after a long evening meeting.

Perhaps boards could allocate some time before the open meeting, and be prepared to return to closed session after the open meeting business is concluded. Some associations have their closed session meetings at a different time or even day. Having an announced time limit on hearings also may help.

Best,
Kelly

Sir,

What is the California HOA laws web site?

L.G., Carlsbad

Dear L.G.,

The California Legislature official web site is the source for state law. That address is www.leginfo.legislature.ca.gov, and is easy to use – to find most of the laws regarding common interest developments, click on “California Law”, then Civil Code, then scroll down to Civil Code 4000-6150. One can read any portion of the Davis-Stirling Common Interest Development Act there. Non-residential associations are governed by the “Commercial And Industrial Common Interest Development Act,” found at Civil Code Sections 6500 through 6876.

Hoping you find this site useful,
Kelly

Written by Kelly G. Richardson

Kelly G. Richardson Esq., CCAL, is a Fellow of the College of Community Association Lawyers and a Partner of Richardson | Ober | DeNichilo LLP, a California law firm known for community association advice. Submit questions to [email protected]. Past columns at www.hoahomefront.com. All rights reserved®.