Reader Questions - Maintenance Agreements, Minutes and Hiring Family.

Dear Kelly,

Our HOA permits homeowners to maintain small areas of common area with the understanding that the homeowner will pay for returning the area to the care of the HOA when he no longer wants the responsibility. Can we force a subsequent owner to assume these responsibilities? If so, how?

C.W., Goleta

Dear C.W.,

Associations too often make agreements with members without confirming future owners of the home are also bound. The maintenance agreement can require future owners of the property to be bound by the agreement, but a future owner may not be informed of the agreement and could dispute it. If the association is allowing a permanent alteration to common area, or something else which involves shifting responsibility to the requesting homeowner, the agreement can be styled as a recordable agreement, i.e., an agreement which can be filed with the County Recorder office. Once filed with the Recorder (aka “recorded”) it is a “covenant running with the land” and automatically binds all later owners of the residence.

Recordable agreements should be drafted and approved by your association attorney. Since this agreement is intended to last a long time, you want to get it right.

Thanks,
Kelly

Kelly,

I’m V.P. of my board. You had an article about no recording of meetings. School boards can video their meetings for heaven’s sake. When I have to sub for our secretary, I miss a lot. I don’t do shorthand.

M.B., Pasadena

Dear M.B.,

When meetings are being recorded, most of the time it is unnecessary and the board is trying to include too much commentary or discussion in the minutes. Taking minutes, while important, should not be a major task. Minutes are the record of what actions the corporation took at a given meeting. If it isn’t reflected in the minutes, then it didn’t happen. However, the function of minutes is to record what actions were taken, not to record what was said. In a nutshell, minutes should reflect: Which directors attended, what reports were received, what motions were made, and what was the outcome of each motion. Therefore, proper minutes are very concise and short. Secretaries should be able to focus on the deliberations, and not have to worry about creating a transcript or summary of the discussion.

Best regards to all board secretaries,
Kelly

Kelly,

Is there any law that prohibits a board member’s brother to be hired as a manager of the association?

Y.O., Torrance

Dear Y.O.,

Hiring a director’s brother is not expressly a conflict of interest under the minimal standards found in Civil Code Section 5350. Furthermore, it is not a contract in which the director has a “material financial interest”, triggering disclosure under Corporations Code Section 7233. However, this is an example of something which, although not illegal, should be avoided. Hiring a member or relative can lead to questions regarding the board’s integrity. Even where the member or relative offers a price substantially better than other bidders, there will always be neighbors who worry about whether the member or relative had an inside track to the contract. Hiring the brother of a director is even more questionable- the integrity questions and potential discord are not worth any savings which might be obtained.

Best regards,
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®.