Reader Questions - Problem Chair, Management Companies

Dear Kelly,

I have been very unhappy with my HOA board and have attended three meetings these past three months to see if I could encourage more open communication between the board and the owners. This past meeting, I brought up many landscaping issues. During the discussion of landscaping issues, the president said to me: “Like it or leave.” He hurried along the meeting, ignoring comments that he did not want to hear. I suggested we have a newsletter to inform owners about board decisions and he “tabled” that idea. After I insisted he make a decision, he decided the board would discuss the issue in executive session. It is obvious that this president has his own agenda and hurries through the meeting to get it done, his way.

Thank you,

P.M., Fallbrook

Dear P.M.,

Your question covers a number of issues, so I will cover what I can. First, your time to talk to the board is during open forum. If you are commenting during board deliberations, you were out of order, so it was OK for the president to ignore your remarks. To participate in the board discussions of agenda items, get your neighbors to elect you to the board.

Second, the president should never say “like it or leave”. You do not work for the president – you are neighbors. Furthermore, the president is only one vote, and normally has very little actual power. Most decisions and actions require a board vote. If the board voted to table an issue, that is one thing, but the president does not have the discretion to unilaterally table an item – that takes a motion of the board.

Finally, discussion of an association newsletter should have been in open session, not closed. Closed session should not be used except for closed session subjects.

Thanks,
Kelly

Dear Kelly,

Are all CIDs required to use a management company? What qualifications, if any, must a management company have? Is there certification required? Our small CID could save $1000.00 a month by using an uncertified manager with great local experience and credentials. Is this something mentioned in the Davis-Stirling Act?

M.H., Laguna Beach

Dear M.H.,

The law does not require CIDs to have professional management, but it is a very good idea. You have immunity as a volunteer director, but do you want to take on the stress and liability of being a free manager?

California does not license managers, so anybody can declare themselves a “management company” or “manager”. Business and Professions Code 11500-11505 in 2002 created the “Certified Common Interest Development Manager” title. To call oneself a “CCIDM” requires 30 hours of instruction from a recognized provider of manager education, such as CAI. Section 11504 requires every management contract indicate whether the manager is “Certified” – This latter requirement is often not followed (indicating the company might not be current on current California CID/HOA laws).

You could hire someone who is less qualified and save money, but why? If someone is “Certified” under this law, they almost certainly also hold a credential from a major manager credentialing organization. A manager’s dedication to the management profession and HOA industry can be a good indicator of their devotion to improving their expertise.. and their service to your HOA. Ask for a credential.

Thanks,
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®.