Q:  If an HOA wants to establish committees is there a recommended number of committees for an HOA of about 150 units?

A:  Commitees are a crucial part of a community association. In the ideal governance structure, the board of directors sets policy and makes governance decisions. The behind the scenes research, data gathering and day-to-day administration is done by committees and the association's manager, if any. There is no magic number of committees. Even if the by-laws establish certain committees, the board typically has the authority to establish additional committees. Common committees are: architechtural/design review committee; social or welcome committee; nominating committee; landscaping committee and finance or budget committee. The type and number of committees is dependant on your community's needs. And, of course, those willing to volunteer. Committee membership can prove to be an excellent training ground for future board members.

Q: How can one successfully and legally remove itself as managaging agent from an association that has no board and no one willing to commit to being on the board? The main concern is liability to the managing agent when no one is there to offer direction and support of decisions?

A: Without a board the association's authority and power to conduct business comes to a stop. The managing agent may attempt to solve the "apathy" problem by stressing the possible ramifications of no board, such as the association ending up in receivership (a court-appointed person paying bills, but not concerned with promoting the community and preserving property values.) To legally remove itself, however, the managing agent must look to and follow the termination provision of its management contract. The contract may allow termination for cause only, with or without cause, termination according to a specific procedure (i.e., written notice, specific timeframes, etc). Terminating in a manner contrary to the management contract could result in liability.

* Please email or fax your questions with your name and contact information to: QAcolumnist@ortenhindman.com or 303.432.0999. Due to the volume of questions received, we cannot guarantee an answer.
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