Community E-ssentials

January 2005 NUMBER 38   Volume 4 Issue 2  
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CONTENTS
Welcome to the Board! The Importance of Holding a Board of Directors Orientation
Case of the Month-Association's Decision Not to Submit Insurance Claim Upheld in Arbitration
O&H Changes Foreclosure Fees
Cigarettes and Condominiums - What's a Board to Do?
Top 10 Predictions for 2005
Q & A
Welcome to the Board! The Importance of Holding a Board of Directors Orientation

Once homeowners have thrown their hats into the ring and are successfully elected to their community association’s board of directors, the question often arises, “What do I do now?”  Holding a Board of Directors Orientation can provide a newly-elected board member with the information necessary to serve his or her community efficiently.  An effective orientation should be sure to address the following topics:

 

First, those serving on the board should be fluent in the language of community associations.  For example, the “board of directors” is the group of owners who are responsible for governing the association, setting the policy and making policy decisions for the association.  Likewise, directors should know the difference between “common areas” and “limited common areas.”  Compiling an index of such commonly used terms would be a helpful reference for the newly-elected board member and help avoid later misunderstandings.  Click here for a list of commonly used terms.  

 

It is also crucial to ensure that the newly-elected board members understand what the association’s governing documents are and how they operate.  An association’s declaration is at the top of the governing document hierarchy and delineates the basic powers of the association.  The rules and regulations, which are often adopted by the board to fill in spaces where the declaration is silent or ambiguous, are the most flexible part of the governing documents.  The association’s bylaws detail how the association actually operates, such as when meetings are to be held and what quorum requirements are necessary.

 

During orientation, a board of director’s responsibilities and obligations to the community should be outlined.  Explain that the board is entrusted to govern the association, to manage its assessment funds, and to perform these duties prudently, in good faith and in the best interests of the entire community.  During his or her term, a director can expect to enforce the community’s covenants, establish rules and regulations where the covenants are silent or ambiguous, and maintain the community’s common areas.  Encourage, or better yet, require and pay for new directors to attend a course on directors’ legal duties and responsibilities. 

 

Finally, a director should understand that one of the board’s most important tasks is to establish a sense of community among the owners.  Use the orientation to establish the importance of encouraging owner participation, either by soliciting community input or asking for the aid of volunteers.  A director should be aware that giving owners a voice will often prevent confrontation and anger about board decisions on sensitive issues.

 

Click here for a more detailed list of topics to cover in a new directors orientation.  


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Community Associations Institute
The Community Associations Institute (CAI) is a nonprofit organization that provides education and resources to community associations. To find out more about CAI visit www.caionline.org





 
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Published by Orten & Hindman, P.C.
Copyright © 2005 Orten & Hindman, P.C.. All rights reserved.
These materials have been prepared by Orten & Hindman, P.C. for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Internet subscribers and online readers should not act upon this information without seeking professional counsel. Please do not send us confidential information until you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact Tom Hindman or Loura Sanchez.
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