Community E-ssentials

September 2005 NUMBER 46   Volume 4 Issue 10  
HOME
CONTENTS
Associations and Management Companies Must Balance Competing Interests and Indemnification Clauses
As a Homeowner Here, I’d Like To Give My Two Cents
SB 100 & Owner Participation Rights at Board Meetings

Revising Bylaws and Writing Policies & Procedures to Comply with SB100
Why Your Association's Manager May Just Say 'No'

Proceed With Caution: Common Defenses to Covenant Enforcement Actions
Using Proper Protection
Q&A
As a Homeowner Here, I’d Like To Give My Two Cents
SB 100 & Owner Participation Rights at Board Meetings

“I serve on the board of directors of an extremely troubled association with several hostile homeowners. In the past these homeowners have attended board meetings with the apparent agenda to heckle and interrupt proceedings. You can imagine how upset the board was to hear that we may be required to allow homeowners to participate at board meetings because of SB 100.  We have heard different interpretations from attorneys – one that such participation must be allowed and one that although the new law may require owner participation, it does not definitively state such a requirement.  We don’t know what to do! Must we allow homeowners to participate at our board meetings or not?”
 
Section 38-33.3-308(2.5) of SB 100, which addresses owner participation at board meetings, has caused much confusion due to its unclear wording and seemingly conflicting provisions.  One provision states that an owner needs permission from a quorum of the board to speak and the following provision states that the board shall allow owners to speak before taking formal action on any item under discussion. Despite the confusion caused by these two provisions, the statute’s use of the word “shall” makes it clear that owners now do have a limited right to speak at board meetings. 
 
It may help to resolve the apparent conflict between the two provisions by thinking of them as delegating the portions of a board meeting where homeowners do not have an automatic right to speak and where they do have an automatic right to speak.  Homeowners need permission from a quorum of the board to participate during board deliberations and discussion. This “authorized speech” could happen at any time during a board meeting – during an owners’ forum at the beginning of the meeting as well as points throughout the meeting. However, the board must allow homeowners an opportunity to speak at an appropriate time before the board takes formal action (votes) on any item under discussion. At a point determined by the board -- but before it takes formal action (votes) -- the board must allow a reasonable number of owners to speak and then proceed with taking formal action. Even if your board provides the homeowners the opportunity to speak at a homeowners’ forum held at the beginning of the board meeting, a homeowner still must be allowed to speak before the board takes formal action in addition to any other opportunity given to homeowners to speak.
 
Boards may place reasonable time limits on owners who speak as well as placing a reasonable limit on the number of owners who speak. Boards, however, must allow for owners to speak on both sides of an issue, and this number will vary depending on the number of owners who wish to speak and the time limitations imposed.  This requirement does not mean that the board must find an exact number of owners to speak on each side of an issue or even find speakers to speak to both sides of an issue when such an issue is uncontroversial. In addition, although owners have the right to speak, the statute does not require boards to answer questions or engage in a dialogue with the owner, although they certainly may if they desire. In fact, in some instances answering questions and engaging in dialogue with the owners is advisable to facilitate communication and good relations.  Boards also are not required to distribute the board packet to owners attending the meeting. (Owners do have the right to a copy of the board meeting agenda, however, if one exists).
 
Your board should think through the procedure – time limits, limits on number of speakers etc. – that will work best for it.  Then, as SB 100 requires that associations adopt a policy and procedure concerning the conduct of meetings, put it down in writing. This way a procedure will be put in place that will be followed to keep board meetings productive while allowing owner participation as required by law.


[PRINTER FRIENDLY VERSION]
The University
Upcoming Classes:

SB 100 Seminars

September 22, 2005 - Orten & Hindman's Wheat Ridge Office
6:30 - 9:00 PM

September 27, 2005 - Lakewood Library
10200 W. 20th Avenue, Lakewood, CO  80215
6:00 - 8:30 PM

Click here to register
School of Association Management

SB100 Meetings and Records
Wheat Ridge Office
October 6, 12:00pm  - 1:30pm

School of Association Leadership

BOD 203 - Enforcement of Covenants and Rules
Wheat Ridge Office
September 14, 6:00pm - 9:15pm

BOD 204 - Effective Governance and Leadership Skills
Wheat Ridge Office
October 12, 6:00pm  - 9:15pm



Click here to register

 
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Published by Orten & Hindman, P.C.
Copyright © 2005 Orten & Hindman, P.C.. All rights reserved.
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