THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, June 10, 1995 TAG: 9506080331
SECTION: REAL ESTATE WEEKLY PAGE: 16 EDITION: FINAL
COLUMN: COMMON GROUND
SOURCE: G. ROBERT KIRKLAND and MICHAEL INMAN
LENGTH: Medium: 76 lines
Q. I am an owner in a homes association. I am very upset with the way the association is being run. Can you answer the following question?
Is the community stuck with a president that was not voted in by the community, shows poor judgment and serves only his personal agenda?
If the clubhouse is rented out and someone falls into the pool and drowns, is the association protected by a release statement by the person renting the clubhouse?
How many votes does it take to overcome a developer with 200 units?
Can a board member be sued for misconduct and misrepresentation?
Can a manager preside over the architectural committee?
Would a management company be a good approach to resolving these problems?
Should all our board members and employees be bonded?
A. We will try to summarizes our responses.
The president of the association is not elected by the community at large; rather, he or she is elected by the directors who are elected by the community.
There are two ways to remove the officer in question. First, convince the board to recall the president, or, second, use the recall the recall procedure to remove the individual. This procedure is normally described in the association bylaws.
You have not given us enough information to answer the second question. Are there lifeguards? Who is paying them? The person renting the facility should be required to sign a ``hold harmless and indemnity agreement'' to take responsibility in the event the association is sued.
This is a matter that would be decided in a court. We have recommended for some time that associations do not hold parties or allow functions that serve alcoholic beverages.
It would take 201 votes by owners if the developer no longer controls the association or as many as 600 votes if the developer has three votes for each lot under a Class D membership, which is often written in the declaration.
Yes, board members can be sued. The association should have a director and officers liability insurance that would defend the director and pay any damages and any attorney's fees.
The manager of any association should never preside over any committee. This function should always be done by a homeowner member. The manager attends as an advisor only.
Hiring a management company is one way of resolving management issues. It is not a guarantee nor is it the answer to many of the issues you have raised. The problems you outlined appear to be a result of poor communications at best.
All employees and officers having access to money should be bonded. A minimum amount should be twice the average annual receipts of the association.
We suggest that you send a copy of your complaints and questions to the board of directors. You should send it registered mail and request a reply.
If you are unable to develop good communications with the board, there are two choices. First, gather enough votes and, along with other owners who agree with you, run for the board at the next annual meeting. Second, review the process of recalling the director or directors, which would force an election.
We know that there are always at least two sides to issues like these. We feel certain that frank discussions with the board should resolve many of the problems. MEMO: G. Robert Kirkland, president of a Virginia Beach property management
consulting firm, and attorney Michael A. Inman specialize in Virginia
community association issues and are affiliated with the Southeastern
Virginia chapter of the Community Associations Institute. Send comments
and questions to them at Real Estate Weekly, 150 W. Brambleton Ave.,
Norfolk, Va. 23510. To submit questions by phone, call 446-2033; fax:
446-2531.
by CNB