An illegal HOA meeting can present many setbacks to governing the community. While you may be tempted to discuss association matters privately, this will do more harm than good. For a productive HOA meeting, it would be best to ensure it is always legal.
What is an Illegal HOA Board Meeting?
An illegal HOA board meeting does not adhere to the rules and regulations that stipulate how board meetings are conducted. This means it may not have one or several elements needed for a meeting to be considered legal.
What makes an HOA board meeting legal? The technicalities depend on the area and are based on state laws and HOA governing documents.
In general, four things are needed:
- providing notice to homeowners
- making sure homeowners can participate
- meeting a quorum
- keeping minutes that are accurate and accessible to members.
Providing Notice
One constant rule that makes an HOA meeting legal is providing notice to all members of the homeowner’s association. The board should send a notification containing the upcoming meeting, including the agenda.
This needs to be sent out at least a few days before the meeting, which may depend on the area. In North Carolina, the board needs to send out notifications no less than 48 hours before the meeting. Meanwhile, Virginia’s Property Owners’ Association Act says they should be sent out at least three days before the meeting.
Open Meetings
Can HOA board members meet in private? In general, they can’t, and there are only a few rare instances when they can. Most states have open meeting acts or sunshine laws, including NC, SC, TN, and VA. This rule mandates that all homeowners should be able to attend board meetings except when they need to discuss legal matters, personal issues, or confidential issues.
Reaching a Quorum
A quorum is needed for an HOA meeting to be valid. This means the minimum number of voting members must be present for the HOA to proceed.
The number required may differ depending on the community. Some associations require a majority, a certain percentage, or a certain number. Usually, state law, bylaws, and CC&Rs would indicate your HOA’s quorum requirements.
For example, in Tennessee, unless your HOA governing documents say otherwise, a quorum is reached if 20% of the voting body is present. On the other hand, in South Carolina, the default quorum is 10% of the voting body.
Minutes of the Meeting
The board, particularly the HOA board secretary, is responsible for keeping accurate meetings. The agenda, what was discussed, and the decisions made by the board during the meeting should be detailed.
In addition to ensuring that the minutes are accurate, they should also be accessible to all members of the HOA. Failing to provide access to accurate meeting minutes may invalidate any decision made by the board.
What are the Consequences of Illegal Board Meetings?
If you conduct an illegal HOA board meeting, the HOA board and the community may face consequences.
1. Invalidated Decisions
Any decisions the HOA has reached or actions taken during an illegal meeting will most likely be invalidated. Many states have legislation that indicates this, including North Carolina’s Planned Community Act, which states that homeowners can challenge decisions during illegal meetings and even nullify them.
This wastes a lot of time and may disrupt HOA operations, including delayed budgets, contracts, and changes in community rules.
2. Legal Penalties and Fines
Depending on the regulations, the board may be forced to pay fines and other legal penalties in some states. In some areas, the HOA may even be forced to reimburse homeowners for any damages that setbacks may cause due to illegal meetings.
3. Lawsuits
Homeowners may file lawsuits against the HOA if they find out the board has conducted an illegal meeting. If the Court rules in favor of the homeowners, the HOA may be required to pay restitution and ordered to uphold transparency.
4. Loss of Trust
Any secret meetings from the board, especially regarding matters of the HOA, may result in homeowners losing trust in the current board members. This may then lead to issues and challenges in managing the community, and it may even cause bigger conflicts between members and the HOA.
5. Government Intervention
Yes, in the worst-case scenario, the government may have to intervene. In addition to fines and penalties, authorities would likely implement more measures to avoid any oversight or governance issues.
Under Virginia Code Ann. § 55.1-1821, state agencies can enforce HOA regulations and levy fines if the board repeatedly violates meeting laws. North Carolina has similar regulations under N.C.G.S. § 47F-3-120.
Frequently Asked Questions
What can homeowners do if they suspect a meeting is illegal?
If a homeowner thinks the HOA board is meeting informally and deciding community matters in private, it would be best to review the governing documents and state laws. The homeowner may also raise concerns with the board to seek answers. In bad cases, HOA members may pursue legal action to challenge the validity of informal board meetings.
Can homeowners record HOA board meetings?
This would depend on state laws. In some states, the homeowner can record the proceedings outright under their versions of the Open Meetings Act. Other places require the board’s consent to do so.
Can homeowners force the HOA board to conduct a meeting?
Yes, they can. Several states and many HOA governing documents give homeowners the power to petition the board for a special meeting. For example, in North Carolina, homeowners may request a special board meeting if enough members of the HOA sign a petition.
If the homeowners’ petition is a success and the board fails to honor it, legal action may be involved.
Upholding Transparency
Can an HOA board meet informally? The purpose of regulations governing HOA board meetings is always rooted in transparency. It helps get things done while maintaining a level of trust with your fellow homeowners. It’s always best to take actions that help build trust with the community for matters regarding the HOA.
Cedar Management Group offers reliable HOA management solutions. Call us now at (877) 252-3327 or contact us online to request a free proposal!
RELATED ARTICLES:
