Common interest developments, which might be condominiums, planned unit developments with separate home sites or planned residential developments consisting of common areas and separate interests are managed by an association, which is structured as a nonprofit corporation or unincorporated association. These managing entities are commonly referred to as homeowners' associations.

A homeowners' association is responsible for managing and maintaining the improvements and common areas, administering the rules and regulations governing use of the various recreational facilities and common areas, making and enforcing assessments owed by owners for maintenance and improvement expenses and meting out private quasi-judicial decisions regarding violations of the covenants, conditions and restrictions of the development. The homeowners' association essentially serves as a private government for its members.

First Meeting

The life of a homeowners' association begins with the first meeting of owners. Generally, the first meeting must be held within a certain amount of time, such as six months, after the closing of the sale of a certain number of units. The first election of a governing body for the association is conducted at the first meeting of owners, and all positions on the governing body are filled at that election. Typically, after the first general meeting has been adjourned, an organizational meeting of the first board of directors is held to elect the officers of the board and to consider how the association should be run.

Annual Member Meetings

Members' meetings are usually held once a year at a time and place set forth in the association bylaws. These meetings allow community members to communicate with members of the association. They provide the board with time to get input from the members and to obtain their comments on board actions or proposals. Also, elections of board members take place at most annual meetings.

Governing Body Meetings

Regular meetings of the governing body of the association are held according to the association bylaws. Ordinarily the meetings are held once a month, but the bylaws may provide for meetings as infrequently as every six months if more frequent meetings are not needed.

The board of directors sets the time and place for regular board meetings. The meeting place ordinarily is within the development unless, in the judgment of the board, a larger meeting room is needed than exists within the development, in which case the room selected must be as close as possible to the development. Often a board will try to use space at a nearby school, library, church, or local government building.

Calling a Meeting

Usually, the board of directors (or other governing body) must promptly schedule a special meeting of the members if the board votes to hold such a meeting or receives a written request signed by members representing a certain percentage of the total voting power of the association. A special meeting must also be called as a prerequisite to filing a civil suit against the developer for alleged damage to the common areas or to specified separate interests in the development.

Attendance

Any member of the association may attend regular and special meetings of the governing body. A member is permitted to speak at any board of directors meeting, except when the board meets in executive session. The board is allowed to establish a reasonable time limit and rules for members to speak at or before meetings.

The governing documents establish a quorum for the transaction of business at a meeting of members, so it's important to have that minimum number of board members present at meetings. Special quorum requirements may apply in situations such as when the board is seeking to increase assessments or to impose a special assessment. In the absence of a quorum at a members' meeting, a majority of those present in person or by proxy, which is a document empowering a person to act for another, may adjourn the meeting to another time but may not transact any other business. The quorum for an adjourned meeting may be set at a percentage less than what is set for the regular meeting.

Notice Requirements

Unless the time and place of meetings is fixed by the bylaws, members must be given notice of the time and place of a meeting, except for an emergency meeting, a set number of days before the meeting.

Notice is generally posted in a prominent place or places within the common areas, and by mail to any owner who has requested notification of board meetings by mail, at the address requested by the owner. If the common area consists only of an easement or is otherwise unsuitable for posting of the meeting notice, the governing body must communicate the time and place of the meeting by appropriate means. Notice may also be given by mail or delivery to each unit or by association newsletter. The notice must include the meeting agenda.

Notices of meetings must specify those matters the board intends to present for action by the members. However, any proper matter may be presented at the meeting for action, unless prohibited by law.

Special Meetings

Typically, the board of directors must promptly schedule a special meeting of the members if the board votes to hold such a meeting or receives a written request for such a meeting signed by members representing a certain percentage of the total voting power of the association.

Meeting Minutes

The minutes or summary of minutes of any meeting of the board of directors, other than an executive session, is usually available to members within 30 days of the meeting. The minutes are distributed to any member upon request and reimbursement of cost.

Action without Meeting

Usually, the governing body or board may take actions without a meeting if all of its members consent in writing to the action to be taken. If the governing body resolves by unanimous written consent to take action, an explanation of the action taken must be posted at a prominent place or places within the common areas within a few days after the written consents of all governing body members have been obtained. If the common areas are unsuitable for posting the explanation of the action taken, the governing body must communicate the explanation in an appropriate manner, such as by mailed notices.

Source: Lawyers.com^sm