How soon are the minutes of a board meeting to be available to homeowners?
How soon must notice of a board meeting be given?
May homeowners speak at board meetings?
If a homeowner and the HOA can’t work out a dispute at a hearing, what can a homeowner try do to resolve the dispute?
Does a homeowner or the HOA pay to eradicate termites?
While the HOA is eradicating termites by tenting the building in a condominium, which pays to relocate the owner?
How does a homeowner know what percent the financial reserves are funded?
After the HOA’s annual operating budget is approved, how much may the board raise the assessments without a vote of the homeowners?
When the board approves the operating budget each year, how much may they raise the assessments without a vote of the homeowners?
When are assessments due?
May a homeowner install a satellite dish?
May a homeowner make an architectural, landscape, etc. change to the exterior of their home without the approval of the HOA?
May a homeowner make an architectural change to the interior of their home without the approval of the HOA?
How many homeowners’ votes does it take to approve a special assessment?
How many board members must be present at a board meeting in order to call it to order and conduct business?
May the board make a decision outside of a board meeting attended by homeowners?
How is a board member removed from the board?
If a board member can’t make a meeting in person, can he participate in the board meeting by making a conference call?
May I be personally sued for being on the board?
How does a board member avoid being found liable in a lawsuit?
Does the HOA carry insurance to protect board members from being sued personally?
Why does a board member need the HOA to carry Directors and Officers Insurance?
Is there any reason why the Directors and Officers Insurance may not provide coverage for a board member?
What is the “fiduciary” responsibility of the board?
Can the HOA tow my car at my expense?

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Question: Who can change the rules or policies of an HOA?
Answer: The board may make changes, but only after the homeowners: 1) have had at least 30 days to consider the rule change; and 2) after owners are given an opportunity at a meeting to give their opinions about the rule change (Section 1357.130.).

Question: Who can change the CC&Rs?
Answer: Only a certain percentage of the homeowners of the HOA by voting can do that (check CC&Rs for %).

Question: How are decisions made by the board at a board meeting?
Answer: By parliamentary procedure. One board member makes a motion and another one seconds it. The motion is then discussed by the board. After discussion is done, a vote is taken by the board and the majority vote either approves or disapproves the motion (Section 1363. (d)).

Question: May any matter be discussed by the board at a board meeting?
Answer: Only those matters that are on the agenda may be discussed at a board meeting. The agenda must be completed at least 4 days before the meeting (Section 1363. (e)).

Question: Before an owner is called to a hearing by the board, how many days notice must he be given?
Answer: Ten days before the hearing. If the board takes action against the homeowner at the hearing, the owner must be notified within 15 days (Section 1363. (h)).

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Question: May homeowners attend board meetings?
Answer: Yes. (Section 1363.05 (h)).

Question: What meetings may homeowners not attend?
Answer: Executive sessions for litigation, contracts, member discipline, personnel matters, and meetings with delinquent owners (Section 1363.05 (b)).

Question: If a homeowner is called to a hearing, may he do it with only the board in executive session?
Answer: Yes. (Section 1363.05 (b)).

Question: How soon are the minutes of a board meeting to be available to homeowners?
Answer: A draft copy within 30 days. (Section 1363.05 (d)).

Question: How soon must notice of a board meeting be given?
Answer: A notice must be posted in the common area at least four days before the meeting. (Section 1363.05 (f)).

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Question: May homeowners speak at board meetings?
Answer: Yes, for a “reasonable time limit” set by the board. (Section 1363.05 (h)).

Question: If a homeowner and the HOA can’t work out a dispute at a hearing, what can a homeowner try do to resolve the dispute?
Answer: First, the homeowner and a board member may meet to try and resolve the dispute (Section 1363.840 (1)). Second, if that doesn’t work, a homeowner may request to meet with the board in some form of mediation or arbitration (Section 1363.830. and 1369.510.)

Question: Does a homeowner or the HOA pay to eradicate termites?
Answer: If an owner lives in a condominium the, HOA pays for termite eradication. But, if he lives in a PUD (Planned Unit Development), the homeowner pays. Check the CC&Rs to determine if it is a condominium or PUD (Section 1364.(b) (1)).

Question: While the HOA is eradicating termites by tenting the building in a condominium, which pays to relocate the owner?
Answer: The homeowner (Section 1364.(c))

Question: How does a homeowner know what percent the financial reserves are funded?
Answer: Ask the HOA for a copy of the current reserve financial disclosure for future repairs (Section 1365.2.5.)

Question: After the HOA’s annual operating budget is approved, how much may the board raise the assessments without a vote of the homeowners?
Answer: Five percent (Section 1366. (b))

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Question: When the board approves the operating budget each year, how much may they raise the assessments without a vote of the homeowners?
Answer: Twenty percent (Section 1366. (b))

Question: When are assessments due?
Answer: Assessments are delinquent 15 days after they come due, unless the CC&Rs give a different deadline (Section 1366. (e))

Question: May a homeowner install a satellite dish?
Answer: In a Planned Unit Development (PUD), an owner can install a dish with the input of the HOA. In a condominium, an owner can only install a dish on their exclusive use common area (their deck/balcony). Installation anywhere else is prohibited without the approval of the HOA (Section 1376.).

Question: May a homeowner make an architectural, landscape, etc. change to the exterior of their home without the approval of the HOA?
Answer: No, in most cases. It is best to ask the HOA before proceeding with any exterior change (Section 1378.)

Question: May a homeowner make an architectural change to the interior of their home without the approval of the HOA?
Answer: Yes, as long as nothing structural is going to be changed. It is best to read CC&Rs before proceeding with any interior change; and to ask the HOA for input.

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Question: How many homeowners’ votes does it take to approve a special assessment?
Answer: First, it takes 51% of the homes to return a ballot to make a quorum in order to conduct an election for a special assessment. Once the HOA has fifty-one or more percent of the votes, it takes 51% of that 51% (or whatever the number is) to approve a special assessment. In other words, 51% of the total number of votes decides a matter (Section 5033.)

Question: How many board members must be present at a board meeting in order to call it to order and conduct business?
Answer: A majority of the total number of board members mentioned in the by-laws. In other words, if there are 5 board members, it takes 3 board members to call a meeting to order and conduct business (Section 7211. (7))

Question: May the board make a decision outside of a board meeting attended by homeowners?
Answer: Only if the entire board agrees to something. This is called an “action by unanimous consent.” The intent of the legislature is to eliminate secret meetings and to have decisions made in front of the public, homeowners. Board members have no legal authority to make decisions outside of a board meeting, and act and speak only as homeowners (Section 7211. (b))

Question: How is a board member removed from the board?
Answer: A board member may resign in writing and the board may appoint a homeowner to serve out the term. If a board member misses a specified number of meetings mentioned in the by-laws, he may be removed. A homeowner can call for an election to remove a board member by having 5% of the homeowners sign a petition. A board member may be removed for being found to be of unsound mind, a felon, or breach certain duties (Sections 7221. and 7222.)

Question: If a board member can’t make a meeting in person, can he participate in the board meeting by making a conference call?
Answer: Yes, as long as the board is able to hear one another (Section 7211. (6))

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Question: May I be personally sued for being on the board?
Answer: Yes (Section 7231.)

Question: How does a board member avoid being found liable in a lawsuit?
Answers:

• Make decisions in good faith. “This means that the action of each director must be genuinely directed towards those purposes set forth in the governing documents. There should be no ulterior reasons or motives.”* (Section 7231. (a))
• Make decisions that are in the best interest of the HOA, even if that decision is not in their personal best interest (Section 7231. (a))
• Make decisions like another board member living in a different HOA would (Section 7231. (a))
• Making decisions after consulting:
• Legal advice (Section 7231. (2))
• Reports from reliable and competent architects, engineers, etc. (Section 7231. (2))
• Financial input from accurate financial reports, and a CPA (Section 7231. (b) and (2))
• Committee reports (Section 7231. (3))
• Reports from management (Section 7231. (1))