Board decides for `optimum good'

     By Barbara Holland, CPM
      Q. Recently our developer turned the operation of the association over to the unit owners. One of our first actions was to amend several articles in the existing rules and regulations. Many owners took umbrage with most of the changes, turning the meeting into a shouting match and demanding that the changes be lifted.
      To restore order, we agreed to let them petition the board with how they would like to see these changes. Should the board's decisions be final, or should they acquiesce and let the homeowners have their way?
      A. According to most associations' governing documents, the board of directors can make changes to rules and regulations without a vote of homeowners. All rules and regulations, however, must be equally enforced and must be consistent with the covenants and bylaws.
      In theory, if owners do not agree with the rules and regulations, they have a couple of alternatives. The owners can address their concerns and position to the board in the hope that the board will make the appropriate modifications. If the board is not willing to make these suggested changes, then the owners could petition the association for a special homeowners meeting for the express purpose of addressing and changing the disputed rules.
      From a management viewpoint, boards need to consider the positions of all their members and try to make decisions based on the optimum good of the entire community. Many boards will survey members to gather their opinions on various issues.
      What appears to have gone wrong at your board meeting is a problem with meeting management. Meetings that succumb to shouting matches should immediately be brought under control or terminated. A designated person such as the president should conduct the meeting. Topics should be introduced either with a motion or suggestions, which after discussion may lead to a motion.
      The membership should be reminded of meeting procedures, which should be in writing and included in the association's rules and regulations. For example, the rules should establish an enforced time limit for each speaker.
      When a motion is made, a second is required. If no one seconds the motion, the motion dies for the lack of a second and there is no discussion. If the motion is seconded, the president should first allow the maker of the motion to speak within the established time limit. The president should then ask if there is someone who would like to speak against the motion. The president should continue this procedure of alternating a pro/con discussion, allowing each person to speak before recognizing someone who has already spoken. If the president sees there is repetition, he or she can ask if there is a new point that has yet to be made. If none, the president should then call for a vote and then move on to the next issue.
      This procedure should be followed at board meetings and membership meetings. Homeowners cannot vote on any issues or motions during the board meeting, but the procedure of maintaining control and having an orderly discussion during the homeowner forum is important. The president and the board are not required to act on discussion during the homeowner forum, but they should take it under advisement, obtain more information, and report back to the membership or place the issue on the agenda for the next meeting. State law does not allow a board or association to vote on any issue that was not given notice, unless the motion pertains to an emergency.
      Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.
      Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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