SB1468 - The Only Way to Keep Board Members in Check!

I recently ran across a site that appears to be a Community Associations Network site.  It's very well written and has great tips.  And expresses how we all feel about HOA boards who just don't get it.  Those of us who suffer from headaches and hope that common sense will prevail in HOAs.  Suffer from them due to head trauma from banging out heads against the wall, desk, floor, or other hard surface hoping the horse will drink the dam water.

But, occasionally there are times when I don't agree with the rest of them.  And SB1468 was one of those issues.  SB1468 – or as Scott refers to it, the “Make Sure No One Serves On the Board” bill.  SB1468 is an attempt to force the individual board members to reimburse the attorneys’ fees and costs of the association in a case where an owner “substantially prevails” in an enforcement lawsuit against the condominium or planned community association. Instead of being required to pay the attorneys’ fees to the owner, the directors are “personally liable” to reimburse the association for any attorneys’ fees the association had to pay for the association’s attorney.

Declarations are written to be so one sided that as long as the association is acting collectively through the board, it can do no wrong.  It can break state statues, file false police reports, violate the governing documents, and slander peoples names and is not held responsible for its actions.  But, if an owner forgets his trash can at the street for one extra day, all hell breaks loose. 

If an individual owner can get fines and sued by the HOA for something and the homeowner wins.  But, is still be forced to pay the associations attorney fees, justice has not been done.  Because the owner still gets punished by having to fork out money when he prevailed.  And it's not like before you buy the house in an HOA you can mark through portions of the contract you don't like.  It's a take it or leave it situation. 

When directors and officers insurance does not cover the actions of the board members.  The association should not have to bear the cost.  Because it was the willful actions of the individual owners sitting on the board who caused the cost to be incurred. 

If the willful acts of an individual owner causes the association to incur costs.  That owner is billed for it.  So, why should individual owners sitting on the board exempt from the punishment?  These individuals are elected because we believe they are honest, ethical, responsible, trustworthy people.  By the time it's found out that they aren't, it's too late.  The damage is done.

Anything put into writing that causes board members to become personally liable for their actions.  Causes people to not run for the board, then good!  If this is the case then they probably aren't an honest person to start with.  Otherwise, any honest mistake made by a honest individuals would be forgiven and covered by the insurance.

And if this scares people off, to the point nobody runs for the board.  Then it just might be time to get rid of the HOA all together or time to hire a third party receiver.  I know this doesn't sit well with HOA attorney's but, think of it like this.  You will no longer have to deal with armatures and your head will not hurt as much.