Question:
Board of Directors has started utilizing Executive meetings.
Nothing in our Homeowner Association states can do this except in emergency situation.
Board has recently chosen and approved a new management company.
No info to Owners.
HOA needs new roof, gutters, etc. Likely a major assessment as $1,000,000 project and insufficient funds in Reserve.
– Can, and how legally, can Owners change these?
– Petition other Owners to have all be open meetings?
– Can Owners insist, require all docs/bids be shared with them before Board meetings and voting?
Owners can’t vote, but ongoing lack of transparency and not allowed to share concerns or offer questions, etc.?
Given enormity of project and major decisions (consultants, scope of project, roofers, banks regarding assessment options and the amount will be assessed, etc.)
Appreciate any recommendations you can provide. Thank you!
– Ingeborg
Answer:
Hi Ingeborg,
This may depend on where you live. If you live in a condominium, the Oregon Condominium Act Section 100.420(2)(a) specifically allows executive sessions. However, Section 100.420(2)(b) does state that the board cannot meet in an executive meeting unless voted for by the board in an open meeting and the presiding officer of the board states the general nature of the action to be considered, as precisely as possible, when and under what circumstances the deliberations can be disclosed to owners.
Moreover, Section 100.420(2)(c) states that contracts or actions considered in executive sessions are not effective unless the board, following the executive session, reconvenes in an open meeting and votes to approve the contract or action, which must be reasonably identified in the open meeting and included in the minutes. In this case, the board may need to get a vote from the homeowners before they hire the management company.
However, if you live in a planned community other than a condominium, then The Oregon Planned Community Act may apply. While it does not seem to specifically address executive sessions, Section 94.657 states that meetings shall be conducted according to Robert’s Rules of Order which provide for voting at executive sessions. This is true unless other rules are required by the governing documents. Kindly re-check the governing documents to see whether they specifically prohibit executive sessions.
If your community is concerned about these actions, you may opt to amend the governing documents to involve the homeowners in major decisions like these. However, it’s important to remember that the association must abide by the law. As such, it’s best to consult a lawyer for further guidance.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
