• The president must set the example and follow all governing documents and rules and regulations. • You cannot do it all. You are the leader and guide, but you must accept responsibility for getting things done. You have been elected to execute decisions made by the board and to hold yourself and association members accountable to the provisions in [...]
Our law firm suggests that boards have the following accounting and financial controls in place to prevent embezzlement and fraud in their association: 1. Keep association records up to date; 2. Assign control of all reserve funds to the entire board; 3. Monthly financial reports should be prepared and made available for board review (include in the monthly report, a [...]
By Beth Mulcahy, Esq. If an owner becomes delinquent on his/her mortgage or deed of trust, the deed of trust company may initiate foreclosure proceedings on the owner’s property by noticing a Trustee’s Sale. Secure the association’s interests: A lien places the Trustee on notice of the association’s interests, so the association will receive notice of the Trustee’s sale and notice of [...]
On March 3, 2016, Congresswoman Anna Eshoo and Congressman Mike Thompson introduced Bill H.R. 4696, which can be cited as “Helping Our Middle-Income Earners Act” or the “HOME Act.” This bill is currently in the House Committee on Ways and Means. If enacted, the HOME Act will amend the Internal Revenue Code of 1986 to allow tax deductions to individual [...]
By Beth Mulcahy, Esq. I am often asked whether a board member code of conduct is a good idea or a bad idea. It really depends… Some boards need a code of conduct to clarify appropriate and not appropriate conduct by board members. Other boards don’t seem to need or want a code of conduct. Unless an association’s documents state [...]
When dealing with disruptive people the need for responding in a controlled manner that deals with fact and eliminates emotion is crucial. Running the board meeting as a business meeting, in a way that is open, fair, adheres to the agenda, is consistent, follows any rules and procedures established for the association and most importantly follows the Arizona Open Meeting [...]
By Beth Mulcahy, Esq. Is your Association Interviewing Management Companies? If so, here are some great questions to ask during the interview process: Management Office: What is the general appearance of the Corporate Office? What are the hours of operation? What is the age and experience of the firm? What is the experience of the managers and staff? Does the [...]
Our firm has encountered situations where new board members were handed boxes of association records or been asked to review and ascertain what records the association should keep or send to the shredder. It is a big decision, but don’t be discouraged, here are a few tips you should keep in mind as you sort through the pile of papers. [...]
By Beth Mulcahy, Esq. During the Summer months, there are occasionally emergencies (such as flooding or monsoon/microburst damage) that require immediate board action. In these circumstances, the board can suspend the 48 hours notice of meeting to the membership required by Arizona law and conduct an emergency board meeting. Under Arizona law (A.R.S.33-1804 and condo A.R.S. 33-1248), an emergency meeting [...]
The normal emotions that rise to the surface when served with a lawsuit are fear and anger, but this is not a time to allow emotions to take control. There are clear actions that the association should take to protect the board and the association. 1. Immediately contact the association’s attorney and insurance carrier. This will allow the attorney time [...]
