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The Self-Managed Association: The Future of Virtual Board Meetings
California’s common interest developments are subject to a minefield of regulations and oversight. HOA boards navigate federal statutes from solar panels to fair debt collection and must conform to California State Statutes for common interest developments, the California corporations code, and their county and local statutes. No wonder, common interest developments are considered the full employment act for attorneys!
Against this backdrop, add the significant changes to California HOA election law (SB 323) and the COVID pandemic, and it is a wonder that HOA business gets done at all. HOA board members are volunteers and for the most part, serve their communities with good intent, unselfish motivation, and a desire to see their communities thrive. The COVID pandemic has upended the “typical” activities of community associations. Common area amenities have closed, or are subject to state and county guidelines that are confusing, change often and are hard to oversee. Board and committee meetings have been moved online and social events canceled. Board and committee members face changes in their employment status, are challenged by working from home, and are concerned about their children’s education.
Amidst this uncertainly and confusion, HOA thought leaders and board members are asking, “how do we govern our associations?” “What is the best format for our governance activities?” “What will the law allow us to do?” “How do we comply with state law, COVID guidelines, and stay at home orders?”
Leadership from state governments and emergency orders can help. Florida issued Emergency Order 2020-04 on March 27, 2020, expanding emergency powers for HOAs during the pandemic. On July 31, 2020 the California Law Revision Commission published Memorandum
The Future of Virtual Board Meetings
2020-35 suggesting some “Emergency Related Reforms” for common interest developments that would relax regulations for teleconference board meetings by adding a new article (Article 11) to §4800, Association Governance. Until such time that the Governor signs an emergency order or the legislature passes the suggested language, HOAs are on their own to come up with defensible standards of practice for board meetings so that they can continue their association’s business and governance
The Future of Virtual Board Meetings
obligations during emergencies and stay at home orders.
The most powerful tool for HOA boards has been the virtual meeting. Zoom, Skype, and Facetime have become the new clubhouse or meeting room. The adoption of remote meeting access and meeting technologies may be a genie that will not go back in the bottle. Given current COVID guidelines, HOA boards have no option other than to embrace the virtual meeting. This begs the question when the pandemic is over, and it will be, what will become of the virtual meeting? It may be time to consider the value of virtual board meetings while leaving the legal arguments to the attorneys and state legislators. Proponents of virtual meetings identify three main benefits that may make giving them up after the pandemic a step backward. CONVENIENCE. Most everyone agrees virtual meetings are convenient. HOA board members can meet and provide meeting access to association members easily and with greater flexibility than using clubhouses, meeting rooms, pizza parlors, libraries, board member homes, or rented facilities. The social distancing requirements brought about by the COVID pandemic, have provided board members an opportunity to experience engaging in board business without leaving their home, or office and on any device they choose. Association members wanting to attend board meetings can do so with the same convenience and flexibility of location. This is even a greater benefit for off-site owners and members who have mobility challenges. EFFECTIVENESS. Virtual meetings tend to be more structured and have a shorter duration than on-site attended meetings. This encourages board members to be more focused and engaged. Meeting agendas can be shorter and more focused on top priorities allowing board members to engage in more direct discussion while the virtual format enhances decision making. The virtual meeting environment avoids meeting room distractions and non-verbal influences that can inhibit board discussion and influence decision making.
EFFICIENCY. The virtual meeting eliminates board member travel time, parking concerns, weather
interference, and fatigue. There is no need for meeting room setup, tear down and cleaning, and no concern about board members and community members loitering in the meeting room secondguessing decisions after the meeting is adjourned.
Virtual meeting opponents and those suspicious or skeptical of HOA governance warn that adoption of enhanced teleconference and virtual meeting formats will lead to board decision making in secret, a loss of board accountability, and disenfranchise community members who lack the equipment or knowledge to participate in virtual meetings. These concerns are justified and before COVID and stay at home orders resulted in the addition of the Open Meeting Act (§§4900- 4955) to the Common Interest Development Act. Unfortunately, the legislation never contemplated how HOA boards would meet during natural disasters, wildfires, or pandemics.
At the very least, the Governor and state legislature should take seriously the suggestions of the California Law Revision Commission’s Memorandum 2020-35, and provide some much-needed direction and relief to HOA boards of directors. Even better, The Open Meeting Act should be reevaluated and revised based on the widespread adoption of virtual meeting technology.
Out of necessity, California’s more than 50,000 community associations and more than
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Civil Litigation • Dispute Resolution • Governing Document Interpretation • Governing Document Revisions • CC&R and Rules Enforcement 160,000 board members have embraced virtual meetings to meet the governance needs of their communities and, for the most part, with success. Community association governance and business has continued; decisions are being made, budgets approved, contracts signed, vendors paid, and policies debated and adopted.
What will be the future of the virtual meeting after COVID? Will this experience inform public policy and challenge lawmakers to include virtual meeting options in the Open Meeting Act? It’s too soon to tell, but this horse may already be out of the barn.
John Cligny AMS, PCAM, CCAM-HR is a veteran portfolio manager and community association management executive. As co-founder of Association Consulting Group, John is a trusted advisor primarily focused on educating and advising community association board members on effective governance to promote a positive public opinion of homeowner associations and community management. John is a frequent speaker and panelist on a wide range of community association topics and issues.
