All Things Condo: Carole Richelieu

Pandemic Complicates Running a Condo

Understanding a building’s governing documents is more important than ever for managers, boards.

Running a condominium association is not easy, even on the best of days. Now throw in a worldwide pandemic to complicate things.

Governing documents (declaration and bylaws) are critical to understanding what role and authority are held by condo associations and boards in addition to Chapter 514B, Hawaii Revised Statutes (HRS) and the non-profit statute, if applicable. (See section 514B-104, HRS, for association powers, and section 514B-106, HRS, for board powers). Board members owe the association a fiduciary duty, including acting in good faith, best interest, loyalty and the care an ordinarily prudent person in like circumstances would act. Associations should always check with their attorneys regarding parameters of action and procedure.

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Meetings

With state and city declarations limiting human gatherings to small groups and promoting social distancing, holding an association board meeting just got more complicated.

Statutorily, associations must meet at least once a year, while governing documents may dictate more often. (See Section 514B-121, HRS.) Fourteen-day advance notice of the meeting is required. If permitted by the governing documents, meetings may be conducted by any means that allow participation by all unit owners. The meeting must be conducted in accordance with Robert’s Rules of Order.

Thus, where the documents permit telephone or video, statutory owner participation is satisfied. Parliamentary procedure also has various remedies, including amending an issued notice, rescheduling, continuance, adjournment, ratification and special meetings. If necessary, a minimum quorum can social-distance to handle an essential item like the tax rollover resolution. Many governing documents provide for board members to serve until successors are chosen. Townhalls are not annual meetings subject to the usual legal strictures.

Board meetings likewise must be conducted in accordance with Robert’s Rules of Order and meet at least once a year. (See Section 514B-125, HRS.) All meetings of the board (other than executive sessions) must be open to association members, who must be permitted to participate in accordance with board rules. Subject to the governing documents, however, directors may participate by any means through which all directors may simultaneously hear one another and subject to the board, owners may as well.

Additional Considerations

The board owes the association a fiduciary duty at a minimum to maintain the condo. Thus, it may wish to limit repairs and construction to vital items such as leaking roofs or burst pipes.

In addition, the association should be wary of conduct involving alleged discrimination or harassment of owners, tenants, employees and contractors.

Please review our website for a searchable copy of Chapter 514B, HRS, as well as some general information on cleaning buildings, social distancing in condos and meetings. ❖

Carole R. Richelieu is senior condominium specialist in the Department of Commerce and Consumer Affairs’ Real Estate Branch. Contact her office at 586-2643 or go to www.hawaii.gov/hirec.