Hellmuth & Johnson attorney, Nancy Polomis, discusses various topics with HOALeader.com:
California Clarifies Boards’ Use of Email for Condo/HOA Business: Do You Know Your Law?
Minnesota—“We do have an open meeting requirement for townhomes and condos subject to the Minnesota Common Interest Act,” reports Nancy T. Polomis, a partner at Hellmuth & Johnson PLLC in Edina, Minn., whose clients include local developers and condos and HOAs throughout Minnesota. “Except under very specific circumstances, such as personnel matters, potentially adverse proceedings, and criminal investigations, boards must discuss association business in an open meeting.
“My recommendation to clients is that they not discuss everything by email and then come to the meeting and say, ‘Based on our discussion, we move we do X,'” she explains. “The whole point of the requirement is to let owners see what I call the sausage being made. Owners want to see what got you to this point to make this decision. So the entire discussion should be in the confines of a meeting.
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HOA President Can Spend $5,000 No Questions Asked—Seriously?
Nancy T. Polomis, a partner at Hellmuth & Johnson PLLC in Edina, Minn., whose clients include local developers and condos and HOAs throughout Minnesota, agrees. “In Minnesota, boards can authorize a president to spend up to a certain amount,” she states. “Usually, that’s pretty low. It’s $500, maybe $1,000. It kind of matters the size of the association.
“This is similar to some management contracts, where the board gives the manager the authority to spend no more than, say, $5,000 without prior approval so that if there’s an emergency, the manager can act quickly to fix it,” adds Polomis. “But if it’s just going to be the board authorizing the president, I’d say $500, $1,000 is the right amount.”
But remember, boards act as a group, so it should be very rare for one board member, such as a president, to need to spend money individually.
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The Days of Condo/HOA Slush Funds Should Be Long Gone
Nancy T. Polomis, a partner at Hellmuth & Johnson PLLC in Edina, Minn., whose clients include local developers and condos and HOAs throughout Minnesota, agrees. “In Minnesota, boards can authorize a president to spend up to a certain amount,” she states. “Usually, that’s pretty low. It’s $500, maybe $1,000. It kind of depends on the size of the association.
“This is similar to some management contracts, where the board gives the manager the authority to spend no more than, say, $5,000 without prior approval so that if there’s an emergency, the manager can act quickly to fix it,” adds Polomis. “But if it’s just going to be the board authorizing the president, I’d say $500 to $1,000 is the right amount.”
But remember, boards act as a group, so it should be very rare for one board member, such as a president, to need to spend money individually.
Read the full article here.
Well, This Is Awkward: HOA Board Member Who Survived a Recall Wants Names
“In Minnesota, homeowners or members of a nonprofit corporation have the right to petition to demand a special meeting if a certain number sign and they present that petition to the board,” says Nancy T. Polomis, a partner at Hellmuth & Johnson PLLC in Edina, Minn., whose clients include local developers and condos and HOAs throughout Minnesota. “Then the board has to call a special meeting for that purpose.
“If they present that petition to the board, owners have the right to see the names on the petition,” she adds. “Under Minnesota law, that’s now an association record.
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What’s An “Assignment of Rents” in the Condo World, and Does It Affect Rental Caps?
This relates to an association getting a loan—“This sounds like the document that’s part of the collateral an association would provide a lender to ensure a loan the association is taking out gets paid,” says Nancy T. Polomis, a partner at Hellmuth & Johnson PLLC in Edina, Minn., whose clients include local developers and condos and HOAs throughout Minnesota.
“Typically for a townhome or condo, their biggest asset is their income stream,” she explains. “So this document is really more about intercepting rent payments or dues payments to be applied toward association loans. Or if there were assignment of rents language in the declaration, it would be to intercept rental payments for dues. It has nothing to do with rental cap calculations.”
Read the full article here.