Tag Archives: education

Are Director Speeches and Consent Calendars OK for our HOA?

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By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Mr. Richardson: I really enjoy your HOA Homefront column. Here’s a question: Is it appropriate for board members to use homeowner time to make speeches? We have a board member who likes to do that — often disparaging owners who have different opinions from hers. Thank you, A.M., San Diego

Dear A.M.: Open forum is not the time for the board members to talk, but is their time to LISTEN. They should be noting any questions or action items that need to be answered or directed to management or a committee. The Open Meeting Act prohibits directors from discussing (or orating) on matters not disclosed on the agenda, per Civil Code Section 4930(a). However, subparts (b) and (c) of Section 4930 allow directors to answer questions or request matters be referred to management, staff, or a committee, which should happen AFTER open forum ends. Board members who abuse open forum by interrupting members cannot fairly insist that homeowners in the audience not interrupt board deliberations. Finally, it’s bad form to use one’s board seat as a platform to bully or criticize other members. Sounds like someone should gently rein this person in a bit. Best, Kelly

Dear Kelly: In an attempt to make board meetings brief, they have taken to voting the “consent calendar” as one agenda item, without any prior members’ knowledge, discussion or even speaking the items on it. This month these include: approve the minutes; acknowledgement that board members have reviewed the financials; treasurer’s report; and manager’s report. These reports are provided to the board by the treasurer and manager prior to the meeting. They are then adopted by the Board at the meeting always without discussion or disclosure of the contents. The reports are then attached as separate PDFs to the minutes of the meeting which are provided to the members a few days after the meeting. Should not these reports be seen by the members before the Board votes on them? How can this square with the open meeting rules or intent? R.S., Solana Beach

Dear R.S.: Consent calendars are a powerful tool to dispose of items not expected to require any discussion – such as the items you list- in one quick vote without deliberation. The consent calendar items still must be listed on the posted agenda, and any director can without explanation ask for an item to be removed and handled as a separate motion. Since consent calendar items are not discussed, it is another reason to conduct open forum at the beginning of the meeting. However, reports the board receives in their “board packets” are not normally shared with the rest of the HOA unless those reports are accepted and added to the minutes. Sometimes the board packet has confidential information such as multiple bid proposals, or incident reports, or delinquency lists, which should not be shared with the community at large.

Consent calendars are valuable because they preserve time and energy for the items which might be controversial and need board focus. Even the smallest HOAs would benefit from their use. One caution – don’t overuse consent calendars as a technique to avoid discussing matters which are not truly routine or non-controversial, because that can quickly destroy a board’s credibility. Nothing is more important than the HOA’s trust in their board.

Sincerely, Kelly

Are Director Speeches and Consent Calendars OK for our HOA?

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By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Mr. Richardson: I really enjoy your HOA Homefront column. Here’s a question: Is it appropriate for board members to use homeowner time to make speeches? We have a board member who likes to do that — often disparaging owners who have different opinions from hers. Thank you, A.M., San Diego

Dear A.M.: Open forum is not the time for the board members to talk, but is their time to LISTEN. They should be noting any questions or action items that need to be answered or directed to management or a committee. The Open Meeting Act prohibits directors from discussing (or orating) on matters not disclosed on the agenda, per Civil Code Section 4930(a). However, subparts (b) and (c) of Section 4930 allow directors to answer questions or request matters be referred to management, staff, or a committee, which should happen AFTER open forum ends. Board members who abuse open forum by interrupting members cannot fairly insist that homeowners in the audience not interrupt board deliberations. Finally, it’s bad form to use one’s board seat as a platform to bully or criticize other members. Sounds like someone should gently rein this person in a bit. Best, Kelly

Dear Kelly: In an attempt to make board meetings brief, they have taken to voting the “consent calendar” as one agenda item, without any prior members’ knowledge, discussion or even speaking the items on it. This month these include: approve the minutes; acknowledgement that board members have reviewed the financials; treasurer’s report; and manager’s report. These reports are provided to the board by the treasurer and manager prior to the meeting. They are then adopted by the Board at the meeting always without discussion or disclosure of the contents. The reports are then attached as separate PDFs to the minutes of the meeting which are provided to the members a few days after the meeting. Should not these reports be seen by the members before the Board votes on them? How can this square with the open meeting rules or intent? R.S., Solana Beach

Dear R.S.: Consent calendars are a powerful tool to dispose of items not expected to require any discussion – such as the items you list- in one quick vote without deliberation. The consent calendar items still must be listed on the posted agenda, and any director can without explanation ask for an item to be removed and handled as a separate motion. Since consent calendar items are not discussed, it is another reason to conduct open forum at the beginning of the meeting. However, reports the board receives in their “board packets” are not normally shared with the rest of the HOA unless those reports are accepted and added to the minutes. Sometimes the board packet has confidential information such as multiple bid proposals, or incident reports, or delinquency lists, which should not be shared with the community at large.

Consent calendars are valuable because they preserve time and energy for the items which might be controversial and need board focus. Even the smallest HOAs would benefit from their use. One caution – don’t overuse consent calendars as a technique to avoid discussing matters which are not truly routine or non-controversial, because that can quickly destroy a board’s credibility. Nothing is more important than the HOA’s trust in their board.

Sincerely, Kelly

Is Our Board Following the Open Meeting Act?

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By Kelly G. Richardson, Esq., CCAL, HOA Homefront Column

Mr. Richardson: Is homeowner open forum a requirement in California or just handy for everyone involved? Or, should I speak with each board member individually to ask for that time in the monthly board meetings? Or, is that only an agenda item at the yearly membership meeting? S.L., El Centro.

Dear S.L.: An open forum opportunity is required by Civil Code Section 4925 in all open board meetings and in membership meetings. This is mandatory. The board “shall” establish a reasonable time limit for members to speak. A common limit is 3 minutes per speaker, with many boards allocating up to 30 minutes for the open forum session portion of the meeting. It’s also a good idea to establish some reasonable open forum policies so attendees know what is expected.

Open forum is not only required but is a valuable opportunity for boards to hear from their members; their neighbors. It’s an important aspect of healthy HOA governance, showing that members are heard. Best, Kelly

Dear Kelly: I learned that our board authorized themselves to approve non-emergency expenses up to a stated amount between meetings if two or more directors agree to it. Isn’t this a violation of the Open Meeting Act? There have been items such as holiday lighting that never appeared on the agenda or reflected in minutes due to this self-imposed power. L.C., Anaheim Hills.

Dear L.C: The board should avoid granting directors blanket authority to spend funds outside of official board meetings. If the board does so, then decisions are being made outside of board meetings. Corporations Code Section 7210 allows the board to delegate certain activities to the manager, a committee, or other persons but the board still must ultimately be in control. So, at minimum those decisions should be disclosed and ratified by the board in its next open meeting. I suspect many of your neighbors may agree with you that your board’s current practice is not transparent. I can understand the practice if your HOA does not have a professional manager, but otherwise I think it’s a bad idea. Sincerely, Kelly.

Kelly: Our HOA board members have discussions and decide who will serve as president, VP, etc prior to a board meeting.  This occurs annually in preparation for the new term and in some cases, before the election of board members and/or after the election of board members but before their first meeting.  Should these discussions and decisions be part of the open meeting and should these discussions and decisions occur outside of board meetings? Thank you, L.O., Nipomo.

Dear L.O.: The selection of officers is not a topic permitted for executive session under Civil Code Section 4935(a). Some boards mistakenly refer to officer discussions as “personnel” (one of the few topics allowed to be handled in closed sessions) but “personnel” refers to HOA employees. Officer appointments are decisions of the board and must be made in open session. A common mistake after annual meetings is to forget to announce four days before that after the election there will be a short board meeting to elect officers. If the board does not wish to have a meeting (with agenda notice and open forum opportunity) right after the membership meeting, then it should hold off on electing officers until its next announced meeting. Best, Kelly.

Manager Qualifications- How Do I Know?

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By Kelly G. Richardson, Esq., HOA Homefront Column

California HOA managers are unregulated, with no required license or minimum education. Rental managers must have real estate broker licenses, but not HOA managers. There is a wide range of qualification and experience in the profession, so finding indications of superiority is important.

California has a purely voluntary designation from Business and Professions Code 11502, which defines a “Certified Common Interest Development Manager” as one who received 30 class hours in designated topics from a professional association of HOA managers. Section 11504 requires managers to annually disclose whether they are “Certified” and prohibits false claims of “certified” status.

Four organizations educate and credential California managers: Institute of Real Estate Management (“IREM”); California Association of Community Managers (“CACM”), Community Association Manager International Certification Board (“CAMICB”), and Community Associations Institute (“CAI“). 

IREM is a national organization, with about 20,000 manager members, offering education and various property management credentials. Its managers are mostly non-residential, but over 300 California managers hold the “Accredited Residential Manager (ARM)” credential. The ARM requires 45 class hours in either rental property management or CID management and passing a half-day examination. The ARM does not qualify for “Certified” status in California.

CACM is a California organization which was founded in 1991 by a group of veteran HOA managers. Presently 1,437 of CACM’s 1,893 active manager members hold its Certified Community Association Manager (“CCAM”) credential. The CCAM requires 36 class hours and qualifies managers as “Certified.” CACM has a more advanced credential, the Masters of Community Association Management (“MCAM”), which involves 5 years minimum of CCAM status, an extensive written exam, a written case study analyzing an HOA and oral presentation, and 28 more class hours. Six managers are CACM MCAMs.

CAMICB administers the “Certified Manager of Community Associations (CMCA”)” credential. Originally affiliated with CAI when formed in 1995, the organization is now an independent credentialing body.  Attaining the CMCA requires either two and a half days of instruction, five years’ experience, or the CCAM credential, and passing a 120-question exam. California currently has 1,270 CMCA managers. 

The Community Associations Institute consists of 64 chapters, including 8 in California. Founded in 1973, CAI trains managers in the United States, Canada, Australia, South Africa, and United Arab Emirates. CAI offers three credentials: “Association Management Specialist (AMS)”, “Professional Community Association Manager (PCAM)” and the “Large-Scale Manager (LSM)”. The AMS credential requires attaining the CMCA credential, two years’ experience, and two additional days of classes. Currently, 770 California managers hold this credential. Managers holding the AMS designation qualify as “Certified” in California after taking CAI’s 8-hour California law course.

The highest widely-established general management credential is CAI’s PCAM designation. This requires five years’ experience, almost 100 total class hours, and preparation of a 100–200-page exhaustive study of a large HOA. About 80% of applicants achieve the PCAM on their first attempt. 281 California managers currently hold this credential. Larger or higher profile properties may prefer PCAMs or those working toward it. The LSM credential requires a PCAM and additional education regarding large associations.

Ask about designations, and make sure YOUR manager holds an earned credential (not just anyone in their office). Demonstrated achievement in professional education is helpful in evaluating prospective managers.

[Information: www.irem.org, www.cacm.org, and www.caionline.org.]

Upholding High Ethical Standards

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CAMICB Updates Its CMCA Standards of Professional Conduct and Enforcement Procedures

By CAMICB Executive Director, Matthew Green, CAE

A key component of CAMICB’s Credentialing Program requires a Certified Manager of Community Associations (CMCA) to adhere to a high standard of ethical conduct. This means CMCA credential holders must comply with the 10 CMCA Standards of Professional Conduct, which are designed to ensure that managers uphold their fiduciary responsibilities and comply with laws, governing documents, and professional integrity.?

CAMICB recently conducted a thorough review of the CMCA Standards of Professional Conduct as part of its regular cycle to ensure these critical elements of the CMCA certification program continue to align with industry standards and best practices. In addition, the review was designed to ensure that the standards remain relevant and applicable to the evolving demands of the community association management industry, both domestically and globally. While some changes were made to the standards themselves, the most significant updates are found within the accompanying clarification document. This document provides detailed guidance on the practical application of the standards, ensuring they are interpreted and enforced consistently. By modernizing the standards and clarifications, CAMICB ensures that CMCAs are held to up-to-date ethical standards while addressing global applicability and evolving industry standards. 

Said Greg Smith, CMCA, AMS, PCAM, Chair of the CAMICB Board of Commissioners, “These revisions reflect a commitment to maintaining high ethical standards and professionalism for CMCA credential holders while incorporating more explicit guidance on fiduciary responsibilities, conflict-of-interest disclosures, and data security practices.”

A summary of the key changes and updates follows:

Standard 1: Global Applicability and Compliance

The changes to Standard 1 make the policies globally applicable by removing jurisdiction-specific references.

Standard 6: Gratuities, Compensation and Disclosure

The changes to Standard 6 strengthen the requirements for disclosure of gratuities and compensation to enhance transparency while reducing the likelihood of conflicts of interest.

Standard 7: Continuing Professional Education

The updates to Standard 7 further emphasize the need for continuous education aligned with CMCA recertification. 

Standard 8: Fiduciary Duty

The changes to Standard 8 clarify the expectations around fiduciary duty by detailing what constitutes a breach.

Standard 9: Professional Conduct and Violations

The revisions to Standard 9 shift the focus from defining what constitutes a breach of due diligence to emphasizing the expectation of maintaining professional conduct at all times.

Standards 10: Records, Confidentiality, and Data Security

The updates to Standard 10 focus on the handling of client records, particularly the secure management of electronic data, in line with current data security practices. 

“These updates ensure that CMCA credential holders are equipped to meet the evolving demands of the community association management industry, reinforcing the value and trust associated with the CMCA credential,” added Smith.

CMCAs are encouraged to review the updated standards and the clarification document thoroughly to ensure their practices continue to align with CAMICB’s expectations for ethical conduct and professionalism. By staying informed on these updates, CMCAs can confidently uphold the high standards required for maintaining their credential and serving their communities effectively.

About The Standards Of Professional Conduct

The Standards of Professional Conduct, detailed at https://www.camicb.org/standards/, range from understanding laws applicable to community association management, to being knowledgeable on association policies and procedures, to carrying out fiduciary responsibilities, and participating in continuing education coursework. A violation of any of these Standards of Professional Conduct may be grounds for administrative action and possible revocation of the CMCA certification by CAMICB.  Abiding by these Standards of Professional Conduct help protect consumers and associations that hire or contract with community association managers. 

Enforcing the Standards of Professional Conduct

In order to maintain and enhance the credibility of the CMCA Certification Program, the CAMICB Board of Commissioners follow strict procedures that allow consumers and others to bring complaints concerning CMCAs to the Board. Similar to a regular review of the Standards of Professional Conduct, CAMICB also reexamined the procedures for suspending and revoking certification every two years. 

Through this process, CAMICB enhanced its procedures for reviewing, suspending, and revoking certifications to ensure they reflect the latest industry standards. These improvements underscore our commitment to maintaining the highest level of professional conduct and ensuring our processes remain transparent, fair, and aligned with global best practices.

More information, including a set of Frequently Asked Questions, a list of the 10 clearly outlined Standards of Professional Conduct, the procedures for enforcing the standards, and other pertinent documents, can be found at https://www.camicb.org/standards/.