Categories
Arizona HOA Laws

Bomb or a Balm? Navigating New Technologies for Associations with Aplomb

Virtual Meetings and Electronic Voting for Arizona HOA Boards

Our Associations have taken notice of the efficiencies and cost savings offered by new virtual methods of public. They are simply too good to be ignored. But their dangers are not always obvious.

While our advice may be cutting edge, the legal landscape we live and work in is still digitally lacking. Our statutes and community documents still require notice be sent postage paid. Exceptions carved out in the law for remote meetings were intended to address the advent of Telephone Conferencing, not computers. We expect the legislature may hear something about electronic mail in the next decade or so. Until then, we have no guidance beyond the statutes… and our wits. How is an Association to know if a technology solution is a balm or a bomb?

Well, it requires a case-by-case assessment by a qualified attorney! But before we get to our shameless plug, let’s take a look at the two most popular and impactful technologies we get questions about all the time: virtual meetings and electronic mail!

Virtual Meetings – Balm for a Tortured Board?

Virtual meeting technology synergizes well with Arizona open meetings laws! The archaic telephone conferencing laws we mentioned are very helpful here. Virtual meetings are not a solution for every problem, but these following pointers will help you identify the pitfalls and powers presented by taking your meetings into virtuality:

  1. Check with counsel before adopting virtual, digital, or electronic technologies. Your Association may have terms in the CC&Rs, Bylaws, or Articles of Incorporation that pose a unique obstacle to your Association’s adoption of a new technology for operating purposes. Let counsel identify these issues first, lest an unsavory Member do so after the next annual meeting.

  2. Don’t assume your Members are tech savvy! Provide your Members clear instructions for attending virtual meetings. Include directions on downloading and using the virtual meeting client, with clear instructions for each attendance option offered. Don’t be surprised if some of your Members still have issues!

  3. Use a service that provides a direct dial-in option. It is nearly guaranteed that someone in your Association will be unable to access the meeting virtually. Always provide a dial-in option.

  4. Use a service that has tools that let you control the meeting, instead of allowing the meeting to control you! Look for options that allow you to: (1) control who accesses the meeting; (2) add and remove folks from the meeting quickly and easily; (3) mute meeting attendants; (4) easily record and share recordings of meetings; (5) control and moderate the in-meeting text chat.

  5. Assign someone to be Meeting Manager. The Meeting Manager is responsible for muting, un-muting, managing waiting rooms, moderating in-meeting chat, and any other tasks that are necessary to run the virtual meeting. Thanks Meeting Manager!

  6. Configure your service so that attendees join the meeting muted. When it is time for attendee participation, any attendee wishing to speak can inform the Meeting Manager via in-meeting chat.

  7. Have a clear, noticed virtual meeting procedure that includes a way for Members to have an opportunity to speak reasonably on issues during the meeting.

Electronic Mail for Associations – Avoiding a Ticking Time Bomb?

Your email procedure must be very precise to meet Arizona open meeting requirements. In Arizona, the Attorney General has opined that deliberations and voting conducted via email violate the open meeting law statutes.  The Arizona Legislature has made clear that is policy is to strive for as much transparency as possible.  When a quorum of the Board is discussing association business via email, that Board may be violating the open meeting laws.  Even if discussing an executive matter, the Members have a right to know that the meeting is taking place, and 48 hours’ notice is required.

We advise approaching email with caution. Email is problematic because it is not easily controlled. A member can include, exclude, forward, copy, blind copy, or spam anyone that they wish with little to no recourse.  We advise only deliberating and voting via email in the event of an emergency.  The Arizona Planned Community and Condominium Acts provide that an emergency meeting may be held if the matter cannot wait the 48 hours required for notice.   In that case, the emails can serve as the minutes of the meeting. 

A Board Member keeps leaving Sally off the thread? The Board is meeting by email to discuss topics that are not technically privy to executive session? The Association is not maintaining complete records of emails subject to open meeting requirements? A Member doesn’t have email or email access? These and many other scenarios could lead to an open meeting violation by your Association. And they are no fun. Trust us.

However, your Association may have an interesting or useful role for email in your community. In that situation, if you wish to proceed with incorporating email or any other technology into your Association’s process responsibly, we strongly advise that you obtain…

An Experienced Arizona HOA Attorney

The Brown Law Group specializes in HOA representation in Arizona.  Our firm only represents homeowners associations and condominium communities in the state.  We routinely work with associations to make sure their board meetings are adhering to open meeting laws in Arizona.  We can also review any changes your association has made during the past year to use technology in your voting process.  It is understandable to want to use technology wherever possible to make meeting and voting decisions easier, but these choices can cause more problems down the road for an association if they are not done the right way.  Contact the Brown Law Group today at 602-952-6925 to schedule an initial consultation or make an appointment with our attorneys on our contact us page.

The Brown Law Group shares this article for informational purposes only and it does not create an attorney-client relationship.

Categories
Arizona HOA Board Members

HOA Board Meeting Boot-Camp: What Every HOA Board Member in Arizona Needs to Know

The nominations tendered. The ballots cast and tallied. Suddenly you are on the Board. What was once whim gone as reality settles in and the first Board Meeting closes in on you… What’s your job again?

Getting on the Board is easier than you might think! Serving is something else. As a volunteer, you are required to serve and protect the fiduciary interests of the Association for no pay! Did they even train you for this? Probably not!

Never fear! We are here to help with these just-in-time emergency boot-camp pointers for handling and managing your meetings with professional precision. We address the most popular question at the end, but don’t skip ahead!

1.The Association is required to have an annual meeting of the membership every year. You can have more than this. But you need at least one. Also, all your meetings need to be held in Arizona. Don’t worry, you can still attend remotely, or even virtually! We dig into the advent of virtual meetings, virtual attendance and e-voting in our article <name>. Read more there to find out!

2. Notice of meetings must be provided to all members at least 48 hours before the meeting. Notice may be provided by any reasonable form of communication, including the Association newsletter, a clear and visible posting in the community, or email.

3. Emergency meetings do not require 48-hours’ notice. An emergency is any business or action that cannot be delayed for the 48-hour notice period. Not sure if it’s an emergency? Check with Association counsel!

At an emergency meeting, you must state the reason requiring the emergency meeting in your minutes. You also must read and approve those minutes at the next regular meeting of the Board.

4. Special meetings may be called by: (A) the president, (B) a majority of the Board, (C) by a vote of 25% of the members or any lower percentage provided in the Bylaws. If your Bylaws require more than 25% of the members to call a special meeting, it is unenforceable.

5. The agenda must be available to all attending members. It can be provided to the Members at, or before, the meeting.

6. All Association business must be done at meetings open to the Members, unless the business is subject to a statutory exemption.

This is called a sunshine law. It is a common fixture of public governance.

Under Arizona’s sunshine law, all member meeting, board meetings, or regularly scheduled committee meetings must be open to the Members or the Member’s written representative unless it is a topic that may be discussed in a closed session meeting pursuant to A.R.S. § 33-1804(A) or A.R.S. § 33-1248(A).

7. Each Member is entitled to speak to the Board and community on agenda issues. The Board may adopt time limits on a Member’s right to speak per issue as long as the restriction is reasonable and applied equally to all Members.

How do we determine what is reasonable? It depends!

The Association is installing a new ‘Children at Play’ sign near the clubhouse? The Board might reasonably limit each Member that wishes to speak to 3 minutes.

The Association discovered oil and is converting the Association monument into an oil derrick? We are gonna need more time for that one…

What? They brought cameras?

8. Members are permitted by law to audiotape and videotape open meetings of the Association. The Association may adopt reasonable rules governing recording of open meetings but may not preclude recording unless the Association records the meeting and makes the unedited recordings available to members on request without restrictions on its use.

This isn’t everything, but it’s a start! When you reach a question you have no answer for, and it will happen, remember you have an entire industry of professionals to help you learn, develop and grow as a Director of your Association!

When in doubt, reach out! Don’t forget we are…

Experienced Arizona HOA Attorneys

The Brown Law Group specializes in HOA representation in Arizona.  Our firm only represents homeowners’ associations and condominium communities in the state.  We routinely work with associations to make sure their board meetings are adhering to open meeting laws in Arizona.  We can also review any changes your association has made during the past year to use technology in your voting process.  It is understandable to want to use technology wherever possible to make meeting and voting decisions easier, but these choices can cause more problems down the road for an association if they are not done the right way.  Contact the Brown Law Group today at 602-952-6925 to schedule an initial consultation or make an appointment with our attorneys on our contact us page.