Keeping Meeting Minutes at Condo or HOA Board Meetings

by GDI Insurance | Apartment or Condo Building, Business Insurance, Property Management

Keeping Meeting Minutes at Condo or HOA Board Meetings

Productive board meetings—where important homeowner matters are discussed and decisions are made—contribute to the success of a condo or homeowners association (HOA). Keeping records with meeting minutes at condo or HOA board meetings is an important step for your community.

Since HOA board meetings result in significant decisions that impact community members, it is necessary to record decisions in official board meeting minutes, which serve as both a historical record and provide pertinent information to the HOA community.

Investing the time to record accurate and detailed board meeting minutes can reduce potential litigation risks for HOA board members, as minutes could be used as evidence in the event of a legal claim.

What are Board Meeting Minutes?

Board meeting minutes are a written record of the official actions taken by the HOA directors and officers during scheduled meetings. The minutes document the topics discussed and record the decisions voted on during meetings. The minutes can also contribute to the efficiency of future board meetings by serving as a reminder of what was previously discussed to avoid rehashing old business.

There are two main purposes of board meeting minutes:

The minutes inform members of decisions made that impact their living community. All HOA members have the right to access non-confidential meeting minutes.
Meeting minutes could serve as evidence in the case of a lawsuit. In the event that someone, such as a member, sues the HOA, the minutes are proof of decisions that were made.

For officers and directors on the HOA board, meeting minutes are valuable evidence that the board made decisions in good faith and fulfilled its fiduciary duties to the association. On the other hand, the minutes can also serve as evidence that a director did not fulfill his or her fiduciary duties.

What Should the Board Meeting Minutes Include?

Board meeting minutes should be easy to read and include only essential information. Most importantly, members should be able to understand what board actions were taken and approved.

While board meeting minutes can be handwritten during the meeting, the final version should be transcribed into a typed format. At a minimum, the minutes should include the following:

Name of the HOA
Date, time and location of the meeting
Names of directors and officers present at the meeting, and the names of those not present
Names of guests in attendance, including those invited to speak at the meeting
Whether or not a quorum was present
All board actions
The signature of the board secretary or another official designated to sign HOA documents
Supporting documentation (attached to the minutes), as applicable

It is the board secretary’s responsibility to record and certify the minutes, unless another person is designated. Keep in mind that all of the board directors and officers may be held liable if the minutes are falsified or embellished.

After the meeting, the minutes should be made available to all HOA members. Some HOAs choose to mail or email the minutes to members after the meeting.

A printed copy of the meeting minutes should be kept in the HOA’s “board minutes book,” and an electronic copy should be also be stored.

What Should the Meeting Minutes NOT Include?

The minutes should include substantial details on the board’s actions; however, minutes with too much detail could be evidence for unwanted lawsuits, such as defamation claims. Minutes do not need to be a transcript of all interactions.

Avoid recording the following information:

Names of HOA members present at the meeting
All the conversations and discussions that took place during the meeting
Owner comments during the meeting
Confidential or sensitive information

HOA boards should discuss confidential or sensitive information in a separate meeting. Minutes that contain sensitive information should be kept in a different file from the regular meeting minutes book. Members should not be able to access confidential minutes.

General Recordkeeping Tips

Meeting minutes are a valuable communication tool and may be used as evidence during a lawsuit. Board meeting minutes—and all HOA communications—should meet the following requirements:

Typed
Neat and organized
Easy to read
Free of undefined acronyms and jargon
Free of spelling and grammatical errors

Contact GDI Insurance Agency, Inc. today for additional resources to manage and protect your HOA.

California’s Leader in Insurance and Risk Management

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive HOA or Condo Association insurance quote!

Protecting Vacant Real Estate Property

by GDI Insurance | Commercial Property, Property Management, Risk Management, Safety Tips

Protecting Vacant Real Estate Property

The insurance risks and liabilities associated with owning vacant real estate can be extensive, and to ensure you are adequately protected, it is important to know these risks. In addition to purchasing comprehensive insurance coverage, there are numerous preventive strategies for maintaining vacant properties to reduce risk and liability.

Potential Risks of Vacant Real Estate

There are a host of risks and concerns associated with owning vacant real estate. Vacant buildings are an obvious target for theft, trespassing and vandalism. For example, the rising cost of copper has given rise to an increase in the theft of copper pipes from vacant properties. In addition to any loss or property damage that may occur, keep in mind that the owner of a property can be held liable for criminal activities or accidents that take place on the premises.

In addition, vacant properties are susceptible to undetected damages, such as fire, water damage, electrical explosions, wind or hail damage, and mold. A study by the U.S. Fire Administration shows that approximately 30,000 fires occur every year in vacant buildings, costing $900 million annually in direct property damage. Many of these incidents occur in vacant buildings due to small, undetected maintenance issues; someone in an occupied building would have recognized and handled the problem before it caused a larger loss.

In certain facilities, there may also be environmental hazards that the owner needs to consider. Facilities that are used to store chemicals or other pollutants should ensure that such materials are removed or securely stored—the owner may be held liable for any hazardous materials that contaminate groundwater or other nearby natural resources. Also, underground fuel tanks present serious challenges and thus should be frequently and carefully inspected by professionals.

Other Ways to Mitigate Risk for Vacant Real Estate

In addition to extending coverage, there are some simple steps that owners of vacant property can take to limit their risk and liability.

Prevent vandalism: Notify local authorities of vacated properties so they can watch for criminal behavior. Maintain an “occupied” appearance to the property—mow the lawn, have mail forwarded or picked up regularly and install light timers and/or a security system.

Limit liability: Make sure the property is free from significant hazards (e.g., broken railings or steps, broken windows) that could cause injuries to anyone on the property—this could include police officers, maintenance workers, firefighters or even trespassers.

Avoid damage: Performing regular maintenance on the property can decrease the odds of sustaining damage. Make sure the heating system and chimney are cleaned and inspected regularly. Have the plumbing system winterized to prevent frozen pipes. Periodically inspect roof, insulation, attic, basement, gutters and other areas of the property for any necessary repairs, mold, damage or other problems. Consider installing smoke detectors that are tied to a centrally monitored fire alarm system so the fire department will be notified in the case of an alarm. Remove all access material and combustibles from in and around the building.

Insuring Residential Properties

Most insurance companies include a clause that the homeowner’s insurance will expire if a home is left vacant for more than 30 or 60 days. This leaves the property owner financially vulnerable for all previously noted risk. However, many insurance companies do offer vacant property insurance, also known as vacant building insurance or vacant dwelling insurance.

Unoccupied Commercial Building Insurance

Vacant commercial buildings are more difficult to insure because they present greater risks, including in It is important to disclose all relevant facts when seeking insurance, including the reason for the property’s vacancy and a schedule of any work to be done on the property.

Because of the increased risks and liability associated with a vacant property, these types of insurance tend to be costly—ranging from one and a half to five times the cost of a property insurance policy. It is important to look beyond the price and consider the suitability and comprehensiveness of the coverage being purchased.

For more information about vacant property insurance and other strategies to help protect your assets and mitigate loss, contact us today at 209-634-2929.

California’s Leader in Insurance and Risk Management

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive habitational insurance quote!