Governance Matters

• Association Cannot Ignore Owner's Requests for Documents

  • Michigan Court of Appeals - Association cannot ignore requests for records.

• Management Company Has Limits on Authority Delegated by the Association

  • Illinois Appellate Court - A management company could be held liable if it takes an active part in violating a statutory duty that the association owes to a third party.

• Board Does Not Possess Authority to Make "Radical" Changes to the Community

  • Arizona Court of Appeals - "Radical" changes are not within the purview of day-to-day management decisions and cannot be delegated to the Board or to a management company.

• Association Must Provide Proper Assessment Notices

  • This was a case from Ohio, but it's a great reminder that delivering required notice is essential.  WA State's RCW 64.90.525(1)(b) superseded prior legislation related to annual budgets back in 2018.  Here's what it says:

    • If the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the unit owners continues until the unit owners ratify a subsequent budget proposed by the board.