Every day we all resolve to do things, whether they are relative to
our homes or home-life or in our business life and world. In your role
as a Board member resolutions are formal statements of the Association's
policies. They should reference the source of the board's authority
(either the Declaration, the Articles or the By-laws) to act on an issue
and state the purpose of the resolution with sufficient detail to
enable those reading the resolution to understand its purpose and
meaning.
Resolutions can state the Board's intention as to
collections, covenants enforcement, fining, or other operating policies
of the Association. They are important because they set out the
guidelines that enable the Manager to effectively manage the day to day
business of the association with the understanding of what is expected
of them and the Board to know what process the manager is following.
Board
Resolutions are easier to adopt than declaration or bylaws amendments
because they do not require a vote of the membership. Resolutions
generally are binding on all members of the community, so long as the
resolution does not contradict the language of the declaration, bylaws
or articles of incorporation. In some communities, if not all, the
resolution cannot impose a greater restriction on an owner's use or
development of his property than the documents do. Because a resolution
may affect an owner's right of use of their property or use of common
areas, they should be adopted in an open manner and to ensure
compliance, mailed or posted on the association website or otherwise
distributed to all members prior to their effective date. Once adopted,
their adoption should be recorded in the Minutes, but retained
separately from the Minutes as part of the overall operational
guidelines of the community.
Resolutions may change with a change
in make-up of the Board or may need to change to be brought into
compliance with local ordinances or other outside influences. One
instance that would make a perfect point is adopting green resolutions
to provide for the use of less water, less energy, green construction
designs, etc. (Another article for another time).
There are generally three types of resolutions:
1.
Administrative resolutions: These will address the internal operation
of the community association such as covenants violations and the
process for handling them; collections of past due accounts from owners;
a fining process, etc.
2. Policy Resolutions: These will affect owners rights and obligations
3.
Special Resolutions: These state the Board's decision about an
individual situation, such as clubhouse use, ARB guidelines, landscape
maintenance requirements, etc.
So, the next time you're thinking,
"We need to do something", think about what is needed to be
accomplished, if you can use your documents as the basis to accomplish
your goal and think "Resolution".
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