OWNER and BOARD AUTHORITY

Homeowner associations are not set up as pure democracies where members can vote on all issues. Instead, they are representative democracies in which powers are delegated to elected representatives (the board of directors) and certain limited powers are reserved to the membership.

Membership Authority. The rights/powers reserved to owners are described in the governing documents and are generally limited to the following powers:

• to elect a board of directors
• to remove directors from the board
• to amend the CC&Rs and bylaws
• to approve regular assessments over 20% and special assessments over 5%
• to attend open meetings of the board
• to access their property
• to use the common areas
• to inspect the associations records

Board Authority. The powers delegated to the board of directors generally include the following:

• manage the community
• enforce the governing documents
• prepare and adopt budgets
• levy and collect regular assessments
• levy and collect special assessments up to 5% without membership approval
• levy and collect emergency special assessments
• pay expenses incurred by the association
• select vendors and enter into contracts
• repair and maintain the common areas
• disburse reserve monies
• negotiate and enter into contracts
• adopt and enforce rules and regulations
• call membership meetings and appoint inspectors of election
• appoint and remove officers
• appoint directors to fill vacancies
• appoint and dissolve committees
• initiate and defend against litigation

Veto Power. Because of the division of authority between the membership and the board, members do not have a direct veto over the board's actions (except for rule changes). Rather, the power to veto is indirect. If members are unhappy with board actions (or inaction), the membership can remove the board or wait until the annual meeting and elect a new board.

Updated 6/21/2008