POLITICAL CONTRIBUTIONS

Most governing documents give boards broad authority to act in the best interests of the association, which means boards can contribute to political issues that they believe would benefit the association.

In the case of Finley v. Superior Court, Leisure World contributed over $540,000 in support of a ballot measure opposing the conversion of a military air station into a commercial airport facility because of the negative impact it would have on the membership. The board imposed a special assessment to pay for the contributions and was sued by members who opposed the assessment.

The court found that the board had broad authority under the CC&Rs to act in the best interest of the association. In particular, the court cited a provision that allowed the association to engage in activities authorized by the nonprofit Corporation Code. Typical language in most association's governing document might resemble the following:

Articles of Incorporation:  . . . The purpose of this corporation is to engage in any lawful act or activity for which a corporation may be organized under such law.

Preamble: [the CC&Rs] are established for the purpose of enhancing and protecting the value, desirability and attractiveness of the Project. . . .

Powers and Authority of the Association. The Association shall have all of the powers of a corporation organized under the non-profit corporation law . . .  The Association, acting through the Board, shall have the power to do any and all lawful things which may be authorized, required or permitted to be done by the Association under this Declaration, the Articles and the Bylaws.

Purpose of Assessments. The Assessments levied by the Association shall be used for the purpose of promoting the recreation, health, safety and welfare of the members of the Association . . .

Updated by ADAMS KESSLER 10/1/2008