January 2023

MANAGEMENT TRENDS... from page 46.

to finance needed work that is not otherwise provided for in the capital reserve or budget (i.e., a roof replace ment project that exceeds available reserve funding). The duty of loyalty might be implicated by a board mem ber who knows the work is necessary, but nevertheless votes against the assessment simply because it would pose a financial hardship to them (or their neighbor). Proposing an alternate means of financing the project would be fine (such as loans, grants, or even litigation if the project is required due to prior bad workmanship), but simply voting against the special assess ment and roof work based on one’s own financial circumstance is likely a breach of the duty of loyalty. Decisions of a board should always be considered as business decisions; decisions that are consistent with the needs of the business and not in per sonal interest. Duty of Obedience: The third duty of the board and its members is to act consistently with all require ments, whether they be requirements of the association’s governing doc uments (Master Deed, Declarations, Bylaws, etc.), or local, state, and federal laws. It is crucial that com munity boards rely on the advice of legal counsel in areas that are in question, and not “wing it.” Especially in today’s world, the governance of community associations is growing in complexity and as stated above, the board is not expected to be experts in this changing climate. However,

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