Monday, July 30, 2007

AMENDMENTS TO UNIFORM COMMON INTEREST OWNERSHIP ACT
As we speak, the National Council of Commissioners on Uniform State Laws are meeting in Pasadena, CA, and on the agenda is whether to adopt this amended UICIOA. It has some expanded protections for owners, such as an explicit statement that the BOD can use discretion is deciding whether to take collections actions for unpaid assessments and enforcement actions for alleged rule violations. This is important, because boards may take actions in de minimus cases out of fear of being sued for breach of fiduciary duty if they don't act. Also, the BOD must approve each foreclosure action, and foreclosure is allowed only after 3 months of unpaid assessments, and foreclosure isn't allowed for fines alone unless there is a personal judgment against the owner. There are also four different versions of some election changes that the commissioners will choose from. And there is a pretty expansive power of owners to recall directors.

But many owner activists don't think the protections are adequate. I'll have more about this depending on the outcome of the meeting.

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