Keeping an association running in the smoothest manner possible is a tough job even before you take into account legal issues. You'll want to do more than hire an association attorney. Focusing on the following four legal concerns can go a long way toward smoothing things out at your association.
Governing
Setting up an organizational structure that will withstand legal scrutiny is a critical part of building an association. Documents need to be created that designate powers to specific parties in well-defined roles. Likewise, the structure needs to be designed to ensure that all future property owners in the building or neighborhood will be bound to the rules of the association.
It's a good idea to meet with an association attorney so you can learn about local, state, and federal regulations. Failing to operate within these rules can provide grounds to upset parties for nullifying agreements and undermining your efforts.
Although it's possible to form an association without a corporate structure, most lawyers would not advise it. You should look at options like setting up an LLC, a non-profit organization, or a not-for-profit corporation.
Planning for Crisis
You'll want to have plans in place to deal with potential crises. These can range from natural disasters to the deaths of governing members of the association. Avoid creating a fragile structure. You should ask basic questions about what happens under various circumstances, such as a member of a board being incapacitated.
Do not rely on conventions or good faith to handle these scenarios. Put it all down in writing so association members can be confident that continuity will prevail in a crisis.
Reporting Requirements and Records
Certain funds will be in the possession of the association, and you must keep good records regarding their disposition. Likewise, you'll want to maintain detailed records regarding meeting minutes and board decisions. As with other functions of the association, the rules regarding recordkeeping need to be put in writing.
Enforcement Mechanisms
Another conversation you'll want to have with an association attorney is dealing with enforcement. It's important to understand what sorts of notices have to be delivered to association members before enforcement can be considered. Likewise, penalties need to be constructed in a thoughtful and unbiased manner.
Similarly, the complaint process needs to be fully fleshed out. Members should be aware of who can address what problems. Also, it should be clear what the venue and time for handling these concerns will be.
To learn more, reach out to an association attorney in your area.
