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Board Member on payment plan in good standing?

Discussion in 'Homeowners Associations & Boards' started by RVan, Feb 14, 2019.

  1. RVan

    RVan Law Topic Starter New Member

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    Jurisdiction:
    California
    The subject asks my question: Is a board member who is on a "payment plan" considered to be in "good standing?" I have found no case law but many corporations that allow for this.

    Alfred Vail Mutual Association
    New Jersey's longest running Co-Op

    "If Member is not in good standing due to non-payment, Members may change the status to good standing by paying the arrears in-full or by making a payment plan approved by Board, at Board’s discretion."

    CALSouth
    Official Youth and Adult State Soccer Associaiton for Southern California

    "Cal South Good Standing Policy

    A. Good Standing An Affiliate Member of Cal South shall be deemed to be in Good Standing as a Member if:

    Financial An Affiliate Member’s financial liability to Cal South cannot exceed $1,000 and reach 60 days aged, or have any balance reach 90 days aged. The only valid exception to these criteria is a written and signed payment plan provided and agreed to by the respective District Commissioner and approved by the Cal South Board of Directors."


    Michigan Education Association

    "MEA will consider a member to be in good standing if he or she is making payments for the current year and is complying with a payment plan for dues owed from prior years."
     
  2. adjusterjack

    adjusterjack Super Moderator

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    Board member of what?

    The only board rules that count are the board rules of the board in question.

    Everything else you posted is irrelevant.

    Now tell us about the board and member you are concerned with and why you are concerned. Details count.
     
    hrforme likes this.
  3. RVan

    RVan Law Topic Starter New Member

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    This is in regards to HOA election rules for board members. The supplemental rules require a candidate to be in good financial standing. This particular current board member running for re-election is in arrears but has signed a payment plan agreement with the board and has been abiding by the agreement for many months. Does the payment plan compliance put the HOA member in legal "Good Standing" and thus able to run for a board seat?

    I realize this is going to come down to interpretation. Is the case law supportive of the members right to run for election to the board?
     
  4. hrforme

    hrforme Active Member

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    who are you in the situation? How much is the arrearage? One partial year? Multiple years?

    To me "in arrears" doesn't allow our homeowners to vote OR be on the board if they owe anything. But that is based on our covenants, not yours.

    i think it looks VERY bad to have current boardmember who is NOT up-to-date with fees, even if there is a payment plan. To me, a boardmember should be held to a HIGHER standard. In the end, it might just be a decision made by the rest of the board.
     
  5. zddoodah

    zddoodah Well-Known Member

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    I don't know what you mean by "legal 'Good Standing.'" Determining whether this individual is in "good financial standing" under the HOA's by-laws obviously requires one to read the by-laws. It's not a matter of law.

    What's your involvement in this situation?
     
  6. adjusterjack

    adjusterjack Super Moderator

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    Then the rules should define what "good financial standing" is. That means you will have to read the rules or the by-laws or the CC&Rs and find the definition. We can't see them from here and therefore can't guess what they say.

    And if they don't have a specific definition then it's up to the existing board to define "good financial standing."
     

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