State laws pertaining to condominiums and most project legal documents creating condominiums require the association to carry a master insurance policy covering the entire project including the individual units. This is the only approach to insurance that makes any sense in a high rise project, and in most lateral projects it also makes sense because of the interrelationship of individual condominium units and the project’s common areas. In planned unit developments, the advisability of having a master policy depends to some extent on the type of construction. With attached townhouses or row houses, it is possible that a master policy is preferable to individual policies covering each dwelling.
1. Your primary role should be to protect and enhance the value of your community.
2. As directors and officers of a non-profit corporation, you have a legal fiduciary duty. Your actions and liability as a board member are generally protected by governing documents or state statutes governing non-profit corporations based on duty of...
Q: I am on my HOA’s board of directors. From time to time HOA members request HOA information, and I know under N.C. laws that nonprofit corporations must maintain certain records and make them available for inspection by HOA members. Do executed contracts between the HOA and vendors fall under this right to inspection? I am all for openness and transparency in HOA affairs, but I also have a duty to properly manage the affairs of the HOA. I want to be sure before allowing a member to inspect a contract.
Q: I am considering running for a seat on my HOA board. We are a community of about 80 homes. I am concerned about my indemnity as a board member. I tried to find a clause in my bylaws, but I can’t seem to locate wording that speaks directly to that. Our HOA property manager directed me to Chapter 47F of the North Carolina General Statutes (the NC Planned Community Act), but I still don’t see any language that would prevent a lawsuit from being directed toward me personally for action I take as a director of the HOA. Can you shed some light on this?