Association’s powers during pandemic

Many associations are scheduling few regular board meetings now because of concerns of risk of spread of COVID-19 from gatherings.  However, while fewer board meetings are taking place, association business needs to continue and the association needs to continue to contract for the maintenance, repair and replacement of the condominium and homeowners’ associations properties.

So how do associations approve contracting with vendors between board meetings?  The president of the association is the person with the actual authority to contract with any and all vendors of the association.  The vendor can rely on the president’s signature on the contract as a binding contract whether or not the board internally approved the contract or not. For low dollar contracts, the board has usually granted the president with the internal authority to go ahead and sign such contracts without the need for board approval.  However, for large dollar contracts, usually the board wants to review and approve the contract before the president signs off.

Many times however, the large contract cannot wait until a board meeting can be set, noticed and held.  It may be that a discount can only be made in a major repair contract if signed quickly especially when trying to get the contract services moving right away.  This can be important if the association wants the job completed before the next Season when the snowbirds return and the buildings or neighborhoods fill up again.

We have found that the best way to get such contract timely signed and protect the president in doing so, is for the president to informally individually poll some directors (either by phone call or individual e-mail) to make sure at least a majority of the board has the president’s back in signing the high dollar contract.  If the president gets such an informal majority of the board’s approval to execute the contract, then he or she can feel comfortable with signing it. Such a poll is not a formal vote of the directors as the directors cannot formally vote outside a scheduled board meeting.  However, the board can then later formally ratify the contract the president signed at its next scheduled board meeting under old or new business.

This power of the president and the board is even stronger during the state of emergency ordered by the Governor during the pandemic as statutory emergency powers granted to associations during stated emergencies are in play. For example, temporary emergency rules limiting access to the Condominium or association property can be enacted to limit guests, visitors, and vendors to the condominium units or homes to decrease the change of COVID-19 spread to those in residence. Such emergency access rules are very important for condominiums or homeowners’ associations that have a large elderly population.