When disaster strikes, homeowners’ associations (HOAs) must act quickly. Hurricanes, wildfires, floods or other emergencies can threaten safety and property. HOA boards have certain powers during these times, but they must act within the law. Here is an overview of what a HOA can do within these situations, all within legal bounds.
Scope of authority during a crisis
Utah law gives HOAs the legal right to take emergency actions. These powers come from the Utah Community Association Act or the HOA’s governing documents. In the event of a declared emergency, boards can often bypass routine procedures to protect the community.
For example, a board may do the following during an emergency or crisis:
- Close common areas.
- Hire emergency contractors.
- Spend funds outside of the budget.
- Hold meetings without full notice or quorum if urgent decisions are necessary.
Boards, however, still have limits. They must act in the community’s best interest and avoid any personal gain. Thus, boards should review the laws and their by-laws before taking emergency actions. If you are unsure, a legal opinion can provide guidance. They must also keep good records of every decision made.
Fiduciary duties in emergencies
Even in a crisis, the board’s duty to the HOA members remains unchanged. Board members must follow their fiduciary duties, which include their duty of care, loyalty and to act in good faith.
The duty of care means making thoughtful and informed choices. The board should gather facts quickly, consult with professionals when needed and act reasonably.
The duty of loyalty means putting the community’s interests above personal ones. Board members must avoid conflicts of interest and refrain from using their role for personal benefit.
The duty to act in good faith means acting with honesty and fairness. Boards must remain transparent and communicate their actions to members.
Member communication guidelines
Clear and timely communication is critical. The board should keep members informed during all phases of an emergency. That includes notices about safety, access to common areas and how the HOA is responding.
Emails, texts, bulletin boards and social media can all help share updates. The board should also provide a means for members to ask questions or report issues.
After the crisis, the board should send a full report. It should cover the actions taken, money spent and any next steps. This process helps maintain trust and shows accountability.
Legal support during emergencies
HOA boards play a key role in protecting their communities. To lead effectively, however, they must remain transparent. They also have to ensure that everything remains within legal bounds. To help ensure this, it is a good idea to work with an attorney. Lawyers can provide clear advice, review governing documents and explain local laws. They also help the board avoid mistakes and resolve problems more efficiently. Having legal support brings peace of mind during high-pressure situations.
