HOA UNLIMITED

HU261 HOA Transparency The Open Meeting Act

HOA UNLIMITED Season 26 Episode 1

The Importance of the HOA Open Meeting Act (Board Meetings & Transparency)
The HOA Open Meeting Act is a crucial component of California’s Davis-Stirling Common Interest Development Act (California Civil Code §§ 4900-4955). It ensures that Homeowners Association (HOA) board meetings remain transparent, accessible, and accountable to all members of the community. By promoting open governance, fair decision-making, and homeowner involvement, the Act protects homeowners' rights while fostering trust between the Board and residents.

1. Purpose of the Open Meeting Act
The Open Meeting Act is designed to:

Ensure transparency in HOA governance.
Allow homeowners to participate in board meetings and express concerns.
Prevent secret decision-making that could negatively impact the community.
Maintain accountability of the Board of Directors in financial and policy matters.
By enforcing open discussions, the Act promotes fairness, clarity, and responsible leadership.

2. Requirements for Open Board Meetings
Under the Act, HOA board meetings must be properly noticed, open to all members, and conducted with transparency. Key requirements include:

a. Meeting Notices & Agendas
HOAs must notify homeowners at least four days in advance of any regular board meeting.
The agenda must be posted in a location accessible to all residents (e.g., HOA website, community bulletin board, email notification).
Boards cannot discuss or vote on matters that were not listed on the agenda, ensuring homeowners have proper notice of important decisions.
b. Open Attendance & Homeowner Participation
All non-executive board meetings must be open to all homeowners, allowing them to attend and observe decision-making.
A designated “Open Forum” session must be provided, where residents can voice concerns, ask questions, or present feedback to the Board.
While homeowners may participate in discussions, final decision-making authority remains with the Board.
c. Prohibition of Secret or Informal Meetings
Boards cannot hold “secret” meetings or make decisions via email, phone calls, or private gatherings outside of properly noticed meetings.
All major HOA decisions (e.g., budgets, assessments, rule changes, vendor contracts) must be discussed and approved in an open session.
By ensuring public participation, the Act protects homeowners from unilateral decision-making by the Board.

3. Executive Session (Closed Meetings)
While most meetings must remain open, the Board may hold “Executive Sessions” (closed-door meetings) for specific confidential matters, such as:

Legal issues & lawsuits affecting the HOA.
Personnel matters, including employee or vendor discussions.
Member discipline, fines, or violation hearings.
Delinquent assessments & foreclosures affecting individual homeowners.
Contract negotiations where confidentiality is required.
Boards must notify homeowners that an Executive Session is taking place and provide a general description of the topics discussed in the next meeting minutes.

4. Transparency in Financial Decisions
The Open Meeting Act also applies to HOA budgets, special assessments, and financial management. Boards must:

Publicly discuss and approve annual budgets and reserve funding.
Disclose major financial decisions before finalizing contracts or expenses.
Provide homeowners access to financial records, including audit reports and reserve studies.
Clear financial reporting builds trust and prevents fraud, mismanagement, or excessive spending.

5. Meeting Minutes & Recordkeeping
Meeting minutes serve as official records of Board discussions and decisions and must be:

Recorded, approved, and made available to homeowners within 30 days after a meeting.
Detailed enough to summarize decisions, including votes, motions, and homeowner comments.
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