Condominium and CICAA Association Board Meeting Requirements
In response to widespread concern regarding the strict open board meeting
requirements established by
Palm v. 2800 Lake Shore Drive Condominium Association, the circumstances under which a condominium board or a CICAA association
board may meet in closed session have been expanded. Two important aspects
to these changes are discussed below.
First, condominium and CICAA association boards will be authorized to discuss
certain sensitive subject matter either at a closed portion of a noticed
board meeting or outside of a noticed meeting. In other words, boards
will be able to meet in closed (“executive”) session to discuss
specified topics without calling an open board meeting. With very limited
exceptions, boards still must vote on matters discussed in closed session
at noticed, open board meetings.
Second, the categories of topics which may be discussed in closed session
have been broadened. Condominium and CICAA association boards will have
the authority to engage in the following conduct in closed session: discuss
pending or probable litigation; discuss the appointment, employment, engagement
or dismissal of an employee, independent contractor, agent, or other provider
of goods and services; interview a potential employee, independent contractor,
agent, or other provider of goods and services; discuss rule violations;
discuss assessment collection matters; and consult with association legal
counsel. CICAA association boards also may meet in closed session to “discuss
third party contracts.”
In our opinion, these changes will be of significant practical benefit
to associations. While we continue to advise our association clients to
limit use of closed sessions to appropriate circumstances, the changes
make it clear that boards may, for example, conduct violation hearings
and meet with their attorneys without having to call open board meetings,
so long as voting occurs at open board meetings.
These changes will take effect on January 1, 2017.