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May 19, 2005
Pros and Cons of "Good Standing" Qualifications
What does "good standing" mean and why would anyone like it?
These are my thoughts on the subject. “Good standing” means current with regard to payments of assessments and not in violation of any governing document provisions, including the CC&Rs and Rules. I believe having a “good standing” requirement is great - for board member service. If the Bylaws or CC&Rs provide for it, it assures that the Board sets a good example for the membership, and respects the obligations of the governing documents. If the documents provide, a board member who does not qualify or falls out of "good standing" can be "ousted".
As to voting, it is my belief that requiring members to be in "good standing" to be allowed to vote complicates elections and due process procedures within the community. Generally, my experience indicates that members who violate the regulations or fail to pay assessments don’t care if their voting privileges are revoked (and generally don’t even bother to return proxies - although they may attend meetings just to stir up issues).
As for use of the Association facilities, it may work well as a deterrent to poor conduct in the case of pool or clubhouse use. In other words, if a member must be in "good standing" to use the association facilities (or to allow the tenant to use the facilities), bad conduct may be minimized. A violation of the pool rules is a violation of the governing documents.
In associations with documents that do require owners be in "good standing" to vote at elections, I find that some Boards tend to apply the “good standing” requirement only sporadically or with regard to controversial issues (often just to keep members from voting who they don’t like or keep people out of the pool that they do not like). In the course of using it, boards often fail to provide owners with adequate notice and a hearing (arguably required for such disciplinary actions) that voting or facilities privileges will be revoked because of an outstanding violation or non-payment of assessments. That conduct could be found to be improper on the part of the Board.
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Posted by Beth Grimm at May 19, 2005 7:58 PM