#41-08, Montreal v. Preakness Drive HOA  (July 31, 2009) (Panel: Dymowski, Farrar, Dubin)

A homeowner in the Preakness Drive HOA who was also a member of its board of directors filed a complaint in which he alleged that the HOA board failed to consistently enforce its architectural rules, failed to hold an annual election in 2008 and 2009 as required by its rules, failed to adopt an annual budget for 2009 as required, allowed its president to make contracts and spend money without a vote of the board, and failed to respond to member requests for information about the board membership.

At the hearing, the HOA's representative essentially conceded the homeowner's claims.  The hearing panel found that the board was acting in good faith, but that nonetheless it was in violation of its governing documents in several respects.  The panel issued an order establishing a timetable by which the HOA was to call and hold its 2009 election, propose and adopt annual budgets for 2009 and 2010, publish the names of all members of its board, and begin the process of proposing and adopting a written procedure for the enforcement of its architectural rules.  The panel retained jurisdiction until it could be assured of the HOA's compliance with the various parts of its order.