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.