Community associations often look to their declarations and bylaws for guidance on the governance of their community. Sometimes, though, associations want to clarify, supplement, or add to those governing documents. Depending on the circumstances, an association may be able to accomplish this through the adoption of resolutions. This week, we discuss some common situations when the Oregon Condominium Act, the Oregon Planned Community Act, and in some cases, the association's governing documents, require (or allow) the association to adopt resolutions.

The Oregon Planned Community Act and the Oregon Condominium Act generally require a resolution if an association intends to engage in or adopt rules relating to the following:

(1) Borrowing funds from the association's reserve account to meet high seasonal demands on the regular operating funds or to meet unexpected increases in expenses;

(2) If the board of directors adopts a resolution to borrow funds as set forth above, the board of directors must subsequently adopt a resolution establishing a written payment plan for repayment of the borrowed funds within a reasonable period;

(3) If an association intends to impose charges for late payment of assessments or levy reasonable fines for violations of the association's governing documents, the charge imposed or the fine levied shall be based on a resolution of the association or its board of directors (but only if the charge intended to be imposed or the fine levied is not based on a schedule contained in the association's declaration or bylaws);

(4) The board of directors, by resolution, may adopt reasonable rules governing the frequency, time, location, notice and manner of examination and duplication of association records and the imposition of a reasonable fee for furnishing copies of any documents, information or records;

(5) Depending on the information set forth in an association's governing documents, an association may be able to take advantage of the resolution-making authority relating to insurance deductibles and other insurance details set forth in the Oregon statutes: See our blog article here for details.

Some exceptions may apply and the list is not intended to be exhaustive; instead, it identifies common situations where, depending on the association's governing documents, a resolution is either necessary or recommended. There are a variety of other resolutions that might be recommended or particularly helpful to community associations.

To determine whether additional resolutions may be helpful (or necessary), associations should review their governing documents. Sometimes association governing documents will require the board of directors to adopt a specific resolution before the association takes a specific action. And sometimes the association governing documents (or Oregon statutes) require a resolution to be mailed out to all owners before the resolution becomes effective. It is always best to make sure you understand those requirements before attempting to adopt a resolution. Doing so will allow your association to move forward properly and efficiently. Please feel free to contact us if you have any questions.