Closed Session Rules
HOA’s can have a problem with the transparency when boards are unaware of the law. Arizona Revised Statutes Title 33-1801-1817 are the laws governing planned communities. Some boards think that they can go into a closed session and make rulings that must be made in open sessions where members can participate in the discussion before any motions are passed. All matters other than those listed below must be discussed and acted upon in an open session of the board.
Closed sessions can only be used if:
1. Discussion of legal advice from an attorney.
2. Discussion of pending or contemplated litigation.
3. Personal, health or financial information about an individual member, an individual employee or an employee of a contractor.
4. Matters relating to job performance, compensation, health records or specific complaints against an employee of the association.
5. Discussion of a member’s appeal of any violation cited or penalty imposed by the association.