Each homeowner’s association decision must adhere to the following standards:
- It must be within the scope of the association’s authority under the governing documents and the law;
- It must be based upon a reasonable investigation;
- It must be intended to serve the best interests of the association and the owners as a group;
- It must be made in good faith; and
- It must be reasonable considering the information available at the time the decision is made.
Additional standards may apply for specific types of decisions such as owner discipline or alteration approvals. Where the association has formally established policies or procedures, they must be uniformly applied and followed. But the fact that the association has permitted or approved a certain activity or alteration by a particular owner at one time does not mean that the association must permit or approve that same activity by the same or a different owner at a later time. In evaluating an association decision for compliance with these standards, the courts will defer to the board’s authority and presumed expertise.