Mediation Doesn’t Always Succeed but It’s Almost Always Worth Considering

It is not hard to understand why military veterans who have seen action in war are likely to be among the strongest advocates of diplomacy.  For similar reasons, also easy to understand, the Community Associations Institute (CAI), which has seen decades of litigation involving homeowner associations and owners, encourages the use of alternative dispute resolution “whenever possible and wherever appropriate.” The advantages of avoiding litigation are obvious, even to litigators.  Non-judicial solutions can be achieved faster, at lower cost, and usually without the bitter aftertaste that can cloud the atmosphere in communities and strain relationships among and between owners and boards for years after a court battle has ended.   Alternative dispute resolution (ADR) is a large umbrella covering a range of options, from settlements reached by parties able to resolve their disputes without any help, arbitration of claims by agreement or contract, to  mediation ordered by judges who make it clear that the parties will probably be better off with an agreement they hammer out themselves than with any decision the court is inclined to render.   But the best-known and most widely used ADR tools, by far, are mediation and arbitration.   Read more

Tyranny of The Urgent

In the past two weeks I have been working on a new presentation and seminar on Stress Management. As I am wont to do, I asked my dear friend Rolf Crocker (“The Book Report”) to take a look at it for content, spelling, etc. In doing so, he recommend that I read “Tyranny of the Urgent’”, by Charles E. Hummel [1].   In a nutshell, it’s a treatise on time management from a religious standpoint. As Rolf says, “To do what Jesus did in 3 years, you had to be able to plan and manage time extraordinarily well.” By anyone’s estimation, this is an understatement.   Read more

The 10 Most Common Bylaw Pitfalls

At one point or another, most associations have to go back to their bylaws for amendments or revisions. Below, association legal expert Jeffrey Tenenbaum points out the most commonly overlooked considerations for associations to keep in mind when they revisit their bylaws.  Read more (PDF)

The Extraordinary Remedy Of Receivership

Courts many times have characterized receiverships as a drastic, extraordinary remedy.  They have called it a powerful weapon that should be used sparingly and only where clearly necessary.  It follows naturally from this common judicial view that an association should carefully approach the question of whether the uncommon remedy of a receivership should be used as a collection tool.  A careful analysis and review of the facts and circumstances of any collection matter should be performed so that the association can make an informed decision about whether to pursue this extraordinary measure.   Read more

Creating a Winterization Policy

Winter will soon be upon us, and now is a good time to reflect on actions condominium and townhome associations should take to prevent extensive damage caused by frozen pipes in abandoned, vacant and inhabited units which owners have vacated for a brief period of time while on vacation or for other reasons. The current reality of a slowing economy in most areas of the country has dramatically affected many associations’ annual budget as maintenance fee delinquencies increase. While boards pursue collection of these delinquencies, they continue to face the ever-increasing potential for widespread damage to real property, common elements and neighboring units, as many of these units are vacated or have been outright abandoned. Additionally, many owners who live in condominiums are unaware of some basic steps they should take to prevent their interior pipes from freezing.    Read more

Making HOA Appearances

There seems to be a tendency for common wall homeowner associations to acquire, over time, unintended owner touches like custom mailboxes, address numbers, pink flamingos, bird feeders and a variety of other questionable designer touches. What is a reasonable approach for the HOA to follow when it comes to appearance standards and while should there be standards at all? Read more

SWOT Analysis: An Excellent Tool for Association Planning

As the complexities associated with governing homeowners associations continue to grow, boards of associations are quickly learning that taking time to plan two to five years in advance is an excellent investment of time and resources.  Planning now for the future can set your association on the right course, save your association time, money and even prevent significant problems from developing.    Read more

The Effect of Renting For Associations

Many condominium and homeowner associations are currently facing a budgetary crisis as many of the owners within the association are going into foreclosure and losing their homes. It would seem that the best way to prevent homes from being foreclosed on would be to allow those owners to rent their units, so that they can pay their assessments and mortgage payments. But once units are rented, what will these rentals cost the association?  Read more

Recovering from Economic Catastrophe: Lessons of Parkway Village

Asbestos. A $2.4 million heating bill. Neighbor fighting neighbor. An onerous mortgage, inflated maintenance, emergency assessments, shareholder mutiny and, finally, a federal investigation into possible criminal misconduct. And just when the co-op appeared to have weathered the worst, it was hit with the ongoing fallout of the credit crisis. This is a story about a "perfect storm" that nearly capsized a co-op in Queens. If you think your co-op or condo is immune, you might want to think again. What happened to Parkway Village could happen to you.   Read more

Capital Reserve Studies: Planning & Funding For Your Condo’s Future

As any homeowner knows, at some point in a home’s useful life, the structure will need certain components replaced or renovated, such as the roof, siding, driveways and other permanent structural items. The question is how to pay for it. While a homeowner has the option of saving for the future costs or bearing the burden when the need arises, since the financial burden is his and his alone to bear, in the case of a condominium association, there are many owners often coming and going as units are bought and sold. The condo association’s board of directors has a fiduciary responsibility to both the current and future owners to make sure adequate funds are set aside or “reserved” in order to provide for the repair or replacement of the various components of the condominium complex.   Read more

Suspending Deadbeats

QUESTION: We have a number of owners who are defaulting on their mortgages and not paying their HOA fees. Can we disconnect their gas, water & electricity? Can we disconnect their Cable TV? Laundry is coin operated through a vendor, but can we ban them from using the laundry rooms? We have outdoor areas and gardens. Can we ban them from sitting in the gardens or walking through those areas and parking lots? Can me ban them from using the elevators and require them to use the stairs? Can we prohibit them from going through the main lobbies and only use the freight entrances and back doors?    Read more

More News

NV: I-Team: HOA Insider Breaks Silence
A former property manager is now coming forward saying she saw problems with the person at the center of the HOA investigations, Leon Benzer. New video and phone calls show some violent hired muscle willing to cross the line....

MI: Woman charged with embezzling money from Caledonia Condo development   Tens of thousands of dollars are missing from a condominium association in Caledonia and former complex manager Cassandra Tompkins is under arrest....

NC: Association leader ordered to stay clear of neighborhood kids   Judges have ordered the president of a homeowners association in Hampstead to stay clear of several children in his neighborhood after residents said he took traffic rules into his own hands....

TX: Ike Leaves $83 Million In Damage To El Lago
Those condos have been deemed "unsafe and uninhabitable," words no new condo owner wants to hear....

MD: Ruling in discrimination case due early next month   A discrimination case against an Upper Marlboro retirement community and its management company continues nearly a year after the state government started investigating complaints from two of its residents....

TX: Home Association Threatens to Take Homeowner's House Over $176
A west Houston woman could soon lose her home over $176 dollars....

CO: Couple sues HOA for being too lax
A Longmont couple has turned the legal tables on their homeowners' association - suing it not for being too overbearing with rules enforcement but for being too lax....

OR: Barton sentenced for embezzlement
Josephine Marie Barton, 55, of Waldport was sentenced Wednesday afternoon to 11 months of incarceration and ordered to pay $86,750 in restitution to the Waldport Chamber of Commerce and the Sandpiper Village Homeowners Association for monies she embezzled betw...

WI: Condo developer sued over leaks
A Chicago developer who's built condominiums in Milwaukee is being sued for the second time in seven years on claims of building problems....