Speak Up or Sit Down:  Should Community Associations Take Public Stands?

Inertia and disinterest are common problems in common interest ownership communities, which are often hard-pressed to find owners willing to serve on boards, volunteer for committee assignments, or even vote in association elections.  So it is interesting  and somewhat  surprising to find that some homeowner associations are facing pressure to become more involved in local, state, and even  national political affairs. That pressure comes in the form of requests from owners and outside groups for associations to support or oppose various causes and to take public positions on political and social issues.  It isn’t clear how widespread this trend is, or if it is a trend at all.  But my firm has seen an increase in questions from association managers who say their boards are grappling with the issue and who are wondering how to advise them. Association attorneys and other industry professionals differ on what that advice should be.  Boards pondering political activity at any level must address two key questions:     Read more

Roof Leaks:  Are You Covered?

The most common cause of roof leaks will not be covered by your roof guarantee.  Clogged or obstructed roof drains, overflow scuppers, eave gutters and drainpipes, etc.  will create ponding areas on the roof that will rapidly deteriorate the water barrier membrane.  Roof cleaners, tree trimmers, and plumbing pipe clean-out companies that walk on your roof will mistakenly crack cement and clay roof tile that will expose water barrier membrane to damaging ultraviolet rays.  Sudden wind or hailstorms will identify improperly installed roof tile and will loosen and/or damage them.  Most importantly, it doesn't take hurricane force winds to identify a weakness in a roof system that will ultimately result in premature roof failure.    Read more  (PDF)

3 Short Articles from the Association Times

Increase Volunteerism— Reduce Resignations

In today’s fast paced society we find fewer citizens able or willing to make time to serve as community association board members. Then there are times when a board may have to deal with the sudden or anticipated resignations of a colleague. Vacancies occur due to expiring terms, moves, changes in circumstances, and sometimes because of conflicts, either personal or circumstantial. It is prudent that your association implement a plan to reduce resignations in order to enhance continuity within your association’s structure. Frequent resignations may be a sign that there are problems with the board, or an individual member may not be a good fit for the role. Remember, the welfare of the community depends on level-headed and committed volunteers.  Read more

Insurance - Bridging the Gap between Association and Individual Policies

Annually, boards of directors of community associations purchase insurance for their community. Depending on requirements in the CC & Rs or declaration and the type of community (condominium, planned or cooperative), the coverage will vary as to what insurance the association must provide. Generally, insurance coverage includes general liability on the common areas, fidelity (theft and dishonesty), directors & officers’ liability, buildings, and personal property of the association. If you live in a condominium or townhome-style planned community, you will need to add additional coverage in order to bridge the gap between the association’s insurance coverage and coverage for your personal property.  Read more

Communicating Financial News

The current economic times are affecting all of us in one way or another and the homeowner associations in our area are no exception. At the beginning of this year, the Wall Street Journal published an article about how foreclosures and the increases in the cost of living have resulted in more owners who are delinquent in their fees, and the impact this situation has on homeowner associations.   Read more

Getting Smart

Technology is affecting the way we do business, how we go about our daily tasks, and even how our homes function. Putting existing technology to use in a home or residential building is the essence of what it means to be an “intelligent” building or home. An “intelligent” building is able to monitor its environmental, mechanical, and lighting (among other) systems, through a computerized network of electronic devices. Maintenance, communications, security, and other residential building functions are now being handled by new systems, whose upgraded operations are helping building personnel do their jobs more effectively. In many cases, intelligent homes and buildings provide savings for their owners, by helping them to cut back on their energy usage.   Read more

Clean Sweep HOA Chimneys

In many homeowner associations, wood burning fireplaces are a warm and inviting amenity that boost market value and livability. Some use them passionately, burning cords of wood each season while others rarely use them except for special occasions like Christmas. Regardless of the usage, the homeowner association has an obligation to see that they all meet fire safety codes.    Read more

Comfort Animals:  What Are They and How Should Associations Deal With Them

The Federal Fair Housing Act (FHA) and the Minnesota Human Rights Act (MHRA) prohibit discrimination against some protected classes, such as disabled individuals. Normally, a residential housing provider is required to make reasonable accommodations in its policies, procedures and practices to afford a disabled individual with an equal opportunity to use and enjoy a dwelling. These acts have been held to apply to community associations. In the context of pet and animal restrictions, an association cannot prohibit, for example, seeing- eye dogs for residents who are legally blind, even if the dogs would otherwise be restricted or prohibited under the association's Rules and Regulations. However, some individuals have attempted to use these statutes to try to keep pets that would otherwise be prohibited by the association's pet policy, claiming that they are disabled and that having the animal would make them feel better. These animals are often referred to as "comfort animals" because they are generally used to comfort a person claiming to suffer from a disability.              Read more

When Market Value Slips Out the Back Door

We have written a lot on these pages about the damage that reserve underfunding can do to a community association. For ten years we have tried to focus attention on the long-term effects of failing to adequately save for the inevitable reconstruction or replacement of major building components. Nevertheless, we still see every day examples of what happens when a board fails to budget to meet these needs. Associations with less than half of the funds needed for a major re-construction project are common. Associations with no funds at all are less common, but becoming more so all the time. Other authors have also discussed this topic over the last few years, so it's not just our imagination!             Read more

Reminder:  Does Your Association's Pool Comply with Pool Safety Act?

In December 2007 the Act was signed into law by President Bush to increase the safety of pools and spas in the United States by requiring certain safety devices and consumer education about drowning prevention. The Act requires that, among other things, by December 20, 2008:   Read more

Managing a Catastrophic Event in Your Community

No one can be fully prepared for a weather-related catastrophic event. As hard as we try, Mother Nature will not allow us to predict or prepare for what she has in store. We are at her mercy. It may appear as though we are experiencing more catastrophic weather than at any other time, but in reality there simply is more developed land to be destroyed by these weather systems today than in the past. In Minnesota, communities have spread throughout the metro area like a California wildfire. Where there was once a cornfield now exist more than one thousand new homes. Had a tornado landed in some of these areas five years ago, it wouldn’t have been more than a blip on the news. But now that people live in that cornfield, we run the risk of heavy property damage and possible loss of life. It is something we cannot control, but we can definitely educate and prepare.                 Read more (scroll down to 3rd article)

How Secure Are Your Deposits?

On October 3, 2008, President George W. Bush signed the Emergency Economic Stabilization Act of 2008, which temporarily raises the basic limit on federal deposit insurance coverage from $100,000 to $250,000 per depositor. The temporary increase in deposit insurance coverage became effective upon the President’s signature. The legislation provides that the basic deposit insurance limit will return to $100,000 after December 31, 2009.                    Read more  (scroll down to 4th article)

Fire Detection and Suppression in Condominiums

What level of risk are you accepting for fire protection for your buildings? Risk perception is a subject to which we probably don't give a lot of thought. How many of us get an annual head to toe physical? A case could be made that one of the many complex reactions that 9/11 has given birth to is the shattering of our sense of safety within a free society. It has forced us to look toward protecting ourselves in places we always assumed contained little risk.    Read more

Those of you who have followed our web site, blog or this newsletter know that I have a specific concern about fires in condos.  Here is another article from Davis-Stirling.com and the law firm of Adams Kessler

CONDO FIRE LAST WEDNESDAY Fires are not limited to brush and trees. The following was sent by Mike Gruby, manager of a condominium association in San Diego.

Last Wednesday night my wife and I returned to our condominium building just as the frantic screaming of a woman erupted from the second floor. We both thought it was a wild party, then an attack, and only when I heard the word FIRE did real meaning set in.    Read more

How much personal business at work is reasonable?

The other day I came across an article that said the average US worker spends approximately two hours each day taking care of personal matters, such phone calls, e-mail, personal shopping, and the like. If these are eight-hour workdays, that's a substantial chunk of time, and an equally large cost to employers. In fact, the article stated that employers are shelling out $700,000,000,000 annually to pay for this "personal time."   Read more

More News

AR: ACC, city at odds over sign ordinance
The owners of an estate-sales business were recently caught in the crossfire over signs between the city and the Bella Vista Village Architectural Control Committee....

FL: Can condo funds cover legal fees?
"Kay, one of the prior board members sued the five people he blames for starting the recall against him. If the attorney asks the board who will pay for his or her legal fees, can the board meet and decide without notifying the owners? Is it legal to use condo...

NV: State Supreme Court issues ruling in Fernley WTP case   The Nevada State Supreme Court recently denied a writ of mandamus sought by the Mesagate Homeowners' Association in a challenge to the city of Fernley's issuance of a building permit for construction of the arsenic removal water treatment plant...

FL: Garbage Piles Up As Foreclosures Pile On
Two months worth of garbage piled up at the New River Condos dumpster this week. The association says they do not have the money to pay to get it hauled away, and what's happening here is happening at more and more condos and homeowner associations in South Fl...

FL: Lawmakers Working To Reduce HOA's Power To Foreclose  Eyewitness News has learned lawmakers are ready to take on homeowners' associations. Eyewitness News reported Monday about a man who could lose his house because he didn't pay his HOA dues....

VA: Herndon Man Admits Stealing From Homeowners Associations
A Herndon man who helped manage 400 homeowners associations in Northern Virginia admitted yesterday that he stole about $3 million from those associations over four years and failed to pay more than $775,000 in income taxes during that period....