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August 29, 2005
The Root of the Problem
The state of Florida enacted legislation this past year, creating an "ombudsman" for condominium associations. Ombudsman Virgil Rizzo is now available to assist in resolving disputes between unit owners and their boards. The Ombudsman acts as a liaison between all affected parties, including the Division, unit owners, boards of directors, board members and community association managers.
Some of the Ombudsman’s duties include:
- Helping the private sector to understand their rights and responsibilities under the law and condominium documents;
- Monitoring and reviewing procedures and disputes concerning condominium elections and meetings;
- Encouraging and facilitating voluntary meetings with and between unit owners, boards, board members, community association managers and other affected parties;
- Acting as a neutral resource regarding the rights and responsibilities of unit owners, associations and board members;
- Assisting in resolving disputes within a community association before a person submits a formal dispute; and
- Reporting to the Governor, DBPR and the legislature regarding any suggested changes to Florida’s condominium laws.
Dr. Rizzo recently gave his first report, stating that he had received over 4,000 complaints in the first 3 months. Over half of the complaints had to do with board mismanagement. "The major problem continues to be the incapability and inability of boards' members to properly manage the operation of the association," said Dr. Virgil Rizzo. "Many directors lack the knowledge to effectively and successfully operate a corporation of residential units."
That last sentence has, is and will continue to be the root of most community association problems. It has been estimated that 50% of the associations don't have professional management to advise them; 99% of them hate calling their attorney for advice simply because they don't want to spend the money; and, very few directors have the time, or the inclination to take classes, even if they are available locally.
State legislators aren't helping by rushing to pass laws that make it even more complicated and harder to govern associations, not easier. I'm waiting for the first state to require directors to take a class or classes before they can be on a board. A lot of boards will have a hard time finding people to fill their ranks.
We need to find a way to simplify the job, not make it harder, and that starts with the documents. Every time the documents state that the board is responsible for something, it should reference an appendix telling them HOW to go about it, with examples of the right and wrong ways to apply it. In other words, give them something to work with. It won't solve all of the problems, but it might reduce some of the more basic ones. It's a place to start.
Posted by joewest at 10:06 PM
August 16, 2005
Is There Any Community in Community Associations?
Recently I gained first-hand knowledge of what the word "Community" really means. We talk about "Community" a lot these days as we try to fend off the monotonous news stories about nasty boards and unhappy owners. I think we feel we've attained "Community" if a well-planned social event has a few people show up or if we're able to make quorum at the Annual Meeting. I've learned that this isn't even close.
My parents live in a small town in northern Michigan. My father passed away in late July, and as the eldest son, I set out to make the necessary arrangements. The first stop I made was to the local Amvets post where Dad liked to have a cup of coffee in the morning. When they heard the news, they told me to go home and take care of the family, they would handle it, and handle it they did. They planned the memorial service and luncheon, started a phone tree that notified the entire town, had the local paper hold up its printing in order to get the obituary in, made sure the family had enough prepared food for the next week, and handled a myriad of details that helped us cope.
At the memorial service over 500 neighbors and friends attended with military honors being rendered. Veterans from neighboring towns came to pay their respects. The Amvets post hosted a luncheon for everyone, with more food than the entire town could have eaten in a week, all of it donated by individuals. So many people came up to me and told me not to worry about my Mom, that they would see to it that she was looked after, that I lost count and I was sure she was never going to have a free minute in the future. If you can imagine being in a group hug with an entire town.....well you get the picture.
I left that small town to come back to the big city a few days later, wishing that I didn't have to. I grew up in a big city, but neighborhoods back then were tight, close-knit groups. Today, I live in a homeowner association in a suburb and don't even know the names of half my nearby neighbors. I don't think we can ever return to the closeness of those earlier years or clone small-town values, but I know that not having it has left a hole in my life.
The word "Community" may be a part of community associations, but the small "town" of Elk Rapids, Michigan, knows its real meaning and puts the community association "industry" to shame.
Posted by joewest at 11:35 AM
August 1, 2005
The Difference Betwen Condos and HOA's
My sister called me a few weeks ago and during the conversation, casually mentioned that she was thinking about running for the board of her homeowner's association. She wasn't very happy with the current board, as it seemed they weren't doing very much and were unresponsive when asked about it. At first I laughed, and when she got defensive (thinking that I didn't believe she could handle it), I had to point out that her bylaws limited pets to two, which meant she would have to get rid of three of hers. She has had three dogs and two cats for over two years and the association hasn't bothered to notify her that she's in violation of the CC&R's. I then asked if she really wanted the board to get "active" and she had to admit that if they did, she would probably end up in a fight with them over the pets. I should point out that I also live in an HOA which I believe has never enforced a single restriction in its 25 year history.
People who buy a home in an HOA really think they are simply moving into a neighborhood that happens to have a group of people who try and get other people to attend social functions. They really think that their home is their castle and immediately get their back's up if someone has the gall to challenge them on something they've done or haven't done. Look at the American flag cases that have hit the news in recent years. Almost all of them were in HOA's. "How dare you tell me what I can or can't do in my front yard!" It rarely has anything to do with patriotism, but is more a reaction to this "entity" that thinks they can stop me from doing something that I want to do. Patriotism is what pop's up when the media gets involved.
It's different in condo's. Someone else hires the people that cut your lawn and fix the roof, and then there's that assessment that comes every month, as opposed to the quarterly or annual HOA bill. Condo owners know that the association is supposed to be doing things, because very often, that's the reason they moved into one in the first place. The rules govern much more in a condo so that whichever way you turn, you're probably going to bump into one. I think that because people who buy into a condo aren't quite sure what they're buying, that they take a little more time reading the documents or at least asking a few questions. People who move into HOA's don't bother because they're buying a home in a "neighborhood".
I really believe that most of the litigation that will occur between owners and boards in the upcoming years, will be largely in the HOA arena. Until all of the states require some sort of forced recognition on the part of a home buyer, that they are purchasing a home in an association that has rules, governance of HOA's will swing violently between full enforcement and no enforcement, depending on the who is sitting on the board. Condo's seem to have leveled that swing off by forcing board's to be active on a continual basis, even if only for maintenance items.
As usual, the developers and real estate agents play a major role in all of this by playing down the "assocation" role in their developments. The only time it gets mentioned is if there are some amenities involved that can be seen as an attraction. At closing, the association documents are quickly shuffled off to the side to make sure they don't interfere with the transfer of ownership.
Legislators don't help. Almost every state has a strong condo act, that usually requires developers to provide buyers with all of the information about the association in advance of closing and often includes an out for the buyer if those docs don't meet with there satisfaction. Most states don't have the same requirements for HOA's. As I mentioned earlier, my HOA has been around for 25 years. When I bought this house 15 years ago, no one could find a set of the documents, no one knew who was on the board and no one could tell me what the assesment was. It hasn't changed much today. Well, they do collect a $15 annual assessment for the summer block party.
Posted by joewest at 10:38 PM