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February 12, 2008     Vol. 5 Issue 4 
In the News Since the Last Issue

Condo Living - Buyers and Sellers Combat Noise Issue   When they started shopping for a downtown Milwaukee condo, noise-keeping - theirs in and others - out-was a deal breaker. Or, deal maker....

VA: Hanover residents must repair pond
Residents of the Royal Glen subdivision in Hanover County are upset about having to pay thousands of dollars to fix a neighborhood pond they say the developer should have maintained....

SC: Are those lagoons with the pretty views really doing their jobs? They may be nice to look at, but the myriad lagoons that dot area neighborhoods and gated communities are supposed to serve another function: keeping dirt and runoff from roads and construction sites from seeping into rivers and streams....

Renters Beware: Foreclosure Can Happen to You
Debbie found out the reason for the foreclosure: the owner owed the Pine Ridge Homeowners Association nearly 18-hundred dollars. The owner lives out of state. Debbie rented the home through a realtor. But realtors aren't required by law to check if a home is i...

TX: Valley Ranch HOA election hasn't been all that neighborly  Carole Lindsey didn't want yard signs for her re-election bid cluttering up the neighborhood. But after her opponents saturated Valley Ranch with their own signs, she says she had little choice....

WA: Storage units going condo, becoming playhouses  In response, a growing number of self-storage units are ditching the bright lights, long hallways and sterile atmosphere to become destinations unto themselves. Some, like the units Hunt owns at GarageTown USA in Coeur d'Alene, are bought and sold like homes a... 

TX: Homeowners associations: The final authority?  In many communities, homeowners or condominium associations have final authority in most aesthetic matters - with the ability to sue a property owner, assess penalty fees and even foreclose on a property if the fees aren't paid - because buyers agree to it wh... 

CA: Behind the gates: Keeping everyone informed in an HOA  When residents wonder what management is doing, it is usually an indication of a lack of communication. It is really important that the board of directors maintains open communication with the community. They can do it themselves, use paid management for that ...

VA: Pet door for cats considered tacky  Last summer Davenport was cited for the cat door. The HOA president sent out a memo to residents that cats were in covenant violation, running free in the development, causing damage to neighbors' screens, leaving waste, and killing birds at bird feeders....

AZ: Southwest Gas, HOAs make headway on lights   After months of emotional negotiation, meetings and an intervention by the Public Utilities Commission, homeowner associations across Nevada are closer to an affordable path to removing gaslights....

WI: QUIET CONDOS
Condo buyers are developing an ear for "acoustic isolation," as neighbor-containing noise is known among acoustical engineers. Downsizing empty nesters, especially, may want to trade the deadening quiet of single-family suburban houses for a livelier urban set...

FL: Residents Take Case To FCC  More than 100 residents of this gated New Tampa community have filed comments with the Federal Communications Commission asking it to void their 15-year contract with Century Communications.... 

AZ: Light bulb feud sparks $80,000 in fines, fees
Sandra Shelton, a spirited 67-year-old widow of Scottsdale, has wrangled with her homeowners' association for more than two years over what she calls her "$80,000 light bulb."...

VA: Bill would allow private funding of traffic controls  That's where homeowner association members want to take an active financial role in keeping traffic calm -- but without the help of HB 1032, they might not be able to....

VA: A violent twist in HOA fund case  Estranged from his wife, the 38-year-old Herndon man has been the focus of an embezzlement investigation since February 2007 in his role as the chief financial officer of Koger Management Group. On Jan. 28, a bankruptcy court judge ordered the sale of the comp...

FL: Most condo owners pleased with their boards, state says  Despite all the horror stories you read about condo and homeowner associations, 99.8 percent of owners in Florida apparently have no problem with their boards....

GA: Association fees another casualty of meltdown  Foreclosures have a devastating impact on community associations that is not felt by other creditors. A foreclosure wipes out the assessments/dues owed on the property. A foreclosure does not have that effect on on credit cards, auto loans and other consumer ...

VA: Homeowners Associations Face More Regulation  Virginia's General Assembly is said to be considering legislation that would make it harder for just about anybody to get into the business of running an HOA. The Washington Post reports that the Assembly may create a regulatory board to license professional m...

Canada: Condo owners slam board's 'special fees'  Some east-end condominium owners have asked police to be on hand when they meet Wednesday night out of fear their own board of directors will try to break up the meeting.... 

NV: Tow predators  Here's a case from late November: A foot soldier for your homeowners association is sick of seeing that champagne Celica parked on the street when it's supposed to be - so sayeth the HOA - parked in a driveway. Unwilling to tack another breezily hostile no...

Protecting the Homeowners Association's Nest Egg
How much is it worth for your condo or homeowners association to keep its money safe?...

FL: Condo activists urge board accountability at Deerfield Beach conference  The first Florida conference to educate owners and legislators about the need for rewriting Florida's condo and homeowner association laws drew nearly 400 people Saturday...

CA: A lawyer's neighborly suggestions  An attorney offers some resolutions that homeowner association officers, directors and residents might consider for a happier 2008...

AZ: Continental Ranch's HOA Recall Fails
Continuing coverage of the residential revolt in Continental Ranch. An effort to recall leaders of a controversial HOA has fallen short of its goal....

MA: Medford condo board repeals statue ban
The homeowners' association board of a Medford condominium complex voted recently to repeal a potentially unlawful rule that banned religious statues from all common areas, the board's attorney said Thursday...

NY: Condo owners put up a fight  Piermont condo owners have threatened a lawsuit over taxes for more than a year. Last week, they followed through with that threat. Representatives of three condominium complexes filed suit against the village for an astonishing $85 million dollars....

NJ: 2006 blaze in Hillsboro spurs new lawsuits
Nearly two years after a fire destroyed eight town homes in a Hillsborough condominium community, the legal battle over damages suffered in the blaze is continuing....

MN: Jonathan residents ready to fight for association's future  They gathered Tuesday night to give input as to whether or not the Jonathan Association Board of Directors should go to court to seek a judge's opinion on neighborhoods annexed into the association after 1979....

CA: Where homes go up, lawsuits follow
In 2007, the Superior Court of California, County of Orange, for example, reported the highest number of construction defect lawsuits since 2000....

FL: Related Group sues realty firms
With numerous condo buyers walking away from sales contracts, developer Related Group has begun suing real estate brokerages to get back commissions on those busted deals. Related has filed at least 15 lawsuits in Miami-Dade Circuit Court since last month to r...

LA: Slidell condo association embezzler not living up to restitution agreement  A former Chamale Cove treasurer who embezzled more than $100,000 from the condo association during his tenure is not paying his court-mandated restitution and therefore could soon wind up behind bars....

PA: Treasure Lake looks to state legislators for help  "We are one of 11,735 planned Private Residential Communities throughout Pennsylvania that must maintain our own roads. Consequently, our residents pay Sandy Township over $1 million in taxes and fees each year and no funds are returned to Treasure Lake for ou...

TOUSA Files for Chapter 11 Bankruptcy Protection
Hollywood, Fla.-based TOUSA, the industry's 13th-largest home builder in 2006, announced that it, too, was filing Chapter 11 in U.S. Bankruptcy Court for the Southern District of Florida,...

See all of the latest national, legal, regional and state news

2008 Advertising Policies and Rate Sheet
Word Doc      PDF
New Articles Found on the Web

Building Community

Communication, commitment, and concern for the community. In the common interest ownership world, those terms are invoked with the insistence and intensity of a mantra, repeated so often that they risk becoming background noise, like the “buckle your seatbelts” speech that begins every airplane flight. The safety information is important, but does anyone really focus on where the exits are located or how to activate the oxygen masks? We’ve heard the speech so often we think we know what do in an emergency, or assume that we’ll figure it out if the need arises.
Read more


Working Constructively With Your Association

So, you have a problem, a concern, an issue with the Board of Directors, the Association, or the management company?  What do you do?  What have you done?  Have you approached your concern with the Association as a negotiation with a partner, or as Marines landing on D-day?  Have you begun looking for win-win solutions to your concern, or began to solicit a cult of dissatisfaction from neighbors who might share your ideology?  Read more


Day Care case in Indiana

A homeowner's operation of a licensed day care out of her home, caring for up to twelve children daily,  constituted a commercial use in violation of a housing development's restrictive covenants prohibiting commercial enterprise, but a facility with fewer children might not.  Public policy favoring home day care was not violated by enforcement of the housing development's restrictive covenants.  Read more


Homeowners Associations Use Bonds to Fund Improvements

As planned communities across the country enter their third or fourth decade in service, there is a growing need among homeowners associations to finance major building and facilities improvements to maintain the safety, desirability and resale value of the homes in their communities.    The traditional practice of financing major capital projects with large special assessments is often very unpopular with homeowners.  Similarly, financing major capital projects with bank loans can be prohibitively expensive for homeowners associations, due to the high interest rates and the relatively short repayment terms required by most banks.   Now however, homeowners associations have a new financing option:  bonds Read more  (MS Word doc)


Minutes - The Legal Document of the Association

Twenty-five years in the association management business have provided me with plenty of opportunities to review Board Meeting minutes and observe the various methods used in keeping and writing minutes. The importance of the task requires knowledge of the purpose and content of meeting minutes. How can we find a common sense approach to Board Meeting minutes? Here are some helpful facts and information to guide you:  Read more


Emergency Preparedness: The Human Factor

Most managers would agree that nothing is more critical than being prepared for an emergency. But most institutional and commercial organizations focus their efforts on business continuity, meaning records, equipment and property. Although maintenance and engineering managers and others involved in emergency preparations understand life safety must come first, they often spend too little time developing strategies to get people out of the building, particularly people who cannot use the stairs to evacuate. How many managers put the primary focus of planning on people, the most important and costliest element to replace? Beyond that, not enough planners talk about ways to plan for evacuations when not everyone is able to use stairs to leave a facility quickly.  Read more


10 Things Managers Should Avoid Saying to Their President

Remember the old adage: “It’s not what you say; it’s how you say it.” Well, in today’s managers’ interactions with the community association president, it is all about what you say and how it is interpreted. The key to managers’ successful relationships require establishing a greater understanding of the communication process and accepting personal responsibility for the success of the process. Avoid the following statements. Here are ten tips for breaking through the communication barrier that can sometimes exist between managers and their presidents.  Read more


Richard ThompsonCommon HOA Excuses

Homeowner association members who pay their assessments late or not at all sometimes come up with some interesting excuses. Here are five common ones:  Read more


Coping From a Management Perspective: Living Through a Lawsuit

Lawsuits are an unfortunate, often expensive fact of life these days, and co-op and condo communities are not immune from seeing the inside of a courtroom, or at least a lawyer's office suite. An issue that arises between a resident and the board or between two or more residents can spiral out of control, wind up involving the managing agent, and end up in court. Then it becomes a battle of he-said/she-said until the lawsuit is over, a settlement is declared and it's back to building business as usual. Or is it?  Read more


Steps to Use for Successful Negotiation

Is negotiation another word for compromise? Possibly, but we like to think of it as cooperation.  Both sides should leave the table feeling satisfied that their voices have been heard, regardless of what they may have lost to obtain the mutually agreeable solution.   In the community association setting, negotiation skills are essential to the effective and efficient resolution of issues before they become bull-blown disputes.  Successful negotiations should not result in a winner and a loser; that’s for the courtroom.  Successful negotiations should result in both parties leaving the table feeling satisfied, and without resentment. As a Board member, you may face disputes from all sides, such as with an owner, another director, your association manager, etc.  The following are 10 steps to assist you with successful negotiations:   Read more


Safety in the Sky

Location, affordability, convenience .... safety? How often do buyers really take safety into account before deciding on a condominium? Condo developers, builders and managers put as much consideration into the safety of their buildings as the aesthetics or location. Among other issues, they address emergency lighting, appropriate signage and evacuation routes.  Read more  (PDF)


Concrete Repair Q & A (Buildings)

You can see some cracking, rusting steel, crumbling concrete or some other signs of an apparent problem with the concrete around your building. Evidence of this type of damage may be prevalent on your balconies, or building facade or in your parking garage. These outward signs are but symptoms of a more serious internal problems— corrosion of steel or other metals inside the concrete or a self-destructive mechanism occurring within the concrete itself.  Thousands of property owners have experienced similar problems and numerous questions have been raised. In hopes of shedding some light on the subject, some of the most frequently asked questions are discussed below.  Read more  (PDF)


Rental Compliance

Community Associations help retain and improve the standard of living and property values within a community. While all owners sometimes wish that a particular restriction did not apply to them, most are grateful that the restrictions apply to their neighbors. In some cases their neighbor may not own the home; but have leased the home. Through the direction of your Board of Directors, the Management Firm should serve your community by coordinating common needs, overseeing and enforcing the governing documents (Covenants, Conditions and Restrictions, Articles of Incorporation, By Laws, Design Guidelines and Rules & Regulations). The communities governing documents may allow rentals; but in most cases the governing documents are not specific and allow broad interpretation. An example of the verbiage may be “each residential dwelling unit constructed on the Property may be occupied only by a single-family. Any dwelling unit may be rented to a single-family tenant from time to time by the owner, subject to the Association Rules”. Unfortunately for some community associations, especially the owner living next to the non-compliant renter, governing documents that are not specific or silent allow on-going problems and aggravations.   Read more


What Makes a Good Property Manager?

A good property manager is like a hip dad. He or she may not say things like, "Hey pal, whatcha say we go toss around the ol' pigskin?" but like a hip dad, a property manager needs to have a certain set of specific traits and other, harder-to-define skills in order to be successful. A property manager needs to be able to listen and communicate, as well as be proactive and involved, current and knowledgeable. He or she should also be levelheaded and resourceful, personable and articulate. For all the property managers diligently trying to excel, the list of "and's" goes on and on. At the end of the day however, most people working in the management industry agree that the most fundamentally important trait for a good property manager to possess is the ability to communicate and relate to people.  Read more


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Editor's Notes 
When the immovable object meets.......

Some of the news stories recently show what happens when stubborn meets hard-headed.  Check out the Arizona story about the light bulb and $80,000 in fines and fees in the news column.  Uninformed readers cheer for the lone underdog fighting the association, but they rarely read the follow-up, that shows the owners lose in court, some even losing their home in the process.  Sad, yes, but at what point does being stubborn get ridiculous?  They're not fighting for the rights of the "little guy" against the big, bad HOA.  They just don't like to be wrong and drag out a process that could have ended much earlier and cheaper with a little common sense.  This has nothing to do with associations - this is just human behavior at its worst.

Joe

New Audio/Video
Why you want to know the law and understand video:

Florida Board Meeting

North Carolina Board Meeting


You can download or listen to over 30 programs produced by the CAI-Illinois Chapter from their weekly radio program.  Click here to go to the page with the program directory


 

What's New in the Blogs

HOA Owners Are Continually Confused By Assessment Limitations

About assessments ... sometimes when I write about assessments, I get questions back that I do not really understand, meaning I do not comprehend what is going...

Colorado Court of Appeals Upholds Lender Responsibility for Assessments Post Foreclosure

On January 24, 2008, the Colorado Court of Appeals affirmed an EL Paso County District Court ruling awarding an association all assessments that were unpaid by the lender who...

What needs to be done in order to change our bylaws?
I recently received a call from a co-owner whose condominium association has a bylaw restriction against dogs and she wanted to know what she could do to get the bylaw changed. For...

Higher Foreclosure Rates Mean Closer Oversight By Associations And Managers
It seems impossible to watch the news or read the paper these days without hearing about the troubled real estate market, as well as the troubles Americans are having with their ...

Imposing Fines

Question:   I'm having difficulty understanding the differences in our Board's ability to impose fines of $50 for a "single offense", loud party, and $10 ...

Cats on Leashes
QUESTION: Our governing documents require that ALL pets be kept on a leash when visiting on common property areas. Some have the opinion that cats ...

Singer Island Resort Buyers File Securities Class Action Against WCI Communities
Add a new breed of condo buyer lawsuit to the growing pile of cases which have been and are being filed under Florida condominium law and the federal Interstate Land Sales Full Disclosure Act in Florida...

A New Kind Of Condo Lawsuit: Related Group Sues Brokers To Claw Back Commissions On Defaulted Condo Units
The Miami Herald reports on the newest flavor of lawsuit directly attributable to the South Florida condo market crisis: a developer suing real estate brokers to claw back commissions for condo units ...

When Market Value Slips Out the Back Door

Back to our Housing Future: Will the old Suburbs become the new Urban Core?

Construction Problems and Community Association Financial Stability With many associations surprises have become the rule, and there are no bigger surprises than those that arise from various construction problems.

Singer Island Resort Buyers File Securities Class Action Against WCI Communities

Master Insurance Policy

Working Constructively with Your HOA

 

 

 

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