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March 11, 2008     Vol. 5 Issue 6 
In the News Since the Last Issue

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AZ: HOA cuts 'violator' down to size
No matter how many mortgage payments or welcome mats you plunk down, you are not officially a homeowner until you go through the biggest rite of passage. You need to get a violation notice from the homeowners association....

NYC Condo Residents Living In Fear Of Pit Bull
Residents of a condo on West 72nd St. in Manhattan say a dangerous dog is allowed to roam free in their building, striking fear in almost everyone it meets....

FL: Buyers lose unbuilt condo profits case
Condo buyers who sued a developer over an abandoned project cannot recover potential profits if their units had been built, an appeals court has ruled....

Condo Sales In Canada Up By 30 Percent In February   While the U.S. home property market continues to suffer a downturn, the Canadian housing industry is on an uptick, marked by a 15 percent hike in new homes in February. Fueling the housing boom was the construction of multiple-family units, including condomini...

FL: Broken Promises Plague Suburban Development   That was in 2004 when Lennar Corp. was in the early stages of developing the 760-home community just east of the Wesley Chapel school complex. "We were expecting a real nice, clean community," Spector said. "We'd moved from California, and we were expecting th...

CA: From the frying pan to the fire    Oops, I did it again. I just can't shake my vice. I went from being decommissioned as vice chair of the Temecula Public Traffic/Safety Commission to being elected vice president of our homeowner's association....

Canada: Communal calamities   Come hell or high water, scenarios like these will cost you. The communal nature of condo living means you pay now through an individual insurance claim, or later when your condo fees rise because of higher corporate premiums....

NV: HOA, management company should explain budget overruns  Q: What is the legal responsibility or requirement for an association and/or management company to keep spending within a budget that has been approved for a fiscal year? Our association, after being over budget for most of the months during the year, ended up...

AR: POA recognized for safety conditions
The Bella Vista Property Owners Association has been recognized for going more than two years without a lost-time accident....

Golden Hills' new code team has plenty to keep it busy   Although Golden Hills has a homeowners association, in contrast to the other study areas, neighborhood activists believe the code team will get them more tools to target violations thanks to the city's clout....

FL: On The Hook For Your Neighbor's Cable Bill
In an odd twist to the foreclosure drama in the United States, more neighborhoods across the Tampa Bay area are finding that the "discount" cable TV packages they get through their homeowners associations are coming back to bite them in the wallet....

CA: Retirement, replacement may be in view for Max  Touted for his "evil eye and herding instinct, Max originally was brought to Canyon Lake from North Carolina to harass the flocks of coots wreaking havoc on public lawns. He continues to do a good job, says Paul, but he's getting older and can't go to all th...

AZ: Foreclosures leave vacant homes blighting neighborhoods  A rapid increase in home foreclosures coupled with a wet winter have created a weed problem that has forced neighbors in Chandler to start cleaning up around vacant homes and real estate agents to work overtime to keep properties maintained....

MI: Looters hit Indian Village condos after fire
Days after a fire destroyed much of Indian Village Condominiums, Pamela Patton and a handful of her neighbors returned to find their homes not only damaged -- but also looted....

CT: Condo owners seek more power   Lawmakers are trying to provide a way for the state to investigate complaints lodged by condominium owners about their boards and associations....

FL: Condo association claims 30 years of city overcharges   The Bird Bay Condominium Association, Inc. recently contacted the city of Venice through its attorney Kevine T. Wells of Sarasota threatening a lawsuit unless the city pays back what it's calling an "overcharge" on utilities bill dating back 30 years....

FL: An American Nightmare  The association will meet soon to discuss raising maintenance fees, which Hendrick said average $450 per month. Condo owners likely will have to pay a special assessment to come up with the $300,000 needed to fix the 43-year-old elevators, which are broken as ... 

KY: Leader's e-mail angers pool foes   The president of the Springhurst homeowners association told residents at a meeting last week that it was unlikely he would seek the office again after an e-mail surfaced revealing he intended to use questionable methods to push a controversial expansion of th...

FL: Yard dispute sparks a political challenge  A homeowner who faces fines for installing a Florida-friendly yard is among a group campaigning to oust the homeowner association board in River Woods....

TX: Are Surveillance Cameras the Answer to Rising Crime Rates?   "To give you some idea," Becker says, "just in our homeowner's association area in the last 100 weeks there have been 28 incidents. In the previous 12 weeks before cameras, we had 27 incidents."...

WA: Why Your Condo View Could Be In Jeopardy
We have a warning for anyone preparing to buy a home or condo: That view you love could be in jeopardy....

FL: Office tries to tame condo conflicts  If you have a problem with your condominium association, there is a place to try to get relief, or at least an explanation of your rights. Created by the Florida Legislature in 2004, the Office of the Condominium Ombudsman has become a resource for unit owner...

MD: Heritage Harbour's detailed plans impress county officials  The team began preparing intricate plans nearly a year ago. Its duties are written into the bylaws of the Heritage Harbour Community Improvement Association. The committee has been given a budget between $1,000 and $10,000 (the retirees won't say exactly how m...

CA: Embezzle case: Balch changes her plea to guilty  In front of six elderly victims in court Thursday, the wife of a former Nevada City mayor pleaded guilty to embezzling more than $100,000 from their homeowners association, of which she was treasurer....

Condo obstacle course   Remodeling can seem like a test of perseverance and patience when it comes to dealing with association boards and regulations. Communication and checking the fine print are crucial....

WA: Condo Problems (+audio)
Most new homes in Seattle these days are condos. But buyers may be unaware of construction flaws hidden in some new buildings. And when problems emerge, the new owners don't know who to blame....

FL: Older retirement communities face parking dilemmas  Inviting friends home is not an option for residents of several older communities. There is no space for guests to park. For that matter, there are not enough places for all the owners to park....

CA: Vehicle towing at Esplanade Circle ceases
Following several weeks of tenant turmoil, vehicle towing at Esplanade Circle has come to an end....

AZ: Parents alerted about armed HOA guards
There is nothing that prevents Avondale homeowner's associations from hiring armed guards, the Police Department says. The issue came up this month when Collier Elementary School Principal Pat Bentley sent a letter home to parents, alerting that them the Coldw...

Countrywide Flip-Flops On High-Rise Condo Mortgages - Brokers   Countrywide Financial Corp. (CFC) flip-flopped on whether it will continue making loans to buy high-rise condominiums, reversing a decision telling brokers that certain mortgages would no longer be available, brokers said....

AZ: Guarding against crime
Residents of a local subdivision are working to reduce crime in a way that focuses on individual homes - the crime-free lifestyles program...

CA: Builder Or Buyer   When you buy a new home, who's responsible if it turns out to be defective -- you or the builder? And how many repairs do you have to endure before asking the builder for big bucks in compensation? Story includes video, association documents and replies from ...

AZ: Residents band together to improve their community  Homeowners are trading in their checkbooks for shovels. Residents at Heritage Highlands of Dove Mountain have taken it upon themselves to set up and organize a volunteer group to help clean up and maintain the common areas and washes in their community....

GA: A gas stove in your high-rise condo?
The gas pipeline company is striking deals with developers of condominium towers to install gas meters for each unit - a new concept in metro Atlanta....

Careless Plumber Causes Condo Fire
A plumber working with a torch under a bathroom sink in a North Park condominium Wednesday accidentally sparked a fire that caused extensive damage to the unit, authorities reported...

Palm Springs HOAs discuss water conservation
On Tuesday, about 60 Palm Springs HOA presidents and representatives gathered at Seven Lakes Country Club for a meeting of the Palm Springs HOA Presidents Council, which encompasses 88 HOAs....

FL: On The Hook For Your Neighbor's Cable Bill   In an odd twist to the foreclosure drama in the United States, more neighborhoods across the Tampa Bay area are finding that the "discount" cable TV packages they get through their homeowners association....

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

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

Open Lines: Communication is the Key to a Successful Community

Nobody knows who said it, but it speaks volumes: "If we don't take care of our customers, someone else will." Think about it this way—we just passed the holiday season. When you were in the store doing your holiday shopping and no one was available to wait on you and get you what you need, what did you do? Perhaps a store manager finally ran by telling you how busy they are, and promised they'd get to you soon, but they didn't. Eventually, if you're like many people, your patience wore out and you left to give your business to another store. If this scenario happened while you were in a restaurant, you might, once again, walk out and take your hunger elsewhere. Laura Baddish, a Passaic County, New Jersey resident, knows that when she has a problem in her building she should contact the management company. When a particular repair and billing issue of hers was not resolved, she took her complaint to a higher authority—her board of directors. Unfortunately, she didn't get the response she had hoped for there either   Read more


HUD and Justice Release New Guidance on 'Reasonable Modifications'

New guidance released this week by the Departments of Housing and Urban Development (HUD) and Justice (DOJ) reinforced the right of persons with disabilities to make "reasonable modifications" to their dwellings if a structural change to their dwelling or to their dwelling or to a common area of the building or complex in which they live is needed so that they can fully enjoy the premises. The guidance is designed to help housing providers and homeowners' associations better understand their obligations and help persons with disabilities better understand their rights regarding the "reasonable modifications" provision of the federal Fair Housing Act (FHA).   Read more


Directors vs. Officers of the Association – Clarifying the Misconceptions

It truly amazes me how the very individuals that voluntarily take on those positions and responsibilities misunderstand the Director vs. Officer concepts. Over the years I’ve come to the realization that it is often less effort to simply prepare and present a recap similar to that, which follows. Please keep in mind that this work is prepared within the context of a specific Association and its governing documents, as well as prevailing law, in this case the state of Arizona. Directors vs. Officers At the expiration of the Period of Declarant Control the Members elect the Directors to the Board of Directors of the Association. Those Directors elect the Officers of the Association. The Association acts through its Officers and agents. The Board of Directors makes the policies for the Association, but the Officers and agents carry out these policies and administrative functions for the community. Some of the Officers are clerical while others carry out substantive functions based on policies established by the Board of Directors. All of the officers have an affirmative obligation to act with utmost good faith towards the Association and cannot deal in the funds or the property of the association to their own self-advantage. The Bylaws of the Association require a President, Vice President, Secretary, and Treasurer, and allow for other positions as determined by the Board of Directors. The following will serve to highlight the powers and duties of the Board, the duties of the Officers, and how those positions are assisted through the delegation of some duties to the management agent   Read more



A Look at Archaic Bylaws

On a classic episode of the TV show The Simpsons, the town read its founding charter only to discover that the mayor of Springfield was supposed to get two pigs every year. While there are probably no co-op or condo documents in effect today that deal with pigs, the point is that if bylaws and house rules aren't read and updated, sometimes, silly things can slip through the cracks. It's important for any co-op or condo to have a clear set of rules and bylaws to help govern the building, and because times change, as do community standards, attitudes and populations, bylaws do get out of date. This means that rules and regulations that once made sense, or that reflected the morals and standards of their day, can become antiquated, irrelevant or just plain silly as the years pass.  Read more

Performance Analytics to Quell Performance Anxiety

Condo-association president Richard Campbell would probably agree with the approach of deadpan detective Joe Friday on the old Dragnet TV series. Whenever a witness veered off on an emotional tangent, he steered her back with a much-parodied catchphrase: "Just the facts, ma'am." And Campbell is after "just the facts" about the operations of his building — using a standard big-business tool that's still new to co-op and condo management.  It's called performance analytics, and its purpose is to measure objectively the workings of staff, management and even boards. It was instituted at Campbell's condo, the 47-unit 129 West 89th Street in Manhattan, by Georgia Lombardo-Barton, executive vice president at Morton Andrews, who took over management of the property around fall 2007.   Read more


Disaster Recovery Plans and Insurance for Small Businesses

Of all businesses that close down following a disaster, more than 25 percent never open their doors again. While there’s no way to lower the risk of a natural disaster like a hurricane, there are critical measures that can be taken to protect your company’s bottom line from nature’s fury. A disaster plan and adequate insurance are keys to recovery, particularly with this year’s active hurricane season, says the Insurance Information Institute (I.I.I) and the Institute for Business & Home Safety (IBHS).  Read more


Digital Documents

We all know that technology has affected the way property managers work. In an industry that has traditionally been paperintense, it would be hard to find an aspect of our business that has changed more than the way we manage documents.  After years of sending documents via the U.S. Postal System or overnight delivery, fax machines made it possible for us to share printed information in just minutes. More recently, the use of scanning technology and PDF documents have become more of the norm. This trend, combined with the use of computers, e-mail, electronic storage and web portal technology, has resulted in “real time” access to documents 24/7 worldwide.  Read more  (PDF)


Remodel Rules, Remodeling Checklist, and Contractor Agreement

During the last three years, I have experienced a significant increase in the number of unit remodels. A good number of these unit modifications were initiated without proper approvals, by new or maverick owners who, more often than not, did not fully understand that they own a condominium and that there are rules that must be followed. Clearly, such owners need to be made aware that there are rules are in place for a number of reasons, including promoting the cohesiveness of the condominium community as well as protecting the value and integrity of each individual’s investment. Some owners do balk at such rules, but they need to understand that communal living differs significantly from the individualism that can be practiced by owners of single-family homes. The Hawaii Court of Appeals stated it succinctly: “The uniqueness of the condominium concept of ownership has caused the law to recognize that each owner must give up some degree of freedom of choice he might otherwise enjoy in separate privately owned property.” As a manager, one tries to be proactive to circumvent unnecessary melodrama and to help owners understand and follow rules before they are broken.   Read more


Checklist for Creating Good Rules

When writing rules, boards should use simple concepts and words. If residents understand rules, they’re more likely to comply with them. For example, board members may attempt to lend authority to their writing by inserting complex legal terms. Though rules should have a solid legal basis, those who read them must be able to understand them. Few residents would understand the meaning of “Section 35.641 of the Code of the City Municipality of Pleasantville is hereby incorporated by reference.”   The following six characteristics of good rules will help board members avoid the traps of complexity and misunderstanding.   Read more


Mediation: Steps For Success

More and more associations are turning to alternative dispute resolution as a means of resolving disputes within their communities.  One form of alternative dispute resolution used quite frequently is mediation, which involves submission of a dispute to a trained, disinterested, third party (called mediators) for assistance with discussions between the parties, and hopefully resolution.  Mediators’ roles are those of fair and impartial facilitators with no personal stake in the outcome of a dispute.  Their job is to promote discussion and openness between the parties and to keep their attention focused on resolution of the dispute. Although mediation can be a non-binding method of resolving disputes (unlike arbitration or litigation), resolutions reached during mediation are typically memorialized in written agreements signed by and binding on all parties involved.   Read more


How to Build a Better Office

According to a recent survey by Gensler, the prominent corporate architecture firm, half of all employees say they would work an extra hour per day if they had a better workplace. So why do so many companies maintain dark, cramped, ugly, or poorly designed offices? Studies show that a well-designed office is one of the easiest and most cost-effective ways to retain workers and make them more productive. General Electric, Microsoft, and major West Coast insurer Group Health are just a handful of major organizations reaping the bottom-line benefits of smart, worker-oriented designs. Read on and we’ll explain how companies of any size can use a remodel or relocation to pump up performance and profits.  Read more



Forecast: Perfect storm of financial problems, but no recession

Fear of imminent economic recession may be a self-fulfilling prophecy, according to the latest Anderson Forecast report by University of California, Los Angeles forecasters. While the report by Edward Leamer, director for the forecast, clings to earlier predictions that the U.S. economy will avoid a recession in the short term, it also details the dangers that are stressing consumers and challenging the economy.   Read more

Julie Adamen[We forgot to include the link last issue, so here it is again, with link]

Can't Get The Interview? 3 BIG Reasons Why

Last month we discussed resumes, and how a well-executed resume is going to be key to obtaining an interview. For this month’s discussion, let’s assume the quality and format of your résumé is stellar: No typos, correct acronyms, professional email address, etc. You send it out diligently and wait patiently for  responses.  But you just can’t seem to get an interview. There are several reasons why this may be, but let’s talk about the top three reasons that I see: Your career path thus far, your qualifications and your location.  Let’s talk:   Read more



Law & Legislation in the News

FL: Buyers lose unbuilt condo profits case  Condo buyers who sued a developer over an abandoned project cannot recover potential profits if their units had been built, an appeals court has ruled....

MN: Troubled Sexton now caught up in fraud probe  The Sexton, a downtown Minneapolis condominium development already caught up in foreclosure and a tangle of lawsuits among its partners, now is at the center of a mortgage fraud investigation by the U...

ID: Second suit filed over roof slide  Another negligence lawsuit has been filed over a snow and ice slide from a condominium on Schweitzer Mountain which seriously injured at least two people last year....

CT: Condo owners seek more power   Lawmakers are trying to provide a way for the state to investigate complaints lodged by condominium owners about their boards and associations....

FL: Tampa Bay lawmakers push to ensure flag-flying rights
Sen. Mike Fasano, R-New Port Richey, unveiled the Senate version of the bill SB 1378 in January after a New Port Richey area family was ordered to take down a lighted flag on a 16-foot pole built by t...

VA: Common Interest Board Under Consideration   The Virginia Senate General Laws and Technology Committee was scheduled to conduct a hearing Wednesday on a H.B. 516, which would tighten control of firms that manage homeowners association money, but...

UT: Limits on suing builders OK'd   Salt Lake attorney Lincoln Hobbs, who represents homeowners associations, accused the Utah Home Builders Association of attempting to protect contractors from negligence claims...

CA: Court denies Costa Serena appeal  On Thursday, the court denied an appeal by the neighborhood's architectural committee that sought to overturn a Nov. 30 ruling by Superior Court Judge Robert Orfield striking down the community's senior-only status....

AZ: '$80K light bulb' suit appears to be resolved
A settlement appears to have been reached in the so-called "$80,000 light bulb" lawsuit over a security system in an exclusive Scottsdale neighborhood....

CO: Bill would stop some HOA bans   House Bill 1270, which recently passed the House and is on its way to the Senate would protect all Colorado residents from HOA restrictions put on energy efficient measures such as retractable clotheslines, shade structures, attic fans, evaporative coolers, wi...

TX: Homeowner loses fight over yard   It's a battle in one west Harris County neighborhood that has been going on for years. People are upset over the condition of one woman's yard....

CT: Wet laundry was the hot topic of discussion at the state Capitol   Lawmakers are considering a bill that would grant people the "the right to dry." The legislation would forbid any governing body from imposing rules that would prohibit people from hanging their laundry outside on clotheslines, drying racks or other devices....

FL: Court Sides With HOA In Lawsuit Over Porn Website Run From Home  Your local homeowner's association may have more clout than you think and a Seminole County lawsuit proved it. It turns out HOAs have the right to tell you what you can do inside your home to an extent....

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Editor's Notes 
Pop-ups!  Everybody hates them, but they're what pays for most newspaper web sites these days.  Our links are designed to open the page in a new tab, so that you don't have to go back and forth, you just simply close the new tab when finished.  But a lot of those new tabs come with pop-up advertising from the link.  These are not our ads - they are from the page that is opening. We're sorry you have to put up with them, but news sites are struggling with finding ways to pay for their sites.  Pop-ups seem to be the current trend.

Joe

New Audio/Video
Miami Condo Mess Brings 'Vultures,' More Bad News

Over the last several years, developers have run wild in Miami, which many consider the poster child for the deflating U.S. real estate bubble. Dozens of new high-rise condo projects are going up downtown. At the same time, foreclosures have doubled, sales have slowed to a trickle, and prices are dropping. These conditions have attracted a new type of opportunistic buyer to Miami — the "vulture investor."
    Story   NPR Audio


 

What's New in the Blogs

Condo-Mania! Take a market like Florida, which draws retirees from a wide swath of Eastern Seaboard America. These retirees include high powered lawyers and other power broker types who may have retired too soon, and long for the hand to hand combat of litigation and negotiation. Once they get on the board of their new condo association, this lifetime of experience wells up and they find they once again have the arena in which to practice their skills.

What Controls in HOAs - the Documents or the Law?  Below is a question I received from a reader in the State of Washington. While I cannot answer anything that might be perceived as giving legal advice in another...

Setting the Record Straight on Homeowner Forum  I wrote a blog awhile back about homeowner forum time. An owner had written in and said that the Board was requiring homeowners to fill out information cards b...

Should we open our pool and clubhouse to the public?
I received a call not long ago from a board member whose association is considering letting members of the public pay to use their pool and clubhouse, and he was questioning the po...

Collection Policy - A Must Have for Associations   Colorado Statute mandates the adoption of Responsible Governance Policy with respect to the collection of unpaid assessments. Setting aside that fact that it is required by l...

Municipal Services: Is Your Community Association Paying Twice?  Jonathan H. Katz, member of Stark & Stark's Community Associations group, authored the article Municipal Services: Is your Community Association Paying Twice?  for the Win...

Options in Covenant Enforcement
The young man living at 101 Crazy Daisy Avenue hasn’t mowed his lawn in over a month. The couple just down the street has two beagles that embark on a nightly duet...

Can The Developer Sue Me To Close? Some Specific Thoughts About Specific Performance
One question I get frequently from individuals who have signed a purchase agreement for residential real estate in Florida, such as a condominium, is whether they risk being faced with a lawsuit from ...

Who are the Brains behind the Housing Crisis?  Market melt-down! As I write this, the DJIA is down over 200 points this morning alone, and has dropped almost 15% from its hig...

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 ye...

Nosy Neighbors Get Permission to Get Nosier



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