HOAleader.com - Tip of the Week - April 9, 2010
Published: Thu, 04/08/10
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HOA Architectural Committees:
Are You Doing Enough to Police Yours?
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Three courts in two states have recently given architectural
committee actions a once-over, and the results weren't always
favorable to the associations.
This week's tip serves as a reminder to your HOA board that it
must oversee its committees and that your homeowners association
can be held liable when your board falls down on that job.
In the first case, which took place in California, a homeowners
association enforced its governing documents, and the homeowners
who flaunted the rules suffered big losses.
Robert and Catherine Cramer purchased a lot in the Clear Lake
Riviera Community Association in Lake County, Calif. They started
off on the right foot by seeking approval of the plan for their
new home.
The association approved the plan, finding it met the
association's height restrictions. However, the Cramers' lot was
sloping, so where they located their home on the lot affected
final compliance.
During construction, the association twice notified Robert Cramer
that because of the location he selected for the home, the plan
no longer complied with the association's height restrictions.
Cramer continued with his plans.
The completed home surpassed the height guideline by nine feet
and impeded neighbors' views of a nearby lake. So the association
sued to force the Cramers to comply.
On appeal, the Cramers contended the height regulation was
unenforceable because the association failed to prove it had been
properly adopted. They also argued the trial court abused its
discretion by forcing them to change their home rather than pay
monetary damages.
After a long battle, an appellate court held that even though the
association didn't have much documentation to show that its
height rule had been adopted, it was enforceable. It also held
that the Cramers must fix their violation to the tune of more
than $200,000.
The lesson for boards? First, make sure you and your committees
properly document architectural guidelines you adopt. Though the
court found the association's guidelines were properly adopted,
the association might have had less of a fight if it had had
better documentation of its actions. Second, though it can be
expensive, boards must enforce their architectural guidelines.
To learn more about how important that second lesson is for
boards and to find out why following your own association rules
may not be enough, see our new article:
http://www.hoaleader.com/members/415.cfm
Best regards,
Matt Humphrey
President
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