HOAleader.com - Tip of the Week - February 19, 2010
Published: Fri, 02/19/10
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Can Your HOA Fine Owners for Slacking?
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This week's tip addresses two common problems: lazy owners and
the need for additional revenue.
Can you kill two birds with one stone by financially penalizing
owners who don't attend meetings, vote, or volunteer by imposing
a "nonparticipation" fee on them?
Sadly, our experts in several states say that you probably
can't, but the issue ultimately depends on your own state's law
and your governing documents.
"I'd have a hard time recommending to a board to impose fines for
lack of voluntary participation unless there's something in the
governing documents that requires a mandatory stay on the board
or a committee every few years," says Daniel Zimberoff, a
shareholder-attorney at Barker Martin PS in Seattle, says of
Oregon and Washington law, where his firm exclusively represents
community associations.
"I believe that would be outside the authority of the board to
impose fines," Daniel told us. "You can't mandate voluntarism."
It's also impermissible under Florida law, says Lisa A. Magill,
a shareholder and association attorney at Becker & Poliakoff PA
in Fort Lauderdale, Fla. And it's a bad idea, to boot.
"Regardless of whether the authority is there, I think it's a
horrible idea," she says. "Your rights as an association member
are similar to your rights as a citizen of a city, state, or the
federal government. There's no mandate for you to vote. It's one
of your rights and privileges, but nothing requires you to do so.
Can you imagine the government fining taxpayers for not voting
in mayoral elections?"
If a fine on owners who fail to pull their weight isn't an
option in your state or under your governing documents, all
hope is not lost. For more detail on other state's laws, more
discussion of the pros and cons, and positive ways to get more
owners to volunteer at your association, see our new article:
http://www.hoaleader.com/members/393.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Can Your HOA Impose "Nonparticipation" Fees on Complacent
Homeowners?
You'll probably never be able to get all your homeowners to
volunteer for association duty. But is there a way to financially
penalize those who don't attend meetings, vote, or volunteer by
imposing a "nonparticipation" fee on them? Even if you can, is it
a good idea? Are there alternatives that would build
participation in a positive way? We've got answers.
Click here to read full article:
< http://www.hoaleader.com/members/393.cfm >
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HOA Facilities: A Roadmap for Identifying Common Elements
This week's tip answers the deceptively simple question: What is
a common or a limited common element?
Click here to read full article:
< http://www.hoaleader.com/public/392.cfm >
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Discussion Forum Follow-Up: What's a Common Area in My HOA?
A reader on the HOAleader.com discussion board asks a question
many associations end up grappling with: What's a common area? A
handful of owners in our reader's townhome have decks, rather
than concrete slabs, which everybody else has. The governing
documents don't reference maintenance for decks. Our reader
wonders: Who's responsible?
Click here to read full article:
< http://www.hoaleader.com/members/391.cfm >
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Mandatory Club Memberships May Land Your HOA in Court
This week's tip is a cautionary tale for homeowners associations
considering making club memberships mandatory in an effort to
generate additional funding.
Click here to read full article:
< http://www.hoaleader.com/public/390.cfm >
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Can Your HOA Make Club Membership Mandatory?
Cash-strapped homeowner associations in Florida, Oregon, and
Washington have been testing a new plan to generate income for
their communities--making membership in association clubs
mandatory for all homeowners. If you've been considering
generating revenue by amending your governing documents to make
membership in your HOA's golf or other club mandatory, read on
before you take any action.
Click here to read full article:
< http://www.hoaleader.com/members/389.cfm >
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