HOAleader.com - Tip of the Week - June 19, 2020
Published: Fri, 06/19/20
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After Condo Treasurer Complaint, Board Wants to Charge Extra for Early Monthly Payments
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In this week's tip, we address grumbling from a busy volunteer treasurer and answer an HOAleader.com reader's question that essentially asks whether her board can impose a surcharge on owners who aren't paying late but are paying on a different timeline than their treasurer prefers.
Your first stop should be your governing documents, according to Bruce Masia, LCAM, the Broward County, Fla.-based vice president of the southeast region for KW Property Management. "The answer is that you've got to reference your declaration to find out if you can do that," he says. "I'd also consult your attorney. I've never seen that happen."
It appears from our reader's question that these owners are paying in advance, since there's no mention of late payments or late fees. In that case, our experts say it's unlikely this reader's governing documents or state law would permit an additional charge to process early payments.
"You'd have to take the position that by not paying according to the quarterly or annual due date, those owners are violating the documents, and I think that's a stretch," opines Janet Oulousian Aronson, a partner at Marcus Errico Emmer & Brooks in Braintree, Mass., who is licensed in that state, in addition to Rhode Island and New Hampshire. "I don't have anybody who's ever done that, and I don't see any court or judge upholding that. It seems very unreasonable and very heavy handed."
"The answer is definitely no," agrees John Richards, founder of Salt Lake City-based Richards Law, which represents at least 3,000 condo and planned-unit developments throughout Utah. "Most of our properties have owners who pay monthly. This is the question I get from owners all the time, which is a little opposite of the reader's question: 'Our annual dues for the year are, say, $1,200, and I want to pay in advance so I don't have to worry about making the payments regularly; can I get a discount for paying early?'
"I know of boards that have offered that to owners as an incentive, but I don't think you can do that," says Richards. "There's no offset for early payments--everybody needs to pay the amount required under the documents."
Ah, but this board has options that might make sense. Read about them in our new article: https://www.hoaleader.com/members/4134.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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How to Make Your Architectural Review Committee More Fair and Effective
Our experts recently presented an in-depth webinar on the challenges presented by architectural review committees—they often don't have great policies and procedures, and they can get your condo or HOA into big legal trouble. But there are strategies you can use to protect yourself. If you missed the webinar, get the recording now.
Click here for more info:
https://www.hoaleader.com/products/effective-architectural-review-committee-b.cfm
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Court Hits HOA with Liability for Its Kid-Restrictive Rules
A federal court has held an Idaho HOA liable for rules requiring kids to have an adult guardian at its pool, tennis courts, and clubhouse in violation of the Fair Housing Act; in addition, the court also found the HOA's treatment of a request for a fence a violation of fair housing laws.
Click here to read full article:
https://www.hoaleader.com/members/Court-Hits-HOA-with-Liability-for-Its-Kid-Restrictive-Rules.cfm
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Should This HOA Board Be Handling This Owner in a New Way?
An HOAleader.com reader asks, "Our small HOA has a member who has moved into an assisted-living community. Her home is currently being used by friends of hers and is not rented. We have obtained her address at the assisted-living community to bill for HOA dues, but after three years, she has never responded. She has a son who attends to maintenance at the home.
Click here to read full article:
https://www.hoaleader.com/members/Should-This-HOA-Board-Be-Handling-This-Owner-in-New-Way.cfm
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COVID-19: Which Condo/HOA Amenities and Recreational Facilities Can Reopen?
We're getting a lot of questions from readers about what amenities must remain shuttered and which can reopen. Can pools open back up? What about running trails? What about tennis courts? Here, our experts explain what they're advising their clients. Plus, we address how to respond when owners push back (as many are) and that people need to exercise to stay healthy and can just use the facilities at their own risk.
Click here to read full article:
https://www.hoaleader.com/members/COVID19-Which-CondoHOA-Amenities-Recreational-Facilities-Can-Remain-Open.cfm
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Your Condo/HOA's Risk Liability for an Owner's Under-the-Radar Day Care
Colorado lawmakers are working to pass legislation permitting owners to operate licensed home-based day care businesses and, at the same time, protecting associations from claims from children who are injured on common property or using amenities while in home-based day cares.
Click here to read full article:
https://www.hoaleader.com/members/Your-CondoHOAs-Risk-Liability-for-Owners-UndertheRadar-Day-Care.cfm
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