CORRECTION: HOAleader.com - Tip of the Week - April 3, 2020
Published: Fri, 04/03/20
=================================================================
HOAleader.com - Tip of the Week - April 3, 2020
=================================================================
Upcoming Event
COVID-19 and Your HOA: A Free Update for HOA and Condo Boards on How to Navigate and Prepare for Operational Challenges in Your Community from the Coronavirus
***Due to overwhelming demand, we are presenting an encore presentation of this webinar, which will include additional updates.***
Monday, April 6 -- this coming Monday!
3:00 p.m. Eastern
Learn more or register now:
https://www.hoaleader.com/products/covid-19-update-and-prepare-2.cfm
This webinar is free, as a service to our community.
=================================================================
What You Can Learn from a North Carolina Court Takedown of an HOA's ARC
=================================================================
In this week's tip, we break down all the ways an architectural review committee in North Carolina went astray, according to a court that was not happy with it. The court found the ARC's actions improper and even awarded the owners nearly $70,000 in punitive damages.
The actions in Duff v. The Sanctuary at Lake Wylie Property Owners Ass'n, Inc. began in 2005, when John and Olga Duff purchased an undeveloped lot in the Sanctuary at Lake Wylie, which is governed by The Sanctuary at Lake Wylie Property Owners Association. The HOA's governing documents created an architectural control committee and a process to review and approve plans for the community, including standards and restrictions for the community. According to the restrictions, residents must use plans created by an approved "guild builder."
In 2016, the plaintiffs submitted plans for a home by one of the ACC's approved guild builders, which had already been approved to build two projects in the community. The first two sets of plans were rejected by the ACC, whose feedback stated, "The changes you propose do little to separate this home from hundreds of similar homes…There is nothing that says 'custom' or 'luxury' about the plans you submitted."
The head of the ACC advised the plaintiffs to submit a third set of plans, plus an $850 lot fee, to be sent to the HOA's retained architect for input. Those plans were later rejected, too. A fourth set of plans was rejected as not conforming "to the desired architectural aesthetic." The plaintiffs appealed to the board, which upheld the ACC's denials.
The plaintiffs sued. They claim the HOA didn't act in good faith, among other claims. A jury found in the plaintiffs' favor and awarded $197,041.67 in damages, plus $67,787 in punitive damages.
Up the case went to the appellate court, which found there was sufficient evidence for the jury to find that the ACC never intended to assist plaintiffs in getting approval for their building plans.
In fact, the HOA's retained architect testified that the ACC's design guidelines were vague and failed to list a specific style for building plans. He also testified that the ACC had already discussed and decided to deny several of the plaintiffs' sets of plans before he, as architect, received and reviewed them. The HOA's architect also testified that he charged only $125 per lot for his services, while the HOA charged the plaintiffs $850 to submit the plans to the architect.
The appellate court held that the ACC chair's comments to plaintiffs "were reasonably calculated to mislead and did, in fact, mislead plaintiffs." It also held that there was sufficient evidence to find that the HOA acted in bad faith and abused its position of power by denying plaintiffs' plans.
Find out the lessons of Duff, plus the most common areas our experts see ARCs veer off course, in our new article:
https://www.hoaleader.com/members/4089.cfm
Best regards,
Matt Humphrey
President
=================================================================
Recent articles posted at HOAleader.com:
=================================================================
Do Condo/HOA Governing Documents Typically Cover Lighting?
An HOAleader.com reader asks, "We're looking for an example of a lighting covenant that covers safety and light pollution that protects all and is objective and enforceable." Our question is: Do governing documents typically get into that level of detail? If so, what should a lighting covenant say?
Click here to read full article:
https://www.hoaleader.com/members/Do-Condo-HOA-Governing-Documents-Typically-Cover-Lighting.cfm
=================================================================
The Challenges of Growing Legalization of Marijuana: What HOA and Condo Association Boards Need to Know
In one hour, you'll receive valuable, actionable information that will help you better manage owners' use of marijuana to ensure that all residents can continue to enjoy their property without nuisances.
Click here for the webinar recording:
https://www.hoaleader.com/products/hoa-challenges-marijuana-legalization-b.cfm
=================================================================
Vendor Donations to Your Condo/HOA Events: Dos and Don'ts
An HOAleader.com reader asks, "We're having an annual community BBQ for our HOA. Some vendors heard about it and offered to donate gift cards for prizes for the games. Another vendor offered to contribute monetarily to the food. Our management company also contacted the board and said they wanted to donate. They sent out an email letting the other vendors know if they wished to contribute, they could, but it's not expected or required."
Click here to read full article:
https://www.hoaleader.com/members/Vendor-Donations-Your-CondoHOA-Events-Dos-Donts.cfm
=================================================================
Rentals in Your HOA or Condo Getting You Down? What HOA Boards Need to Know About Regulating Rentals
Join us for a must-attend webinar on April 23 on how to create a smart--and enforceable--rental policy at your HOA. You'll hear two community association lawyers with decades of hands-on experience in advising associations share their best advice.
Click here for more info:
https://www.hoaleader.com/products/regulating-hoa-rentals-webinar-a.cfm
=================================================================
What This HOA Board Could Have Done Instead of Foreclosing
A Colorado homeowner apparently made a dumb choice--there's no question, if the reports are true. He allegedly refused to pay $110 in dues to protest a $100 fee imposed by his HOA for a garbage can violation. The HOA filed a lien, then foreclosed on the owner's home, according to MSN Money.
Click here to read full article:
https://www.hoaleader.com/members/What-This-HOA-Board-Could-Have-Done-Instead-Foreclosing.cfm
=================================================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
https://www.hoaleader.com/public/department49.cfm
=================================================================
Please feel free to forward the *entire text* of this email to
others.
Copyright 2020, Plain-English Media, LLC
(866) 641-4548
https://www.hoaleader.com