HOAleader.com - Tip of the Week - June 4, 2021
Published: Fri, 06/04/21
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Walking Through the Process of Changing Condo/HOA Bylaws
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In this week’s tip, we answer an HOAleader.com reader’s seemingly simple question asking the steps to change bylaws.
Perhaps it’s not as simple as we thought because our experts all come at this process from a different angle. Let’s start with a taste of how the process could unfold in Louisiana.
Any lawyer will tell you that one of the first things they learned in law school was that Louisiana law is unique for all kinds of reasons. There, public records would be the launch pad for attorney J. Andrew Murrell of Baton Rouge, who represents up to two dozen community associations at any given time.
“For me, the first step is to check the public record,” he explains. “Time and time again, I’ve represented HOAs that don’t even know what governing documents are on file in the public record. And if they’re not filed, they don’t apply at all. Also, many of my clients have made amendments over the years, and all the sudden, you wake up and find a mess.
“So my first question would be: What are the legal governing documents for the HOA?” he states.
“The next step would be to read them,” Murrell continues. “Under many bylaws in Louisiana, there are different criteria depending on what you’re trying to do. It’s a matter of learning and understanding the process under those bylaws. What does it take to change a bylaw? Does it take an owner vote? Does it have to be unanimous consent, or can the homeowner who dissents just opt out?”
You read that right. In Louisiana, homeowners who dissent with amendments can opt out. “If your HOA decided it wanted to, for the first time ever, create an architectural committee and require that exterior improvements and plans be submitted to that committee, and that’s a more onerous provision than in previous bylaws, you’d have to have unanimous consent, or the dissenting voters can opt out,” he explains.
“That’s the case with any new and heavier burden,” says Murrell. “’A lot of HOAs have wanted to restrict renters. But if it’s not there in the documents already, good luck. You know your owners who are landlords won’t vote for it.”
HOAs can still make that type of change, and it may apply to a new owner when the dissenter’s unit is sold. But that’s not a given.
Not a given? Nope. Find out why, along with the process three more experts in other states would suggest following, in our new article: https://www.hoaleader.com/members/4333.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Can HOA Board Members Ever Keep Their Votes Secret? Video Interview Part 2
Be sure to check out the part 2 of this video interview where two two experts explain in more detail when boards can keep votes private, how to report such confidential votes in minutes, plus what to do in cases where a board member is concerned about a vote and personal liability. There's also a bonus tip: They offer their opinion on whether board members correctly interpret their right to abstain from voting.
Click here to read full article:
https://www.hoaleader.com/members/Can-HOA-Board-Members-Ever-Keep-Their-Votes-Secret-Video-Interview-Part-2.cfm
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Can You Pay Back an HOA Loan Out of Reserves?
An HOAleader.com reader asks: "Can an HOA that has a bank loan for reserve expenses repay the principal from the reserve account and interest from the operating account? Or do both principal and interest have to be paid from the reserve account?"
Click here to read full article:
https://www.hoaleader.com/members/Can-You-Pay-Back-HOA-Loan-Out-Reserves.cfm
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11 Tips for Building a Strong Relationship with Local Law Enforcement
Condo/HOA experts say one way you can help owners feel more secure is by fostering a strong relationship with your local law enforcement. Here are 11 tips for doing that.
Click here to read full article:
https://www.hoaleader.com/members/11-Tips-for-Building-Strong-Relationship-with-Local-Law-Enforcement.cfm
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Can You Charge Condo Owners with Washers More for Utilities?
An HOAleader.com reader asks, "My condo association includes water and sewer charges as part of the condo fee owners pay. We're facing huge increases for this and need to conserve water use or increase the condo fees. Water and sewer charges have increased 60 percent in two years. I was thinking of suggesting to the board to assess owners with washing machines to pay more monthly. Are there other HOAs experiencing the situation, and what action did your board take?"
Click here to read full article:
https://www.hoaleader.com/members/Can-You-Charge-Condo-Owners-with-Washers-More-for-Utilities.cfm
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Builder-Friendly Condo/HOA Management Companies: Is This a Thing?
We got wind of a possible problem that's supposedly prolific in California, where HOA management companies refuse to sue, or discourage HOAs from suing, developers when shoddy workmanship in a new condo or HOA requires repair.
Click here to read full article:
https://www.hoaleader.com/members/Builder-Friendly-CondoHOA-Management-Companies-This-Thing.cfm
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