HOAleader.com - Tip of the Week - April 29, 2011
Published: Sat, 04/30/11
=================================================================
Surprise! We're Here to Inspect Your Unit! Can Your HOA Do That?
=================================================================
That owner's at it again! You specifically prohibit smoking in
units, and now you're getting reports of the unmistakable odor of
cigarettes. Does your HOA have a right to inspect an owner's unit
for violations? In this week's tip, we discuss that prickly
situation.
"Typically, my number-one question to boards is: What do the
governing documents allow for inspection?" says Kristen L.
Rosenbeck, a partner at the Mulcahy Law Firm PC in Phoenix,
which represents associations. "Most have some form of easement
right for the association to enter a unit and inspect the
property. It should say something like, 'The association has a
right of inspection (or a right of easement) to enter the
property to confirm or review violations or common element
issues.'
"There should also be some type of guideline for notice to enter
the property so the association's not trespassing," adds
Rosenbeck. "Typically the notice requirement is a 'reasonable
time.' I recommend that reasonable notice is a week, and a
reasonable time are dates and times that work around the
owner's work schedule. I want to see those notice requirements
in the CC&Rs. If they're in a rule, that would give the
association some argument to enter a unit, but that right could
be challenged. If the owner says, 'No way,' we'll review whether
to still take the risk of entering or getting a court order."
Statutes, which will trump your governing documents, may also
apply, so check your state law. "The law on associations' right
to inspect is similar in Virginia and Washington, D.C.,"
explains David Mercer, a partner at MercerTrigiani in Alexandria,
Va., who represents more than 500 associations in both Virginia
and Washington, D.C. "Access to units is more relevant in
high-rise condos than in townhouse or homeowner associations,
but there's no distinction in the law. The association has the
right to access a unit or home for a spectrum of needs. One is
that the association needs to perform regular maintenance that
necessitates its entering the unit. The opposite end of the
spectrum would be an emergency, when it has to get in without
providing notice.
"Also, in Virginia for both condos and HOAs, the association has
the right to access a unit if there's a request by the owner for
the resale packet or disclosure certificate that's required to
sell the home," adds Mercer. "To satisfactorily fill out that
form, the association needs to perform an in-unit inspection to
determine whether there are violations of the governing
documents."
But that's just the tip of the inspection iceberg. Find out more
in our new article: http://www.hoaleader.com/members/569.cfm
Best regards,
Matt Humphrey
President
=================================================================
Recent articles posted at HOAleader.com:
================================================================
What's Your HOA's Right to Inspect a Unit for Violations?
Do you suspect owners are violating your HOA's no-pet policy? Or
your nonsmoking policy? Or your limit on how many people can live
in a unit? What if you think a resident is a hoarder and his unit
is a safety hazard? All those issues trigger your HOA's right--if
such a thing exists--to inspect an owner's unit. Here, our
experts weigh in on that touchy subject.
Click here to read full article:
< http://www.hoaleader.com/members/569.cfm >
================================================================
Four Insurance Policies Your Homeowners Association Must--or
Should--Have
In this week's tip, we explain four insurance coverages your
association must have or should seriously consider.
Click here to read full article:
< http://www.hoaleader.com/public/564.cfm >
================================================================
HOA Insurance Primer, Part 2: Eight Coverages to Consider
Your homeowners association must have insurance, but it doesn't
have to waste money on coverage it doesn't need. Here we explain
eight coverages your HOA should have, including some that aren't
standard but that your association should consider.
Click here to read full article:
< http://www.hoaleader.com/members/563.cfm >
================================================================
HOA Insurance: What You Need to Know -- Part 1
The cost of insurance can hamstring an HOA. That's why it's
important to understand HOA insurance basics so you and your
board of directors can intelligently evaluate insurance bids.
Here, in part one of a two-part series, we explain how to
determine what coverages your HOA must have, how to determine the
value of the property you must insure, and extra coverages to
consider.
Click here to read full article:
< http://www.hoaleader.com/members/562.cfm >
================================================================
HOA Taxes: What's Exempt Under the 90-Percent Rule?
You have two options when you file your HOA's tax return. One is
to file as a corporation, and the other is to file under Section 5
28 of the Internal Revenue Code. Most associations opt for the
Section 528 treatment because if almost all your HOA's income is
from assessments and almost all of your expenses are for
maintaining association property, you don't have to pay taxes. To
qualify under IRC 528, your association must meet several
requirements, one of which is that at least 90 percent of your
association's expenses must be exempt, which means they're
operating and capital expenses that directly affect association
property. But which expenses are exempt, and which aren't? Here's
a rundown.
Click here to read full article:
< http://www.hoaleader.com/members/560.cfm >
=================================================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
http://www.hoaleader.com/public/department49.cfm
=================================================================
Please feel free to forward the *entire text* of this email to
others.
Copyright 2011, Plain-English Media, LLC
(866) 641-4548
http://www.hoaleader.com