HOAleader.com - Tip of the Week - October 7, 2011
Published: Thu, 10/06/11
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Is Your HOA's Developer Shirking His Responsibilities?
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In this week's tip, we give you a head start on holding your
developer to his obligations.
An HOAleader.com reader reports that his HOA is still under
developer control, yet the developer isn't paying for repairs,
maintenance, or services like water, electric, lawn care, and
snow removal. Nor is it allowing access to financial information.
One part of our reader's problem has an easy answer. "In most
states, if not all, by statute, unit owners are entitled to
review any and all association information within a reasonable
amount of time," says Bill Worrall, vice president of The
Continental Group, which is based in Hollywood, Fla., and
manages 1,300 condominium and homeowner associations totaling
310,000 residential units. "That includes financial information.
We don't see a lot of developers trying to hide financial
information from unit owners because developers know they could
get in trouble for that. But remember, that's only the financial
information of the association, not the developer's finances."
Next, know the responsibilities of a developer in control.
"Typically, in developer-controlled HOA communities, we don't
see a whole lot of issues with maintenance of the common areas,"
says Worrall. "They want everything to look beautiful so they
can sell units and move onto the next project. That's their
reason for being. But there are quite often questions from the
membership regarding what type of repairs and maintenance should
and shouldn't be done by a developer who still has control of
the board and finances."
Steven Daniels, coordinating partner of Arnstein & Lehr's West
Palm Beach, Fla., office, who has advised hundreds of HOAs, says
it's unwise to assume the developer must pay for every HOA
expense. "So they don't waste their time and breath, owners have
to make sure they're properly advised as to what legitimately is
a developer expense," he explains. "Too many HOAs waste time and
attorneys' fees fighting a battle that, quite often, doesn't
exist."
You might be surprised to learn what a developer's not
responsible for--even pre-turnover. And if you're a board member
in a pre-turnover situation, you might also be surprised to
learn that you could get in trouble for letting the developer
shirk his responsibilities. Protect your HOA and yourself with
the information in our new article:
http://www.hoaleader.com/members/633.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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The Pros and Cons of HOA Self-Insurance
Some HOAs are so large and their insurance premiums so hefty that
they toy with the idea of self-insurance. Here, we explain what
self-insurance is and discuss the risks.
Click here to read full article:
< http://www.hoaleader.com/members/632.cfm >
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Signs, Signs, Everywhere Are Signs. Can You Ban Them?
Tired of seeing owners' flyers on every elevator in your building
or blowing around the grounds like tumbleweed? In this week's tip,
we discuss whether you can and should restrict owners from
posting flyers.
Click here to read full article:
< http://www.hoaleader.com/public/630.cfm >
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3 Ways to Save Money on HOA Purchases
Are there ways you can save on products your HOA purchases? Here
are three ideas from a board member and our experts.
Click here to read full article:
< http://www.hoaleader.com/members/631.cfm >
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Would You Hire this Man? Spotting Conflicts of Interest at Your
HOA
In this week's tip, we offer a refresher on dealing with HOA
conflicts of interest. If you're like most board members, you
know you should avoid conflicts of interest. How would you have
reacted in this real-life situation.
Click here to read full article:
< http://www.hoaleader.com/public/623.cfm >
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Don't Ignore the Lessons of Telford v. Sagewood Homeowners
Association
This week's tip offers a reminder that being on an HOA board
imposes on you a fiduciary duty to make tough decisions and not
favor your friends. If you breach those duties, your HOA could
pay dearly.
Click here to read full article:
< http://www.hoaleader.com/public/621.cfm >
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Your HOA Battle Is Over. How Can You Heal the Scars?
Your HOA has just been through the wringer on a hot issue, and
the "losing" board members and owners are still steaming. In this
week's tip, we offer suggestions for easing the tension and
beginning to work toward peace in your HOA.
Click here to read full article:
< http://www.hoaleader.com/public/619.cfm >
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HOA Rules? We Don't Need Notice to Revise Our Stinking Rules!
Considering revising your HOA's rules? In this week's tip, we
discuss when you need to consult with owners and when you can go
forward without notice.
Click here to read full article:
< http://www.hoaleader.com/public/617.cfm >
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