HOAleader.com - Tip of the Week - April 20, 2012
Published: Wed, 04/18/12
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Colorado Report on HOA Complaints: Ignore It at Your Peril
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In this week's tip, we offer universal lessons from a
Colorado report summarizing the complaints of association
owners in the state.
The Colorado state agency charged with compiling
information on HOAs and serving as a resource for owners,
boards, and other interested parties thought it would
hear complaints about notorious three Ps--pets, parking,
and paint. However, in itsfirst year of operation, it
was surprised to find complaints to its office were
much more serious.
"The reality was that the complaints were much more
substantial than that, and the 'three P's' along with
satellite dishes and pools, made up a very small
subset of the complaints received," states the 2011
Annual Report of the HOA Information and Resource Center.
The report cautions against reading too much into
the fact that complaints against managers topped
the list. "Many homeowners we spoke with had difficulty
in differentiating between the actions that were
taken by their HOA board and their HOA manager,"
the report noted. "Also complicating the issue is
that many actions implemented by an HOA manager may
be attributed to a decision handed down by the board
and as an agent of the board the manager is merely
the messenger. Compounding the misunderstanding is
that managers often write letters on behalf of the
HOA on HOA letterhead as if they were the HOA, which
creates significant confusion amongst homeowners about
the distinction between HOA manager and board."
Whether complaints should have been directed against
a board or manager, according to the report, they
primarily involved the failure to follow the HOA's
corporate governance rules and procedures; the
transparency of the board of directors, particularly
as it related to the HOA's finances; and harassment
and bullying of homeowners by the board of directors
and management company through arbitrary fining,
preclusion from providing input into the associations'
affairs, and verbal harassment.
"These complaint types were much more serious than the
aforementioned three P's because they substantially
interfered with a homeowner's ability to enjoy his
property and to have avenues of democratic participation
in the HOA to remedy their issues," the report concluded.
What should Colorado boards take from this information?
And why should you care about this if you're not
in Colorado? Find out in our new article:
http://www.hoaleader.com/members/703.cfm
Best regards,
Matt Humphrey
President
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