HOAleader.com - Tip of the Week - June 22, 2012

Published: Fri, 06/22/12

HOAleader.com - Tip of the Week - June 22, 2012

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Reader Argues HOA Shouldn't Make Unit Owner Repairs. Is He Right?

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In this week's tip, we answer a reader's question
about whether his board is wasting money on repairs
to owners' units.

An HOAleader.com reader writes, "What policies can
a board implement to ensure the association is
paying for common element maintenance only? Our
association has a lot of exterior leaks, which
hopefully for the most part has been resolved. Unit
owners claim the damage is from an exterior leak.
The HOA pays for the repairs, but there seem to be
additional repairs performed that are unrelated to the
exterior leak. This has been going on for years and
has become a great expense to the association....There is
typically no verification about the source of the leak
or who is responsible for the payment. Are my
expectations too high? It bothers me that association
money is going to fix owners' repairs."

"We're dealing with this a lot right now," says
Michael S. Hunter, an attorney and partner at
Horack Talley in Charlotte, N.C. "We had some major
hail storms about a year ago, and there was major roof
damage across the city. In a lot of townhomes, the HOA
is responsible for exterior maintenance. But the
governing documents are very vague about what exterior
maintenance is. A lot just say, 'The association shall
maintain exterior surfaces.'"

That unhelpful wording has led to some push and pull
between HOAs and owners. "Granted, the HOA has to
exchange all shingles on damaged roofs," explains Hunter.
"But what happens if there's rotten wood underneath those
shingles? What if the roof joists underneath that are
damaged? Who's responsible?"

"People often get mixed up on HOA and condo regime issues,
and this issue normally applies in a condo regime,"
says Jeff Vinzani, an attorney in Charleston, S.C.,
who represents associations. "In a condo, the roof and
building itself belong to all the owners as a common
element. If the leaks are coming from the outside,
that would typically be an exterior repair."

Still, is our reader's HOA doing the right thing?
And how can it proceed in future cases to ensure
it's not wasting HOA money on repairs it's not
responsible for? To learn more, see our new article:
http://www.hoaleader.com/members/730.cfm

Best regards,
Matt Humphrey
President

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Recent articles posted at HOAleader.com:

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Time for Your Annual D&O Insurance Policy Checkup

This week's tip reminds you that it's wise to review your directors and
officers insurance every once in a while to be sure you're not exposing
yourself to unnecessary risk.

Click here to read full article:
http://www.hoaleader.com/public/Time-for-Your-Annual-DO-Insurance-Policy-Checkup.cfm

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Lawsuits Against HOA Board Members: Do You Have the Right Level of D&O
Insurance?

As condominium and home owner association management becomes more
complex--and more and more board members are sued--it's critical to
monitor your directors and officers coverage to ensure you're fully
protected for your actions as a member of your condominium or homeowners
association board of directors.

Click here to read full article:
http://www.hoaleader.com/members/Lawsuits-Against-HOA-Board-Members-Do-You-Have-the-Right-Level-of-DO-Insurance.cfm

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Hey, HOA Manager: Shape Up or Ship Out

In this week's tip, we answer two readers' question about how to make their
management company start meeting the terms of their contract. One writer
says his HOA has written emails to the management company about the lack of
performance, and the emails have gone unanswered.

Click here to read full article:
http://www.hoaleader.com/public/Hey-HOA-Manager-Shape-Up-or-Ship-Out.cfm

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What to Do When Your HOA's Manager Falls Down on the Job

Two different HOAleader.com readers have asked if their managers can
refuse to perform certain duties even though the management contract
specifically states that those duties will be performed by management. One
writer says his HOA has written emails to the management company about the
lack of performance, and the emails have gone unanswered. What's your
remedy when your manager fails to perform?

Click here to read full article:
http://www.hoaleader.com/members/What-to-Do-When-Your-HOA-Manager-Falls-Down-on-the-Job.cfm

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Is This Board's Waiver of Its HOA's Rules Wise?

In this week's tip, we ask whether a board's acquiescence to an owner's rule
violation is a good idea. (Hint: No.)

Click here to read full article:
http://www.hoaleader.com/public/Is-This-Boards-Waiver-of-Its-HOAs-Rules-Wise.cfm

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