HOAleader.com - Tip of the Week - July 12, 2013
Published: Fri, 07/12/13
=================================================================
Special v. Emergency Assessment: What's the Difference?
=================================================================
In this week's tip, we address a reader's sneaking
suspicion that the HOA board pulled a fast one. It
first tried to pass a special assessment, which
failed. Then it imposed an "emergency" assessment
on owners. Is that legit?
Though they're rare, states statutes permitting
associations to pass "emergency" assessments do exist.
"We've had associations pass emergency assessments,"
says Alessandra Stivelman, an associate attorney who
specializes in community association law at Eisinger
Brown Lewis Frankel & Chaiet in Hollywood, Fla.
"Florida statute authorizes associations, if there's
an emergency, to pass an assessment without notice
if you're acting in the best interest of the association.
But you need to justify the emergency. It can't be
that you've been dealing with this issue for a year,
and now you're claiming it's an emergency, and it's
not. It's more along the lines of a water pipe has
burst, causing harm to the whole building that requires
$30,000 to stop the damage from spreading, and the
board needs to pass that right away."
That doesn't mean an HOA special assessment expense
rejected by the owners couldn't turn into an emergency.
"It depends on the facts, but maybe the association
has dealt with this issue for year," says Stivelman.
"But in the past week, things got really bad, or the
city has provided notice it's going to take action
within 10 days. The board could use this statutory
provision to deal with the fact that its special
didn't pass, and this is its next option. Again,
however, the board would have to justify the
emergency."
Florida has another statute that grants boards similar
emergency powers, but its scope is even more limited.
"The law specifically authorizes boards to pass
assessments in response to damage caused by an event
for which there's been declared a state of emergency,
like a hurricane," explains Stivelman. "It allows
boards to be flexible as far as board meetings, and
the notice required is only as is practicable. The
expense should be to protect residents, prevent
further damage, or do emergency repairs."
Outside of Florida, our veteran experts haven't seen
this animal our reader's board calls an emergency
assessment, but they do see the need for emergency
budget adjustments. Find out more in our new article:
http://www.hoaleader.com/members/870.cfm
Best regards,
Matt Humphrey
President
=================================================================
Recent articles posted at HOAleader.com:
================================================================
Six Red Flags Your HOA Manager is Too Tight with Vendors
Is your homeowners association manager benefitting more from vendor
relationships than your HOA? Managers who are affiliated with or work
exceptionally closely with vendors can be great, or they can end up costing
your HOA extra money it should never had to have expend. Here we offer six
signs that your management company is getting the better end of the deal when
it comes to your HOA's vendor relationships.
Click here to read full article:
http://www.hoaleader.com/members/Six-Red-Flags-Your-HOA-Manager-is-Too-Tight-with-Vendors.cfm
================================================================
Discussion Forum Follow-up: Is This HOA Board Legit? Can It Get the Bank to
Pay Up?
A reader asks, "This is complicated, but here's the story: We have a defined
condominium of 30 units; 2 were completed 4 partially completed, and the
rest unbuilt. One of the completed units was sold and was paying the condo
fees established by the developer. Then our developer went into
bankruptcy, and that was followed by the bank foreclosing on the
developer..." Here our experts explain whether this board's actions have
been valid and what, if anything, this HOA can do to get the bank to start
pulling its weight.
Click here to read full article:
http://www.hoaleader.com/members/Is-This-HOA-Board-Legit-Can-It-Get-the-Bank-to-Pay-Up.cfm
================================================================
HOA Board Members Sued for Antitrust Violations: Will It Succeed?
In a South Carolina case, Brandriff v. Dataw Island Club Inc., association
board members were sued in federal court by owners for antitrust
violations, among other things. The case was eventually dismissed, but
it's been refiled in state court, where it's wending its way through the
system. Here, we break down the allegations and explain what's at stake.
Click here to read full article:
http://www.hoaleader.com/members/HOA-Board-Members-Sued-for-Antitrust-Violations.cfm
================================================================
How to Handle HOA Common Area Hogs
In this week's tip, we discuss the best tactics for reining in owners who seem
to have taken over your common areas.
Click here to read full article:
http://www.hoaleader.com/public/How-to-Handle-HOA-Common-Area-Hogs.cfm
================================================================
HOA Common Areas Not So Common Anymore?
Is your homeowners association being invaded? HOA lawyers are getting
complaints from owners that their HOA is allowing all kinds of activities in
common areas that are interfering with their ability to enjoy those common
areas, from classes to meetings to swim team practice.
Click here to read full article:
http://www.hoaleader.com/members/HOA-Common-Areas-Not-So-Common-Anymore.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 2013, Plain-English Media, LLC
(866) 641-4548
http://www.hoaleader.com