HOAleader.com - Tip of the Week - March 14, 2014
Published: Fri, 03/14/14
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When a Home-Based Business Breaks Bad
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In this week's tip, we tackle one of the difficult questions HOAs often face:
Why is this home-based business acceptable, but that one isn't?
"The general principle is that anything that negatively impacts the quiet
enjoyment of somebody's residence is a problem," says Bill Worrall, vice
president of Hollywood, Fla.-based FirstService Residential, which
manages 1,300 condominium and homeowner associations totaling 310,000
residential units. "But that becomes kind of judgmental. Could I quote how
many cars come into the community each day as a result of the business or the
wear and tear each business inflicts on the community?
"I probably wouldn't go there," he says. "I'd just go to governing documents
and use that. Say there's an owner who's a freelance writer. She writes out of
a home office and has no visitors as a result of her business. The rules may be
unfortunate for that owner. But if they say no businesses should be operated
within the community, unit owners should be put on notice they shouldn't be
operating a business in the community.
"That may be the best way for the board to protect itself," concludes
Worrall. "You don't want the board to get into a position where it has to make
judgment calls on how many people are coming and this type of business is
allowed, while that's not. I'd just be conservative and protect the board."
Nathaniel Abbate Jr., however, sees nuances. "I've had situations where
one owner is asked to stop running a business and says, 'Then this other owner
has to, too!'" says the partner at Makower Abbate & Associates PLLC in
Farmington Hills, Mich., who represents associations.
"Home-based businesses aren't the easiest of cases," explains Abbate. "We
had one that went to litigation and we ended up settling it to everybody's
satisfaction. It involved a real estate agent working out of his house,
which really wasn't that bad, except that he had about four employees. That
created some congestion on the streets. They'd show up and work in his
basement all day. And then one of the elderly neighbors allowed him to park
some of his overflow cars in her driveway.
"But it was something the association felt was inappropriate," says
Abbate. "The owner's justification was that another owner had been running
a day care for years in the association. We had to investigate and make sure we
knew the facts. Turns out that owner actually was babysitting her
daughter's kid and had been for years-and you can't mess with family."
Another expert has had to deal with a possible brothel and an actual bed and
breakfast! Get the details, along with tips on how to set enforceable
parameters on home-based businesses, in our new article,
http://www.hoaleader.com/members/970.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Operating a Business Out of an HOA Unit: When It Turns Into a Problem
You already know it's wise to implement Smart Rules for Home-Based
Businesses. But even then, you'll run into gray areas because some
businesses are more quiet and less intrusive than others.
Click here to read full article:
http://www.hoaleader.com/members/Operating-a-Business-Out-of-an-HOA-Unit-When-It-Turns-Into-a-Problem.cfm
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When Security Clashes with HOA Aesthetics, Which Wins?
A Texas home owner is battling his HOA over the burglar bars he and his
neighbors have installed on their units' windows and doors. Here we offer
tips for walking that fine line between allowing residents to secure their
units and maintaining community aesthetics.
Click here to read full article:
http://www.hoaleader.com/members/When-Security-Clashes-with-HOA-Aesthetics-Which-Wins.cfm
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Will the Complications with FHA Certification Never End for HOAs?
In this week's tip, we discuss a new sticky wicket when it comes to an
association's failure to seek Federal Housing Administration
certification--potentially increased legal risk for discrimination
claims. Under rules issued in 2009, the FHA guarantees loans for condo
purchases only if the entire association has been approved for FHA
financing.
Click here to read full article:
http://www.hoaleader.com/members/Will-the-Complications-with-FHA-Certification-Never-End-for-HOAs.cfm
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FHA Certification: The New Risk of HOA Discrimination Claims
Real estate columnist Ken Harney recently reported that legal experts are
starting to voice concerns that an HOA's failure to seek FHA certification
may later be turned into a discrimination case. The potential argument? The
decision to forego FHA certification likely has a disparate impact on
potential minority buyers.
Click here to read full article:
http://www.hoaleader.com/members/FHA-Certification-The-New-Risk-of-HOA-Discrimination-Claims.cfm
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Recent Trends in HOA State Laws: Colorado, Florida, Massachusetts,
Michigan
Here we continue our occasional series in which our experts tell us the
HOA/condo legislative trends they're seeing--both proposed and actually
passed--with an eye toward educating board members nationwide about
changes they may encounter in their state soon. The latest changes include
interesting developments in Colorado, Florida, Massachusetts, and
Michigan.
Click here to read full article:
http://www.hoaleader.com/members/Recent-Trends-in-HOA-State-Laws-Colorado-Florida-Massachusetts-Michigan.cfm
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