HOAleader.com - Tip of the Week - April 25, 2014
Published: Fri, 04/25/14
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Colorado HOA Residents Have Beefs; You and Your HOA Board Should Listen Up
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In this week's tip, we explain how complaints by Colorado lessons can be very
instructive for your board to keep in mind.
There are 8,857 HOAs in Colorado, which includes condos and co-ops,
totaling 880,326 units, according to the 2013 Annual Report from the
Colorado HOA Information and Resource Center, the Colorado state agency
that serves as a resource for residents of community associations. In 2013,
it received 1,248 complaints from 327 different complainants via mail,
phone, email, its website and in person.
Complaints against HOA managers accounted for 40 percent of the total. The
most common complaints against managers?
* Improper enforcement
* Conflicts of interest
* The failure to produce documents, particularly with regard to
allegations of no-bid contracts or vendor contracts being
unfulfilled by the management company's affiliates
* Not carrying out management duties correctly on maintenance or
accounting issues
When it comes to complaints against associations in general, not just
managers, problematic communication between HOAs and homeowners was the
most common type of complaint. Many homeowners said they weren't being kept
informed about their HOA, and their complaints included not receiving
notices of board meetings.
Their other beefs?
* Many allegations centered around HOAs that failed to follow governing
documents or selectively enforced covenants. Residents who complained
wrote that they were being singled out for enforcement matters while board
members and those favored by the HOA's board hadn't been fined for the same
violations. In many cases, the fines weren't large, says the report, but
once interest, penalties, and attorneys' fees were factored in, the amount
owed became unconscionable or disproportional to the infraction.
* Some residents told of instances in which the HOA board or design review
committee made unreasonable demands by forcing them to repaint or reroof
their home at great expense, despite it already being similar to that of
fellow community members.
* The center referred some complaints to the state's Division of Civil
Rights because of alleged race, ethnic, or disability discrimination by
the HOA. It directed other complaining residents to local housing
departments due to health and safety concerns that ranged from rodent and
mold infestations to deteriorating structures and obstructions
deliberately placed in the way of the physically disabled.
What does all this mean for you? Find out the three lessons you can take from
this data in our new article: http://www.hoaleader.com/members/999.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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What You Can Learn from Homeowner Complaints About HOAs in Colorado
Problematic communication between HOAs and homeowners was the most common
type of complaint reported to the Colorado state agency that serves as a
resource for residents of community associations, according to the 2013
Annual Report from the Colorado HOA Information and Resource Center. Many
homeowners said they weren't being kept informed about their HOA, and their
complaints included not receiving notices of HOA board meetings.
Click here to read full article:
http://www.hoaleader.com/members/What-You-Can-Learn-from-Homeowner-Complaints-About-HOAs-in-Colorado.cfm
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What's a Majority for HOA Voting Purposes?
An HOAleader.com reader writes, "Our articles say: These articles may be
amended by owners representing at least 75 percent of the total votes held by
the members. We have 134 total votes. We understand this to mean we need 100
votes cast and that a majority of the votes cast determines the outcome of the
ballot for or against the amendments. Is this correct? We have consulted two
HOA attorneys, and each one answered the question, then came back a day or so
later and changed the answer doing a 180 flip. We're extremely confused now.
We just wanted them to give us a straight yes or no. The majority of the 75% or
not."
Click here to read full article:
http://www.hoaleader.com/members/Whats-Majority-for-HOA-Voting-Purposes.cfm
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The Twists and Turns of Calculating HOA Fines
An HOAleader.com reader asks, "My HOA governing documents state the amount
of any fine shall be determined by the board, and shall not exceed one month of
the annual assessment for the first offense; in my case, this is $115. So is it
legal for my HOA, relying on the Florida Statutes FS 720.305(2), to charge me
with $1,000 for a first non-monetary violation?"
Click here to read full article:
http://www.hoaleader.com/members/Twists-Turns-Calculating-HOA-Fines.cfm
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Court Says, "No Foreclosure for You!" How Poor Accounting Can Hamstring
Your HOA
In this week's tip, you'll learn about a Florida lawsuit that doesn't even
involve HOAs. But trust me--there are lessons for your homeowner
association. The lawsuit, Jenkins v. Plaza 3000 Inc., involved a nonprofit
corporation that operated a shopping center. Shareholders owned lots, and
the corporation collected assessments, just like associations do, to
maintain common areas. Scherry Jenkins owned three lots in the center.
Click here to read full article:
http://www.hoaleader.com/members/Court-Says-No-Foreclosure-for-You-How-Poor-Accounting-Can-Hamstring-Your-HOA.cfm
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50 Tips for HOA and Condo Boards, Volume 2:
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