HOAleader.com - Tip of the Week - May 16, 2014

Published: Fri, 05/16/14

HOAleader.com - Tip of the Week - May 16, 2014

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Owners Acting Like HOA Police Officers: How to Arrest the Problem

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In this week's tip, we answer a question from a reader who wants to advice on
how to handle homeowners who've taken upon themselves to police other
residents-for example, asking to check cups for alcohol at the pool-to the
irritation of many.

Our reader should first check the governing documents. "The difficult
challenge here in California is that there's usually a provision in the
governing documents that says that each individual has the authority to
enforce them, which is kind of a tricky clause," says Debra A. Warren, CMCA,
CCAM, PCAM, senior vice president at Dallas-based Associa(r), a community
association management company with offices throughout the United
States, Canada, and Mexico.

However, that's not the case everywhere. "Typically, a homeowner isn't
authorized to ensure that everybody's complying with all the laws," says
Bob Diamond, a partner at the law firm Reed Smith in Falls Church, Va., who
helped write the Washington, D.C., condo act in 1976 and worked on the
Uniform Condo Act, which 24 states have adopted. "It's the board's
responsibility to make sure people are complying. Everybody doesn't get
appointed police officers just because they live in an association."

Then absent the kind of clause Warren mentions, what's a board to do? "That's
pretty easy," says Diamond. "The board can tell the busybodies to mind their
own business-unless they want to appoint somebody as a cup monitor."

Warren recommends taking a big-picture approach. "I think from a practical
point of view, the board has to be very clear on what the rules are and to
present them in a way that's as reasonable as possible," she advises. "It
should also encourage people to use an established process if they feel the
rules aren't being followed. Then if somebody isn't complying with that
request, the board may have to address the problem individually. That would
involve reminding those owners that they may be putting themselves or the
association at risk, and the board would appreciate it if they'd just follow
the reporting procedure."

However, this can type of situation can become difficult for boards. Find
out more in our new article: http://www.hoaleader.com/members/1009.cfm

Best regards,
Matt Humphrey
President

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Upcoming Events:

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Litigation and Your HOA:
How to Avoid It, When to Pursue It, and How to Manage It Wisely

An Exclusive HOAleader.com Webinar for Condo and HOA Boards
Thursday, May 29, 2014
2-3 p.m. Eastern

Learn more or Register now:
http://www.hoaleader.com/snip/162.htm


Members save $30!

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Recent articles posted at HOAleader.com:

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When HOA Residents Act Like Police Officers, Should the Board Step In?

An HOAleader.com reader asks, "Our residents and guests are being harassed
by a tag team match of residents when an infraction occurs, i.e., [we have] a
no-alcohol sign, but they check paper cups for alcohol. The pool is for
everyone's enjoyment, and many of the residents feel they are being watched
while at the pool. Any suggestions on how our board can handle this
situation? How do other community pools operate?"

Click here to read full article:
http://www.hoaleader.com/members/When-HOA-Residents-Act-Like-Police-Officers-Should-Board-Step-In.cfm

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What to Include in Your HOA Reserve Fund Investment Policy


You're the steward of the homeowner association's reserve funds, which
means you must act wisely in investing them. Here our experts offer two
contrasting views that will provide background to help you create reserve
fund investment policy that will guide not only current board members but
also provide continuity and direction for future boards.

Click here to read full article:
http://www.hoaleader.com/members/What-Include-in-Your-HOA-Reserve-Fund-Investment-Policy.cfm

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What Nonprofit Status Means for Your HOA; Are You Tax Exempt?

An HOAleader.com reader asks, "Our HOA is seeking nonprofit status but
understood that once we obtain that, we'll no longer be able to do
improvements on a resident's property. Is that true and if so, does that
include a force mow or edge? Or is that considered maintenance? If we are no
longer able to force mow or edge, what does it take for us to be able to levy
fines for property violations? Where can we get guidance on the process and
the limits?"

Click here to read full article:
http://www.hoaleader.com/members/What-Nonprofit-Status-Means-for-Your-HOA-Are-You-Tax-Exempt.cfm

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Litigation and Your HOA:
How to Avoid It, When to Pursue It, and How to Manage It Wisely

Most community associations fit within one of two common categories when it
comes to litigation: Either your board avoids it at all costs, most likely
considering it a waste of money; or your board is quick to initiate
litigation against anybody, whether it's a vendor or a fellow homeowner.
Does your HOA board fall into one of these two camps?

There is a more effective way to approach potential litigation at your
community association! One that saves you and your members money and that
improves relationships throughout your community.

Join us for an in-depth webinar on May 29 led by two community association
lawyers with extensive experience in advising associations on
successfully managing litigation. You'll get easy-to-understand
suggestions you can begin implementing immediately to wisely and
cost-effectively manage litigation at your association.

Click here to read full article:
http://www.hoaleader.com/snip/162.htm

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Two Views on Investing Your HOA's Reserves

In this week's tip, we spell out two different points of view on how to invest
your reserves so you can create a wise investment fund policy. The first step
in crafting a reserve fund policy is to find out the ground rules under which
you operate. That requires you to check whether your state or governing
documents permit your reserve funds to be invested in anything other than a
basic, safe vehicle.

Click here to read full article:
http://www.hoaleader.com/members/Two-Views-on-Investing-Your-HOAs-Reserves.cfm

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