HOAleader.com - Tip of the Week - June 13, 2014
Published: Fri, 06/13/14
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When HOA Owners Say, "Those New Rules Don't Apply to Me!"
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In this week's tip, we answer a reader's question about whether a new
$500-per-pet deposit-when there was none before-is enforceable without
exception.
In some instances, depending on your state law, your governing documents,
and your past practice, you may be required to "grandfather" in existing
owners. That means you exempt them from new rules that may cause a hardship
for a period of time or until some event happens.
"It's grandfathering," says Matthew Zifrony, who advises homeowners and
condo associations at Tripp Scott, a Ft. Lauderdale law firm, and who's also
served as the president of a 3,000-home association. "Where it's come up the
most with me is with commercial vehicles and pets. The board will start
defining what a commercial vehicle is and then typically allow existing
owners who have a vehicle that doesn't comply to not meet the definition.
One important question is how detailed your governing documents are.
"Let's take the pet issue," explains Zifrony. "Let's assume the documents
are clear and say, 'At any time, the board can place limits on pets. To the
extent the board makes that decision to restrict pets, the argument could be
made that by buying in this association, owners understand there may come a
time they may be told they have to get rid of their pet. If it's so crystal clear
in the governing documents, it's difficult to say somebody wasn't on notice
of the possibility. In that case, I'd think you wouldn't have to
grandfather. But I've never seen documents that specific. So I'd hate to say
in all instances you must grandfather. But from a practical standpoint, I
think you'd have to."
That argument may not hold ground in Minnesota. "There's no such thing as a
substantial change that inherently means the association must allow
owners to be exempt from new rules," says Matthew A. Drewes, a partner at
Thomsen & Nybeck PA in Edina, Minn., who represents associations. "It's
reasonable to grandfather people in if there's a significant change in
rules and complying would be a hardship on people. It's often done when an
association is prohibiting rentals going forward. Depending on the
resources of the person involved and the association's past practices, it
can be viewed as a hardship.
"But there's nothing that says the association has to grandfather, even for
a significant departure," adds Drewes.
Find out when the arguments for and against grandfathering, along with
insights on whether a $500 pet deposit is reasonable, in new article:
http://www.hoaleader.com/members/1019.cfm.
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Do Big HOA Rule Changes Require Exemptions? And What's a Fair Pet Deposit?
An HOAleader.com reader asks, "I have lived in a Dallas condominium for 11
years, and I have had two pets for the past seven years, which is in compliance
with our current rules and regulations. The board is proposing a rule change
which will require all pet owners to pay a $500 deposit for each pet. I
consider this proposal to be a 'substantial change' to our rules and
regulations and will only apply to new owners, and existing owners cannot be
required to pay this deposit. Any substantial change to our rules in the past
has not included present owners."
Click here to read full article:
http://www.hoaleader.com/members/Do-Big-HOA-Rule-Changes-Require-Exemptions-Whats-Fair-Pet-Deposit.cfm
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Ferocious Recall Fight Fractures HOA: What Can You Learn?
In this week's tip, we tell the tale of a recall battle at the 396-unit Palm
Harbor, Fla., condo association called Tuscany at Innisbrook. It's led to
the resignations of three board members, counter-accusations against the
leaders of the recall, and damage to the reputation of a 30-year community
association veteran.
Click here to read full article:
http://www.hoaleader.com/members/Ferocious-Recall-Fight-Fractures-HOA-What-Can-You-Learn.cfm
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Recalls, Part II: What Can You Learn from this HOA's Bitter Recall Fight?
This is the second in a two-part series on what you can learn from board recall
fights. In this article, we discuss a risky conflict of interest and how to
distinguish between the two types of recall battles. The first lesson of the
Tuscany at Innisbrook recall ruckus is one even Michael Perez, CEO of
Ameri-Tech Community Management, which manages 25,000 units in the Tampa
Bay area, and former president of the Tuscany board, agrees with. Our
experts, though not commenting on the specifics of the Tuscany situation,
say it's unwise for management companies to open themselves up to claims of
conflicts of interest by allowing their employees to sit on the board of an
association they manage.
Click here to read full article:
http://www.hoaleader.com/members/Recalls-Part-II-What-Can-You-Learn-from-this-HOAs-Bitter-Recall-Fight.cfm
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Recalls, Part I: What Can You Learn from this HOA's Bitter Recall Fight?
This is the first in a two-part series on what you can learn from board recall
fights. In this article, we discuss the basic allegations against and
response from a board president in Florida who recently faced a recall
drive. If you want a sense of how nasty and divisive board recalls can be, look
no further than Palm Harbor, Fla. In a 396-unit condo association called
Tuscany at Innisbrook, a recall battle exploded, even featuring dueling
Facebook pages, one advocating for recall and the other supporting the
board. On April 27, 2014, a majority of owners claims to have voted to serve
recall notice on several board members.
Click here to read full article:
http://www.hoaleader.com/members/Recalls-Part-I-What-Can-You-Learn-from-this-HOAs-Bitter-Recall-Fight.cfm
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Special Assessments: How to Avoid Them When Possible, and Pass Them When
Needed
"Special assessment." They may be the two most dreaded words in the minds of
HOA owners. Just the mention of "a special" can infuriate homeowners and
give HOA board members heartburn.
The term doesn't have to provoke such negative reactions. When used
sparingly, wisely, and successfully, special assessments can strengthen
a community and build respect for a condo or HOA board that honors its
fiduciary duty.
Join us for an in-depth webinar on June 26 led by two community association
attorneys with extensive experience advising associations on the
benefits and pitfalls of special assessments. You'll walk away with
concrete information to help you avoid unnecessary special assessments
and, when special assessments can't be avoided, to get them passed with the
minimum of rancor.
Click here to read full article:
http://www.hoaleader.com/snip/165.htm
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