HOAleader.com - Tip of the Week - November 20, 2015
Published: Fri, 11/20/15
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HOA Rules are Awesome--If You Can Enforce Them
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In this week’s tip, we answer a reader’s question about how to enforce an HOA’s restrictions prohibiting owners to rent more than four times, each of less than 30 days, per year.
All of our experts agree. Enforcing your rental restrictions is hard.
“We see this type of problem all the time—constantly,” says Christopher J. Shields, a partner at Pavese Law Firm in Ft. Myers, Fla., who’s represented associations for decades. “The key is that any restrictions dealing with leasing, sales, or guests should be in the declaration as opposed to board-made rules.
“In addition, there’s a lot of gamesmanship with owners who say they’re not renting and say people are guests,” adds Shields. “But when you meet the guests, the owners can’t identify the town the guests came from, and the guests can’t identify who the owner is.
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Easier Enforcement of Your HOA's Rules:
Steps to Create Enforceable Rules, Effective Fines, and a Fair Violation Process
On-Demand Webinar, Recorded on November 12, 2015.
Watch instantly:
http://www.hoaleader.com/products/hoa-rules-enforcement-webinar-2015-b.cfm
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“I think associations have to become far more specific with the types of rule violations that would try to address that,” recommends Shields. “You could have a unit owned by a corporation or a trust made of 52 different shareholders, and each is entitled to a one-week stay. Maybe you say in your governing documents that if a unit is owned by anyone other than a natural corporation, the entity would have to pick one person, or one partner, who’d be the primary occupant, and only members of that person’s nuclear family would be able to stay there and be guests.
“You also really need to not just address leasing approvals, but also be concerned about guest visitation,” says Shields. “You need to deal with guests whether or not they’re overnight by addressing things like whether or not they can use the amenities only if they’re chaperoned and accompanied by the owner.”
Several of our experts displayed their dry wit on the fact that the reader’s board is having a hard time enforcing its rental restrictions. They’ve been there themselves.
“Really?” joked Patrick Clark, president of Excel Association Management in Plano, Texas, which manages more than 100 condos and HOAs. “Tell me why!”
All of this raises a bigger question: Are you considering whether you can enforce the rules you’re enacting? Find out how to resolve this dilemma in our new article: http://www.hoaleader.com/members/1286.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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The Problem with Strict HOA Rules: Enforcement's a Pain!
An HOAleader.com reader writes, "In 2009, we amended our decs to comply with [Colorado law] as well as to limit the number of short-term rentals--due to a unit that was going to be sold and 'fractionalized.' The short-term restriction is explicit in the docs. Each owner is allowed four short-term rentals (less than 30 days) per calendar year. This would allow homeowners to cover their quarterly dues during a downturn in the market.
Click here to read full article:
http://www.hoaleader.com/members/Problem-with-Strict-HOA-Rules-Enforcements-Pain.cfm
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California Mandates New FHA/VA Disclosures; Should Other States?
California Gov. Jerry Brown has signed AB 596 requiring condos to provide information on federal approvals.
Specifically, beginning July 1, 2016, the law requires condos to include in their annual budget report a separate statement describing whether the association is approved under Federal Housing Administration or Department of Veterans Affairs financing guidelines.
Click here to read full article:
http://www.hoaleader.com/members/California-Mandates-New-FHAVA-Disclosures-Should-Other-States.cfm
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Board Member Booted. Bad Omen for Board?
In this week's tip, we discuss whether a board member's inability to serve means the board's actions during that invalid tenure are now vulnerable to attack.
Florida law requires HOA board members to be certified to be eligible to serve on their board. This board member wasn't. What happens to the board's actions?
Click here to read full article:
http://www.hoaleader.com/public/Board-Member-Booted-Bad-Omen-for-Board.cfm
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Easier Enforcement of Your HOA's Rules: Steps to Create Enforceable Rules, Effective Fines, and a Fair Violation Process
Enforcing rules doesn't have to be a pitched, tense, and unpleasant battle between your homeowner association board and your homeowners. With some smart planning, you can make enforcing your HOA's rules fairer, quicker, easier, and less stressful.
Watch this in-depth webinar led by two community association experts: a lawyer with more than a decade of hands-on experience in advising associations on how to create and enforce rules, along with a veteran association manager with insights on the day-to-day operations of rules enforcement. You'll get practical ideas, systems, and processes you and your condo or HOA board can begin to take advantage of the minute the webinar ends.
Click here to read full article:
http://www.hoaleader.com/products/hoa-rules-enforcement-webinar-2015-b.cfm
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HOA Board Member Disqualified: What Happens to Actions He Participated In?
An HOAleader.com reader asks, "Our president of our HOA in Florida was not certified [as required by state law] for two years of his being on the board. According to our governing documents, if a director hasn't become certified within 90 days of his being elected, he's suspended from the board until he gets certified. Does that mean all prior actions with his involvement aren't legally binding until he gets certified? Has this issue ever been challenged in court?" Here are answers.
Click here to read full article:
http://www.hoaleader.com/members/HOA-Board-Member-Disqualified-What-Happens-Actions-He-Participated-In.cfm
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