HOAleader.com - Tip of the Week - December 9, 2016
Published: Fri, 12/09/16
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Want to Dump an Amenity? Tread Carefully
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In this week’s tip, we answer a reader’s question dealing with that thorny issue of whether boards have the authority to pave over their pool or turn their tennis court into a greenbelt.
There’s a twist, however. Our reader wants to know if a board can eliminate amenities by getting rid of equipment necessary for amenities, rather than taking the more noticeable step of getting rid of the amenity altogether.
Proceeding on this one is a bit of a crap shoot. “So the board is saying they’re just going to stop maintaining the amenity?” asks David C. Swedelson, the principal at Swedelson & Gottlieb, a law firm that represents associations in the Los Angeles area. “I’ve had associations that have filled in swimming pools, eliminated tot lots, and actually changed the amenities.
“The big thing now is eliminating tennis courts and putting in pepper [also called pickleball], a new sport made for older people,” he adds. “It’s a new kind of tennis, and the board can put three of these courts across one tennis court. So they’re changing amenities or filing them in.”
Steve Cheifetz, a partner at Cheifetz Iannitelli Marcolini in Phoenix, says his advice would be based on a reading of the CC&Rs. “I think it depends on the governing documents,” he says. “I don’t know if there’s a clear answer. Let’s say the documents talk about tennis play. In that case, it’s an amenity that seems somewhat guaranteed by the CC&Rs. It’s technically not that the board is guaranteeing there will be tennis, but that it’s an assumed amenity. It’s assumed you’re going to have it, and that’s what people relied on when they purchase. And you can’t just take it away.”
Cheifetz adds that that’s different from the idea of removing a common area. “There are limits on what you can do with getting rid of a common area,” he says. “The board has discretion. If it’s not prohibited, and there’s no argument that the CC&Rs guarantee this common area, typically they have discretion to do what they want with the common areas. The question is: What do you put in its place?”
Sally Balson has also seen this situation arise. “I’ve heard of it because where I live, my neighbors have a pool that was in such disrepair that they had to shut it down for two seasons while they raised the funds to repair it,” explains the owner of Condominium Business Management in Madison, Wis., who specializes in representing small community associations; most of Balson’s 17 clients are 20 units or less. “That really piqued owners. Boy, oh boy, the complaints in the association!”
Read about what happened, along with our experts’ advice on how to proceed, in our new article: http://www.hoaleader.com/members/2473.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Want to Dump an Amenity? Tread Carefully
In this week's tip, we answer a reader's question dealing with that thorny issue of whether boards have the authority to pave over their pool or turn their tennis court into a greenbelt. There's a twist, however. Our reader wants to know if a board can eliminate amenities by getting rid of equipment necessary for amenities, rather than taking the more noticeable step of getting rid of the amenity altogether.
Click here to read full article:
http://www.hoaleader.com/public/Want-Dump-Amenity-Tread-Carefully.cfm
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Can You Eliminate Equipment for Amenities But Not the Amenities?
An HOAleader.com reader writes, "Has anyone eliminated amenities, such as a tennis court (taking down tennis net) or gym? I'm under the impression that the board can vote to eliminate this type of amenity as long as they are in line with the business judgment rule. We're in Florida.
Click here to read full article:
http://www.hoaleader.com/members/Can-You-Eliminate-Equipment-for-Amenities-But-Not-Amenities.cfm
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What You Need to Know About Grievance Committees
In the October HOAleader.com webinar on protecting your HOA from the neighborhood sociopath, community association manager and panelist Lisa Smith mentioned grievance committees as an internal tool to help owners resolve disputes. Here's a brief overview on what they typically cover and how well they work.
Click here to read full article:
http://www.hoaleader.com/members/What-You-Need-Know-About-Grievance-Committees.cfm
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President Caught Red-Handed and Pays Back Assessments, But It's Not Over Yet
In this week's tip, we answer a reader's question about an owner's push to open up his HOA's financials that revealed that the current president hadn't been paying assessments--for who knows how long? What next for that owner, HOA, and board?
Click here to read full article:
http://www.hoaleader.com/public/President-Caught-RedHanded-Pays-Back-Assessments-But-Its-Not-Over-Yet.cfm
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President Doesn't Pay HOA Assessments; Who Knows for How Long?
An HOAleader.com reader writes, "I'm an owner in an 18-unit condo in Los Angeles. The president has been serving for more than 30 years with a vice president and a treasurer. However, he has been handling all financial activities, including both deposits and disbursing checks, with no others reviewing until I moved in three years ago.
Click here to read full article:
http://www.hoaleader.com/members/President-Doesnt-Pay-HOA-Assessments-Who-Knows-for-How-Long.cfm
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