HOAleader.com - Tip of the Week - February 24, 2017
Published: Fri, 02/24/17
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Do HOA Owners Need to Hire Licensed Contractors?
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In this week’s tip, we explain that you may not have the authority you think you have when it comes to insisting owners use licensed contractors for every project in their unit.
If you’re lucky, your governing documents already have this provision—whether directly or indirectly. “The best situations are when the documents specifically provide it,” says Joshua Krut, a partner at Kopelowitz Ostrow Ferguson Weiselberg Gilbert in Fort Lauderdale, Fla.
“But often there’s a catchall provision in your governing documents that says you can’t do anything in the condo that violates the law,” he adds. “So if it’s against the law in your area, using an unlicensed contractor would be prohibited. That’s a hook for associations to require licensed contractors.”
And Krut is a fan of that kind of restriction. “Personally, I think all contractors should be registered and licensed,” he says. “Condos in particular are a shared property. Sometimes, things you don’t think are important can cause problems, and I see those happen all time. I see when someone remodels their bathroom and puts in materials that are too heavy, like limestone, which shouldn’t be in a high-rise. I’m in favor of being very strict on that.”
You might also have provisions addressing this in your architectural review section. “Look at the architectural control provisions in the governing documents,” suggests Phaedra J. Howard, a partner specializing in community association law at Hellmuth & Johnson PLLC in Eden Prairie, Minn. “Basically, they usually say that owners must submit a request and get prior approval if they’re doing anything structural; to the common areas; or that could impact common areas or other units, such as electrical work.”
That’s also true in Nevada. “Yes, governing documents often require that in regards to architectural requests,” notes Barbara Holland, CPM, regional manager for FirstService Residential in Las Vegas. “Often, that’s one of the conditions of approval that, yes, we expect you to have the proper permits and licenses. And in Nevada, anything over $100 needs a permit. The average homeowner probably isn’t aware of that. But technically, they’re supposed to have a permit, though that’s not something associations have typically enforced.”
Now remember that such provisions are different from much broader ones that some boards try to implement. “We have some boards that have tried to require a licensed contractor for all work in a unit,” says Howard, who believes that type of rule is just too far-reaching.
Find out why, along with other rules Krut suggests you consider adding to your books, in our new article: https://www.hoaleader.com/members/2510.cfm
Best regards,
Matt Humphrey
President
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Special Report Download:
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HOA Debt Collection from A to Z:
How to Create and Implement a Debt Collection System at Your HOA
In this report, our editorial team and experts on HOA law, management, and collections from across the country provide information you can begin implementing immediately to collect money due your association more quickly and easily.
Members (and trial members) can download this report now:
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Recent articles posted at HOAleader.com:
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Do HOA Owners Need to Hire Licensed Contractors?
In this week's tip, we explain that you may not have the authority you think you have when it comes to insisting owners use licensed contractors for every project in their unit.
Click here to read full article:
https://www.hoaleader.com/members/Do-HOA-Owners-Need-Hire-Licensed-Contractors.cfm
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Before You Require HOA Owners to Hire Only Licensed Contractors for Work in Their Unit...
Some governing documents require that owners use only licensed contractors. Is that OK? Should you follow suit? And how far does that requirement extend? What if an owner is simply adding built-in shelves? What about swapping out kitchen cabinets?
Click here to read full article:
https://www.hoaleader.com/members/Before-You-Require-HOA-Owners-Hire-Only-Licensed-Contractors-for-Work-in-Their-Unit.cfm
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Accommodation Requests Under the Fair Housing Act: Best Practices to Avoid Discrimination Claims & Lawsuits
Did you miss yesterday's webinar on how to steer your HOA clear of trouble from discrimination claims and lawsuits? If you did, you missed a great session. But your entire board can watch the session recording on demand!
Is your HOA or condo board seeing more and more requests for exceptions to your pet rules? What about requests for specific parking spots or deviations from your architectural rules? Afraid saying no to any request will trigger a costly and stressful discrimination complaint against your HOA? Take charge of the process for handling requests for accommodations! Get on-demand access to this in-depth webinar led by two experts in HOAs, condominiums, and fair housing challenges.
Click here to read full article:
http://www.hoaleader.com/products/accommodation-requests-under-fha-b.cfm
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When Does Clarifying Your HOA Rental Cap Require an Owner Vote?
In this week's tip, we address a reader's question on how far a board can go in implementing rules and regulations to flesh out a rental cap. Just when is it necessary to go back to owners for another vote, our reader wonders?
Click here to read full article:
https://www.hoaleader.com/members/When-Does-Clarifying-Your-HOA-Rental-Cap-Require-Owner-Vote.cfm
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Is Your HOA Corporation Still Valid in Your State? Why You'd Better Check
California law allows the secretary of state to dissolve corporations that don't submit the proper filings with the state. The risk: A dissolved corporation may expose board members to personal liability for their actions.
Click here to read full article:
https://www.hoaleader.com/members/Your-HOA-Corporation-Still-Valid-in-Your-State-Why-Youd-Better-Check.cfm
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