HOAleader.com - Tip of the Week - January 19, 2018
Published: Fri, 01/19/18
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Are You About to OK a Cell Tower on Your HOA Grounds?
Know the Plusses and Minuses
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In this week's tip, we discuss the pros and cons of allowing a cell tower to be installed on your association's grounds.
Allowing a cell tower can be good for some communities. But certainly not all.
"In my experience, cell towers can be extremely controversial in some communities, while other communities welcome the towers," states Susan Hawks McClintic, co-managing shareholder and the chair of the community association transactional practice group at the law firm of Epsten Grinnell & Howell in San Diego.
"In fact, in some communities owners have health concerns about the towers, which can create a very strong negative reaction," she adds. "I'd start by getting the pulse of the community so the board knows whether it's worth pursuing."
Elina Gilbert, a shareholder at HindmanSanchez in Lakewood, Colo., who's specialized in community association law for 17 years, has negotiated these transactions on behalf of clients. She also recently encountered owners who objected because of health concerns. "The board said, 'We don't care how much they pay us. We don't want to do it because it's a health concern.' That's the first time I've seen that, but it's something new that I'm starting to see."
McClintic advises that you also evaluate whether you need an owners' vote on this issue. "A lot of documents require an owner vote if you're going to make a capital improvement, and that would come into play only if the association is spending money," says McClintic. "Normally, this involves a license or easement over the common area, though some documents do require a vote.
"In my experience with all the controversy over these, I'd get a vote even if it's not necessary," advises McClintic. "We've had riots where people were worried about the health side of the towers. I've had the clubhouse packed with upset people yelling and scared and crying.
"So if I were a board, I'd broach the subject very carefully in the beginning to judge the type of reaction they're going to get," concludes McClintic. "If it's going to be the type of community where people are very upset, you probably don't even want to pursue it. It's not worth the money."
Another restriction on your ability to sign such a deal might be your HOA's governing documents. "Generally, we look at whether the association has the right to grant easements on the roof," says Gilbert. "These typically fly where roofs are common elements. With a townhome, for example, you can't technically force owners to allow this because they own the roof.
"I've also had some associations that put the equipment on a common area, and that can be an issue, too," adds Gilbert. "Does the association have the right to grant an easement over the common area?"
Let's say your owners are open to the idea of allowing a cell tower. You'll probably need help negotiating the deal. "If the members are in favor and give any required approvals, make sure to obtain professional assistance with the negotiations," advises McClintic. "Deals vary and often require long-term agreements, so be sure to do your research and get the best deal you can."
That can be hard because these contracts are often written by the telecom company. "Usually, most communities I deal with enter into these agreements mostly for the extra income," states Gilbert. "We review the agreements, but they're not really favorable toward associations. We try to get them tweaked if we can, but the dollar signs usually convince the board."
What level of dollar signs are we talking about? Find out, and get tips for negotiating a better deal, in our new article, https://www.hoaleader.com/members/3663.cfm
Best regards,
Matt Humphrey
President
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Are You About to OK a Cell Tower on Your HOA Grounds? Know the Plusses and Minuses
In this week's tip, we discuss the pros and cons of allowing a cell tower to be installed on your association's grounds.
Click here to read full article:
https://www.hoaleader.com/public/Are-You-About-OK-Cell-Tower-on-Your-HOA-Grounds-Know-Plusses-Minuses.cfm
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https://www.hoaleader.com/members/Company-Wants-Put-Cell-Tower-on-Your-CondoHOA-Property-What-Consider.cfm
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Click here to read full article:
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