HOAleader.com - Tip of the Week - July 12, 2019
Published: Fri, 07/12/19
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What Condo/HOA Boards and Owners Consistently Get Wrong
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In this week’s tip, we provide clarity.
Our experts say they see too many terms and concepts being misunderstood among their community association clients. Here are two they wish they didn’t see as often as they do:
1. Which governing document is which? “It’s the names of governing documents,” reports Jeffrey Kaman, a partner at Kaman & Cusimano, which represents condo and HOA associations throughout Ohio.
“Often, board members or community association managers will say, ‘The bylaws say no leasing.’ The reality is that the declaration says no leasing. That’s the document that creates the property and includes the provisions about what you can’t and can’t do with the land. The bylaws contain things like quorum requirements.
“People interchange those terms, and that can cause problems,” says Kaman. “If you’re sending an enforcement letter and you quote bylaw 3.6 instead of the declaration, you might be referring to the annual meeting provision in the bylaws instead of the provision in the declaration you’re trying to reference. I see that a lot. We have to make sure we’re citing to the correct document.”
2. The limits of board authority. “Generally, our board members are elected by residents and, as such, they represent the community they live in and serve for,” states Zuly Maribona, LCAM, a vice president at KW Property Management who leads the company’s Region 2 office headquartered in Bonita Springs, Fla. “But once elected, board members may act out of personal self-interest, self-motivation, or self-gain.
“Sometimes, as soon as they get on the board, we see that misinterpretation of their role as a board member,” she says. “They feel they have the right to drive their personal agenda because they’re against a certain group of people or they do things out of spite.
“Another thing we see often is that control factor,” she says. “We see board members who don’t understand that they’re one of five board members and can’t and shouldn’t be acting autonomously. They have certain rights as a board member, but they shouldn’t be acting without the approval of the board, and that happens all too often. That’s a big misunderstanding.”
On a related note, Maribona also sees boards misunderstand their authority as a governing body. Find out more, and read the rest of the 7 Common Condo/HOA terms and Concepts That Are Often Misunderstood, in our new article: https://www.hoaleader.com/members/3947.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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How a Recent U.S. Supreme Court Case Affects Community Associations
The nation's high court held in Obduskey v. McCarthy & Holthus that a law firm that sent a letter in connection with a nonjudicial foreclosure proceeding was not acting as a "debt collector" under the Fair Debt Collection Practices Act. Therefore, the homeowner couldn't undo the foreclosure process.
Click here to read full article:
https://www.hoaleader.com/members/How-Recent-US-Supreme-Court-Case-Affects-Community-Associations.cfm
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Can Your Condo/HOA Eliminate the Quorum Requirements in Your Documents?
A California community association lawyer recently boldly advised board members that they should consider eliminating any quorum requirements in their governing documents to defeat the persistent challenge of low voter turnout at elections.
Click here to read full article:
https://www.hoaleader.com/members/Can-Your-CondoHOA-Eliminate-Quorum-Requirements-in-Your-Documents.cfm
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Tenants: Please Report to Your Condo/HOA's Violation Hearing
If your community permits rentals, you'll have tenants committing violations here and there, just like owners do. The question then is: When you send notice of a hearing, can you require the tenant to attend? Should you even permit a tenant to attend?
Click here to read full article:
https://www.hoaleader.com/members/Tenants-Please-Report-Your-CondoHOAs-Violation-Hearing.cfm
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HOA Rules Don't Have to be Recorded to Be Enforceable, Illinois Court Holds
An Illinois appellate court has, in Fritz v. Lake Carroll HOA, rejected a homeowner's argument that his HOA had no authority to require him to have his septic tank pumped and inspected because that rule wasn't recorded.
Click here to read full article:
https://www.hoaleader.com/members/HOA-Rules-Dont-Have-be-Recorded-Be-Enforceable-Illinois-Court-Holds.cfm
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How Often Should You Have Condo or HOA Board Meetings?
Confession time: I, the writer for HOAleader.com, am a member of my own condo board. We have six units, and we meet once a year, rain or shine, to hash out our priorities for the next year. I'm pretty sure our governing documents probably require us to meet more frequently. But our building is a well-run and happy lot, so why fix what isn't broken?
Click here to read full article:
https://www.hoaleader.com/members/How-Often-Should-You-Have-Condo-or-HOA-Board-Meetings.cfm
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