HOAleader.com - Tip of the Week - December 27, 2019

Published: Fri, 12/27/19

HOAleader.com - Tip of the Week - December 27, 2019

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The Board’s Best Response When an HOA Owner Builds Without Permission

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In this week’s tip, we answer the question of a board member in a new development. A Michigan HOAleader.com reader asks for advice on how to respond to an owner who was denied permission to extend a porch by the developer and then did just that once the developer was gone.

Our experts generally say this board should push back hard on this owner, but they have differing opinions on how far to push.

“It may be because I have a different perspective given the role I play in these kinds of disputes, but I don’t have a lot of sympathy for someone who, unintentionally or willfully, made a drastic change to the exterior of a home in a community association without making sure they had evaluated or gotten the proper approvals,” states Matthew A. Drewes, a shareholder at DeWitt Mackall Crounse & Moore S.C. in Minneapolis.

“In this case, the situation looks even worse than that,” he adds. “This person appears to have known this modification wasn’t likely to be approved because it had already been rejected by the developer.

“The problem is that, if you’re forced to by that owner, you may have to undertake legal action to get an order that requires the removal of the porch,” states Drewes. “But those orders can be, and have been, granted. If it’s presented adequately, the court will see the validity of the association’s position — that the association can’t allow this person to undermine the framework of the association, especially right out of the gate, and that the board will lose the ability to enforce those types of provisions.

“I’d suggest to a client in this situation that they should start by going through the process and impose fines for noncompliance with the governing documents,” he suggests. “I’d also advise the board to tell the owner that those fines will continually be assessed, even daily, as long as the violation is in place.”

Christopher J. Shields, a partner at Pavese Law Firm in Ft. Myers, Fla., who has represented associations for decades, is also unsympathetic. “Based on those facts, when this owner asked for permission and was denied, he decided to do it, anyway,” he stresses. “He didn’t fail to ask for permission. He asked, was denied, and brazenly went ahead, anyway.

“Many people say, don’t ask for permission; ask for forgiveness,” notes Shields. “This is a clear example where an association should have recourse, and they need to act. In Florida, we can levy fines, and in some cases, we can lien for violations. Or we can sue and get a money judgment or suspend common area use rights.

“The association also has the right to sue for an injunction to have this modification removed,” he says. “If and when the association is successful, they’re entitled to get attorneys’ fees. That’s the big weapon. Not only do the owners have to pay attorneys’ fees to defend themselves, but they also have to pay the winning side’s legal fees if they lose. And when associations do pursue those cases, and they pursue them in a timely manner, in 90 percent of the cases, they should win.

“It’s important to pursue them because everyone else will see the association won, and the association doesn’t appear to be crying wolf,” states Shields. “When the association tells you something, they actually mean it. Some people think, ‘Oh, they’ll just send a letter and won’t do anything.’ That’s generally true if you don’t pursue situations like this.”

Our experts do note some important issues to keep in mind. Read about them, including why you may not win if you seek to have the addition removed, in our new article: https://www.hoaleader.com/members/4038.cfm

Best regards,
Matt Humphrey
President

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Recent articles posted at HOAleader.com:

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When Condo/HOA Owners Don't Pay Out of a Personal Account

An HOAleader.com reader asks, "Is there a problem when an HOA property is owned by an individual (per the deed), but the owner pays HOA dues using a check from their business? If the check bounces, who's responsible, the owner or the business? Does accepting checks from the business put us in a weak position if we have to take a lien later as an owner quits paying? Am I worrying about nothing?"

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Click here for more info:
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An HOAleader.com reader asks, Ten years ago we had $200,000 in reserves. I took over last year as president, and there was $12,000 in reserves. I saw that the former president also was the treasurer, and he owned the landscaping company and had a debit card he used for his landscaping business.

Click here to read full article:
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