Rent Real EstateAsk the HOA Expert
Question: Our Condo Board struggles with the concept of yard and garage sales. We do have adequate parking but there seems to be security concerns about having strangers on the property. Any advice?
Answer: Security problems at garage sales is very uncommon. Garage sales are as American as apple pie and the Board should find a way to accommodate them. To reduce the impact of multiple sales, why not coordinate a Community Yard/Garage Sale with 10% going to the Social or Reserve Fund? If you got 1020 neighbors to participate, it would turn it into a social event and feed the community pot at the same time. It would be a great way for neighbors to meet neighbors.
Question: We are in the process of presenting a formal notice to an owner that has failed to pay monthly assessments for over two years. What happens if they refuse to pay?
Answer: Why on earth would you wait two years to start collecting this debt? Lack of collection action has encouraged their continued delinquency. While the association may have the right to charge interest and late charges, proper and timely notices must be given or the association may lose its right to collect penalties. Collections should be businesslike, never personal. Let the policy guide your actions, not whether you like or dislike someone personally.
I suggest your association enact a comprehensive Collection Policy.
There is a sample at www.Regenesis.net in the "Policy Samples" section that can be adapted to the HOA"s use. However, before the board adopts any new policy, have it reviewed by an attorney that specializes in HOA law in your state. Get this step done as soon as possible before launching a collection action.
Question: Our Board is considering use of email for gaining approval for issues that need quick action which can"t wait until the next scheduled Board meeting and for discussion of issues which will be decided in upcoming Board meetings. We plan to formally confirm each of our email decisions in the following Board meeting. However, we"re a little uneasy about discussing issues outside of Board meetings. Advice?
Answer: Unless a bylaw amendment is approved by the owners that allows such a decision making option, HOA business decisions (except real emergencies) should take place in regularly scheduled Board Meetings. Face to face meetings allow a much broader debate which can be observed by owners. Owners also have the ability to give input to issues before decisions are made. And the process is memorialized in the minutes for all to see.
The Board President is authorized to execute Board decisions and email would be a logical way to do that. But email should not be used for the decision making process itself.
Question: Our governing documents have a section that states "No children under the age of 16 are to be permitted upon the premises except as a temporary visitor no more than 30 days." Somehow, I think there"s a problem with this.
Answer: This provision is illegal under the Fair Housing Act. It"s probably left over from the HOA"s original filing (which I hope was at least 15 or more years ago since the Act was made law in 1988). The association should amend its governing documents before someone decides to sue for killing home sales or diminishing market value with this provision. While you"re at it, have a knowledgeable HOA attorney review your governing documents for other illegal provisions.
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