Articles

A large part of the day-to-day management of a community is providing service, in a friendly and polite manner that comports with a major point of living in an association—being part of a pleasant environment. You’ve probably trained your staff to make homeowners and their guests feel comfortable. So when there’s an accident or other incident in your community, they might have an instinct to comfort the victim. While employees should rush to find help, there are several missteps they can take that can create major liability for the association.

Facts: An association maintained flood insurance for five of the buildings in its multi-building property. All five buildings were in flood zones as designated by the Federal Emergency Management Agency (FEMA). The association later decided not to renew the flood insurance policy, citing concerns regarding cost and the allocation of the expense among the other members of the association who lived in the non-flood exposed buildings.

If your association is looking for new and creative ways to generate more revenue, can it lease underappreciated common area space to a commercial tenant as a way to add convenience to your members and income for your association? With the rise of mixed-use spaces, the convenience—and financial benefit—of having a popular bakery or a national bank locked in for a 10-year, income-generating lease may seem like an attractive option for a common area that’s going largely unused in your community.

While it saves a lot of hassle—and potentially litigation—when association guidelines are detailed, occasionally you’ll come across a member with a request to install an item that hasn’t been addressed. But does that mean that it’s permissible for an owner to do anything that isn’t mentioned?

By Andrea Brescia

By Andrea Brescia

For associations that have designated commercial space, finding the right tenant is critical. While there are a lot of retail stores that provide convenience, not every commercial tenant is necessarily a good fit for your community.

Recent cases from California and New York—involving families with children and reasonable accommodation requests, respectively—highlight the importance of staff training in fair housing law in order to avoid discrimination complaints.

Families with children. A California condominium community recently had to pay more than $1.1 million to settle a class action lawsuit involving hundreds of current and former residents with children under 14, who lived there from 2011 through mid-2017.

As a community association manager, a large part of your time can be taken up with questions from directors and members that require a response. While you might want to provide as much helpful information as you can, be aware that this area can be fraught with risk for you and your management company.

Avoiding the Practice of Law

Occasionally, a homeowner will ask to review association records. This can be a tricky issue if you don’t know exactly how to handle this request and what you can and can’t show to a member. A recent court case highlighted the specific issue of associations withholding records based on “protected” status.

A California homeowners association is requiring members to keep their garage doors open most of the day on weekdays. The new rule is in response to the association learning that so-called squatters—people living in a home illegally—were inhabiting the garage of at least one home in the area.

While squatting can present its own problems for an association, members are complaining that the move is putting them at risk in a different way: Security is compromised.