Articles

Check Governing Documents Before Banning Daycare

Before taking drastic steps to shut down a daycare in the community or condominium building you manage, check whether the business actually is allowed in the governing documents. An Illinois association learned the hard way that if the covenants permit a certain type of business to operate, it can’t be shut down.

Using Assessment for Community-Wide Amenity

Q: Internet access is a must-have for most people in the community I manage, and there have been complaints because our association requires members to arrange for and pay for Internet access in their own units. The association wants to provide wireless connectivity (Wi-Fi) to the entire community. Can we pay for it by adding the cost to the monthly assessment?

Use Audit to Test Association’s Financial Health

Association living requires a collaborative effort to ensure safety, uniform aesthetics, shared common amenities and activities, and maintenance that make the community a desirable place to call home. The day-to-day focus of homeowners, the community association manager, and the board might center on their roles in keeping the community running smoothly—abiding by the governing documents, quickly dealing with problems that pop up, and making decisions that affect the community, respectively.

Avoid Falling Victim to Oil-Shorting Scams

If your condominium building uses heating oil as a fuel for furnaces or boilers, you should take steps to ensure that you aren’t paying for more oil than is being delivered to the building. Don’t fall prey to an unscrupulous oil company that might try to trick you or your management company about the amount of fuel that’s delivered to the building. A New York City commission recently found widespread heating oil fraud, with nine companies and 44 individuals indicted on multiple felony counts.

Special Assessment for Roadwork Wasn’t Deceptive

Facts: A homeowners association used funds from a special assessment to complete roadwork in a subdivision of the planned community. Each homeowner was asked to pay $7,500. One of the homeowners paid his portion on time but later sued the association, seeking to recoup that amount and alleging that, among several other illegal activities, the association had engaged in fraud by requiring payment of the assessment. A trial court ruled in favor of the association. The homeowner appealed.

Association Recorded Improper Lien on Townhouses

Facts: The owner of two townhouse units performed renovations that were not permissible under the association’s governing documents. The association charged the owner several thousand dollars in penalties and fines. When the owner didn’t pay, the association imposed a lien on the properties. The owner sued the association, alleging, among several other claims, that it had negligently placed an improper lien.

The association asked for a judgment in its favor without a trial. A trial court ruled in favor of the association. The owner appealed.

Avoid Typical ARC Problems That Arise from Variance Requests

While control over uniformity and aesthetics plays a large role in the attraction to homeownership in a planned community, from time to time, a member will ask for a variance from the architectural and design rules.

Don’t Refuse to Accept Delinquent Payments

Unfortunately, you’ll sometimes have to determine how to handle a situation where a member is delinquent in paying assessments or other fees or charges from the association you manage. Tread lightly in this situation. There can be major ramifications from—and even penalties for—associations that are deemed to be acting as a “debt collector” while trying to recoup what the member owes. And if a member is trying to pay delinquent fees, you should also find out how you can work with him to pay down the balance.

Remain Diplomatic When Extinguishing Secondhand Smoking

Many condo associations face an increased number of complaints from nonsmokers about their smoking neighbors and are being asked to take action. Oftentimes, associations are put in the awkward position of resolving the conflict between smoking and nonsmoking members. The emotions involved are heightened due to the fact that smokers believe that they have a right to smoke in their own homes, while nonsmokers believe that they have a right not to be exposed to harmful secondhand smoke.

Keep Architectural Review Committee on the Right Track

A selling point of association living is that the community’s or condominium building’s appearance will be maintained and uniform. While control over uniformity and aesthetics plays a large role in the attraction to this type of homeownership, from time to time, a member will ask for a variance from the architectural and design rules.