Articles

Facts: An association sued a general contractor because of drainage issues that became apparent in the community after construction had been completed. The drainage plan developed and installed by the contractor during construction but before the association had taken ownership of the property was inadequate, which caused standing water to collect in the common areas between the units. The members of the association brought the drainage and resulting flooding problems to the attention of the contractor.

Facts: A planned community consisted of 124 single-family homes. In addition to these homes, the same developer built three waterfront condominium buildings nearby. The association tried to treat the unit owners from the area nearby as if they were association members that were subject to the association’s fees and rules and regulations.

A Pine Canyon HOA must allow “For Sale” signs in the community, the Arizona Court of Appeals recently ruled, despite deed restrictions that ban them. The ruling trumps restrictions, and squelched the association’s argument that its pre-existing ban on such signs can remain despite a 2009 law to the contrary.

Internet access is no longer an optional amenity for most Americans—it’s a necessity. Members of your community may use it to run home-based businesses, socialize online, shop,  pay bills, or watch TV shows and movies. With such high demand for Internet access, should your association provide this “amenity” for members or leave it to members to arrange for service individually?

Some aspects of association management will never change: You’ll always have to be aware of financial issues, deal with maintenance situations, hire and train staff, and work with board members to take the best possible care of the community. And there will always be a need for good and effective communication between managers and the association’s board members and residents.

Luxury resort condominiums crumbled into a massive sinkhole a few miles from Disney World, displacing dozens of guests at the Summer Bay Resort in Clermont, Fla., some of whom had only a few minutes to escape the cracking building. The building that fell into the sinkhole is one of several at the private community, which is governed by a homeowner’s association. 

Facts: The employee of a general contractor was hired by an association to do work in the community. He was injured after he separated a two-part extension ladder owned by his employer. Using the part of the ladder that didn’t have traction feet, he gained access to a roof. On the way down the ladder, which was neither secured to the building nor being held by another person, he slipped and fell.

Facts: A homeowner in an association renovated his three-level unit in order to use the first level, a garage area, as living space. The garage had a “man door,” an entryway that allows access without opening the garage door. The renovation was permitted by the City of San Diego. The association sued the owner, challenging the renovation. A trial court ruled in favor of the association. It ordered the owner to undo the changes. The owner complied with the court’s order, and the city performed a final inspection and issued a certificate of occupancy.

Q: During the summer months, more of our members use the outdoor amenities in the community, such as the pool and basketball courts. We’ve had to crack down on some of the behavior that we’ve seen in these areas, but because the nature of some of the behavior isn’t that serious, I’m tempted to let it go if it seems harmless. What types of risks does the association run if it fails to enforce rules consistently?

In an economy where many associations are still struggling to overcome challenges like vacancies and foreclosures, it’s as important as ever for associations to avoid depleting their reserves and, as a result, making trade-offs about what bills to pay and what services to forgo. That’s where on-time payment of assessments becomes very important. Your community association can face a serious financial crisis if even a small percentage of members don’t pay their assessments on time.