Departments
Setting Your Compass, Part One: Real-World Ethics for Association Managers
Community association managers don’t have to look far for codes of ethics. CAI, CACI, IRIM, BOMA — all of these organizations have established codes. But how do they play out in the real world? We asked two property management professionals with decades of experience between them. Their insights, shared in this two-part article, provide valuable…
Know When to Hold ’Em: Document Retention for Community Associations and Their Managers
From governing documents and vendor contracts to communications with owners, community association boards of directors may feel like the constant deluge of paperwork is drowning them. “This can become a problem because community associations are required to keep a great deal more documents than any individual director is accustomed to in their personal lives,” says…
4 Ways to Recession-Proof Your Clients
No one can say for certain when the next recession will strike the U.S. economy, but one thing is certain — it’s going to happen. Yet, despite the hardships many community associations suffered in the last round, some remain just as vulnerable as they were then. It may be up to their managers to nudge…
Prepare Now for the Next Recession
The so-called Great Recession wreaked havoc on community associations across the country, and many economic experts are predicting that the next recession looms on the horizon. Whether it’s sooner or later, there’s no doubt that another will come eventually. Are your clients taking the necessary steps now to protect themselves? Cash shortfalls In the previous…
Business Judgment Rule isn’t an Absolute Shield for the Board
When owners sue a community association board of directors, the board often turns to the business judgment rule as a defense to the allegations. The defense may lead to the dismissal of the case before trial — but not always. A recent case out of New York is a stark reminder that board members don’t…
The Rise of ADUs: What Does it Mean for Associations?
Accessory dwelling units (ADUs) — also known as granny flats, in-law units, and carriage houses, among other names — are popping up across the country, particularly in dense urban areas. And many community associations are unprepared. “It’s the wave of the future,” says Gordon Goetz, president of The Management Trust – Central Coast/Central Valley, which…
No Meetings Doesn’t Mean No Board Authority
If your clients have problems getting sufficient attendance at meetings to elect new board members, they’re not alone. The good news, though, is that this generally doesn’t impact the authority of the incumbent board to act on behalf of the association. That was the ruling in a recent case that made it to the Michigan…
Lack of Annual Meetings Doesn’t Deprive Board of Authority
Community associations often struggle to achieve the quorum required to elect new board members at their annual meetings. But does that mean the board members who carry over lose the authority to act? A Michigan Court of Appeals recently said it means no such thing. Channel View East Condominium Ass’n, Inc. v. Ferguson (Mich. App.…
Unhappy Owners Still Have To Pay Their Assessments
Owners can act out in different ways when they don’t like how their associations are carrying out their business and feel their complaints are being ignored. One common reaction is to withhold assessments until they get the response they want. But the law generally doesn’t let them do this. The Indiana Court of Appeals recently…
Homeowners Can’t Withhold Fees in Protest
Owner dissatisfaction with the way a community association is performing or the conditions or quality of the community and its amenities can create significant problems for an association — but it doesn’t justify the withholding of assessments. The Indiana Court of Appeals recently made clear that owners don’t have the option to simply stop paying…