Departments

N.J. Condo Association Settles Disability Discrimination Claim

A New Jersey condo association representing residents of a 55-and-older condominium development recently agreed to pay $9,000 to resolve allegations that it refused to sell a condo to a man with disabilities and his wife because the couple planned to have their adult disabled daughter live with them.

HUD announced the settlement last month, before the government shutdown shuttered the agency. The wife, now a widow, is pursuing claims against the association in New Jersey state court. The association denies that it discriminated against the family.

Consider 16 Factors to Avoid Tax Liability for Worker Classification

Like any other business or organization, community associations must file taxes with the government. And tax liability is a huge issue that associations need to be aware of. Improper reporting can land the association in hot water and cost thousands in fines, penalties, and late fees. With the New Year just here, April—the month in which federal and state taxes must be filed—might seem far off. But properly doing necessary paperwork and consulting with the association’s accountant can take time. So planning ahead is key.

Vineyard Wasn’t a ‘Business’ Prohibited by Governing Documents

Facts: Two homeowners cultivated a vineyard on their land in a planned community for the purpose of making wine to be sold to the public. The association’s CC&Rs didn’t prohibit the cultivation of a vineyard for this purpose, but they did prohibit “any business or commercial activity.” Several other homeowners objected to the operation of what they considered to be a commercial vineyard in violation of the prohibition against any business or commercial activity.

Landmark HOA Legislation Presents Compliance Challenges

Important new legislation is changing how California HOAs will operate starting in 2019. Assembly Bill 2912 began with its purpose “to take important steps to protect HOA members from fraudulent activity by those entrusted with the management of the association’s finances.” The bill, which passed both houses of the Legislature on unanimous votes, is sponsored by the Community Associations Institute and the California Association of Community Managers.

Avoid ‘Negligent Hiring’ Claims by Vetting Job Candidates

Every person who works in your community—from maintenance employees to office staff—will interact with members and potentially have access to sensitive information, including financial documents. When employees are trustworthy, this exposure isn’t an issue. But it’s incredibly difficult to ensure that a new hire won’t turn out to be an opportunist who uses her position for an ulterior motive.

Use Tough Acceleration Policy to Keep Members Current

The financial health of an association depends in large part on monthly payments from members. Those payments are integral because they pay for the services and amenities the members expect and are entitled to. Unfortunately, whether it’s because of financial difficulties or a dispute, sometimes you’ll encounter a member who doesn’t make his monthly payment of assessments.

Use Business Judgment Rule to Avoid Association Lawsuits

Typically, if decisions made by the board turn out well, members are happy. But if the decisions lead to unforeseen costly expenses to the community, some members might sue, regardless of the board members’ good intentions. That’s why it’s more important than ever that your board’s judgments be the result of a sound, deliberative decision-making process. If they are, there’s a much better chance that courts will defer to them in case of a lawsuit.

Avoid Insider Crimes with Four Safeguards for Employee Hiring Process

Every person who works in your community—from maintenance employees to office staff—will interact with members and potentially have access to sensitive information, including financial documents. When employees are trustworthy, this exposure isn’t an issue. But it’s incredibly difficult to ensure that a new hire won’t turn out to be an opportunist who uses her position for an ulterior motive. This creates serious risks for you and the association.

Don’t Fire Staff Before Investigating Complaint

Unfortunately, you might encounter a situation where a member of the community association you manage complains about a maintenance or other type of worker who is left alone with the member. But what if it isn’t clear exactly what the employee may have done wrong? Sometimes, an interaction might be described in general terms as “creepy” or as having made the member feel “scared.” But if the member didn’t say anything specific that the worker did that was inappropriate and you’ve never had any complaints before, you should tread lightly.

Avoid Fair Housing Violations When Enforcing Community Rules

There are some common fair housing problems that can arise from community rules. But you can avoid them if you understand where you might go wrong. In general, community rules trigger fair housing problems in one of two ways—either the rules are enforced unfairly or the rules themselves are unfair.