Legal Compliance for Community Associations

Managing an association can be challenging enough when members are the only parties who can engage in community business like voting, or exercise rights, such as inspecting books and records. Requests for architectural changes to units or homes can get sticky, and so can disputes between members. So imagine dealing with a nonmember who suddenly has a legal right to be involved in the association. You may ask how an outside person or entity can do this; after all, isn’t the point of the association that the community is private—operated and enjoyed by the board and members?

For many homeowners who buy in a planned community, the rules and requirements in the association’s CC&Rs and bylaws keep the neighborhood clean, well maintained, and aesthetically pleasing, so worrying about a neighbor’s unsightly modifications to his home shouldn’t even be on the radar. And that’s one of the main draws of association life: living in a beautiful community.

Preparing community association meeting minutes may seem like it’s just a matter of “taking notes.” But don’t be fooled into thinking that minutes are merely a record of what has happened at meetings. Meeting minutes are not only a way to refer back to decisions that affect the way you manage the community now, they could also have serious legal significance for the association later.

Technological advancements have made it easier than ever for association boards to get messages quickly and effectively to members, and for members to communicate with each other. Email and even an association blog or online newsletter could help you as a manager to keep your community operating efficiently and remind members that you’re actively involved and ready to help. But some forms of this communication involve obtaining and using members’ personal information. 

Home businesses are being operated more often than ever before, as a cost-saving measure or because it’s more convenient for the business owner to stay at home. But some associations restrict the kinds of businesses members can operate in their homes or prohibit home businesses altogether.

Fair housing claims often stem from adverse actions taken against members for violating community policies or rules. In some cases, it's a claim of “disparate treatment—that is, that the rules are being selectively enforced because of a member's race or other characteristic protected under the Fair Housing Act (FHA). Less commonly, it's a claim of “disparate impact,” where seemingly neutral rules have a disproportionate effect on racial minorities or other protected groups. In some cases, both claims are raised.

The Americans with Disabilities Act (ADA) applies to “public places” and not to private communities. However, if your community allows public use of its swimming pool or other facilities, you may be subject to the ADA and its most recent revisions.

In 2010, the U.S. Department of Justice issued final regulations revising Title II and III of the ADA, including the ADA Standards for Accessible Design. The revised regulations will take effect March 15, 2011, and compliance must be achieved by March 15, 2012.

On July 6, the final amendments to the U.S. Environmental Protection Agency's (EPA) Renovation, Repair, and Painting (RRP) rule went into effect. These amendments added new requirements to the relatively new rules that went into effect in April of this year and were discussed in detail in the May 2010 issue of the Insider.

On April 22, 2010, a new federal Environmental Protection Agency (EPA) lead-based paint rule called “The Renovation, Repair, and Painting Rule” took effect. The new rule requires managers and associations to follow lead safe work practices when disturbing a painted surface in pre-1978 housing and child-occupied facilities. Disturbances can occur when painted surfaces are sanded, demolished, renovated, or repaired.

Federal laws require employers including community associations and management companies to post signs explaining legal information to their employees. Failure to post the signs can cost as much as $10,000 per violation. Fortunately, compliance is easy. The signs are available free of charge from the government agencies that oversee the sign-posting laws.