Cut Monthly Assessment Delinquencies with Tough Acceleration Policy
Every community association relies on its members to make monthly payments so that it can pay for the services and amenities its members expect. So when a community member doesn’t make his monthly payment of assessments, he harms the entire community. What can you do to cut assessment delinquencies? One strategy is to set a late fee policy (see “Enforce Late Fee Policy Consistently to Avoid Fair Housing Claims,” in this issue).
Set Rules for Postings on Community Bulletin Board
Even in the age of Facebook and other social media, many communities still feature bulletin boards in their lobbies or common areas. Since not every member will be tech savvy or want to go online to check the association’s Web site, a bulletin board can be an effective way for an association to inform members about upcoming events and renovations, and other noteworthy information. A bulletin board can also be a good way for members to share information or ask for help. But letting members post on bulletin boards can cause problems.
Enforce Late Fee Policy Consistently to Avoid Fair Housing Claims
Unfortunately, sometimes you have to charge your members late fees if they don’t pay their common expenses on time (unless you've established an acceleration policy, as discussed in "Cut Monthly Assessment Delinquencies with Tough Acceleration Policy"). You probably don’t want to charge late fees to members who occasionally pay late. But you might also feel that members who chronically pay late deserve the late charges.
Association Lacked Authority to Impose Additional Assessments
Facts: Despite the fact that assessments were limited to the annual maintenance charges specified in the amended declaration of covenants and restrictions, an association charged lot owners additional assessments over the course of several years. The association based its authority to do so on its bylaws. These charges were used for the planned community’s common expenses.
Individual Member Could Sue Over Condo’s Common Element
Facts: A member purchased a condo unit in a building. After he moved in, he noticed that the floor produced unusually loud noises and flexed abnormally when he walked on it. It was determined that structural problems with the second story unit’s subfloor were causing the problems.
HOA Tells Phoenix Owners to Assume Nothing
A couple of homeowners in a Phoenix planned community feel they’ve been painted into a corner by their homeowner’s association. The couple was informed after repainting their home the same color it had been for 10 years, that painting—even if it’s not a new color scheme—requires a special application to the association to be made two weeks before the project.
Board Diversity Benefits Community
Inevitably, for one reason or another, a community association board member will give up her position. When this happens, the association has the sometimes difficult task of replacing the outgoing member—and you may be asked to help the board determine who the best replacement for an outgoing board member is. If so, there are specific important qualities that make for a successful community association board of directors, or can change the makeup of the board in a meaningful way.
Keep Security Issues at Forefront of Management Duties
Security is one of the most important aspects of managing a community. After all, if members don’t feel safe, they won’t be able to enjoy the benefits of association living. Review your security policies and practices frequently. If you’re on a tight security budget and don’t have access to a lot of resources, or if your community doesn't experience a lot of crime, you may be tempted to cut corners—for example, by using only part-time patrols. But if you do this, stagger security guards' shifts to keep criminals off guard.
Preserve Common Areas from Wheelchair Damage
Q: Several community members, and, occasionally some guests, use wheelchairs. Because of the size and design of some of the common areas, the walls have been dented, paint has been scratched on the walls and doors, and corners and doorways have been nicked. There has also been damage to carpets and wood floors from wheelchairs. It has been expensive to repair wall and floor damage caused by those wheelchairs to the common areas. What can I do to prevent this damage?
Ethical Management: Are You Really Doing the Right Thing?
Like association board members, managers are entrusted to work within fiduciary guidelines, exercise sound business judgment, and consistently maintain the duty of care and loyalty they owe to the association. Managers who keep these responsibilities in mind are more likely to preempt member dissatisfaction and even liability.