Q I am the treasurer of a condominium association. I am concerned about how the Emergency Economic Stabilization Act may affect the safety of our association's accounts with banks. Our association collects monthly maintenance payments from members and deposits the funds into three accounts that are used for operating expenses, security deposits, and large-project reserves. Please explain how our accounts might be affected by the act.

There are times when even good planning cannot prevent significant and unforeseen budgetary challenges beyond an association's control. The latter half of this year has seen an increase of foreclosures that are affecting entire communities as members are abandoning homes and leaving dues unpaid. And when associations are short on funds, boards may struggle to juggle costs to prevent members from having to make up all the difference.

All management companies and associations have to deal with a problem employee at some point, no matter how carefully they hire employees or how diligently they try to create a good work environment. For many managers or directors, deciding whether and how to discipline or fire an employee is one of the most stressful parts of the job.

Facts: A member sued to challenge her association's decision to eliminate street parking. The association asked the court to require arbitration and to postpone the lawsuit until the matter could be settled through arbitration. The trial court denied the association's request, finding that the association's arbitration provision in its governing documents was unenforceable. The association appealed.

Ruling: An Ohio appeals court reversed the trial court's decision.

Facts: An elderly member transferred ownership of her home to a trust that she had set up. Under the terms of the trust, the ownership of the home would transfer to the member's son at the fifth anniversary of the trust's establishment or when the member died, whichever occurred first.

Many associations are seeing an increase in the number of members defaulting on their mortgages and not paying their association fees. This is a problem for many communities because if even a few members do not pay their assessments on time, an association can face serious financial problems. Reserves can become depleted, and the community might have to make trade-offs about which bills to pay and which services to forgo.

Facts: A member sued a condo association for discrimination under the Fair Housing Act. The dispute started when the member challenged an amendment to the community's governing documents limiting the number of times a member could lease a unit to three times. The member asked the trial court to prevent the association from implementing the amendment before the actual trial begins. The member argued that this amendment would have a racially discriminatory impact on potential renters.

Ruling: An Indiana district court denied the member's request.

Facts: An association sued a member for violating community building restrictions. The member converted his garage to a recreation room without board approval and in violation of the governing documents. The governing documents provide that all homes are to be used for “none other than single family residential purposes with usual and appropriate outbuildings and a private garage.”

To encourage member participation in community affairs, many associations have open meetings that permit members to attend and speak about their concerns. Allowing this exchange fosters trust between the board and the community and gives members a chance to voice their opinions and concerns.

As winter approaches and erratic weather patterns become more frequent, managers and condo association boards may want to be proactive in keeping their condo building roofs in the best shape possible. Harsh weather conditions, such as heavy rain or snow, strong winds, and extreme temperatures, can cause substantial damage to a building's roof, says Robert W. Lyons, executive vice president of a roofing company and member of the roofing industry for over 25 years.