By Carolyn Zezima

Although it sometimes seems like an on-site association manager is part of the community because she’s on the property continually, this is a job and, at some point, the manager or the management company will inevitably leave. The question that concerns owners and the board of directors at that point is whether the transition to a new manager and company will be smooth and productive.

A homeowners association in Las Vegas is facing not just a staggering jury verdict in favor of the family of a teenager who was injured by playground equipment in the community, but also questions from confused members, some of whom feel misled.

In 2015, a swing set crossbar in the community’s common area fell on the 15-year-old boy’s head, causing permanent brain damage that will worsen over time. Court records show the association did not have a maintenance and inspection plan on their playground equipment.

Q: A homeowner in the community I manage is suing the association. We’re concerned not only about the cost of litigation, but also that we might be on the hook for the homeowner’s attorney’s fees, not just our own. If the homeowner loses the case, what is the likelihood that we’ll have to pay for his costs, too?

Buying a home in a community association is a serious investment, so many homeowners and members live in their units for an extended period of time. Although it sometimes seems like an on-site association manager is part of the community because she’s on the property continually, this is a job and, at some point, the manager or the management company will inevitably leave. The question that concerns owners and the board of directors at that point is whether the transition to a new manager and company will be smooth and productive.

A large part of the day-to-day management of a community is providing service, in a friendly and polite manner that comports with a major point of living in an association—being part of a pleasant environment. You’ve probably trained your staff to make homeowners and their guests feel comfortable. So when there’s an accident or other incident in your community, they might have an instinct to comfort the victim. While employees should rush to find help, there are several missteps they can take that can create major liability for the association.

Facts: An association maintained flood insurance for five of the buildings in its multi-building property. All five buildings were in flood zones as designated by the Federal Emergency Management Agency (FEMA). The association later decided not to renew the flood insurance policy, citing concerns regarding cost and the allocation of the expense among the other members of the association who lived in the non-flood exposed buildings.

If your association is looking for new and creative ways to generate more revenue, can it lease underappreciated common area space to a commercial tenant as a way to add convenience to your members and income for your association? With the rise of mixed-use spaces, the convenience—and financial benefit—of having a popular bakery or a national bank locked in for a 10-year, income-generating lease may seem like an attractive option for a common area that’s going largely unused in your community.

While it saves a lot of hassle—and potentially litigation—when association guidelines are detailed, occasionally you’ll come across a member with a request to install an item that hasn’t been addressed. But does that mean that it’s permissible for an owner to do anything that isn’t mentioned?

By Andrea Brescia