Articles

Put Plan in Place to Prevent and Deal with Fraud

Unfortunately, community associations—regardless of how well they are run—can fall prey to embezzlement or purposeful misuse of funds or resources. Association managers and board members should be aware of common ways that fraud is perpetrated and how to prevent—or in the worst case scenario, deal with—this white-collar crime.

Articles

Use Bylaw to Ensure Funds Are Ready for Repairs, Replacements

A well-funded reserve account is a clear indication of how prepared a community association is to deal with its long-range maintenance needs. Without a well-funded reserve account, most associations’ only option to pay for repair needs that arise is to impose a special assessment on their members. Unless your state law or governing documents specify how your community’s reserve is to be funded and managed, it’s up to the board to create a policy that will bind future boards, so that the community remains protected.

Articles

Inform Member that Assessment Payment and Grievances Are Independent Issues

Association members have agreed to abide by governing documents, which provide for payment of assessments that the association relies on to run the condominium building or community. But a member might feel like this gives him leverage when he’s upset. That is, by withholding his monthly assessment because of a grievance he can force the association’s hand in rectifying it. But grievances don’t change the fact that the association must pay bills, management fees, and the cost of other services that keep things up and running.

Articles

State Laws Determined Validity of Amendment to Declaration

Facts: A planned community was developed in the 1990s. Prior to development, the developer recorded declarations and covenants that provided for the formation of a homeowners association. It stipulated that certain owners of multiple lots would be required to pay dues on only one lot. Several years later, a dispute arose concerning whether the association acted within its authority when it amended the declaration in 2012.

Articles

Handle Death of Member with Diplomacy and Efficiency

Sadly, a member in the planned community or condominium that you manage could die. If you and your staff have gotten to know the member or her family well, it could be especially upsetting. But as an association professional, you’ll have to handle the practical aspects involved when a home or condo is no longer occupied for this reason.

Articles

Help Member Enforce Restraining Order in Community

Sadly, domestic violence incidents have become a regular presence on the news. And, chances are, a member in your community has experienced domestic violence, threats of violence, stalking, or harassment of some sort. As a manager, you have many roles; keeping residents safe is within your purview. You might’ve taken all of the steps you think you need to protect community members: installing a security system or cameras of some sort, maintaining landscaping that makes it difficult for would-be assailants to hide, and enforcing a curfew in situations that called for one.

Articles

Determining Proper Party to Be Liable for Common Area Accident

Q: An elevator repair person injured himself while working on one of the elevators in the common area of the condo building I manage. He’s threatening to sue our board of managers, as well as the company that previously owned the building before it was recorded as a condominium, and 200 individual unit owners. What are some factors that could determine which defendant is held liable for the accident?

Articles

Allegedly Fraudulent Condo Sales Didn’t Excuse Assessment Nonpayment

Facts: A condominium unit owner was obligated to pay a percentage of the condominium common area expenses. The condominium association sued the owner, seeking collection of unpaid condominium assessments. The owner claimed the association did not have the legal authority to require him to pay the assessments. He alleged that the condominium developer and real estate agents made misrepresentations and errors of omission, and as a result, the initial sale of units was a fraud.

Articles

Board Members Were Liable Under Section 1983 Claim

Facts: A homeowner in a planned community sued an association and some of its board members, claiming that they violated her constitutional rights by prompting the police to harass her. Specifically, the homeowner claimed that the board members reported that her son was involved in something illegal and encouraged the police to arrest him. As a result, eight police officers came to her house, drawing their guns and threatening to come inside. The association and board members asked a trial court to dismiss the claims.

Articles

Ensure Conference Calls Comport with Law, Association Requirements

Meeting by conference call is different from meeting in person, so when you must conduct association business that way, you need to think about certain practical issues before going forward. Use the following four tips when you hold board meetings by conference call. Also, ask your association’s attorney whether your state law requires your association to pass a bylaw amendment allowing board meetings to be held by conference call.