2011

Wrong.

Yes, you are a member of a homeowners association. With that membership comes rights and responsibilities, such as the obligation to comply with the association’s governing documents and to pay assessments, and the right to select the people who will represent you on the Association’s Board of Directors.

It’s important to remember that as a member of an association, you are represented by the Board – you do not have the power as a member to act for the association.  Much like you’re represented in Congress by Mike Coffman or Diana DeGette, you are represented in your association by your Board members.  It is the Board’s obligation to take actions for the association.  Sometimes, these actions are different than the action you would’ve taken in the same position.

Your difference of opinion with your Board does not, however, give you the right to interfere with the association’s actions, taken through and approved by the Board.Continue Reading But I’m a Member! I’m Allowed to Stop That Contractor…Right?

As I was perusing HOA headlines, I noticed an editorial written by the Desert Sun Editorial Board entitled Thumbs Down: Homeowners associations should allow solar panels on condominiums. The editorial slapped the Palm Valley Homeowners Association for not permitting a couple to install solar panels on the roof of their condominium. The roof is a common element and the Association is concerned about damage. While the couple has said they would accept full legal responsibility for damage, the Association doesn’t seem inclined to budge on the issue.

On July 28th, I blogged on a Breckenridge condominium association that had installed a solar thermal supplemental hot water system on the rooftop of the condo building. What is important here is the association installed the system on the roof it is responsible for maintaining. In the Desert Sun story, the homeowners are requesting to install panels on a roof which the association is responsible for maintaining, repairing and replacing. Continue Reading Installation of Solar Panels by Homeowners on Roofs of Condominiums

For anyone who has gone through the process of searching for a new home, you have probably experienced the exhilaration of finally finding the perfect home! If your perfect home is located in a homeowners’ association (“HOA”), do your homework, ask some important questions and be honest with yourself before signing on the dotted line. Here are some suggestions: Continue Reading Before Buying In An HOA: Educate Yourself and Ask Questions

As a result of increasing numbers of foreclosures, associations now have to deal with collecting delinquent balances against not only its individual homeowners but also against the foreclosing lenders/banks. With the sheer number of foreclosures that any given bank must deal with, a depressed economy and a saturated and slow moving real estate market, it is currently not uncommon for banks to retain ownership of a property following a foreclosure sale for up to a year or more. I am not aware of many associations that can carry that kind of debt for such an extended period of time.Continue Reading Place An End To Bank Owed Debt!

It’s important that associations follow their governing documents and understand the procedures they should follow when dealing with collection of assessments, fines and other fees. The easiest way to do this is to review the association’s governing documents and the relevant provisions having to do with collections of delinquent accounts. This is especially important should the file proceed to court as a judge will review the case to determine whether the association followed its own rules before finding against a homeowner who did not. Continue Reading Collections: Are you following the rules?

Stephane Dupont, the head of our collections department, is also an avid home brewer.  He recently brought several bottles of his India Pale Ale to share with the office, and so Friday evening found me with a frosty mug (per Stephane’s explicit instruction) and a Mad Men DVD.

The juxtaposition of beer with work, and the Mad Men DVD got me to thinking about how business is conducted today, versus the way it worked back in the 1960s.  According to Mad Men, men (because they were all men) would gather around a bottle of scotch and conduct business through the haze of cigarette smoke.  This wouldn’t fly today, but it seems some homeowners associations haven’t gotten the memo.

We’ve had association board meetings open with uncorking a bottle of wine.  Seriously.  While we believe that a congenial atmosphere and neighborliness are good things to encourage in the association context, boards must always remember that they are conducting business, not throwing a party. Continue Reading Take a Bottle Drink it Down…Pass it Around….

Associations are obligated by Colorado law, and often their governing documents, to retain certain documents and make them available to owners upon request.  A formal document retention policy can also assist an association that finds itself engaged in litigation.  With more and more associations conducting some business and discussions over e-mail, the requirements of electronic discovery can create additional document retention burdens.

Failure to properly retain documents may result in fines or other penalties if the matter goes to court. Courts expect retention policies to be reasonable; however, what is reasonable depends on the surrounding circumstances. Some factors to keep in mind include the type of document, statutory requirements, and the likelihood of litigation.

Many associations have placed certain association documents online.  These documents may be available to all members with a password, or they may even be available to anyone with the ability to Google.  While there are several advantages of online documents, including greater transparency for members, they also create a number of questions regarding what documents should be retained, where they should be stored, and for how long.Continue Reading Document Retention and Your Association: What You Need To Know

CNNMoney has just reported that Standard and Poor’s Rating Services (“S&P") has downgraded the credit rating of Fannie Mae and Freddie Mac from a triple A rating to AA+. As you know, Fannie and Freddie fuel home sales by purchasing mortgages from lenders. What impact, if any, will this have on the sale of units in homeowners’ associations…

From time to time, homeowners’ associations (“HOAs”) are faced with the problem of addressing a resident who hoards. The Mayo Clinic defines hoarding as: 

“. . . the excessive collection of items, along with the inability to discard them. Hoarding often creates such cramped living conditions that homes may be filled to capacity, with only narrow pathways winding through stacks of clutter. Some people also collect animals, keeping dozens or hundreds of pets often in unsanitary conditions.

 

Hoarding, also called compulsive hoarding and compulsive hoarding syndrome, may be a symptom of obsessive-compulsive disorder (OCD). But many people who hoard don’t have other OCD-related symptoms.

 

People who hoard often don’t see it as a problem, making treatment challenging. But intensive treatment can help people who hoard understand their compulsions and live safer, more enjoyable lives.”Continue Reading Woman with Thousands of Rats Highlights Problems Associated with Hoarding

If you think about it, over the last 10 to 15 years, the explosion of the internet and electronic communications has drastically changed our lives and how we do business. I actually remember when I dictated documents, my legal secretary literally made carbon copies when typing on her IBM Selectric and we used a fax machine to expedite communications. The pervasiveness of email communications has not only revolutionized the practice of law, it has changed the way we live our lives and how many boards of homeowners’ associations (“HOAs”) govern. 

Is it a good thing when boards hold discussions and make decisions via email on issues affecting their associations? In my opinion – not so much. Here are my thoughts:Continue Reading Email & Governance: A Good Fit?