Governance

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After a wonderful holiday weekend, it’s time to saddle up and get back to work! For management and boards of homeowners’ associations (“HOAs”), that means budget season is now in full swing. While community association managers play a pivotal role in assisting boards with the creation of budgets, it’s ultimately up to each board to adopt a budget that’s in the best interests of the association they serve. That means boards must be fiscally responsible when creating their budgets. 

Over the past few years, boards have understandably been reticent to do anything to increase assessments. For some HOAs, especially some condominium associations, that has meant making a decision to defer routine maintenance and to either not fund reserves at all or to fund them at a low level. While kicking the reserve can down the road may seem like a short term solution to an assessment increase, if put off too long, this can become a recipe for a fiscal nightmare. 

 

When facing the question of whether – or at what level – to fund reserves, boards should ask themselves the following questions:Continue Reading Budget Season: How is your HOA handling reserves?

As I was driving to work this morning, I was reflecting on some of the less than constructive communications I have witnessed in the community association context lately. I don’t know if it’s the heat that’s getting to everyone or if the ugly presidential campaign is starting to rub off on us, but it seems like some folks have lost the ability to be constructive and to think before they act or speak. 

Whether it’s a homeowner to homeowner dispute, homeowner to board dispute, board to homeowner dispute, homeowner to manager dispute or any other combination – everyone needs to take a deep breath and think before they act. It’s also a good rule of thumb not to blast off that nasti-gram or leave a blistering voicemail in the heat of the moment. Continue Reading You Catch More Flies With Honey

Yesterday, the Denver Post ran a story entitled Rebuilding to test covenants after Colorado Springs wildfire. The story focuses on the Mountain Shadows Community Association which was devastated by the Waldo Canyon fire. The Post reports that 346 homes were destroyed in this community made up of custom homes, patio homes, condos and townhouses. 

While the ashes of this devastating fire have barely cooled and the broken hearts of the residents cannot possibly have healed, the story anticipates fighting over rebuilding and the inability of architectural review committees “to enforce the covenants and rein in rebellious property owners.” The story essentially focuses on ways to control homeowners as they attempt to rebuild their homes and their lives.

 

Unfortunately, the story misses the most important point – this is the perfect opportunity for the homeowners in Mountain Shadows to come together to build consensus on a vision for the community they would like to rebuild. With the exception of being required to comply with applicable local, state, and federal laws and ordinances, governing documents of HOAs can (and should) be updated to fit the priorities of the owners in the communities the documents govern.  Here are some thoughts for the folks at Mountain Shadows, and any other HOA for that matter, facing the task of rebuilding:Continue Reading Colorado Springs HOA Has Unique Opportunity to Build Consensus and Community

As we continue on our journey to examine traits which make HOA residents happy, productive and reasonable members of their communities – let’s recap the first two traits we have examined: 

Trait #1: Happy and effective HOA residents understand that they must be familiar with and comply with their governing documents.

Trait #2: Happy and effective HOA residents get informed before reacting negatively.

 

When we delved into Trait #2, I mentioned that it’s not uncommon for residents of HOAs to react negatively to board decisions which affect their wallets and pocketbooks. Let’s face it – that’s just human nature. Trait #3 dovetails into this common reaction and calls on HOA residents to be realistic about the finances and obligations of their HOAs.

 

Trait #3: Happy and effective HOA residents understand that money doesn’t grow on trees.Continue Reading Happy and Effective HOA Residents: Trait #3

Yesterday I began posting a series of blog entries outlining traits of happy and effective residents in HOAs. While members of the boards of directors of HOAs certainly have a significant role in creating vibrant, healthy and livable communities – residents of HOAs play an equally important role in fostering cooperation and reasonableness. Here’s the first trait I outlined yesterday on our journey to discover how residents can do their part to make their associations a great place to live:

Trait #1: Happy and effective HOA residents understand that they must be familiar with and comply with the governing documents of their HOA. 

While it’s imperative for residents to understand and comply with the governing documents of their associations, we can’t stop there. Controversies in HOAs can arise over issues that have little to do with complying with the governing documents. This is particularly true when boards make tough decisions to increase assessments or even levy a special assessment. As a result, we arrive at Trait #2.Continue Reading Happy and Effective HOA Residents: Trait #2

For those of you who follow our blog, you know that last spring I posted a series of blog entries outlining the Traits of Highly Effective HOA Directors. This popular series focused on those traits of HOA directors that contribute to the successful governance and operations of the associations they serve. 

As I reflect back on all of the feedback and conversations that sprang from this series of blog entries, it became clear to me that directors governing effectively is only one piece of the puzzle in building vibrant and livable associations. Owners and residents of HOAs play an equally important role in ensuring that their communities are well-maintained and are a great place to live. As a result, this series of blog entries will focus upon the traits of happy and effective HOA residents.

 

Trait #1: Happy and effective HOA residents understand that they must be familiar with and comply with the governing documents of their HOA. Continue Reading Happy and Effective HOA Residents: Trait #1

But you can’t make him drink.  A lot of the work I do for my association clients requires me to counsel boards to take actions different from the actions they’d taken in the past.  I advise them to enforce their covenants.  I make sure they treat owners and residents as equally as possible, regardless of gender, age, race, affiliation, or personality conflicts.  I work to dispel myths about owner’s rights and privacy.Continue Reading You Can Lead a Horse to Water…

Last week in a CCIOA 101 for HOA Boards posting, I talked about the circumstances under which the Colorado Common Interest Ownership Act (“CCIOA”), at C.R.S. 38-33.3-310, requires the use of secret ballots when members are voting in a contested election for directors or on other issues. When counting these secret ballots, here’s what you need to know:Continue Reading CCIOA 101 for HOA Boards: Counting Secret Ballots

We often receive inquiries from HOA board members on whether they are required to utilize a secret ballot when members/owners vote on any particular issue brought before them. The Colorado Common Interest Ownership Act (“CCIOA”) addresses voting at C.R.S. 38-33.3-310 and requires secret ballots to be utilized by members under the following circumstances:   Continue Reading CCIOA 101 for HOA Boards: Secret Ballots

CBS News in Denver recently ran a story about a controversy taking place in a local HOA relating to some residents allegedly complaining about a little girl in the community creating sidewalk art with chalk. Evidently, this seemingly normal childhood activity has created something of a divide in the community.

While it’s up to everyone to decide for themselves whether the chalk art of a child is offensive, the bigger legal question is whether creating a rule prohibiting chalk art in an HOA is a violation of the federal Fair Housing Amendments Act (“FHAA”) or the Colorado Civil Rights Act (“CCRA”).

 

Offensive?  (Photo courtesy of thechive.com)Continue Reading To Chalk or Not to Chalk – That Is the Question