I’m the granddaughter of Midwestern dairy farmers who grew up during the Great Depression, and my parents own a small town HVAC/plumbing business. As a child, I often heard some version of the following: “I can make that.” “We don’t need to hire someone. I can fix it.” “Why would we pay someone for that work? I can do it myself.” With this do-it-yourself attitude ingrained in my psyche, I can’t help but feel guilty when I need to call a plumber to unclog a drain or when I hire someone to clean my house. The frugality—and wherewithal—that my parents and grandparents modeled for me certainly left an impression. Yet I’ve also come to realize that my life sometimes requires different choices.

Yes, I can play plumber and unclog a sink drain. I’ve done it: I’ve gathered the equipment, removed U-traps, brushed pipes clean, disposed of clogged pipe nastiness, and put everything back together. Sometimes I’ve succeeded. But on other occasions I’ve removed the drain stopper and struggled to get it reconnected, or, as one of my college roommates will recount, my work has resulted in leaks where I could not get the old mismatched pipes to fit securely. Yes, I’ve played plumber and channeled my inner DIY-er, but I’m not a plumber. I would not offer to fix someone else’s drain, and I most definitely would not venture into my HOA’s clubhouse armed with a plunger and pipe putty.

Continue Reading This Lawyer is Not a Plumber: Are you hiring the right professionals to serve your association?

It is not uncommon for homeowners to wonder where all their dues are going.  Some owners might see their dues go up with no visible changes to the property and even get suspicious.  Of course, associations often bear a lot of expenses that are not directly related to property condition, such as insurance, management, and legal fees.  Nevertheless, owners have the right to know what their association is doing with their assessments.

If a homeowner wants to know where the money is, he or she should first request the association’s annual financial statements.  These statements are an association record, and the owner has a right to view them.  The Colorado legislature intends that these statements be available at no cost to the owner, so it is advisable for associations to keep them readily available in an electronic format.

If the annual financials do not satisfy the owner, an audit or review may be an option.  Audits are performed at the discretion of the board, but members are empowered to demand audits in limited circumstances.  If the association has annual revenues or expenditures of at least $250,000.00 and at least one-third of the owners request the audit, the Association must obtain an audit using generally accepted auditing standards, performed by a certified public accountant.  If the Association has revenues or expenditures below $250,000.00, a third of the owners are entitled to demand a review, rather than an audit.

Audits are expensive, and if you find yourself in a situation where owners are requesting an audit or review, listen to the request.  There is a reason for the dissatisfaction, and if the association has properly conducted business, the audit or review will support the board’s conduct.

By now, your association should have a new collection policy in place that complies with the new HOA collection law that went into effect on January 1, 2014. When adopting a new policy, the association should not only ensure its compliance with the new law, it should also make sure it is consistent with its other governing documents. As I discussed in a previous blog, it is important that the association’s governing documents are consistent with one another and most importantly, with the Declaration. While the policy can add or elaborate specifics about the collection procedures, it cannot contradict the terms of the Declaration or the new law.  Should you have any questions regarding your collection policy, please feel free to contact us.