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We have all heard from time to time about an association manager or officer who gets caught with his hand (or more) in the association’s cookie jar. The most recent account making headlines has to do with a manager in Virginia who has been convicted of stealing $3 million from over 350 different homeowners associations. We shake our heads and are thankful that our association isn’t the victim of such a potentially disastrous crime. But sometimes, it is just a matter of luck that our association hasn’t suffered such a loss, or we are lucky that everybody providing services to the association is trustworthy.Continue Reading Fiscal Irresponsibility In Your Association? Embezzlement and What You Can Do to Help Prevent It

This is the second part of a three part series discussing when an owner’s liability for assessments terminates when going through a divorce, foreclosure and/or bankruptcy proceeding. The first part of the series dealt with divorce proceedings. This part addresses public trustee foreclosure of a lender’s lien created by a recorded deed of trust (for purposes of this discussion, a deed of trust is the same as a mortgage).Continue Reading Owner Responsibility During Foreclosure Proceedings

You just received a notice from a homeowner that they have filed for bankruptcy. The matter is quickly turned over to the association’s attorney together with an updated account ledger to ensure that the requisite paperwork is timely filed to protect the association’s interest. How does a manager or board properly account for assessments and fees which come due after the filing of the bankruptcy? Unfortunately, this is an issue faced by managers and boards on a regular basis.  Continue Reading Bankruptcies: Accounting Suggestions and the Importance of Maintaining Liens

We have received many questions regarding when a homeowner’s obligation to pay assessments terminates as a result of being in or having completed a divorce, bankruptcy or foreclosure proceeding. The quick answer is that an owner is responsible for all assessments for as long as he or she is an owner as evidenced by a recorded document, a deed. For purposes of discussion it does not matter what type of deed is recorded to prove ownership or how the party came into ownership. Also, this article will only deal with collection cases, not lawsuits for foreclosure or receiverships. Continue Reading Who is Responsible for Assessments

The migration away from paper products is a hot trend these days. The benefits of such a move for a homeowners association are clear – not only does it save trees, it also saves money (less paper, postage, and storage costs). In short, being green saves green. But can an Association truly become paperless? Not yet, but as computer technology and the use of the internet become more and more advanced, the answer is closer to becoming yes. Below are some steps your Association can take to start freeing itself from the paper weight:Continue Reading The Paperless Association – Myth or Reality?

Community association board members fill tough roles that require a great deal of attention to association business. We understand that, as board member volunteers, you need guidance from professionals to facilitate informed decision-making, allowing you to uphold your fiduciary duties to the association that you serve. To assist you in evaluating the legal priorities for your community, we have created this Legal Audit checklist. 

Place a check mark in the box beside each statement that applies to your community association.

My community association has . . .

?  adopted the seven mandatory Senate Bill 05-100 policies. 

Senate Bill 05-100 requires all associations to adopt seven different responsible governance policies concerning (1) the adoption and amendment of policies, (2) board member conflicting interest transactions, (3) covenant enforcement and fines, (4) collection of delinquent assessments, (5) conduct of meetings, (6) inspection and copying of records and (7) reserve fund investments.

?  adopted the Senate Bill 06-89 dispute resolution policy. 

Senate Bill 06-89 requires all associations to adopt a policy concerning disputes between owners and the association.

?  updated Senate Bill 05-100 policies to conform to Senate Bill 06-89 requirements. 

Senate Bill 06-89 modified some of the terms of Senate Bill 05-100, creating recommended changes to the responsible governance policies.

Continue Reading Community Association Legal Audit (Part 1 of 2)

Summer time is the season of vacations, fun and, for many Community Associations, construction.  Most Managers are very thorough and knowledgeable, and have assisted Associations with construction projects. Some Board members have worked in the construction industry and have valuable insights. So why is it wise to involve an independent engineer, architect, or construction expert (here called "engineer") in your Association’s repair projects (such as painting, roofing, siding or asphalt projects)? Here are a few reasons for an engineer to be involved on repair or restoration projects in your community:Continue Reading CONSTRUCTION PROJECTS: IT MAKES SENSE TO HIRE AN EXPERT

One thing about this business – it is full of surprises. One surprise that occasionally comes to light during our course of representing an association has to do with how common expenses are shared. The declaration of restrictive covenants (which imposes the obligation to pay assessments) should describe how expenses of the association are allocated. In fact, CCIOA mandates that the declaration must allocate the various types of allocated interests: the allocation of voting rights; the allocation of burden of common expenses; and in condominiums, the ownership of the undivided interests in the common elements. In a couple of cases recently we’ve discovered that an association is allocating common expenses in a manner that is different from how the declaration specifies.Continue Reading Assessments According to the Declaration – Who Cares?