Selective Enforcement Challenge for Community Associations

Selective CCR Enforcement

Perfect Harmony

If you’ve served as a member of a community association‘s Board of Directors for any length of time, chances are you’ve heard the term “selective enforcement” when you have attempted to enforce the covenants.  There is good reason for this:  the selective enforcement defense is one of the most commonly used defenses to a Board’s covenant enforcement action.  There is much misunderstanding among Board members and homeowners as to exactly what selective enforcement means.  The purpose of this article is to provide an explanation of the underpinnings of the selective enforcement defense and to provide some guidance for insuring that your Board’s decisions can withstand a selective enforcement challenge.

A Board has a duty to enforce the covenants of a community in a procedurally fair and reasonable manner.  The defense of selective enforcement arises when an owner argues a Board breached this duty.

There are two types of selective enforcement: 1) when an association acts arbitrarily by enforcing some covenants but fails to enforce others; and 2) when an association acts arbitrarily by enforcing the same covenant differently against one owner and another.  The best reasoned case on this issue is a case from the Supreme Court of South Carolina, Palmetto Dunes v. Brown.  In that case, the association’s covenants vested its Board with the power to approve or disapprove construction plans based on purely aesthetic considerations.  Relying on that provision, the Board denied an owner, Brown’s, new home construction plans on the basis that the plans submitted by Brown showed a garage that “overpowered” the rest of the house.  Brown argued to the Court that the Board’s decision was unreasonable and ar

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bitrary, in part because the Board had approved two other similar houses.

The Court examined the Board’s reason for disapproving the home on aesthetic considerations.  The Court look to see if the decision bore a reasonable relation to the other buildings in the community or the general plan of development.  The Board presented evidence to the Court that Brown’s plans were different from the two similar houses.  In addition, the Board explained to the Court that it approved the other two similar houses based upon construction plans, and was disappointed in the houses once built because they did not match the overall aesthetic of the community.  Because of the appearance of the completed houses, the Board told the Court that they had decided not to approve any more houses with similar garages.  The Court found in favor of the association, holding that the evidence did not justify a finding that the Board acted unreasonably in disapproving the house plans, even though it had previously approved similar plans; the decision was not arbitrary or capricious, but was based on well-reasoned value judgements.

In another case, the Georgia Court of Appeals held that a violating owner has the initial burden of proof to present evidence that an association enforced the covenants in an arbitrary or selective manner.  Once that is done, the burden of proof shifts to the association to show why the present owner’s violation is different from other violations.

The homeowner in that case violated the architectural control provisions of the association’s governing legal documents by building a second driveway on his lot without receiving prior approval from the architectural control committee. Once informed of his violation, he submitted plans and specifications to the committee for approval. The committee denied his request and ultimately, the association brought suit to enforce the covenants. At trial, the homeowner presented sufficient evidence to show that the association acted in an arbitrary manner in denying his request by showing pictures of other homes in the community with second driveways. The association was not able to present any evidence as to the reason the other second driveways in the subdivision were permitted, but this owner’s request was denied. Since the Board could not put forth reasons for its decision, the owner won the case and kept his second driveway.

The basic lesson to take away from these two cases is that if an association’s documents give the Board authority to approve or disapprove a modification or make other decisions based on certain standards, even one as broad as “aesthetic considerations”, a Court will likely uphold a decision if there is a reasonable explanation for why the Board made the decision as it did. For example, in the Palmetto Dunes case, the Board had the power to approve or disapprove a house based on purely aesthetic considerations, and in court the Board was able to point to specific reasons that it denied the owner’s plans; namely, an overpowering garage. The Board was also able to distinguish the house from the similar houses cited by the owner and to explain why it had decided to no longer approve houses with similar garages. In contrast, in the second case, the Board was unable to provide evidence to the Court as to why it made the decision not to allow a second driveway.  As a consequence, the Court found that the Board’s decision was arbitrary and capricious and upheld the owner’s claim of selective enforcement.

With this in mind, a Board can help to protect itself from claims of selective enforcement by insuring that its decisions to approve or disapprove owners’ plans or proposed modification are supported by well-reasoned explan­ations. If there are any homes in the community similar to the one that the Board disapproves, the Board should be able to identify distinguishing factors between the disapproved modification and the one that was approved, or a good reason that the Board had for previously approving similar houses but not to the present one. Boards should also remember to keep accurate records of each decision in the association’s records, including notations of the reasons for the Board’s decision. In the event of a selective enforcement lawsuit, those records will help to show the Court the reasoning behind the Board’s decision-making on a particular owner’s proposed modification and/or in demonstrating to the Court that the Board has a sound, consistent covenant enforcement process.

In sum, there may be little a Board can do to prevent an owner from alleging selective enforcement against it in the event that he or she does not agree with a decision the Board makes. However, if the Board can demonstrate that it has made a sound decision, within the scope of its authority, it can put itself in the best position to defend its decision against such a claim

Selective Enforcement Challenge for Homeowner Associations

Selective CCR Enforcement

If you’ve served as a member of a community association‘s Board of Directors for any length of time, chances are you’ve heard the term “selective enforcement” when you have attempted to enforce the covenants.  There is good reason for this:  the selective enforcement defense is one of the most commonly used defenses to a Board’s covenant enforcement action.  There is much misunderstanding among Board members and homeowners as to exactly what selective enforcement means.  The purpose of this article is to provide an explanation of the underpinnings of the selective enforcement defense and to provide some guidance for insuring that your Board’s decisions can withstand a selective enforcement challenge.

A Board has a duty to enforce the covenants of a community in a procedurally fair and reasonable manner.  The defense of selective enforcement arises when an owner argues a Board breached this duty.

There are two types of selective enforcement: 1) when an association acts arbitrarily by enforcing some covenants but fails to enforce others; and 2) when an association acts arbitrarily by enforcing the same covenant differently against one owner and another.  The best reasoned case on this issue is a case from the Supreme Court of South Carolina, Palmetto Dunes v. Brown.  In that case, the association’s covenants vested its Board with the power to approve or disapprove construction plans based on purely aesthetic considerations.  Relying on that provision, the Board denied an owner, Brown’s, new home construction plans on the basis that the plans submitted by Brown showed a garage that “overpowered” the rest of the house.  Brown argued to the Court that the Board’s decision was unreasonable and ar

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bitrary, in part because the Board had approved two other similar houses.

The Court examined the Board’s reason for disapproving the home on aesthetic considerations.  The Court look to see if the decision bore a reasonable relation to the other buildings in the community or the general plan of development.  The Board presented evidence to the Court that Brown’s plans were different from the two similar houses.  In addition, the Board explained to the Court that it approved the other two similar houses based upon construction plans, and was disappointed in the houses once built because they did not match the overall aesthetic of the community.  Because of the appearance of the completed houses, the Board told the Court that they had decided not to approve any more houses with similar garages.  The Court found in favor of the association, holding that the evidence did not justify a finding that the Board acted unreasonably in disapproving the house plans, even though it had previously approved similar plans; the decision was not arbitrary or capricious, but was based on well-reasoned value judgements.

In another case, the Georgia Court of Appeals held that a violating owner has the initial burden of proof to present evidence that an association enforced the covenants in an arbitrary or selective manner.  Once that is done, the burden of proof shifts to the association to show why the present owner’s violation is different from other violations.

The homeowner in that case violated the architectural control provisions of the association’s governing legal documents by building a second driveway on his lot without receiving prior approval from the architectural control committee. Once informed of his violation, he submitted plans and specifications to the committee for approval. The committee denied his request and ultimately, the association brought suit to enforce the covenants. At trial, the homeowner presented sufficient evidence to show that the association acted in an arbitrary manner in denying his request by showing pictures of other homes in the community with second driveways. The association was not able to present any evidence as to the reason the other second driveways in the subdivision were permitted, but this owner’s request was denied. Since the Board could not put forth reasons for its decision, the owner won the case and kept his second driveway.

The basic lesson to take away from these two cases is that if an association’s documents give the Board authority to approve or disapprove a modification or make other decisions based on certain standards, even one as broad as “aesthetic considerations”, a Court will likely uphold a decision if there is a reasonable explanation for why the Board made the decision as it did. For example, in the Palmetto Dunes case, the Board had the power to approve or disapprove a house based on purely aesthetic considerations, and in court the Board was able to point to specific reasons that it denied the owner’s plans; namely, an overpowering garage. The Board was also able to distinguish the house from the similar houses cited by the owner and to explain why it had decided to no longer approve houses with similar garages. In contrast, in the second case, the Board was unable to provide evidence to the Court as to why it made the decision not to allow a second driveway.  As a consequence, the Court found that the Board’s decision was arbitrary and capricious and upheld the owner’s claim of selective enforcement.

With this in mind, a Board can help to protect itself from claims of selective enforcement by insuring that its decisions to approve or disapprove owners’ plans or proposed modification are supported by well-reasoned explan­ations. If there are any homes in the community similar to the one that the Board disapproves, the Board should be able to identify distinguishing factors between the disapproved modification and the one that was approved, or a good reason that the Board had for previously approving similar houses but not to the present one. Boards should also remember to keep accurate records of each decision in the association’s records, including notations of the reasons for the Board’s decision. In the event of a selective enforcement lawsuit, those records will help to show the Court the reasoning behind the Board’s decision-making on a particular owner’s proposed modification and/or in demonstrating to the Court that the Board has a sound, consistent covenant enforcement process.

In sum, there may be little a Board can do to prevent an owner from alleging selective enforcement against it in the event that he or she does not agree with a decision the Board makes. However, if the Board can demonstrate that it has made a sound decision, within the scope of its authority, it can put itself in the best position to defend its decision against such a claim.

 

Selective Enforcement Challenge for Homeowner Associations

Selective CCR Enforcement

If you’ve served as a member of a community association‘s Board of Directors for any length of time, chances are you’ve heard the term “selective enforcement” when you have attempted to enforce the covenants.  There is good reason for this:  the selective enforcement defense is one of the most commonly used defenses to a Board’s covenant enforcement action.  There is much misunderstanding among Board members and homeowners as to exactly what selective enforcement means.  The purpose of this article is to provide an explanation of the underpinnings of the selective enforcement defense and to provide some guidance for insuring that your Board’s decisions can withstand a selective enforcement challenge.

A Board has a duty to enforce the covenants of a community in a procedurally fair and reasonable manner.  The defense of selective enforcement arises when an owner argues a Board breached this duty.

There are two types of selective enforcement: 1) when an association acts arbitrarily by enforcing some covenants but fails to enforce others; and 2) when an association acts arbitrarily by enforcing the same covenant differently against one owner and another.  The best reasoned case on this issue is a case from the Supreme Court of South Carolina, Palmetto Dunes v. Brown.  In that case, the association’s covenants vested its Board with the power to approve or disapprove construction plans based on purely aesthetic considerations.  Relying on that provision, the Board denied an owner, Brown’s, new home construction plans on the basis that the plans submitted by Brown showed a grage that “overpowered” the rest of the house.  Brown argued to the Court that the Board’s decision was unreasonable and arbitrary, in part because the Board had approved two other similar houses.

The Court examined the Board’s reason for disapproving the home on aesthetic considerations.  The Court look to see if the decision bore a reasonable relation to the other buildings in the community or the general plan of development.  The Board presented evidence to the Court that Brown’s plans were different from the two similar houses.  In addition, the Board explained to the Court that it approved the other two similar houses based upon construction plans, and was disappointed in the houses once built because they did not match the overall aesthetic of the community.  Because of the appearance of the completed houses, the Board told the Court that they had decided not to approve any more houses with similar garages.  The Court found in favor of the association, holding that the evidence did not justify a finding that the Board acted unreasonably in disapproving the house plans, even though it had previously approved similar plans; the decision was not arbitrary or capricious, but was based on well-reasoned value judgements.

In another case, the Georgia Court of Appeals held that a violating owner has the initial burden of proof to present evidence that an association enforced the covenants in an arbitrary or selective manner.  Once that is done, the burden of proof shifts to the association to show why the present owner’s violation is different from other violations.

The homeowner in that case violated the architectural control provisions of the association’s governing legal documents by building a second driveway on his lot without receiving prior approval from the architectural control committee. Once informed of his violation, he submitted plans and specifications to the committee for approval. The committee denied his request and ultimately, the association brought suit to enforce the covenants. At trial, the homeowner presented sufficient evidence to show that the association acted in an arbitrary manner in denying his request by showing pictures of other homes in the community with second driveways. The association was not able to present any evidence as to the reason the other second driveways in the subdivision were permitted, but this owner’s request was denied. Since the Board could not put forth reasons for its decision, the owner won the case and kept his second driveway.

The basic lesson to take away from these two cases is that if an association’s documents give the Board authority to approve or disapprove a modification or make other decisions based on certain standards, even one as broad as “aesthetic considerations”, a Court will likely uphold a decision if there is a reasonable explanation for why the Board made the decision as it did. For example, in the Palmetto Dunes case, the Board had the power to approve or disapprove a house based on purely aesthetic considerations, and in court the Board was able to point to specific reasons that it denied the owner’s plans; namely, an overpowering garage. The Board was also able to distinguish the house from the similar houses cited by the owner and to explain why it had decided to no longer approve houses with similar garages. In contrast, in the second case, the Board was unable to provide evidence to the Court as to why it made the decision not to allow a second driveway.  As a consequence, the Court found that the Board’s decision was arbitrary and capricious and upheld the owner’s claim of selective enforcement.

With this in mind, a Board can help to protect itself from claims of selective enforcement by insuring that its decisions to approve or disapprove owners’ plans or proposed modification are supported by well-reasoned explan­ations. If there are any homes in the community similar to the one that the Board disapproves, the Board should be able to identify distinguishing factors between the disapproved modification and the one that was approved, or a good reason that the Board had for previously approving similar houses but not to the present one. Boards should also remember to keep accurate records of each decision in the association’s records, including notations of the reasons for the Board’s decision. In the event of a selective enforcement lawsuit, those records will help to show the Court the reasoning behind the Board’s decision-making on a particular owner’s proposed modification and/or in demonstrating to the Court that the Board has a sound, consistent covenant enforcement process.

In sum, there may be little a Board can do to prevent an owner from alleging selective enforcement against it in the event that he or she does not agree with a decision the Board makes. However, if the Board can demonstrate that it has made a sound decision, within the scope of its authority, it can put itself in the best position to defend its decision against such a claim.

Top Ten Reasons to Volunteer for your Homeowners Association

There are many reasons why homeowners volunteer to be a part of their Condominium or Homeowners Association Board. Below we’ve listed the Top 10 Reasons to Volunteer for your Community Association Board of Directors. The Condo‘s and HOA’s we represent throughout Metro Atlanta are constantly looking for dedicated and talented homeowners to join their Board of Directors. Give it a shot!

Why volunteer to be on the Board?

1. To protect you property values and maintain the quality of life you expect in your community.

2. To correct a problem within your community. Perhaps parking is an issue, or maintenance has been neglected.

3. To give back to your community and neighbors.

4. To be sociable, meet your neighbors, and make friends.

5. To advance your career and build your personal resume by including your leadership capacity and community volunteer service.

6. To have fun accomplishing things around your community together with your neighbors. Being on the Board doesn’t always have to be negative.

7. To get educated on the many facets of running a community association such as; the many laws and regulations, maintenance and repair, and understanding financials.

8. To express yourself and be creative while offering your opinion on solutions to your communities day to day problems.

9. To earn recognition from your peers for your contributions to the community.

10. To advance the ‘givers gain’ mentality of improving society as a whole while assisting your neighbors throughout the community.

As you can see, joining your Community Association Board of Directors can be rewarding in many ways. We enjoy working with our Board Members in our North Georgia Condo and HOA Communities and we encourage you to give it a try!

What Does a Board Secretary Do…Via PRLog

What Does a Board Secretary Do?

Every board member plays an important role. The secretary is no exception and is much more than just “note taker”. They are critical to the Association’s success. At a minimum, there are five areas for which the secretary should be responsible.

 

FOR IMMEDIATE RELEASE

 

PRLog (Press Release) – Nov 28, 2011 –
The Secretary’s Job Description

Giving proper notice – the secretary is responsible for giving proper notice of the board meetings and the member meetings according with the requirements of the governing documents. This means giving the required minimum number of days notice and ensuring that the notice includes all the necessary information.  Not just the who, where, and when – but perhaps most importantly the “what”.  A good meeting notice will clearly explain to the community what items are being discussed at a particular meeting and their relevance to the homeowner.

Agenda development – the secretary coordinates with the association president to put together the meeting agenda’s content. The secretary should conference with the president prior to finalizing the agenda to identify the agenda items and the time needed for each item. The secretary can provide an additional service to the president by also serving as the time keeper for the meeting.  Agenda’s should be distributed prior to the board meeting allowing the board members ample time to review and prepare for discussion.  Your governing documents will likely state how many days in advance the agenda must be distributed prior to the board meeting.

Meeting minutes – when you think “secretary” most people think “meeting minutes”.  There is a definite skill involved in writing good meeting minutes.  They should capture who was at the meeting and the specific decisions that were made.  Far too often the association secretary includes too much detail in the minutes – this can come back to haunt you later.  To learn more about taking great minutes read:  HOA Minutes.

Record keeping – the association’s records must be kept somewhere and they are stored under the supervision of the secretary.  Boxes of old records don’t have to be housed in the home of the secretary, in fact it is preferable to keep them in a more public location if possible – but they should be accessible.  Association records must be made available for inspection by homeowners upon request.  I don’t know about you, but I don’t want people coming into my home to view boxes of records.  For this reason, the association may wish to consider investing resources in scanning old paper files into electronic documents; making it much easier to provide records to the homeowners to request them.

Community communication – The old adage “no news is good news” simply does not hold true for homeowners associations.  Whether it is a website, newsletter or some other method of communication – keeping the community apprised of happenings is very important.  Determining the best communication tool will depend on your community’s demographics.  If the association does not keep the community up to date on how assessments are being spent (improvements, repairs, etc.), owners will begin to assume that the association is doing nothing at all.   Let them know what the association is doing on their behalf!

With over 40 years of combined industry experience, the Executive Staff of Riverside Property Management  knows that the most successful communities are those where there is a sense of unity and pride among the membership.

Call 678-866-1436 Today for a free quote in the Atlanta, GA. area.

# # #

With over 40 years of combined industry experience, the Executive Staff of Riverside Property Management knows that the most successful communities are those where there is a sense of unity and pride among the membership; this unity and pride begins with a firm foundation comprised of:

Well defined policies and objectives
A strategic plan and future vision
A proactive Management team
Mutual team trust and respect
Timely and open communication
Excellent customer service
Industry knowledge
“Out of the Box” Thinking
Services designed to meet your needs

Give us fifteen minutes of your time and we can show you how to put your community on a fast track to success; if you don’t believe us, feel free to call upon any one of our satisfied clients.

Call (678) 866-1436 TODAY!

http://www.riversidepropertymgt.com

Top Ten Reasons to Volunteer for your Community Association

There are many reasons why homeowners volunteer to be a part of their Condominium or Homeowners Association Board. Below we’ve listed the Top 10 Reasons to Volunteer for your Community Association Board of Directors. The Condo‘s and HOA’s we represent throughout Metro Atlanta are constantly looking for dedicated and talented homeowners to join their Board of Directors. Give it a shot!

Why volunteer to be on the Board?

1. To protect you property values and maintain the quality of life you expect in your community.

2. To correct a problem within your community. Perhaps parking is an issue, or maintenance has been neglected.

3. To give back to your community and neighbors.

4. To be sociable, meet your neighbors, and make friends.

5. To advance your career and build your personal resume by including your leadership capacity and community volunteer service.

6. To have fun accomplishing things around your community together with your neighbors. Being on the Board doesn’t always have to be negative.

7. To get educated on the many facets of running a community association such as; the many laws and regulations, maintenance and repair, and understanding financials.

8. To express yourself and be creative while offering your opinion on solutions to your communities day to day problems.

9. To earn recognition from your peers for your contributions to the community.

10. To advance the ‘givers gain’ mentality of improving society as a whole while assisting your neighbors throughout the community.

As you can see, joining your Community Association Board of Directors can be rewarding in many ways. We enjoy working with our Board Members in our North Georgia Condo and HOA Communities and we encourage you to give it a try!

PROCEDURAL RULES FOR CONDUCTING MEETINGS OF THE ASSOCIATION

HOA Board of Directors Duties

Organization principles – rules of conduct – are necessary to shape a strong and effective Board of Directors for the betterment of the entire community.  Based on freedom of speech, respect for fellow members, uniformity and fairness, the principle of majority rule, the right of the minority to be heard, and the duty to abide by the will of the majority.  If followed, it is then and only then the Board can make a most effective contribution to the association members needs.

If there were no rules or established customs, and if each could talk on any subject as long and as many times as he pleased, and if all could talk at the same time, it would be impossible in most cases to ascertain their deliberate judgment on any particular matter. Experience has shown the necessity for rules, as well as for a presiding officer to enforce them and to preserve order.

The most serious defect in many board meetings is the lack of decorum. The presiding officer must maintain good order if business is to be carried out.

OFFICERS AND MEMBERS AND THEIR RESPECTIVE DUTIES

Duty of the President:

1. To enforce the rules and preserve order, and when any board member notices a breach of order he can ask for an enforcement of the rules. The president controls the meetings, preventing them from getting out of control, but still facilitating the climate for free expression by participants.
2. To acquire a working knowledge of the governing documents and standing rules of the association.
3. To have a reference list of committees. The president also is normally responsible for appointing new committee members, depending on the Associations’ governing documents.
4. To control and maintain order. The president may ask Board members to raise their hands and be acknowledged prior to relinquishing the floor so that they may speak.
5. To explain and decide all questions of order that come before the Board.
6. To announce all business as outlined on the agenda.
7. To be informed on issues and communications to come before the Board.
8. To consider only one motion at a time and state all motions in clear, concise language.
9.  To not permit any discussion of a motion until it has been properly seconded and stated. The president, to encourage debate, will specify which member of the board has the floor. (No board member should be allowed to speak twice on the same question if there are others who wish to claim the floor.) Homeowners (non-board members) are not to be allowed to debate a motion or join in discussion unless a majority of the Board members consent.
10. To ensure all motions are put to a vote and results entered in the minutes.
11. To maintain decorum and discipline.
12. To talk no more than necessary when presiding.
13. To refrain from discussing a motion when presiding.  (The president can discuss and/or debate a motion before the Board; however, he/she must first relinquishment the Chair until the vote has been taken. The vice-president is asked to take the Chair in the interim.)
14. To be absolutely fair and impartial.
15. To extend every courtesy to the Board member posing a motion, regardless of personal opinions.
16. To sign contracts once approved by the Board.
17. To be an ex officio member of all except the nominating committee.
18. To perform such other duties as are prescribed in the bylaws.
19. To use the time-saving “general consent,” when routine matters are considered.
20. To preside during nominations and elections even if he/she is a candidate. When he/she is the sole nominee, for the sake of appearances he/she asks the vice-president to put the question to vote.

B.        Duties of the Vice President:

1. In absence of the president, the vice president presides and performs the duties of president.
2. The vice president may also head an important committee as outlined in the bylaws.

C.        Duties and Rights of Board Members:

1. To acquire a working knowledge of the association’s governing documents and standing rules.
2. To be knowledgeable about parliamentary procedure.
3. To write down – in the form of a motion – any issues to be brought before the Board.
4. To receive permission to speak before speaking.
5. To avoid speaking upon any matter until a motion has been made and seconded.
6. To maintain focus, not moving to a different topic until the current one has been resolved
7. To discontinue debate once the president puts the motion to a vote
8. To refrain from all personal comments in debate.

ORDER OF BUSINESS 

The following is a standard order of business for Board of Directors’ meetings:

1. Call to Order
2. Approval of Minutes
3. Financial Reports
4. Reports of Standing Committees
5. Reports of Select Committees
6. Unfinished Business
7. New Business
8. Membership Forum

It is the duty of the president to call the meeting to order at the appointed time, to preside at all meetings, to announce the business before the Board in its proper order, to state and put all questions properly brought before the Board, to preserve order and decorum.

If the president is late for a meeting, the vice-president should start the meeting if a quorum is present. The president, upon arriving, should wait until the pending business is over before taking his/her seat.

All business is brought before the meeting by a motion or resolution, a report of a committee or a communication.

1. Reading of Minutes of the previous meeting (and their approval): The president asks if there are any corrections. (It’s expected each Director will have read the minutes prior to the meeting.) The minutes stand as approved or as corrected.
2. Reports of Standing Committees: All reports by officers and committees should be in written form. Standing committees usually function throughout the year. These committees are given responsibility to further various projects.  These committees are appointed by the Board and are expected to submit reports, when requested, and at annual meetings.
3. Reports of Select Committees: All reports by officers and committees should be in written form. Select Committees are appointed by the Board following a motion “to commit,” meaning to refer to a committee to perform some special task, secure more information, investigate a situation and bring back a report or a recommendation to the Board. These temporary committees cease to function when they have fulfilled their specific purpose.
4. Member Forum: All Owners have the right to attend and speak at annual and Board meetings, except in the case of executive sessions.  The Member Forum is devoted to comments by owners. Except in emergencies, no action may be taken upon a matter raised until the matter itself has been specifically included as an agenda item for action.

a)   Preparation and Written Testimony: Any Owner wishing to bring business before the Board should, unless it is very simple, present the Board with a written statement to include the following items:

i)    Clear Statement of the Problem or Concern ‑ Who, what, when, where, and why.

ii)   Why the Problem or Issue Must be Addressed and/or Solved ‑ The Owner must present the Board with facts and other data on the need for solving the issue.

iii)  Causes of the Problem ‑ Be specific.

iv)  Possible Solutions – How does the Owner want the Board to respond.

v)   The Best Solution ‑ Board will compare and evaluate all possible solutions.  The Board may also choose to table the issue or take no action.

vi)  Implementation ‑ The Board will agree on the next step at the meeting so the solution will be effective.

b)   Participation: While, as a general rule, free debate is allowed on every question, it’s necessary for the Board to have rules to prevent time being wasted and to complete the agenda.

i)    The Board will hear only one owner at one time for a three minutes. An owner is limited to the number of times he/she is allowed to speak to the same question.  Two speeches may be allowed each member (except upon an appeal).

ii)   An owner can be permitted (by a majority vote of the Board) to speak more often or longer whenever it is desired, and the motion granting such permission cannot be debated.

iii)  The Board may choose to limit the debate by setting a specific amount of time for the question, or the Board may choose to close debate altogether. In other words, the Board may choose to review the written report, allow no owner participation, and make a decision or postpone a decision until a later date.

iv)  The Board can postpone, either definitely or indefinitely, or reconsider any question. The questions considered could be postponed to another time, or the previous question can be ordered on it so as to stop debate, or it can be laid on the table, or referred to a committee to examine and report on it.

v)      If a subject is of such importance that it should be considered it at a special time, then a motion should be made to make the question a “special order.”

The motion requires a two-thirds vote for its adoption, because it is really a suspension of the rules. If a subject is a special order for a particular meeting, then on that meeting day it supersedes all business except the reading of the minutes. If two special orders are made for the same day, the one first made takes precedence.

E.   Adjournment: In order to prevent the Board from being kept in session an unreasonable time, no meeting should go longer than two hours maximum.

GENERAL MEETING CONDUCT OF THE BOARD

A.  Primary Rule: All business is to be brought before the Board by a motion or resolution, a report of a committee or a communication: Only one principal or main motion at a time.

It is necessary for every assembly, if discussion is allowed, to have rules to prevent its time being wasted, and to enable it to accomplish the object for which the Board was organized.  At times, though, their best interests are served by suspending the rules temporarily. In order to do this, someone makes a motion.

B.   Debate: While, as a general rule, free debate is allowed on every motion, to prevent a minority from taking advantage of this privilege it is necessary to have methods by which debate can be closed and final action can at once be taken.

Instead of cutting off debate entirely by ordering the question, allow limited debate. In a community association, where harmony is so important, a majority vote should be required for the adoption of any motion to cut off or limit debate.  Consideration can be postponed to another time, or the previous question can be ordered on it so as to stop debate, or it can be tabled or referred to a committee.

Board Member Contribution:

1.   Stay on the subject at hand.  Be sure you know the subject and the objectives being discussed. If you’re not sure, ask for clarification – not only for your own benefit but also for other Board members.

2.   Go to each Board meeting with a positive attitude and an objective to help make the meetings as productive as possible.  Do your homework prior to the meeting.  Read the Board package in advance.

• Avoid side conversations
• Don’t argue with other members – challenge, but avoid arguments
• Avoid responding emotionally
• Ask questions if you aren’t sure

3.   Be open to other ideas; open-mindedness begets open-mindedness. When you’re willing to listen to the ideas of others, they’re more apt to be open to your ideas.

4.   Offer facts and options where appropriate. Maintain dissenting views in the face of opposition but not to the point of having a closed mind. Consider the problem objectively. Don’t present or accept opinions as fact.  Avoid becoming emotional.

5.   Listen to understand. Listen to the ideas of others; listen carefully and try to understand their viewpoints. Be courteous by respecting their opinions even if they are different from your own.

Conflict of Interest

Board members are expected to identify any issue before the Board that places them, a spouse or family member in conflict of interest.  In such cases, the board member may discuss the issue (as is a right of membership) but abstains from voting.

Executive Meetings

Executive sessions are occasionally required to discuss personnel or legal issues.  Fine hearings can also be held in executive session at the request of the member.  Executive meetings are not open to members.  All other business must comply with the Open Meeting Act.

Maintaining Confidentially

Board members must maintain strict confidentiality on all issues discussed in executive sessions.  All information in board packages is to remain confidential.  To discuss, duplicate or circulate information in the monthly packet not only does a disservice to the Board and the association, but also in some cases may subject the board to legal action or suit.

A director who leaks information on an issue the Board is to consider in either an executive session, or open meeting before the Board has had an opportunity for discussion, is doing a disservice to both

the Board and the association.  Leaks only exacerbate dissention within the association and do not allow the Board to consider a topic without being confronted by angry homeowners.

Supporting Board Policies

Once the Board has resolved an issue or established a policy, it is expected that all Board members will support the Board’s policy and not revisit the issue in further meetings.

Expressing personal or diverse opinions after board meetings (or to vendors or outside advisors) once a Board decision is made is inappropriate.

Official Records

The official records (financials, minutes, documents, member rosters and other associated files) are maintained by Eugene Burger Management Corporation.  Inspection of books and records, the membership register, books of account and minutes of meetings of the members, of the board and of committees of the board, are made available for inspection and copying by any member. Members may contact EBMC to arrange for viewing of the named items.

Communicating Within the Community

Homeowners deserve fair, ethical treatment and factual information. A community with effective communications between the board and the members functions more efficiently and generates more volunteer participation. A newsletter or web site can serve this purpose. To disseminate information for special needs, such as a notice of activities or meetings, flyers are posted.

Members look to the board for leadership. The best way to state a case to members is to state the facts and the possible remedies without enhancements of emotion, blame, embroidery or personal interest.  Remember, running the association is a business, not a social activity.

Communicating Outside the Community

The Association is in the business of preserving, protecting and enhancing the association’s physical property, financial position, legal standing and the image the association presents to the members and to the community. Members of the Board of Directors represent the Association.

The Board works together as a team in conveying messages within the association (at Board or Annual meetings) and outside to the local community, i.e., the City. The association’s power is visible when approaching the City (either the Planning Commission or the City Council) on issues of major importance to the whole association.

Individual members of the association are encouraged to voice their personal opinions on any issue, either before the association or before the City. If a Board member wishes to voice an opinion before the City on which the Board has not taken a position, however, particularly one that is contrary to the majority decision of the Board or solely in the interest of the individual, he/she must do so only as an individual homeowner and not as a Board member.

PERSONAL FULFILLMENT

Serving on a Board of Directors of your community can be one of the most enjoyable, rewarding, educational and frustrating volunteer jobs you may ever have.

Enjoy your time and feel proud of yourself for giving your time and energy to the benefit of your neighbors and your little town.

Brought to you by Riverside via the HOA Management Finder Database website.

Is A Condo Association A Good Fit For You?

The condo association, which is comprised of the homeowners, is responsible for maintenance, operation, and finances of the complex.  A well-run condo association can offer considerable convenience and benefits for owners.  On the contrary, a poorly run condo association can create headaches, hassles, and hardships. You can expect to pay monthly condo association fees or dues that cover operating costs of the complex.  Those fees can be steep depending on the amenities offered.  You can also expect the association to make and enforce condo rules and enforcements that are designed to maintain a harmonious look and feel of the complex.  Some condo associations have lots of rules.  Others have few rules.  Some rules are reasonable, and still others can be intrusive.  Rules govern everything from your number of parking spaces to restrictions on visitors.  As an owner, you are required to abide by all of the rules whether you like them or not.

Before You Buy
A few general rules of thumb when considering a condo purchase are:

• Meet the folks who would be your new neighbors.  Find out what they like or do not like about the complex and the condo association.
• Check out the financial solvency of the condo association.  You do not want to find out about financial difficulties and be presented with an unexpected significant fee after you move in.
• Get the facts on owner-occupied versus rental units.  A predominance of rental units can present challenges of its own.
• Learn about the rules.  Read the condo bylaws to gain a clear understanding of how the association is organized and what the rules govern.
• Read the master deed or have an attorney review it.

4 Ideas for Trimming Your HOA’s Expense Budget

More and more associations are collecting less and less dues as a result of the housing crisis. Here are four tips for trimming your budget to ensure that your association still provides key services with a smaller pool of funds.

1) Shop around. A good way to shrink your budget is to shop your insurance policies and other ongoing contracts around. If you’ve been with your current insurance carrier for years, it may have been a while since you’ve compared rates. Do it now. While you’re doing that, ask whether increasing your deductibles will net a worthwhile savings. Sometimes the savings are minimal—and probably not worth the added risk. But you’ll only learn that if you ask.

2) Conserve energy. Minor conservation efforts can make a big difference in your budget. If you’ve got timer-controlled sprinklers that run for 30 minutes each morning, cut them back to 25 minutes for a month to see if the plants still get enough water and you save any money on your water bill. Do the same with your hot water heater. Dropping the thermostat a degree or two may make no difference to residents, but it will create savings. Finally, depending on the size of your association, swapping old-fashioned light bulbs out for more efficient compact fluorescent bulbs can save money. Compact fluorescents aren’t inexpensive, so you’ll take an initial budget hit. But you’ll see lower energy costs over time.

3) Do it yourself. If your association is in dire straits, evaluate all your expenses to determine if you can bring any functions in house. If you have a management company, is it possible to eliminate that expense and run the association yourself? (The opposite may also be true. If you’re self-managed, you may save money by having professionals keep an eye on your budget and get you discounts from their trusted vendors.) If you have landscapers, can you cut back on their work and let residents pick up the slack? You could pay for a spring and fall grounds cleanup while bringing grass cutting and flower planting in house. Finally, explain the situation to homeowners and ask owners who are professionals for discounts or freebies. For example, if you have a resident accountant, ask if she’ll prepare the association’s annual tax filing for free or at a discounted rate.

4) Fix it now. Homes are like cars. Routine maintenance helps prevent larger, more expensive problems from creeping up on you. Create a checklist of your major mechanical and building systems. Then ask residents with expertise or outside contractors to check those systems to see if a minor upgrade or repair now will extend the life of the system. For example, if you’ve got a roofer in the house, ask if he’ll volunteer to inspect the roof and do minor patching on areas that may become a problem in the near future.

If your budget is still in the red after all of your trimming efforts, you may have to take more drastic measures—like raising assessments. Before you do, however, consider whether you can generate income. For example, your governing documents may permit you to rent your clubhouse to nonresidents for a fee. Or if your state allows you to earn money on reserves (some don’t), consider putting a lump sum that you don’t expect to use immediately in a safe investment with a higher return than a savings account.

HOA

The Homeowners’ Association: Angel or Devil?

Homeowners’ associations, or HOAs, are formal legal entities created to maintain common areas; they have the authority to enforce deed restrictions. Most condominium and townhome developments, and many newer single-family subdivisions have HOAs, which are usually created when the development is built. Covenants, Conditions & Restrictions (CC&R‘s) are issued to each homeowner, and HOAs are established to ensure that they are adhered to in order to maintain the quality and value of the properties involved.

Features of a Homeowners’ Association:

• Membership is mandatory for all property owners within the development
• Members are usually charged mandatory fees
• Homeowners associations have the authority to enact and enforce maintenance and design standards in addition to those established by City ordinances
• Homeowners’ associations are corporations with formal bylaws – there is usually a governing board which hires a property management company to handle maintenance and enforcement issues
• Many homeowners’ associations publish a newsletter

According to the Community Associations Institute:

• An estimated 50 million Americans live in association-governed communities. Some 1.25 million people serve on community association boards, with another 300,000-plus serving as committee members.
• About 6,000 to 8,000 new community associations are formed every year. This includes condominiums, cooperatives and planned communities. It is estimated that more than four in five housing starts during the past 5-8 years have been built as part of an association-governed community.
• The estimated real estate value of the homes in all community associations is about $2 trillion, approximately 15 percent of the value of all U.S. residential real estate.
• Estimated annual operating revenue for U.S. community associations is $30 to $35 billion.

In the Atlanta Metro area, each community is slightly different. You’ll find that is common for a Homeowners’ Association to handle all or some of the following:

• Establish and collect maintenance fees needed to run neighborhood operations
• Maintain community landscaping
• Maintain recreational facilities
• Provide space for events or neighborhood functions.
• Provide security
• Arrange for street maintenance
• Enforce deed restrictions including, but not limited to, exterior home maintenance, commercial use of properties, control of trash and blight.

Other restrictions that may be enforced by an HOA: parking on street, landscaping approval or types of plants, garage door being open, fence restrictions, pool restrictions, erection of basketball hoops or tree houses, storage of boats and RVs, number of pets, age requirements of residents. There can be more.

If you want to start a discussion on a controversial topic, start talking about Homeowners’ Associations. You are bound to find people who appreciate them, people who despise them, and people who are somewhere in the middle. Those who like Homeowners’ Associations say that they protect the value of their homes and neighborhoods. They do this by keeping the area looking attractive, and making sure no one does anything wild, like painting their house gold and pink, parking an 18-wheel truck on their front lawn, leaving dismantled vehicles in the street, or running a flea market in the driveway. Opponents of HOAs point to overzealous and unscrupulous HOA boards, fee increases that can’t be declined, and rules that are far too restrictive, from what kind of shrubs to plant, to placement of a clothesline, to preventing the displaying of the American flag. Anti-HOA organizations believe that the HOA are private governments that set themselves above the law.

Whether or not to live in a development governed by CC&R’s and an HOA is an individual choice. Prospective home buyers should:

• Read any CC&R’s recorded against the home and make sure they can live with the conditions and restrictions contained in the document prior to close of escrow.
• Find out what the current dues are. Once you buy the home, you can’t decline to pay the dues. If you do, you could be evicted and your home could be sold to liquidate the debt. HOA dues can range from $20 per month to hundreds per month, depending on the property and the amenities provided by the community.
• Find out how often the dues have been raised during the history of the HOA. Will you be able to withstand future increases or will you have to move? Find out if the HOA has cash reserves.
• Determine if there are term limits for the Board, and if Board members have attended training sessions in efficient HOA management
• Determine if there is litigation pending involving the HOA