In this, the fourth installment, I present an outline of a rules enforcement policy; what should be included, and what should be avoided.
Now that you’ve got those great new rules for your association, how are you going to enforce them? Here, in Part 3 of the 4 part series, I talk about the first steps of the enforcement process.
Miss the other parts? Here’s a link to Part 1, on the distinction between regulations and rules, and here’s a link to Part 2, on an association’s successful adoption of a pet policy.
In this installment of the Rules and Regulations presentation, I discuss an association’s successful adoption of a pet policy.
This is the second installment of a four-part series on Rule Making and Enforcement. Here’s a link to thefirst installment, on the distinctions between regulations and rules.
DISCLAIMER: In the interests of poetic license, preservation of confidentiality and due to a failing memory, certain aspects of the story have been changed.
On Saturday, as I had promised (threatened?), I presented a session of the Essentials for Community Association Volunteers at Daybreak. For the enjoyment of my readers, I filmed the presentation, and will present it in four parts. Here’s the first part, dealing with an overview of rules and regulations. (And yes, they’re different. Watch the video to find out how.)
In connection with the final preparation for my NBI/Westlaw seminar today, I inquired as to the residences of the attendees. The list’s not complete, but it looks like there will be about 100 participants from all around the country. So it’s going to be impossible to try to focus on local laws.
I did find, however, a listing in Powell on Real Property which attempts to categorize states based upon the “generation” of their community association standards. The Uniform Common Ownership Interest Act, (“UCIOA”) is considered the latest (Third Generation); as of the latest update, it has been adopted in Connecticut and Vermont (1994 version) and in Alaska, Colorado, Minnesota, Nevada and West Virginia.
“Second Generation” states, with the Uniform Condominium Act, include Alabama, Arizona, Maine, Minnesota, Missouri, Nebraska, New Hampshire, New Mexico, North Carolina, Pennsylvania, Rhode Island, Texas, Virginia and Washington. The District of Columbia, Louisiana, Michigan and Wisconsin, according to Powell, have enacted fragmented portions of the uniform condominium act.
Several states, including most notably California, Nevada and Florida have highly unique statutes which are regularly amended.
The most valuable aspect of this information (to the extent it is current) is that it may lead you to other states with statutes similar to your own; that’s helpful when conducting your legal research.
The National Business Institute has asked me to present a national teleconference on the subject of amending community association (HOAs, Homeowner Associations, Home Owner Associations, condominiums, PUDs, Planned Unit Developments — whatever you want to call them) governing documents.
The course will be held on May 17, 2010; I’m going to be looking into whether NBI will let me have a few guests in our training center, so that I’m not talking into a telephone. I’m also looking into the possibility of a video recording for future access.
Meanwhile, over the next several days I will be working on the course materials, so if there are any sample materials that you want me to include, let me know and I’ll try to include some.
Is the topic for the Utah Chapter’s Managers’ Munch this Friday. Two other lawyers (John Morris and Peter Harrison) will be joining me on a panel to discuss what we see as the nine most common mistakes made by association boards.
I’ll follow up my comments with postings on this blog, but if you don’t want to wait, and/or if you want to see what John and Peter think, you ought to join us. The meetings are at the Cottonwood Club, and the food is usually pretty good. Register here, if you’re interested.
The press release from CAI says it as well or better than I can, so here’s the release:
The Foundation for Community Association Research has published Community Security, a 50-page resource that associations can use to determine their security obligations and decide which products and services can provide an appropriate level of security for their residents. Community Security is the eighth Best Practices report developed by the Foundation.
The new report addresses association security obligations; security services; video surveillance and alarm systems; access control systems for vehicles and pedestrians; automated gate systems, and more. The publication includes two case studies and a checklist for securing communities.
The report can be downloaded for free at www.cairf.org or purchased in hard copy by CAI members for just 12.95 ($22 for nonmembers) through Community Associations Press at http://www.caisecure.net/. The complete collection of eight best practice reports can be purchased by CAI members for $24.95 ($42 for nonmembers).
Other free, downloadable Best Practice reports are:
* Financial Operations
* Governance, Resident Involvement and Conflict Resolution
* Community Harmony/Spirit/Involvement
* Strategic Planning
* Reserve Studies/Management
* Transition (from developer to homeowner control)
* Energy EfficiencyBest Practice reports have been downloaded almost 7,000 times this year alone.
“We develop Best Practice Reports so individual community associations don’t have to start from scratch,” says Foundation President Robert Browning, PCAM, RS, of Browning Reserve Group in Sacramento. “Like all of our reports, Community Security was developed by leaders in their areas of expertise. For Community Security, we relied on the knowledge and experience of multiple contributors who share practical information that can save association boards time and unnecessary expense, not to mention missteps.”
The Foundation is a nonprofit, research-driven group established in 1975 by Community Associations Institute (CAI). The Foundation supports and conducts research and makes that information available to professionals and volunteers involved in community association governance.
“We help volunteer community leaders and professionals better understand the increasingly sophisticated nature of community association management and
governance,” says Executive Director David Jennings, CAE. “Our goal is to provide insight and information to those who work to make communities the best they can be.”The Foundation is supported by voluntary contributions that can be made on membership renewal applications.
CAI is a national organization dedicated to fostering vibrant, effective and harmonious community associations. CAI members include community association volunteer leaders, professional managers, management firms and businesses that provide a variety of products and services to community associations. More information on CAI and its 58 local, regional and state chapters is available at www.caionline.org or by calling toll-free (888) 224-4321.
Many of you will be familiar with the case of Committee for a Better Twin Rivers v. Twin Rivers Homeowner’s Association.
For those of you who are not, a brief background:
Twin Rivers was a huge planned community in New Jersey, and at least one resident thought the community was unduly restrictive. So, keeping with the American Way, he sued. His lawsuit led to an intermediate appellate opinion, in which it appeared as though the Courts of New Jersey may have been required to assure that associtions were providing consitutional-level rights to their residents.
Needless to say, the case created quite an uproar in the community association business.
Anyway, several weeks ago, the case was reversed by New Jersey’s highest court. There has been lots of commentary since.
The Community Associations Institute (CAI)’s Center for Community Association Volunteers (CCAV) developed the Community Association Governance Guidelines (PDF)—12 principles that can help homeowner volunteer leaders build better communities.
ANNUAL MEETINGS. Conduct at least one membership meeting annually, providing at least two weeks notice to homeowners and more than two weeks if specified in the governing documents or dictated by state statute.
ASSESSMENTS. Collect assessments and other fees from homeowners in a timely and equitable manner and in accordance with state statutes and board-approved procedures.
COMMUNICATION. Provide at least one form of regular communication with residents, and use it to report substantive actions taken by the board.
CONFLICTS OF INTEREST. Disclose all personal and financial conflicts of interest before assuming a board position and, once on the board, before participating in any board decisions.
ELECTIONS. Hold fair and open elections in strict conformance with governing documents, giving all candidates an equal opportunity to express their views and permitting each candidate to have a representative observe the vote-counting process.
FINANCIAL TRANSPARENCY. Share critical information and rationale with residents about budgets, reserve funding, special assessments and other issues that could impact their financial obligations to the association. Give members an opportunity— before final decisions are made—to ask questions of a representative who is fully familiar with these financial issues.
FORECLOSURE. Initiate lien and foreclosure proceedings only as a last step in a well-defined debtcollection procedure—and only after other, less-disruptive measures have failed to resolve a serious delinquency issue in a specified period of time.
GOVERNANCE AND THE LAW. Govern and manage the community in accordance with all applicable laws and regulations. Conduct reviews of governing documents to ensure legal compliance and to determine whether amendments are necessary.
GRIEVANCES AND APPEALS. Allow residents to bring grievances before the board or a boardappointed committee, and follow well-publicized procedures that give residents the opportunity to correct violations before imposing fines or other sanctions.
RECORDS. Allow homeowners reasonable access to appropriate community records, including annual budgets and board meeting minutes.
RESERVE FUNDING. Account for anticipated long-term expenditures as part of the annual budget development process, commissioning a reserve study when professional expertise is warranted.
RULES. Enforce all rules, including architectural guidelines, uniformly, but only after seeking compliance on a voluntary basis. Distribute proposals for new rules and guidelines to all homeowners and nonowner residents. Advise them when the board will consider new rules and encourage input. Once adopted, new rules and effective dates should be distributed to every owner and resident.
Note: Laws governing community and condominium associations vary considerably from state to state. In addition to understanding and adhering to these laws, community
association leaders need to be aware of legislative and regulatory issues that could affect their associations. You can do that by joining CAI and supporting your state’s
Legislative Action Committee.
The Community Association Governance Guidelines are offered by CAI’s Center for Community Association Volunteers (CCAV) to help board members and other community leaders create and sustain more effective, harmonious communities. This initiative supports CAI’s mission of making community associations better—even preferred—places to call home.
