HOAs

Okay I am old-fashion

2010-08-13T23:38:00.000-07:00

I have been accused of being old-fashioned, which took years of quality and continual training. And the experience has not been the result of alcohol or marijuana abuse. My experience came from hard-knocks and hard-earned lessons from teachers of moral standards and substantial intellect.

I have learned but I am not patient with modern practices that change old standards for the mere sake of change and in some cases for the sake of greed. This economy was not caused by old-fashioned thinkers. We learned our lessons from the depression and other recessions. Our current financial climate was caused by greedy, modern, thought-they-had-the-world-by-the-tail geeks. (That sounded old-fashioned…What can I say?).

Below is the “old-fashion creed” as composed by the old geezer, Chuck Plake.

Old-Fashion Creed

We believe that a budget is a tool for management to control expenses based on income. The budget must be relevant monthly and not six months down the road hoping that everything will balance itself. Controlling our expenses is paramount to avoid frequently raising dues. We must have the proper tools.

We believe that a community manager is a property manager first because that makes the community happy. Abandoned cars should be removed by the property manager.

We believe there is a need for dual signatures on the HOA checking account even though bankers don’t check signatures. It gives homeowners a feeling of security to know that a homeowner is authorizing expenses.

We believe that we should discontinue the voting of the Bylaw change, because the membership has made a statement by not voting. They don’t want to change the Bylaws.

We believe that the Board represents homeowners in the entirety not for themselves or individual homeowners.

We believe in hard work.

We believe that Jesus, Buddha, Confucius, and Mohammad are old-fashioned but worthy of good advice.

Ice Cream Social

2009-09-05T10:06:00.000-07:00

I sent an essay to Dreyer's Ice Cream to win one of the 1500 prizes for a Neighborhood Ice Cream Social. My essay was selected and we will be having our Ice Cream Social on September 12, 2009.

Below is my entry:

I am a 72-year old retiree who happens to live in (my town), the home of my alma mater (my university's name). I live in a condominium complex of 136 units with a community pool. The residents are a mixture of college students, retirees, and hard-working people with school-age children. The college kids love to gather around the pool to mix it up, but the old folks stay away, afraid to show their wrinkles or robust bellies.

Some of us are always looking for ways to bring our neighbors together. We have tried hamburger barbecues, Arbor Day festivities, yard sales and G.A.I.N. parties with some success. But I think that a good old-fashioned ice cream social would be a huge success. This year, due to the state of the economy, we have found it necessary to cut back on expenses and would appreciate an ice cream social to bring our neighbors together.

In my opinion, the young, the old, and the ‘in-between’ would flock together for a chance to get a dish of ice cream on a hot Arizona day.

Property or Association Management Company

2009-08-29T11:02:00.000-07:00

The owner of our property management company is trying to run our Association now. Check out the first two sentences in her website, Association management is a specialized field. We are not "property managers." Our Association needs a property manager not an association manager. The Board runs the Association. On our Association website the property management company pictures are at the heading. It's all about her and her company.

What our governing documents say

The CC&Rs state, "The performance of the various duties and obligations of the Association may be performed in whole or partly by a management company selected by the Association in accordance with the Bylaws of the said Association."

The Bylaws state, "The affairs of the Association shall be managed by its Board of Directors."

She tries to run our meetings

When a previous president was voted out, the owner of the management company ran the annual meeting. When I was president, she tried to run the annual meeting and I sat her down. At the last Board meeting with a new president, she took control causing the meeting to extend beyond the two hours allotted for the meeting. She was again beating up on our maintenance man.

Our Green Lawn Took a Dive Thanks to Our Landscape Company

2009-08-10T18:51:00.001-07:00

In Support of Our Maintenance Man

2009-08-09T04:55:00.000-07:00

The names have been substituted with titles to avoid embarrassment of companies and individuals and to protect the innocent.

On August 4, 2009, two representatives of the association’s property management company consumed most of the association meeting beating up on our maintenance man. The maintenance man is a homeowner and a very good conduit between the homeowners and the Board. He is well-liked by many of the residents, because he keeps the property clean and bends an ear.

Many of his emails were written to voice concerns of the homeowners. He has been banned by the president in writing emails to the property management company. Below is an email that he wrote to the Board explaining some of the work that he does.

The maintenance man is on the property more than sixty hours each month but only charges for sixty hours. The property management company management says that he is paid too much. He is paid less than half of what the property management company is paid but is on the property 30 times the length of visits of the property management company.

I have been on the Board off and on for ten years. All of the previous property management companies have visited the property for inspections at least four times each month while this company inspects the property only twice each month. The Board pays this company more that two to three times what the other companies were paid.

I think the current property management company’s real complaint is that the maintenance man points out their lack of responsibility.

Below is the email by the maintenance man.

“Board

“At the meeting on Aug 4; (the owner of the property management company) informed me that (the landscape company) representatives went to her office and complained about me; apparently implying that I'm responsible for the irrigation problems. It's difficult to respond when I don't know what was discussed; so I'll just give a brief work description.

“As my contract makes reference to, I sometimes work on "sprinklers and related equipment". One way I do this is to operate selected sprinklers in manual mode. There is a reference card provided by the manufacturer and included with the automatic controllers that gives instructions on how to do this; and I follow those instructions as written. Manual mode temporarily overrides the programmed start and stop times and allows me to operate the sprinklers and check if any are broken or not functioning. When the manual override time expires, the controller defaults back to the original program, and the original start and stop times are not affected.

“There have been at least two occasions in the last month when I shut off controllers at some buildings to allow the painters to work without getting soaked. When the painters were done, I turned the controllers back on. There is a switch in each controller for this purpose; but once again the program times are not altered when the controller is turned back on.

“Since I don't attempt to actually program the days and times that the sprinklers operate, or alter the programming; I can't think of a reason that (the landscape company) would blame me. They need to look elsewhere.

“As I've mentioned to Board members recently, one vendor who was on our property to get information for an irrigation bid pointed out to me that a controller at (a specific address) was not even wired properly. He connected it so that it was receiving power, and then discovered there were no times programmed.

“A possible reason that timers may not function properly is power outages. If you've ever had to reset the clock on your microwave oven after a power outage, you can imagine that a surge could also upset the programming on the irrigation timers. The controllers have a battery for backup; but if the batteries are dead; or the contacts are corroded; then the program will need to be reset. These are some reasons why the controllers should be checked regularly; and in fact (the landscape company)'s contract stipulates they be checked twice a month.

“I thought I had a good working relationship with (the landscape company); but if I'm being accused behind my back, then I would be very disappointed.

“There is a final issue I'd like to address. Apparently some members feel that I should not have purchased irrigation valves and sprinkler bodies; and that the components I did purchase using funds from petty may not be good quality. The best response I can offer is that I purchased the components at (the landscape company irrigation specialist)’s request; and that past (president) was present when the request was made during a walk thru. As to the quality; they are the exact same parts that (the landscape company) uses, and were purchased from the same supplier.”

(Maintenance Man)

Response by homeowner: "(Maintenance Man) is a good resource."

R. V. Lot fees are anemic.

2009-08-08T05:27:00.000-07:00

1 vehicle

4 vehicles

1 vehicle

The fee to park a vehicle in the R.V. Lot is $100 per year. We collected $200 for 2009, but six cars are in the lot on August 8, 2009

This is evidence that the property manager is not doing their job.

Dirty Pool

2009-08-06T05:07:00.000-07:00

This is our beautiful green pool. While the algae adds color, I prefer and our homeowners prefer a beautiful clear and healthy pool.

The property management company is on the property twice each month for inspections. Most of the previous management companies would have caught this dirty pool, because they visited the property at least once each week and were available for phone calls and emails.

The maintenance man has been banned by the president to send emails because it adds too much work to the property management company.

Below is an email written by the maintenance man about the pool:

Board

"The Pool gate has been chained and locked since Wednesday the 5th. A Bearing on one of the pumps siezed (sic); and the pump had to be shut down. (The pool man) has already replaced the bearing, and the water should be clear...soon. The repair cost should be about $50. I was there when he turned the pumps back on; and there was alot (sic) of noise coming from them, so I wouldn't be surprised if there is another failure soon due to the age of the components."

(Maintenance Man)

Complaint by homeowner: "Subject: Pool is out of order for a week . . .Do you know when it will be operational? My nephew cried his eyes out on Wednesday because the pool was green. I didn't realize that it was out of order as there was not a sign. I stopped to pick up my mail yesterday and noticed that it's still green. This is the time of the year that people
want to enjoy the pool. Can you help get this resolved?"

(Homeowner)

New Statutes Do Not Make the Community Documents Better

2009-01-10T09:49:00.000-08:00

By Jason E. Smith, Esq.
Carpenter Hazlewood Delgado & Wood

Sometimes the legislature gives rights, and sometimes it takes them away. As we approach a new legislative season here in Arizona, remember that it is usually the latter. In the context of community association law, the Arizona Legislature seems to always be busy enacting laws that appear to restrict the rights of associations. For instance, over the last few years, the Legislature has regularly tinkered with parking prohibitions in planned community associations in A.R.S. Sec. 33-1809. This statute only applies to associations that have parking restrictions already in their governing documents. This law does not empower an association to prohibit or restrict parking of any vehicles not specifically exempted in the statute.

The same situation applies to the statutory exemptions on displaying flags, political signs, “for sale” or “for rent” signs, and other legislative muddling with community associations’ use restrictions. The point to be reinforced here is that CC&Rs should be the first document to consult in order to determine the rights and obligations of an association and its members. If the governing documents do not contain provisions that prohibit parking of certain vehicles, for instance, the parking statute does not give power to the association to restrict parking of all the vehicles not listed in the statute.

A community’s set of CC&Rs are only as strong as the provisions they contain. The parking statute and several others in the planned community and condominium statutes start with the phrase “Notwithstanding any provision in the community documents . . .” This can mean one of two things: (1) if your governing documents are as strict as can be conceived, then they must allow the exceptions listed in the statute and (2) if your governing documents do not already restrict the activity in the statute, then this statute is not giving your community’s CC&Rs any new authority.

It is unlikely that the Legislature will give additional rights to associations when it makes.
changes to the law this session. Consult the CC&Rs and other governing documents first before
looking to the statutes for guidance. The statutes never make the association’s CC&Rs better.

New Federal Law for Pools and Spas

2008-09-07T15:22:00.000-07:00

Source: S. 1771: Virginia Graeme Baker Pool and Spa Safety Act

A new federal law, The Virginia Graeme Pool and Spa Safety Act, establishes new requirements on pools and spas drainage systems that are maintained by community associations and are open to the public. The law takes effect December 20, 2008 and will mandate that drain covers and outlet fittings meet the current standard of the American Society of Mechanical Engineers and the American National Standards Institute.

If the pool and spa has a single or main drain, it must be unblockable (i.e., it must be designed so that an object or human body is not able to block the drain and creating a suction entrapment hazard). The pool or spa must have a backup protection system to relieve vacuum pressure if something gets caught in the drain. Approved types of backup systems are: a suction limiting vent system; a gravity drainage system; an automatic pump shut-off system; or a device or system that completely disables the drain.

If a drain cover is broken, damaged, not fully secured, or missing, then the association is obligated under the new law to immediately close the affected pool or spa until the situation is remedied.

This tip is for informational purposes only and is not specific legal advice or a substitute for specific legal counsel. Readers should not act upon this information without seeking professional counsel.

Tips to Protect Your Association Against Unscrupulous Contractors

2008-07-13T08:41:00.000-07:00

In most cases, hiring a contractor is the job of the property manager, but the HOA Board is accountable for the actions of the property manager.

Below are some tips from hiring the wrong contractor.

Shop around! Ask for written estimates from at least three contractors.
Request a list of references and check them before agreeing to hire anyone.
Check with your state's Registrar of Contractors to make sure the contractor you are considering has a license.
Make sure the scope of the project, the price and any other relevant terms are spelled out in a written contract.
If you the project is large, ask the contractors to make a presentation before the Board. It is not rude to refuse an unsolicited sales presentation.
Never make a hurried decision especially on large projects.
No reputable contractors will try to pressure you into hiring them.
Get the address and phone number of the company and the credentials of the sales representative before hiring anyone.
Do not be rushed into hiring a contractor because the salesman says that the repair “is an emergency” or that your problem “is in violation of city code.” Neither may be true.
Assign a Board member to follow-up with the progress of the project. Projects often fall between the cracks and don't get finished.

The National Do Not Call Registry

2008-05-11T07:54:00.000-07:00

The National Do Not Call Registry gives you a choice about whether to receive telemarketing calls at home. Most telemarketers should not call your number once it has been on the registry for 31 days. If they do, you can file a complaint at The National Do Not Call Website. You can register your home or mobile phone for free.

Register all phones including cell phones. I have received solicitation calls on my cell phone. I don't know how they got the number, but they did. You will be charged for these calls. To prevent this, call the following number from your cell phone: 888-382-1222. Or you can go online and enter all of your number.

Your registration will not expire. Telephone numbers placed on the National Do Not Call Registry will remain on it permanently due to the Do-Not-Call Improvement Act of 2007, which became law in February 2008.

Protect Your Car and Valuables

2008-05-08T12:41:00.000-07:00

If your association is in a high crime-rate area, you may notice several break-ins and car thefts. It is a good idea to circulate a flyer to all resident and members to remind them of ways to protect their car and valuables.

1. Park your car in a lighted area.
2. Keep the windows rolled up and the car locked, even if it's parked at your own parking space.
3. Keep valuables in your car hidden. Consider buying a removable stereo face to keep in your trunk or carry with you.
4. Consider buying a visible mechanical locking device to lock the steering wheel, and/or an auto theft alarm system.
5. Install locking lug nuts to prevent your custom wheels or externally mounted spare tire from being stolen.
6. Keep in mind when purchasing a new car that some makes and models have a higher incidence of theft than others.
7. Keep your car registration and insurance card with you instead of in the glove compartment so that thieves cannot produce these documents if stopped by police.
8. Disconnect either the battery or the coil wire from the distributor cap if you have to leave your car unattended for an extended period of time. Car thieves will often not have the time or the desire to diagnose why the car won't start.
9. Take your ignition keys to a locksmith or car dealer to remove the key number, which thieves can use to have the keys duplicated (jot down the number for your records first).
10. Etch the vehicle identification number (VIN) onto the doors and fenders of your car with an electric engraver for extra protection. This helps to discourage professional car thieves, who will have to remove the markings to resell the car.

What happens to the assessment lien in foreclosure?

2008-04-24T15:22:00.000-07:00

In most of the bankruptcy cases, HOA attorneys are seeing the lender get stay relief in order to foreclose or else the lender is foreclosing after the owner gets dismissed out of the bankruptcy. In other words, the lender is routinely wiping out the assessment lien.

It is a good idea to watch your past due assessment closely.

FCC on Satellite Dishes and Television Antennas

2008-04-14T15:27:00.000-07:00

Several years ago, federal statutes were enacted that allow the Federal Communications Commission (FCC) to overrule associations’ governing documents regarding the installation of antennas and certain satellite dishes. The FCC subsequently expanded this rule to cover Internet dishes.

The FCC rule covers television antennas of any size, as well as fixed wireless devices that are one meter or less in diameter regardless of the nature of the services provide through the antenna. The rule governs the personal reception of these services, not the distribution of services.

The FCC rule applies to property that is owned by an association member. It also applies to property that is under the exclusive use or control of an association member, such as a private patio or balcony. Associations may still ban or regulate satellite dishes on the common areas.

These federal statutes overrule certain governing document provisions: (1) Provisions that completely ban antennas throughout the association; (2) Provisions that require prior approval from the association before the installation of an antenna; (3) Provisions that require antennas and satellite dishes to be painted a certain color if painting them will void the manufacturer’s warranty or affect the signal; and (4) Provisions that unreasonably increase the cost of such installation.

The association may adopt reasonable rules regarding antennas and satellite dishes such as requiring the owner to paint the antenna or satellite dish the color to match the house so long as the painting does not affect the manufacturer’s warranty or affect the signal. The association may also require the antenna or satellite dish to be placed in a location that is not visible from neighboring property so long as the owner can still receive an acceptable signal.

In the event of a violation concerning antennas or satellite dishes, the association may not impose fines until either a court or the FCC has found the association’s rules to be reasonable. The owner then has a certain time period to bring the antenna or satellite dish into compliance. Therefore, the association must bring a legal action for injunctive relief and/or to determine whether the rules are reasonable to require the owner to move the antenna or satellite dish.

Fully Licensed Vendors

2008-03-17T15:38:00.000-07:00

Generally, a “Contractor” as any person, firm, partnership, corporation or other entity that for compensation undertakes to construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, road, excavation or other structure, project, development or improvement, connect such structure or improvement to utility lines, or provide mechanical or structural service for any such structure or improvement. This broad definition applies to many of the purposes for which an association will retain an outside vendor for repair and maintenance work.

Contractors in most states are required to be licensed unless their work falls into certain specified exceptions. Generally, licensing is not required for persons engaging in any work or operation for which the total contract price, including labor, materials, and all other items, is less than a certain amount. However, there are a few instances the exemption from licensing may not apply.

In some states, a person functioning as a gardener performing lawn, garden or tree maintenance also does not need a contractor’s license. Thus, an association’s landscaping company does not legally need to be licensed. Check with your state contractor licensing board.

An association should require that its vendors be fully licensed, bonded, and insured to protect the association from shoddy workmanship and potential liability. If a vendor is not licensed, then the licensing agency cannot order corrective repairs or restitution. Without proper bonding and insurance, an association could face serious liability if property is damaged or persons are injured due to a vendor’s activities on association property. Furthermore, foregoing the protection of working with a licensed, bonded, and insured vendor to save some money could open individual board members to potential liability for not acting in the best interests of the association.

Borrowing to Finance Major Repairs or Improvements

2008-03-10T17:12:00.000-07:00

In a recent tip of the week, we discussed the importance of reserve funds, as well as the consequences that an association may face if it does not maintain adequate reserves. If an association’s reserves are insufficient to fund a necessary project, the association may have to levy a special assessment to cover the costs. However, for many associations, taking out a bank loan to finance a major repair or improvement project may be another viable option.

The requirements for an individual association to obtain a loan may differ depending on the governing documents and the applicable law. In general, for a condominium association to obtain a loan, the language giving the association the power to pledge future assessments to pay back the loan will need to be present in the association’s declaration, pursuant to the Condominium Act. Most banks will want the association to pledge future assessments as collateral for the loan. If the declaration does not set forth the association’s right to pledge future assessments to pay back the loan, the association may have to amend the declaration to add such language before pursuing the loan. Although the Planned Community Act does not require that planned community associations have similar language in their declarations, the governing documents may set forth requirements for membership approval before the association can obtain a loan. It is essential that an association be familiar with its governing documents before beginning the process of obtaining a loan.

Depending on the financial situation of the association and the amount of the loan, the association may be able to avoid a special assessment entirely by obtaining financing for the project. However, the bank may require a special assessment or an increase in the annual assessments to ensure that assessment levels are adequate to fund the repayment of the loan. Again, this will depend on the association’s financial position and the size of the loan relative to the current assessment levels.

In summary, obtaining a loan to finance major repairs or improvements may be an option for an association. However, before taking such action, the association needs to understand the requirements of the law and its governing documents.

ICE Campaign--In Case of Emergency

2008-02-01T13:59:00.000-08:00

All of us carry our mobile phones with names & numbers stored in memory but no one know which number belongs to our closest family or friends. If we were injured or suddenly ill, attendants would have our mobile but wouldn't know who to call. Meet "ICE--the international In Case of Emergency campaign. "ICE" is a method of contact during emergency situations. As cell phones are carried by most now it is vital to store the number of a contact person or persons who should be connected during emergency under the name "ICE", In Case of Emergency.

Common Maintenance Issues

2008-01-07T09:10:00.000-08:00

The Board of Directors has noticed several violations in cable and telephone wiring and the placement of satellite dishes. Section 6 & 7 of the Association Rules and Regulations are specific in the installations of these elements. The management company has been advised to issue warnings and fines regarding these violations. Please make sure that your unit is in compliance. Following are the related sections:

6. CABLE, TELEPHONE, INTERNET WIRING INSTALLATIONS

a. Individual antenna installation must be approved in writing and in advance by the Board of Directors and must be in accordance with state and federal regulations.

b. The Association strictly regulates all utility installations (including, but not limited to, sewer, water, cable, satellite, Internet, telephones,etc.!).

c. Cable installation must come into the front units (#101 & #104) through the center breeze way and into the back units (#102 & #103) beside the front door or fireplace; be buried underground until the point of entry with no more than 12-14 inches of conduit encased cable above ground. Only one entry point is allowed. No cable boxes or splitters are permitted on any exterior wall. (The pictures shown above show properly installed cable.)

d. Telephone wiring must enter all units through the sidewall main junction box by the electric meters!! Only one entry point is allowed.

e. No cable or wiring of any type may be strung on eaves, roofs or exteriors of buildings. Each unit is permitted one telephone and one cable entrance site unless otherwise specifically approved in writing by the Board of Directors additional wiring, connections etc. must be confined to the interior of the unit. (The wiring to the left is improperly installed.)

f. Licensed and insured contractors must do all electrical wiring. Contractors must provide the Board of Directors with accurate and current copies of their license and insurance prior to any commencement of work within the sub-division.

g. All homeowners/residents are required to advise installer, in advance, of the Rules and Regulations of the Association governing installations. For further information, please contact the property manager!

h. To commence Internet wiring to any unit within the Association, please contact the property manager.

7. SATELLITE DISH INSTALLATIONS

a. Dishes shall be installed in such location and in such manner as to cause the least structural damage!

b. A personal satellite, dish not exceeding 36 inches in diameter, may be installed in the patio area adjacent to each unit via permanent attachment to a mast not exceeding 8’ 6’ in total height. To insure personal and public safety the mast shall be anchored in concrete a minimum of 12" into the ground or placed into a 5-gallon bucket filled to a minimum of 75% capacity with concrete or ready mix.

c. The service cable should be run from the mast at or below ground level to a single entry point in the building masonry wall within the boundaries of the patio. The entry point should be no higher than 15 inches above pound level at the building masonry wall. The entry hole should not be larger than 3/4 inch in diameter and lined with a plastic entry point plug similar to that used at the cable television entry point!!

d. All installations must be done in accordance with professional industry and safety standards. All costs of installation, maintenance, and security will be the responsibility of the unit owner!!

e. Dishes located on eaves. The Association restricts wiring up/down the exterior walls, around the exterior of buildings, across rooftops and along walls. All satellite wiring/cable run from dishes installed on eaves shall be run under and enter the unit immediately under the eave of the building at location of dish. All cable, wiring splitters and boxes shall be limited to the interior of the individual unit. (The dish to the left is properly installed.)

f. No satellite dish may be installed on any air conditioning unit, chimney or rooftop. Unapproved satellite dish installation may be construed as intentional property damage. (The dish to the right is improperly installed.)