 With the growth of private housing
developments and condominium projects has come increased state legislation concerning the
rights and responsibilities of the property owner, and the powers, duties and rights of
the association that govern and manage the developments. This column focuses on common
problems residents experience in communities governed by these associations. Association
members elected to a Board of Directors must deal with these problems in addition to their
other duties.
Also discussed
are the governing documents that enable the association to be formed and to carry out its
business, as well as fines, assessments, and the repair and maintenance of common
facilities. The common theme is the individual rights of the homeowner versus the
interests of the community or development as a whole.
First of all, whether you are moving into a condominium
development or a single family residential development, know that if a homeowners’
association exists in that development, you have to join the association. A
homeowners’ association is a nonprofit association formed to manage and maintain the
common areas of the property, and govern the way individual owners manage and maintain
their property.
Moreover, you will be given a pile of paperwork in relation
to the association. Four documents are very important to the ownership of your condo or
home. They outline rights the association will have over your ownership.
The first is usually the Declaration of Conditions, Covenants
and Restrictions (CC&Rs). This is a document that was written by the developer and
recorded with the local Recorder’s Office. It is really the master document that
spells out all the rights that the homeowners’ association and individual owners will
have. It is usually a long and complicated document, but you should definitely take the
time to read the CC&Rs to be sure you understand all the requirements of the
association.
The next document usually is the Articles of Incorporation.
Since the association is normally a nonprofit corporation, it must formally incorporate
itself under the laws of your state. This is the document that creates the association.
The third document is the Association Bylaws. The last set of documents contains the Rules
adopted by the homeowners’ association to govern people living on and using the
property.
The people who will learn to know these documents the best
will be the members who run the association, who are properly elected to a board of
directors by a majority vote of property owners according to the bylaws. Terms of office,
responsibilities, powers, method of removal from office, and other issues under state law
are contained in the bylaws. Also, depending on the bylaws, the board of directors is
usually not paid for its time and effort.Top of next column  |
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Also, various committees help the board manage the affairs of
the development. A great deal of work is involved in a development or condominium project.
The board may hire property management companies to handle day-to-day affairs of the
development, or consultants, such as attorneys and accountants, to advise and assist
directors in their duties.
Although homeowners’ associations are important to
private development property owners, there may be times when you are frustrated by these
associations. If you don’t think your association is being maintained properly, be
sure to notify the board of directors of your concerns, stating the problems as you see
them. Request that the board consider taking appropriate action. You may have more clout
if you can convince other property owners to join you.
Furthermore, the association has the right to set general
monthly assessments, and also special assessments for projects on the property, and can
hand out fines for noncompliance with rules and regulations. However, the assessments and
fines are subject to limits defined in the association bylaws and by state laws affecting
such associations. For example, if a home improvement or structural regulation is
violated, the homeowner can be forced to remove or modify the home to conform to
previously adopted standards. Or if, say, a major drainage problem occurs and repair is
necessary, a special assessment can be levied on each property owner.
Association boards set special assessment fees for owners to
underwrite major repairs or improvements, as well as for general upkeep, such as
landscaping and street paving. Matters of security and maintaining architectural standards
are also important responsibilities. Keeping the association’s financial records is
another of the board’s duties.
Finally, I am often asked if home or condo owners can sue
each other, or the association and its board, over damage allegedly caused by another
property owner, or because of the board’s actions. The answer is yes. Usually the
board will attempt to work out problems as they arise, and often they are successful. But
this is America and you can file a lawsuit over anything and have your day in court.
However, this street runs both ways. The association can also sue owners and have its day
in court, too.
And remember, that’s the law, and it’s your right
to know! LVN
Bob Massi is the legal consumer analyst for the FOX NEWS CHANNEL. He is also a radio talk
show host on KDWN-AM and the author of A Layman’s Guide to the Law. The law practice
of Robert A. Massi can be reached by calling (702) 870-1100. Massi practices primarily in:
personal injury, real estate law, business law, wills and trusts and legal consultations. |
