A well-maintained community landscape helps to increase owners’ enjoyment of their property and enhance the investment value in their home. Many condominium associations encourage residents to get more involved. Although landscaping committees are not a requirement, forming one may alleviate the stress and workload of the general association board. Regardless of the size of your community’s common areas, or the dollar amount of your landscape budget, a committee formed with the sole purpose of watching over your landscape can prove to be an asset to your association.

There are a variety of ways to start your landscaping committee. First, determine which type of committee is needed, standing or ad hoc. A standing committee, formed to last throughout the year, meets on a regular basis and handles ongoing landscape needs. An Ad hoc committee is formed to address a specific project or issue and is designed to exist for the duration of the project.

Prior to appointing volunteers to the landscape committee, the Board of Directors should determine specific guidelines for the committee to keep things under control and ensure all parties are happy. Once appointed, the committee members should hold formal meetings on a regular basis to discuss their findings. Some responsibilities often assigned to Landscape Committees include:

· Creating recommendations for the Board on landscaping improvements.

· Obtaining proposals from two or three landscape companies covering the scope of work for a project.

· Evaluating proposals and checking references.

· Expressing the community’s desires to the landscaper and/or walk the property with the landscape provider.

· Inspecting the work performed by the landscape provider and suggesting additions and improvements as needed.

· Providing updates and feedback to the Board on landscaping and grounds maintenance issues.

While the landscape committee does not have the authority to act without the Board’s approval, they are still very important to the association. The volunteers that serve on the committee do so for the benefit the community as a whole. Their primary responsibility is to preserve and maintain property value and the results of those efforts will be a clean, safe, and enjoyable place to live.

One of the most stressful parts of being part of an HOA is how to proceed when a homeowner stops paying their maintenance fees. When owners don’t pay their association fees, the rest of the property owners have to make up the difference through higher fees, special assessments, or reduced spending on community amenities and upkeep. If the unpaid assessments are large enough, the HOA can face an enormous problem that can destroy the HOA if it’s not resolved. Many banks will not loan an association money for capital improvements if 8% of an association’s units fall behind on their payments. At 15% delinquency, they can no longer attain a federally backed mortgage, meaning that only cash buyers are eligible to buy foreclosed units. Trying to collect unpaid assessments can be expensive, frustrating, and stressful. However, there are a variety of strategies for HOAs to use to collect unpaid fees.

This may include:

• Suspending the owner's right to vote

• Suspending the owner’s use of the common areas until past due assessments are paid. This tactic is especially helpful with rental units. Tenants will typically put pressure on their landlord if they can’t use the amenities.

• Suspending access to utilities.

• Suspending the owner's rights and privileges to cable TV, laundry facilities, parking, etc.

• Recording a lien against the property

• Filing a collection lawsuit against all owners listed on the title of the property.

• Commencing foreclosure proceedings to sell the property

It is best to act quickly with each option and be consistent in regards to your actions towards all homeowners. If collection efforts are pursued, the amount due and owing will include all past due assessments, late fees, interest, administrative fees, collection costs, and legal fees incurred by the association as a result of the delinquency.

The prompt payment of Assessments by all owners is critical to the financial health of our communities. It is important to have the support of a professional management company to support your collection efforts in a fair, consistent, and effective manner. Contact The Management Trust by calling or clicking here.

Let’s face it-contemplating a catastrophe can be stressful in itself. Does your family have a disaster and communication plan? While it certainly is not enjoyable to think about, why not start this year with a plan to keep you and your loved ones safe and secure should a disaster strike? According the federal government’s website, Ready.gov, here are the top tips you should consider when planning for an evacuation

Before an evacuation:

Learn the types of disasters that are likely in your community and the local emergency, evacuation, and shelter plans for each specific disaster.

-Plan how you will leave and where you will go if you are advised to evacuate.

-Identify several places you could go in an emergency such as a friend’s home in another town or a motel. Choose destinations in different directions so that you have options during an emergency.

-If needed, identify a place to stay that will accept pets. Most public shelters allow only service animals.

-Be familiar with alternate routes and other means of transportation out of your area.

-Always follow the instructions of local officials and remember that your evacuation route may be on foot depending on the type of disaster.

-Develop a family/household communication and re-unification plan so that you can maintain contact and take the best actions for each of you and re-unite if you are separated.

-Assemble supplies that are ready for evacuation, both a “go-bag” you can carry when you evacuate on foot or public transportation and supplies for traveling by longer distances if you have a personal vehicle.

If you have a car:

-Keep a full tank of gas in it if an evacuation seems likely. Keep a half tank of gas in it at all times in case of an unexpected need to evacuate. Gas stations may be closed during emergencies and unable to pump gas during power outages. Plan to take one car per family to reduce congestion and delay.

-Make sure you have a portable emergency kit in the car.

-If you do not have a car, plan how you will leave if needed. Make arrangements with family, friends or your local government.

During an evacuation:

A list of open shelters can be found during an active disaster in your local area by downloading the FEMA app

-Listen to a battery-powered radio and follow local evacuation instructions.

-Take your emergency supply kit.

-Leave early enough to avoid being trapped by severe weather.

-Take your pets with you, but understand that only service animals may be permitted in public shelters. Plan how you will care for your pets in an emergency now.

If time allows:

-Call or email the out-of-state contact in your family communications plan. Tell them where you are going.

-Secure your home by closing and locking doors and windows.

-Unplug electrical equipment such as radios, televisions and small appliances. Leave freezers and refrigerators plugged in unless there is a risk of flooding. If there is damage to your home and you are instructed to do so, shut off water, gas and electricity before leaving.

-Leave a note telling others when you left and where you are going.

-Wear sturdy shoes and clothing that provides some protection such as long pants, long-sleeved shirts and a hat.

-Check with neighbors who may need a ride.

-Follow recommended evacuation routes. Do not take shortcuts; they may be blocked.

-Be alert for road hazards such as washed-out roads or bridges and downed power lines. Do not drive into flooded areas

After an evacuation:

-If you evacuated for the storm, check with local officials both where you’re staying and back home before you travel.

-Residents returning to disaster-affected areas after significant events should expect and prepare for disruptions to daily activities, and remember that returning home before storm debris is cleared is dangerous.

-Let friends and family know before you leave and when you arrive.

-Charge devices and consider getting back-up batteries in case power-outages continue.

-Fill up your gas tank and consider downloading a fuel app to check for outages along your route.

-Bring supplies such as water and non-perishable food for the car ride.

-Avoid downed power or utility lines; they may be live with deadly voltage.

-Stay away and report them immediately to your power or utility company.

-Only use generators away from your home and NEVER run a generator inside a home or garage, or connect it to your home's electrical system.

Whether HOA board members have been working together for years, or there are a good amount of new members, it’s always a good idea to take a step away for actual work and take time for team building.  An HOA is a team of people working together for the common good of the community. Building morale, improving communication, and just getting to know each other better can only have a positive effect on the community as a whole. Here are some effective team building games to encourage a more efficient and happy board, or in any workplace!

Two Truths and a Lie

Time Required: 15-30 minutes

Start out by having every team member secretly write down two truths about themselves and one lie on a small piece of paper – Do not reveal to anyone what you wrote down! Once each person has completed this step, allow 10-15 minutes for open conversation – much like a cocktail party – where everyone quizzes each other on their three questions. The idea is to convince others that your lie is actually a truth, while on the other hand, you try to guess other people’s truths/lies by asking them questions. Don’t reveal your truths or lie to anyone – even if the majority of the office already has it figured out! After the conversational period, gather in a circle and one by one repeat each one of your three statements and have the group vote on which one they think is the lie. You can play this game competitively and award points for each lie you guess or for stumping other players on your own lie. This game helps to encourage better communication in the office, as well as it lets you get to know your coworkers better.

Sneak a Peek Game

Time Required: 10 minutes

This problem solving activity requires little more than a couple of sets of children’s building blocks. The instructor will build a small sculpture with some of the building blocks and hide it from the group. The participants should then be divided into small teams of four. Each team should be given enough building material so that they can duplicate the structure you’ve already created. The instructor should then place their sculpture in an area that is an equal distance from all the groups. One member from each team can come up at the same time to look at the sculpture for ten seconds and try to memorize it before returning to their team. After they return to their teams, they have twenty-five seconds to instruct their teams about how to build an exact replica of the instructor’s sculpture. After one minute of trying to recreate the sculpture, another member from each team can come up for a “sneak a peek” before returning to their team and trying to recreate the sculpture. The game should be continued in this pattern until one of the team’s successfully duplicates the original sculpture. This game will teach participants how to problem solve in a group and communicate effectively.

The Take Away Game

Time Required: 5-10 minutes

This planning game only requires 15 coins of any time, including pennies. To play, the instructor can create multiple teams of two or have on group play another, with one representative from each team participating in each game until everyone has had a turn. The set up is simple: a coin is tossed to decide who goes first. Each side may remove two coins every time they call the it (heads or tails) correctly. The winner is the person/team removing that removes the last coin. The game can be made more complex by upping the number of coins a team can take when it’s their turn or by allowing coins to be put back. With increased complexity, the activity allows the teams a strategic planning stage. The goal is to have the players realize that simpler versions of the game can easily be planned and controlled by the team/person playing first.

Eye Contact

Time Required: 5 minutes

This trust exercise requires no special equipment, just an even number of participants. Making eye contact is sometimes difficult for people, as it requires a certain amount of trust and respect. Some people avoid it, while others simply aren’t very good at it; they make look away often or appear awkward or uncomfortable, sometimes fidgeting with other objects. This exercise, though simple, can help coworkers become more comfortable and trusting of each other through the practicing of eye contact. For this activity, have people group into pairs and stand facing each other. The idea is to have them stare into their partner’s eyes for at least 60 seconds. Neither participant should be wearing glasses or sunglasses of any kind. There may be some giggles at first, as it can feel somewhat awkward during the first try, but as participants get the hang of it, it should become easier for them to make eye contact for prolonged amounts of time.

What team building exercises do you enjoy using within your company?

We all want to be successful and meet our goals, but many of us get caught in the trap of narrowing down the pathway so that it resembles a one-way street that will only accommodate a single person at a time. Guess what? Not only does that usually not work, it's not fun, and doesn't have long term rewards.

Condo Association Management should be a team environment in order to achieve the highest rate of success. A great Board President will one day move away. A fabulous Property Manager will someday retire. The very astute Treasurer will tire of the endless hours of work with no pay, just complaints about special assessments. Such is life, and wise associations plan accordingly.

The team approach is this- the team members are the Board, the Manager, and the support staff of the Management Company. Each of the individual team members has the common goal in mind at all times. In very broad terms, the goal is usually something like "To maintain, preserve, and protect the assets of the association" although much more detail can be included. To that end, each team member works in conjunction with the others to produce the very best results possible whether the task is a newsletter or new roofs.

The individual team members each have certain duties that they must perform in order to bring a project to closure. The Property Manager is usually the advisor and researcher and is assisted administratively by support staff that may type, copy, and distribute information on the manager's behalf, to the members of the association. The Board is the decision maker and enforcer. After reviewing the research done and the documentation created by the Property Manager and the support staff at the management company, the Board makes decisions on the owners' behalf. Once decisions are made, the Property Manager and support staff implement the decisions made by the Board.

This approach is successful in many ways. It takes the burden and spreads it amongst several individuals, diminishing the instances of burn out of board members and managers. It broadens the scope of input and it assures the association members that informed decisions are preceded by due diligence.

The team approach mimics the old saying "Don't put all your eggs in one basket." We all know what happens when the basket tips over! Spread the workload and responsibility and you also spread the rewards of a job done well. If the Property Manager retires or the Board President moves away, there will still be others on the team that are well prepared to go forward with a new team member, creating a success story with longevity.

Management companies want every staff member to meet the high standards that are its company's standards in order to ensure the future of the business and secure long lasting business relationships. Boards that operate with a majority of "weak links" and only one or two active and involved members will not have long lasting success or relationships, as there always comes a time when those very involved people leave for one reason or another and then there is no leader, no link to the past, no plan for the future.

Recognizing that nothing lasts forever is a good start to building a team that can achieve success year after year. Share the knowledge, share the responsibility, and you will share ongoing success. Let a superhero lead the team if you have one handy, but keep tabs on those on the bench waiting to get in the game. Involve them too so that when the time comes, and it will, your association will be prepared.

Adapted from:

Christine Evans, PCAM, CMCA, Association Times, October 2004

A condo association's insurance policy typically helps cover the structure of the building and common areas. The association's policy, however, may or may not extend to the inside of your unit. And its coverage could be dependent on your state's laws. It's important to understand what a condo association's policy covers and how that differs from a condo owner's insurance policy.

The liability protection in a condo association's insurance policy may help cover legal or medical costs if the association is hit with a lawsuit — for example, if someone is injured after slipping and falling in a common area maintained by your association.

Then there's property coverage, which helps provide protection against covered perils for the common areas of the building that you share with all the other residents, like the roof, elevator, basement, courtyards or walkways.

When it comes to your unit, the Insurance Information Institute (III) says in some cases, the association's insurance may help protect the bare walls, floors and ceiling of your condo. You would then be responsible for covering things like kitchen cabinets, appliances, bathroom fixtures, and any plumbing and wiring in your unit with your own insurance policy.

Other times, the association's coverage may help protect your condo as it was built, including fixtures such as the original tub and appliances, according to the III. In this case, you would likely be responsible for the cost of replacing any upgrades in your unit.

The only way to really know which structural parts of your condo are covered by the association is to read its bylaws to learn what parts of your home are covered by the master insurance policy.

WHAT DOES A CONDO OWNER'S INSURANCE COVER?

A condo owner's insurance policy may include the following coverages:

• Protection for your personal belongings against covered losses

• Coverage for damage to the interior of your unit resulting from certain causes

• Additional living expenses if you're the victim of a fire or another disaster covered by your policy. (This coverage is usually available only if the covered loss makes your condo unfit for living.)

• Liability protection to help protect you if you're sued or if you are found at fault after someone has an accident in your unit

You may also want to ask about what other coverages your policy may include. For instance, loss assessment coverage may reimburse you for your portion of a bill split among all condo owners for a covered loss, such as a fire in your building's lobby, the III says. So, while you may not be shoveling the driveway or mowing the lawn as a condo owner, you still want to take the right steps to protect yourself and your investment in your place.

Adapted from: What’s Covered By a Condo Association’s Insurance Policy? www.allstate.com

How to run a board meeting using Robert’s Rule of Order

Board meetings provide a forum for disagreement when well intentioned board members do not see eye to eye on how to run an association. The utilization of Robert’s Rules of Order, the most widely used manual for parliamentary procedure in the United States, is essential to having differing opinions shared in a civil manner.  All too often, boards will not use any form of parliamentary procedure, and board meetings end in screaming matches where little is accomplished. Here is an overview of the rules: 

Motions

A motion is a proposal that the entire membership take action or a stand on an issue. Individual members can:

• Call to order
• Move a motion
• Second a motion
• Debate motions
• Vote on motions

Basic Types of Motions

• Main Motions introduce items to the membership for their consideration. They cannot be made when any other motion is on the floor, and yield to privileged, subsidiary, and incidental motions.
• Subsidiary Motions change or affect how a main motion is handled, and are voted on before a main motion.
• Privileged Motions bring up urgent items about special or important matters unrelated to pending business.
• Incidental Motions provide a means of questioning procedure concerning other motions and have priority.

Presenting Motions

• Obtaining the floor

• Wait until the last speaker has finished.

• Rise and address the Chairman by saying, "Mr. Chairman, or Mr. President."

• Wait until the Chairman recognizes you.

• Make Your Motion

• Speak in a clear and concise manner.

• Always state a motion affirmatively. Say, "I move that we ..." rather than, "I move that we do not ...".

• Avoid personalities and stay on your subject.

• Wait for Someone to Second Your Motion

• Another member will second your motion or the Chairman will call for a second.

• If there is no second to your motion it is lost.

• The Chairman States Your Motion

• The Chairman will say, "it has been moved and seconded that we ..." Thus placing your motion before the membership for consideration and action.

• The membership then either debates your motion, or may move directly to a vote.

• Once your motion is presented to the membership by the chairman it becomes "assembly property", and cannot be changed by you without the consent of the members.

• Expanding on Your Motion

• The time for you to speak in favor of your motion is at this point in time, rather than at the time you present it.

• The mover is always allowed to speak first.

• All comments and debate must be directed to the chairman.

• Keep to the time limit for speaking that has been established.

• The mover may speak again only after other speakers are finished, unless called upon by the Chairman.

• Putting the Question to the Membership

• The Chairman asks, "Are you ready to vote on the question?"

• If there is no more discussion, a vote is taken.

• On a motion to move the previous question may be adapted.

Voting on a Motion

The method of vote on any motion depends on the situation and the by-laws of policy of your organization. There are five methods used to vote by most organizations, they are:

• By Voice -- The Chairman asks those in favor to say, "aye", those opposed to say "no". Any member may move for a exact count.

• By Roll Call -- Each member answers "yes" or "no" as his name is called. This method is used when a record of each person's vote is required.

• By General Consent -- When a motion is not likely to be opposed, the Chairman says, "if there is no objection ..." The membership shows agreement by their silence, however if one member says, "I object," the item must be put to a vote.

• By Division -- This is a slight verification of a voice vote. It does not require a count unless the chairman so desires. Members raise their hands or stand.

• By Ballot -- Members write their vote on a slip of paper, this method is used when secrecy is desired.

There are two other motions that are commonly used that relate to voting.

• Motion to Table -- This motion is often used in the attempt to "kill" a motion. The option is always present, however, to "take from the table", for reconsideration by the membership.

• Motion to Postpone Indefinitely -- This is often used as a means of parliamentary strategy and allows opponents of motion to test their strength without an actual vote being taken. Also, debate is once again open on the main motion.

Parliamentary Procedure is the best way to get things done at your meetings. But, it will only work if you use it properly.

• Allow motions that are in order.

• Have members obtain the floor properly.

• Speak clearly and concisely.

• Obey the rules of debate.

Most importantly, BE COURTEOUS.

Adapted from: https://robertsrules.org/rulesintro.htm

It’s our last installment of Board Member 101. We’ve touched on 6 topics ranging from roles of Representatives to the three types of meetings. We hope this has given you an overview of all the basic things one would need to know on rules, roles and how to run a meeting. To finish it off, we are diving into what qualifies as a Specific Duty meeting.

Meeting type number one:

• Budgets:

• Must adopt a budget for daily operations and contributions to the reserves every year

• Look at previous budgets for the last 3-5 years as a model for the current budget

• Consult with an accountant

• Within sixty days of adoption of the budget, a summary must be mailed to all unit owners

• A meeting must be scheduled not less than fourteen days nor more than thirty days from the mailing of the summary

• The budget will be ratified unless a majority of the homeowners votes to reject it

Meeting type number two:

• Reserves:

• Reserves provide for replacement and repair of an element when its useful life has ended

• Adequate reserves are required by Nevada law. Hard to define.

• Reserve Studies indicate elements and life expectancy and estimate of cost repair.

• Necessity for Reserves:

• Fulfills fiduciary and professional requirements for Boards and managers to plan for the future

• Reserve amounts required to be disclosed to potential buyers

• Maintenance of Reserves:

• Must have a reserve study conducted at least every five years

• The Board must review the reserve study at least once a year to ensure that the reserve study is still accurate.

Meeting type number three:

• Investing Reserve Funds:

• Avoid unsuitable investments.

• The Board has a fiduciary responsibility to all owners to ensure funds are properly invested. Reserve funds may not be invested in instruments that a reasonable person would consider risky or unsafe.

• Nevada law requires that all Association funds be kept in a federally insured financial institution authorized to do business in Nevada.

• The Board should also ensure that the funds are available when needed.

• To ensure a wise investment decision, Associations should:

• Consult with legal and financial advisors about state laws related to reserves

• Review Association documents related to reserve funds

• Develop a written policy for reserve fund investments

• Review the investment policy each year

• Board members have a fiduciary responsibility to the Association and they may not delegate their legal obligation to protect the Association’s assets. The Board must invest Association reserve funds responsibly and in a way that provides first safety on the principle, then liquidity, and finally yield.

• Things to consider:

• Safety:

• Safety of income - measures the likelihood that anticipated income from an investment will continue to be paid in the amount expected and at the time expected.

• Safety of principal - refers to whether the principal value of the investment available at the outset will be available at maturity.

• Both categories of safety can vary in degree with specific investments.

• Liquidity:

• Liquid investments can be converted quickly into cash for emergency use or investment opportunities. Community Associations need liquid funds because a major repair or maintenance job could arise at any time.

• Yield:

• Yield is simply the return received on the investment. Generally, the longer the maturity period, the higher the yield; the shorter the maturity period, the lower the yield. Hence, a five-year CD usually yields more than a one-year CD. Also, the safer the investment, generally the lower the yield.

• The Board can protect its investment choice by addressing the following topics, before formulating an overall investment policy:

• General policy

• Goals and objectives

• Investment strategy

• Investment securities’ selection criteria

• Review and control procedure

• Investments Suitable for Reserves:

• CDs

• Money Market Accounts

• High interest Savings and CHecking

• Money Market Funds

• U.S. Treasuries and U.S. Treasury “Strips.”

Want to learn more? Stop by these additional posts: 

Part One - What are the roles of Association Representatives? 

Part Two - What is required of a Board Member? 

Part Three - Fiduciary Duties of Directors 

Part Four - Business Judgement Rule 

Part Five - How to Avoid Liability 

Part Six point One - What is a Board Meeting?

Part Six point Two - What is a Homeowner Meeting

How is the amount of the monthly assessment determined?

When the budget is prepared, the amounts necessary for the daily operation and long-term reserves for maintenance and replacement are determined based on the level of service for which the association is both required and willing to pay. For example, sometimes there are specific items defined in the CC&Rs that require a certain level of maintenance by the association.

Once the annual amount is determined, then it must be collected from the members in order for the association to operate. Each member’s assessment is usually collected monthly, in 12 equal installments. Some associations collect assessments on a quarterly or annual basis. The CC&Rs will normally indicate the frequency of assessment collections.

Are there different types of assessments or fees?

There are several types of assessments that may apply to your association. The California Civil Code defines assessments as either being regular or special. Regular assessments are needed for the operating (day-to-day) and reserve (long-term maintenance) activities of the association.

Special assessments are those levied by the association for major repairs, replacement, or new construction of the common area or for a one-time, unanticipated expense which cannot be covered by the regular assessment (e.g., insurance premiums that unexpectedly rise sharply).

Note, a special assessment should not be confused with a monetary penalty levied by the association against an individual owner to reimburse the association for an expense such as damage to the common area, or imposed as a disciplinary measure for a violation of the rules and regulations. Homeowners can be fined for damaging common areas and/or violating any rules and regulations of the association. Some CIDs establish user fees or special charges for services and activities that are not customary. Typically, these are imposed on an owner specifically benefiting from the service, such as an owner who wants to use the common area pool, clubhouse, or tennis courts to entertain private guests. The fees are usually on a pay-as-you-go basis and generally cannot become a lien on the owner’s unit or interest. There are other types of assessments that may be designated by the CID homeowners association. For example, an association may have an assessment for cable television service. A “reimbursement assessment” may be levied against an individual owner as a charge for damage to the common area resulting from an act by the owner or an owner’s guest. The best place to look for the different types of assessments that may apply to a CID is in the CC&Rs of the association.

Who can increase the amount of the assessment?

The board of directors can increase the amount of the assessment by following certain procedures mandated by California Civil Code sections 5605 and 5610. Even if the governing documents (Civil Code section 4150) are more restrictive, the board of directors may not increase the regular assessment more than 20 percent per year, without the approval of the owners. The board must circulate a budget to the membership 30 to 90 days before the end of its fiscal year (Civil Code section 5300). If the budget indicates that an assessment increase greater than 20 percent is necessary, a majority of the members of the association must approve the assessment. There are also provisions for a board to increase an assessment more than 20 percent without member approval in cases of emergency such as an extraordinary expense required by order of a court, or for repairs to the common area.

What happens if you do not pay your assessments?

Usually, the association will send you a reminder letter as a first step. The law is specific in California regarding the due date of assessments and the overall process that an association must follow regarding delinquent assessments. The law states that if an assessment is not paid within 15 days of the due date, a delinquency occurs, unless the governing documents provide for a longer time. At this point, the association can add a charge to your assessment in the form of a late fee in the amount of $10 or 10 percent of the monthly assessment amount, whichever is greater, unless the CC&Rs specify a lesser amount. Again, the law covering this area is quite clear and the board must follow these procedures.

Once a year, the association will send each owner a copy of the assessment collection policy, which will tell you the amount of the late fee. If your assessment becomes over 30 days delinquent the association has the right to assess interest up to 12 percent per year on the balance that is owed and unpaid. If you still fail to pay your assessments, the matter may be referred to an attorney or foreclosure service. The association has the right to lien your property for the amounts owed as well as other costs such as attorney’s fees. Ultimately, the association can foreclose and take your property for your failure to pay assessments. A personal judgment may also be entered against you. As you can see, it is imperative that all owners pay their assessments in a timely manner. Failure by several owners to pay their assessment obligation could place the association in financial jeopardy.

Last week we touched on a long list of details that go into Board Meetings, both regular and emergency. This week, we’re talking about the 2nd type of Association meetings; Homeowner Meetings. Read on to learn the ins and outs of how these typically run. If you want to catch up on all our other entries in the Board Member 101 series, head to the end of the post to find the links. 

• Notice 
  • Not less than fifteen days nor more than sixty days before the meeting, the secretary or other officer, as specified in the Bylaws, must either hand deliver or send by United States mail to the mailing address of each unit owner notice of the unit owners meeting. The owner may request, in writing, that the notice be sent to an alternative address. The notice must include an agenda for the meeting and notification of the right of an owner to: 
    • Have a copy of the minutes or a summary of the minutes of the meeting provided upon request. The unit owner may be required by the Board to pay the cost of providing the minutes. 
    • Speak to the Association or Board, unless the Board is meeting in executive session. 

• Agenda 
  • The agenda must adhere to the same as for Board Meetings (see more on those here). 

• Meeting 
  • A meeting of the owners must be held at least once each year. If the governing documents do not provide a date for the annual meeting, a meeting of the owners must be held 1 year after the date the last meeting was conducted. If a meeting has not been held in over 1 year, a meeting of the unit owners must be held on March 1st. 

• Quorum 
  • Unless the governing documents specify otherwise, 20 percent of the total voting members must be present at the beginning of the meeting. 
  • The quorum rules do not change the actual number of votes that are required under the governing documents for taking action on any particular matter. 

• Special Meetings 
  •  A special meeting of the unit owners may be called by the president, a majority of the executive Board, by 10 percent of the unit owners, or any lower percentage specified in the Association’s Bylaws of the total number of voting members. 

Want to learn more? Stop by these additional posts: 

Part One - What are the roles of Association Representatives? 

Part Two - What is required of a Board Member? 

Part Three - Fiduciary Duties of Directors 

Part Four - Business Judgement Rule 

Part Five - How to Avoid Liability 

Part Six point One - What is a Board Meeting?

Did you know there are three types of Association meetings? These three meetings consist of Board meetings, homeowner meetings, and meetings on specific duties. Today we will touch on the details of Regular and Emergency Board Meetings. If you’ve ever wondered about how these meetings work in your community, keep reading and be in the know!

Board Meetings (Regular and Emergency)

• Unless the CC&Rs or Bylaws provide a shorter period, a meeting of the Board must be held at least once every quarter and not less than once ever one hundred days.
• They must also review the following financial items:
• A current year-to-date financial statement of the Association
• A current year-to-date schedule of revenues and expenses for the operating account and the reserve account, compared to the budget for those accounts
• A current reconciliation of the operating account of the Association
• Financial items to be reviewed every quarter and not less than every 100 days:
• A current reconciliation of the reserve account of the Association
• The latest account statements prepared by the financial institutions in which the accounts of the Association are maintained
• The current status of any civil action or claim submitted to arbitration or mediation in which the Association is a party
• Notice:
• Except in an emergency or unless the Bylaws require a longer period of notice, at least ten days before the date of the meeting, the notice must be sent by U.S. mail to the mailing address of each unit or another address as requested in writing by the unit owner
• Or published in the newsletter or other publication circulated to each unit’s owner
• Notice may be sent electronically with owner consent
• Must state the time and place of the meeting and include a copy of the meeting agenda or date and location where a copy of the agenda may be obtained
• Must notice of a unit owner’s right to obtain a copy of the minutes or summary of the minutes at their own expense and their right to speak to the Association or Board, unless the Board is in executive session
• Emergency Meetings:
• In an emergency, an Association shall send the notice of the meeting by U.S. mail or the mailing address of each unit within the community. If mail is impractical, the notice must be hand-delivered to each unit or posted in a prominent place(s) within the community
• Agenda Must Contain:
• Topics to be discussed included proposed amendments to the CC&Rs or Bylaws, any fees or assessments to be imposed or increased, any budgetary changes and any proposal to remove an officer or member of the Board
• A list of items on which action may be taken, clearly denoting what action might be taken by the Board
• In an emergency, the Board may take action on an item which is not listed in the agenda
• A period devoted to owner discussion scheduled at the beginning and at the end of the meeting. Except in emergencies, no action may be taken upon an issue raised during the homeowner discussion
• Executive Session - A Board may meet in executive session only to:
• Consult with an attorney for the Association on matters relating to proposed or pending litigation if they contents of those communications are subject to the attorney-client privilege
• Enter into, modify or take other action on a contract between the Association and an attorney
• Discuss the character, alleged misconduct, professional competence, or physical or mental health of a community manager or an employee of the Association
• Discuss a violation of the governing documents alleged to have been committed by a unit owner, unless the unit owner requests in writing that an open hearing be conducted
• Discuss the alleged failure of an owner to adhere to a schedule
• A unit owner is not entitled to attend or speak at a meeting of the Board held in executive session
• An open hearing of the Board on an alleged violation of the governing documents may be held pursuant to the written request of the unit’s owner who allegedly committed the violation. Such owner may attend all portions of the hearing and testify concerning the alleged violation, except for deliberations of the Board.
• Homeowner Comments:
• A period for homeowner comments and discussion must be scheduled for the beginning (Agenda items only) or end of each Board meeting
• The homeowners are usually given a limited time to speak
• Minutes:
• The Secretary or other Officer specified in the Bylaws shall cause minutes to be recorded or otherwise taken at each meeting of the Board
• Within thirty days after each meeting, the minutes or a summary of the minutes must be made available to the units’ owners
• A copy of the minutes or a summary of the minutes must be provided to any unit’s owner upon request and, if required by the Board, upon payment to the Association of the cost of providing the copy to the unit’s owner
• Any matter discussed in executive session must be generally noted in the minutes of the meeting of the Board. The Board shall maintain minutes of any decisions made regarding a unit owner’s alleged violation of the governing documents, and shall provide a copy of the decision to the alleged upon request
• Quorum:
• Unless the governing documents specify a larger percentage, a quorum is deemed present throughout any meeting of the Board if persons entitled to cast fifty percent of the votes on that Board are present at the beginning of the meeting
• Voting:
• Only votes cast in person, by secret ballot or by proxy, are counted. No votes allocated to a unit owned by the Association may be cast
• If only one homeowner from a unit is present at the meeting of the Association, that owner is entitled to cast all votes allocated to that unit. If more than one of the unit owners is present, the votes allocated to that unit may be cast in accordance with the agreement of a majority in interest of the owners, unless the CC&Rs state otherwise. There is majority agreement if any one of the owners cast the votes allocated to that unit without protest made promptly to the person presiding over the meeting
• Voting Proxies:
• A unit’s votes may be cast by written proxy. A unit’s owner may give a proxy only to a member of his immediate family, a tenant of the unit’s owner who resides in the common-interest community, another unit’s owner who resides in the common-interest community. If more than one person owns a unit, each owner of the unit may vote or register protest to the casting of votes by the other owners of the unit through an executed proxy. A unit’s owner may revoke a proxy given pursuant to this section only by actual notice of revocation to the person presiding over a meeting of the Association

Want to learn more? Stop by these additional posts: 

Part One - What are the roles of Association Representatives? 

Part Two - What is required of a Board Member? 

Part Three - Fiduciary Duties of Directors 

Part Four - Business Judgement Rule 

Part Five - How to Avoid Liability 

We recently held a basic training for Board Members at our Nevada Division. Attendees received an overview of the basic things one would need to know on rules, roles and how to run a meeting. With such useful information compiled for the event, we thought it would be great to share with those in the Community Association world. We're already on Part 5, so head to our blog to read the first four, then join us as we share an even deeper look inside our Board Member Boot Camp! 

Today we are touching on how to avoid liability: 

- Rely upon your professional manager 

- Read and understand your governing documents 

- Stay informed of changes in the law 

- Handle issues in a timely manner 

- Consult with outside professionals before making decisions. This could be: 

     a. Your professional manager 

     b. Accountants 

     c. Attorneys 

     d. Architects 

     e. Reserve Study Specialists 

     f. Contractors 

     g. Engineers 

     h. Landscapers 

     i. Insurance Agents 

- Avoid conflicts of interests (no gifts or other compensation that would improperly influence their decisions) 

- Keep proper records 

- Ensure your community is adequately protected 

- Adequately funding reserves 

- Be respectful of other Directors and owners 

- Association meetings (there are 3 types which we will touch on in the coming weeks!) 

Want to learn more? Stop by these additional posts: 

Part One - What are the roles of Association Representatives? 

Part Two - What is required of a Board Member? 

Part Three - Fiduciary Duties of Directors 

Part Four - Business Judgement Rule 

Part Six point One - What is a Board Meeting?

Today, as part of our Board Member 101 series, we are discussing the Business Judgement Rule. Scroll to the end of this blog to start from the beginning! 

Directors Must Act: 

- In good faith 

- With the care that an ordinarily prudent person in a like position would exercise under similar circumstances 

- In a manner the Director reasonably believes to be in the best interests of the corporation 

- Safe Harbor - Bring in experts/consultants before voting on an issue 

Want to learn more? Stop by these additional posts: 

Part One - What are the roles of Association Representatives? 

Part Two - What is required of a Board Member? 

Part Three - Fiduciary Duties of Directors 

Part Five - How to Avoid Liability 

Part Six point One - What is a Board Meeting?

Have you been keeping up with Board Member 101? In this series, we are sharing all the basic things one would need to know on rules, roles, and how to run a meeting. Today, let's look at Part 3, the Fiduciary Duties of Directors. 

The Director must operate in a position of trust and adhere to specific standards of care including: 

- Obligation of good faith 

- Place the interests of the Association ahead of their own 

- Avoid conflicts of interest when 

     a. Voting on a contract where a Director's company is a bidder 

     b. Deliberating or voting on a fine for violations of the governing documents regarding your own home 

     c. Company you work for has an ownership interest in a bidder 

- If conflict exists, recuse him/herself and not deliberate, participate, or vote on the pending matter 

All officers and members of the executive Board are fiduciaries and shall act on an informed basis, in good faith, and in the honest belief that their actions are in the best interests of the Association. 

Want to learn more? Stop by these additional posts: 

Part One - What are the roles of Association Representatives? 

Part Two - What is required of a Board Member? 

Part Four - Business Judgement Rule 

Part Five - How to Avoid Liability 

Part Six point One - What is a Board Meeting?

Board Member 101 was created to give you a look inside of our recent training held in our Nevada Division. We recapped the roles of association representatives in our last post, and in part two we’re jumping to requirements. 

This week let's discuss... What is required of a Board Member? 

- Comply with applicable federal, state and local laws. 

- Enforce the provisions of the governing documents. 

- Hold meetings with such frequency as to properly and efficiently address the affairs of the Association. 

- Ensure the Board obtains at least 3 bids from service providers who possess proper licensing for any service used. 

- Ensure the Board consults with appropriate professionals before making major decisions. 

Want to learn more? Stop by these additional posts: 

Part One - What are the roles of Association Representatives? 

Part Three - Fiduciary Duties of Directors 

Part Four - Business Judgement Rule 

Part Five - How to Avoid Liability 

Part Six point One - What is a Board Meeting?

We recently held a basic training for Board Members at our Nevada Division. Attendees received an overview of all the basic things one would need to know on rules, roles and how to run a meeting. With such useful information compiled for the event, we thought it would be great to share with those in the Community Association world. We’ve broken it down into bite sized posts you can read through at your convenience and come back to reference if you have any questions! Let’s take a look inside our Board Member Boot Camp, first up: 

What are the roles of Association representatives? 

- The Executive Board is comprised of at least 3 directs, all of whom must be unit owners. 

- This Board elects the Officers. 

- Officers include a President, Secretary and Treasurer. In some cases, one person is permitted to hold two or more offices. 

- Officers serve at the will of the Board. 

- All members must certify within 90 days, that they have read and understand the provisions of the governing documents. 

- Board Members are required to exercise the ordinary and reasonable care of directors of a non-profit corporation. 

Want to learn more? Stop by these additional posts: 

Part Two - What is required of a Board Member? 

Part Three - Fiduciary Duties of Directors 

Part Four - Business Judgement Rule 

Part Five - How to Avoid Liability 

Part Six point One - What is a Board Meeting?

Unless you’ve been living on your own private island, in the middle of the south Pacific, with a coconut drink in your hand, you definitely know this year’s flu season is abnormally bad. According to Dr. Dan Jernigan, CDC Influenza Division Director, “This is the first year we had the entire continental U.S. be the same color on the graph, meaning there’s widespread activity in all of the continental U.S. at this point.” Aside from getting a flu vaccine, here are some common things that you should disinfect immediately. 

Cell Phones 

Deep Clean your Cell Phone With the amount we use our phones, it shouldn’t be a surprise that a 2012 study by the University of Arizona found that cell phones have more germs than toilet seats. Yuck! Keep your hands clean, wipe down the surface with an antibacterial microfiber cloth, and spray cleansers onto a cloth rather than directly on the screen to prevent damage. 

Kitchen Counters and Faucets 

Since the kitchen is usually the familial gathering spot, the counter and faucet get touched by germy hands constantly. To keep this area bacteria-free, spritz porous stone (like granite) with a disinfecting spray. To unearth stuck-on gunk around the faucet try Mrs. Meyer’s Vinegar Gel Cleanser and let sit for three minutes before wiping away. 

Don’t Forget the Doorknobs 

Germs last longer on surfaces than you might think. To sanitize the doorknobs around your house (focus on high-traffic spots, like the bathroom door), cleanse them with a germ-destroying wipe, such as Clorox Disinfecting Wipes. 

Disinfect Stuffed Animals and Blankets 

If the kiddos have been sick, make sure their favorite stuffed animal isn’t holding onto their germs. Check the tag on stuffed animals to see if it can go in the washing machine, then place it inside a pillowcase secured with a twist tie. Use Woolite, wash on the gentle cycle and tumble dry on a cool setting. Throw their blankets in there as well. 

Toothbrush and Toothbrush Holder 

It is particularly important to clean your holder regularly if it has a closed bottom, like a cup. Wash your toothbrush holder or cup with soap and water. Your toothbrush can be put into the silverware compartment of the dishwasher to be sanitized. You can also soak your toothbrush in antibacterial mouthwash; rinse thoroughly before next use.

With the advent in the past 5 years of short-term rental websites and apps like Airbnb, VRBO, and Homeaway, many homeowners raced to see what their association’s governing documents allow when it comes to leasing and renting of lots and units. Many individuals praise the growing popularity of short-term rentals, citing the economic benefits for those renting out their properties, and the benefits of convenience, comfort, and choices for those looking for alternatives to the hotel industry. However, not everyone sees agrees with these benefits, and point to the less desirable traits that these “weekend guests” bring with them, such as increase in traffic, security issues, and increase in noise and trash, etc. 

Many questions are starting to be answered by state and municipal legislatures, as well as associations, on how they will deal with this growing trend. 

Arizona Law Currently Allows Associations to Prohibit Short-Term Rentals 

In 2016, Arizona’s Governor signed Senate Bill 1350 into law, officially prohibiting Arizona cities and towns from prohibiting vacation rentals or short-term rentals. This bill is codified in A.R.S. Section 9-500.39. Although cities and towns can still create rules and regulations governing short-term rentals and fire codes, health and sanitation, and zoning ordinances, no municipality can legally prohibit short-term rentals. 

With cities and towns no longer able to prohibit short-term rentals, many Associations began examining what their own documents have to say about short-term and vacation rentals. Currently, Arizona law does not prohibit associations from disallowing short-term rentals in their communities. Although this may change in the not-too-distant future, associations are allowed to regulate and prohibit short-term rentals. 

What Kind of Association Restrictions are Enforceable? 

Although the Arizona legislature has not yet taken away associations’ ability to prohibit short-term rentals, Arizona law is quite specific about the manner in which associations must prohibit these types of leases. Specifically, Arizona law states that an owner may use his property as rental property unless rentals are prohibited in the Declaration, including any time period restrictions contained in the Declaration. See A.R.S. Section 33-1260.01(A) (for condominiums) and A.R.S. Section 33-1806.01(A) (for planned communities). 

Essentially, this means that any rental prohibitions or time period restrictions contained in other Association documents (such as the Bylaws or in Rules and Regulations) are insufficient to restrict owners’ use of their property for rentals. The restrictions against rentals must appear in an Association’s Declaration (CC&Rs) to be enforceable. If your Association’s CC&Rs are currently silent on the rental issue, the document must be amended to include any restrictive language – a Board resolution or policy will not do. Also note, however, that the Association can also make Rules governing leases if there is a rental-restriction provision in the CC&Rs, as discussed further below. 

Further, there are also questions raised about what kind of language in the CC&Rs is sufficient to restrict or prohibit short-term rentals. For example, obviously a provision in the CC&Rs that states “Owners may not lease their Unit for fewer than 30 days” is a clear restriction against short-term rentals, and is 

enforceable. However, what about more ambiguous language such as “the Unit shall not be used for transient or hotel purposes,” or simply that the Unit shall not be used for “business purposes.” 

Currently, case law throughout the country comes to differing conclusions on whether the “Business Use” restrictions in CC&Rs prohibit short-term rentals, such as weekend Airbnbs. The same is true for the “hotel” or “transient” language in some documents. Arizona courts have not yet weighed in on this issue. One court considered whether the listing for the rental included typical hotel “amenities” such as fresh towels, complementary WiFi, maid service, room service, etc. in holding that an owner’s use violated the provision restricting a Unit’s use for hotel uses. As short-term rentals continue to expand, certainly more courts will weigh in on this issue and provide further guidance. 

What Information from Tenants is the Association Entitled to? 

Even if the Association’s CC&Rs prohibit rentals for less than thirty days, the Association can generally create “leasing rules” to govern any owners who do rent their units. For both condominiums and planned communities, Arizona law allows Associations to require owners to provide (1) the names and contact information for all adult tenants; (2) the time period of the lease; and (3) a description and license plate numbers of the tenants’ vehicles. See A.R.S. 33-1806.01; A.R.S. 33-1260.01. An association may also charge a fee of not more than $25 to process this information. 

Keep in mind, associations are always prohibited from requiring an Owner to provide the Association with a copy of the tenant’s rental application, credit report, lease agreement/contract, and cannot charge a fee greater than $15 for incomplete or late information. 

Contact an Arizona HOA Lawyer for Further Help 

At Goodman Law, our sole focus is on meeting the legal needs of HOAs, including creating and implementing HOA policy and responding to homeowner concerns. Contact us today to discuss any legal challenge your HOA is facing.

Have you ever wondered which home improvements will give you the most bang for your buck?  Here are the top remodeling projects that may increase your home’s equity:

#1 Landscaping

Are you shocked? I bet you thought it would be a major kitchen reno at the top of the list.  A little color and light landscaping can make a big difference to your home’s curb appeal, and that is a big equity-booster.

What does a basic landscaping upgrade include?

·       Flowering shrubs

·       A 15-foot-tall deciduous tree

·       A flagstone walkway

·       Two 6-by-2 stone planters

·       Fresh mulch

#2 A New Roof

No one wants to move into a place with water stains on the roof or walls.  Yuck, what a turn-off!

Here are some signs it’s time to spring for a new roof:

·       Shingles are missing, curling up, or covered in moss

·       Gritty bits from the asphalt shingles are coming out of the downspout

·       The sun’s shining through your attic

·       You notice stains on ceilings and walls

·       Your energy bill is sky high

#3 Hardwood Floors

If only real life was like all those home renovation shows where the couple rips back that shaggy 70s carpet only to find beautiful original hardwood floors. If that isn’t the case in your house then you might want to consider putting in some hardwoods. If you already have them, a fresh finish is a nice touch when comes time to sell.

#4 Patio or Deck

If you followed Step #1 then you have a beautiful landscaped yard, but where will you enjoy it?  Your new or refinished patio or deck, that’s where!

#5 Garage Door   

A new garage door will bump up that curb appeal at a relatively modest cost.

#6 New Siding     

Pick any color in the rainbow and never have to paint again! These are just a couple of reasons to go with vinyl siding. Make sure you get siding with a fade resistant finish and a lifetime warranty that is transferable to the new owner when you sell.

As with any home renovation project, it is important to connect with your community management company before starting. At The Management Trust, we can help guide you through the process and help ensure you are abiding by the Covenants, Conditions and Restrictions for your community.