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Most Board Members in these communities would be dismayed to learn that, in community associations in other parts of the country, such rules are being eliminated — either by popular demand or legislation.
Continue reading “CLOTHESLINES and other new technologies”
The jury rendered a $20 million verdict for the plaintiff, which overwhelmed the HOA’s liability insurance policy limit of $2 million.
First and foremost, boards should not be making decisions and taking votes by e-mail. Decisions need to be made at a board meeting. A decision made by e-mail, if challenged, will likely not be upheld in a court of law. The only instance when an e-mail vote might have some validity would be in an emergency situation, where an issue arises that could not have been anticipated and requires immediate attention. Any such decision should be confirmed in the minutes of the next board meeting – ideally held soon after the vote. Even under such circumstances, a conference call of the board members would be preferable to an e-mail decision. Continue reading “Board Member E-mails”
When the pipes thaw, water floods and damages the unit and, often, neighboring units and common areas. The board invariably accuses the homeowner(s) of negligence for failing to properly winterize the home before heading south for the winter, or for setting the thermostat too low. However, even if the claim of homeowner negligence is correct – and it usually is – the burden for fixing the unit in most communities will fall upon the board and its insurance coverage. Continue reading “Broken Pipes = Headaches for Condominium Boards”
In order to successfully operate a planned community, payment of certain expenses associated with the operation, maintenance, and control of the association are required. The Board creates a budget for these expenses, including proper reserve funding, and thereafter assesses the owners. The obligation of the owners to make payment of these assessments and the liability for non-payment is found in the association’s governing documents.
If too many owners fail to make payment of their common charges and assessments, the association may be unable to pay its bills and keep the community running in the fashion and at the level the owners expect. Whenever an owner fails to make payment, all other owners must pay that delinquent owner’s share. As a result, Boards have little choice but to move forward against delinquent owners. Failure to do so can be seen as a Board not satisfying its fiduciary obligation and affirmative duty to the community. Continue reading “A Board’s Map To Successful Collection Of Common Charges And Assessments In Condominiums And Homeowners Associations”
The law requires, first of all, that at least once each year, each “director” of a condominium or co-op board receive a copy of the Related Party Transactions section from the NYS Not-for-Profit Corporation Law (Section 715) or, for a co-op board, a copy of the Interested Directors section from the Business Corporation Law (Section 713). These provisions are similar to each other and prohibit boards from entering into contracts where a conflict of interest exists, unless the conflict has been disclosed by the interested director. Continue reading “New Conflict of Interest Law”
Even facilities that originally established designated smoking areas have been gradually doing away with them. While cigarette smoking has long been considered dangerous to the user, the relatively recent prohibitions against smoking are largely designed to protect non-smokers from the ill effects of second-hand smoke. Continue reading “Smoking In The Boardroom”
Like most things in life, there can be advantages and disadvantages to everything. A small company may be able to provide more personal attention, but are they small because the service they provide is not in demand? An established company may tout its years of experience, but will a newer company try harder to please? A less expensive company will be easier on your budget, but will their service be low in quality as well? A more expensive company may provide top quality service, but will you need to raise assessments to pay their fees – and is that necessarily a bad thing?
A management company may want to take over responsibility for the day to day affairs in running your community – which may be a good thing – but is your Board too “hands on” to allow that to happen – which could result in endless conflict? All of these questions can only be answered by you and your Board as you interview different companies and survey their offers. Continue reading “How to Choose a Property Management Company”
An ombudsman is defined as “a public official appointed to investigate citizens’ complaints against local or national government agencies that may be infringing on the rights of individuals.”[ii] In the community association context, an ombudsman is frequently called on to help resolve disputes between irate homeowners and community Boards of Directors/Managers. The Common Ground article depicted the mixed reviews that the ombudsman office has received in these four states. Continue reading “A Community Association Ombudsman in New York”
Misuse of the legal system and its processes by litigants is nothing new; for centuries, individuals have improperly used the threat and/or commencement of legal action, both criminal and civil, as a sword against an adversary or potential victim. In fact, the use of process for the purpose of oppression or injustice was once punishable as contempt, and at times rose to an action for injury to reputation.[1] Continue reading “Absence of Malice”
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Phone: (631) 265-5550
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