Capturing the Pulse of the Homeowners Association Industry

The Online Community of the Community Association Industry

A group of unit owners is running against the current board in the next election.  The candidates, calling themselves "the clean slate" are not happy with the management by the current board.

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State lawmakers introduce  bills aimed at homeowners associations and helping them to be regulated and managed more efficiently.

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Couple faced fines, levied by their homeowners association, for landscaping and holiday light violations.  After a trial in court, the magistrate excused the fines, ruling in favor of the couple.

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Whenever an association is renewing or entering into a new contract, there are many issues to consider.  With so much focus on finding the right company at a good price, it is easy to overlook the requirements that may exist in the declaration and bylaws.

Some governing documents require that certain contracts be approved by the members or by a specific percentage of the board (such as 2/3 or 75%).  Other times, documents place limits on the length of term for a contract.  For example, an association’s bylaws may limit contracts to no more than one-year terms.  Such a requirement could impact many possible contracts, such as landscape contracts, management contracts, or security contracts.

Governing documents may also require that contracts contain specific terms allowing for termination of the contract.  For example, the governing documents may require that the contract contain a provision stating that the contract can be terminated with 30 days’ notice.

Finally, some governing documents contain specific requirements on who must sign the contract (such as the President and the Secretary).

Associations should be mindful of these types of requirements and limitations in their governing documents so that, once the association finally finds the right company at the right price, the contract does not get challenged or invalidated over a technicality.  If your association has questions about contracts, please contact Lynn Krupnik at 480-922-9292.

Theinformation contained in thisHomeownersAssociationTip isfor informational purposesonly and isnot specific legaladviceor a substitutefor specificlegalcounsel.Readersshouldnot actupon thisinformation withoutseeking professionalcounsel.

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A bill is being presented, this legislative session, that will limit HOA's ability to foreclose on the residents. Lawmakers have been reluctant to reform association laws

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The developer of a half-built resort withdrew more than $16,000 from the HOA accounts the day he was arrested for stealing from the association.

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A bill that would bar condominium owners from withholding assessments when their boards don't maintain the property, failed to pass.

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Most Home Owner Associations are considered corporations under federal tax laws.  This requires HOA's to file taxes.

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Residents who lost their homes due to fire, still pay fees to homeowners association with the hopes of getting their homes rebuilt.

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Residents of Hickory Hollow homeowners association feel they are being intimidated by their association for fines issued by Sheriff's deputies.

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