Month: July 2013

Use Business Judgment Rule to Avoid Unfair Enforcement Accusations

Q: During the summer months, more of our members use the outdoor amenities in the community, such as the pool and basketball courts. We’ve had to crack down on some of the behavior that we’ve seen in these areas, but because the nature of some of the behavior isn’t that serious, I’m tempted to let it go if it seems harmless. What types of risks does the association run if it fails to enforce rules consistently?

Adopt Effective Collection Policy for Delinquent Members

In an economy where many associations are still struggling to overcome challenges like vacancies and foreclosures, it’s as important as ever for associations to avoid depleting their reserves and, as a result, making trade-offs about what bills to pay and what services to forgo. That’s where on-time payment of assessments becomes very important. Your community association can face a serious financial crisis if even a small percentage of members don’t pay their assessments on time.

Take Immediate Action After Member’s Discrimination Claim

Fair housing claims often stem from adverse actions taken against members for violating community policies or rules. A member may claim that the rules are being selectively enforced against him because of his race or other characteristic protected under the federal Fair Housing Act (FHA). The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, national origin, familial status (that is, families with children), or disability.

Board Must Give Equal Access to Association Media During Elections

Facts: A homeowners association’s board of directors sought to amend the bylaws. The amendment initially failed, and the board announced that it would continue holding elections until the amendment passed. In the association’s newsletter, the board told members to vote for the amendment.

Owner Sued to Enforce Association’s View Restriction Provisions

Facts: A homeowner bought a property in a subdivision specifically because it had a mountain view. Several years later, the owner notified the association’s architectural review board (ARB) that certain cottonwood trees on her neighbor’s property were obstructing her view. She requested that theassociation remedy the situation either through extensive pruning or removal of the trees.

New Laws Tighten Standards in Centennial State

Colorado legislation passed this year will tighten standards for homeowners associations in the Centennial State. The legislation, which affects debt collections and manager licensing, was prompted by scandals and horror stories from associations over the past few years, including embezzlement.