What does it mean to be on the Board of Directors of your HOA? Fiduciary Duties (Part 1 of a series)

October 30, 2014 on 12:19 pm | In Business Planning, Common Interest Community, HOA, Merger & Acquisition, Real Estate Strategies, Susan B. Tarley | No Comments

Originally posted 2010-10-20 06:15:55. Republished by Blog Post Promoter

Board members are told that they have fiduciary duties to the community association, but what does that really mean?  Fiduciary duties arise because the members of the association entrust a board member to act in the best interest of the association when handling the association’s business.

There are three components that are important to understand fiduciary duty.  First, the Virginia Code, at § 13.1-870, imposes on directors a requirement that a director exercise her duties in good faith and in the best interest of the association.  This requirement is the so-called “business judgment” rule. Second, Virginia case law imposes duty of care that requires a board member to act as a reasonable person would under similar circumstances.  Third, Virginia case law imposes a duty of loyalty that requires a board member to put the association before any personal interest.  These last two duties are referred to as “common law” duties. Continue reading “What does it mean to be on the Board of Directors of your HOA? Fiduciary Duties (Part 1 of a series)”

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Virginia Supreme Court upholds arbitration award granted to homeowners who sued their HOA

October 30, 2014 on 12:19 pm | In Common Interest Community, HOA, John Tarley, State & Federal Litigation | No Comments

Originally posted 2010-09-20 21:56:35. Republished by Blog Post Promoter

It is relatively routine for developers or “declarants” to include arbitration provisions into the declaration of restrictive covenants recorded to establish a common interest community. Generally, arbitration clauses are preferred by developers for a variety of reasons including avoiding a jury and having a say in the choice of the fact-finder. However, those decisions made by the developers have long lasting effects upon homeowner boards following transition, because it is difficult for a board to effect a change in the documents.

 

Continue reading “Virginia Supreme Court upholds arbitration award granted to homeowners who sued their HOA”

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How important are state statutes and case decisions in governing your HOA?

October 30, 2014 on 12:19 pm | In Common Interest Community, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

Originally posted 2011-02-08 09:18:24. Republished by Blog Post Promoter

We discussed Governing Documents for homeowners associations and Governing Documents for condominium associations. These governing documents for your community association must be read in conjunction with certain state and federal laws. In this article, we will discuss those relevant laws that must be considered by your HOA.

Continue reading “How important are state statutes and case decisions in governing your HOA?”

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How to Run An Effective HOA Board Meeting

October 30, 2014 on 12:19 pm | In Business Planning, Common Interest Community, HOA, HOA litigation, Megan Scanlon, Unit Owners Association | No Comments

Originally posted 2013-02-18 12:36:35. Republished by Blog Post Promoter

Have you ever asked yourself after an Association board meeting “what went wrong?” The flow of the meeting was off, the meeting went on way too long and the atmosphere was unwelcoming for the owners who came to observe. With some careful preparation and attention to some simple tips, you can leave your next board meeting with the feeling that everything was right on track.  Although we go into much greater detail when we hold our annual Board training seminars for our clients, this blog post provides some helpful tips to run your next board meeting.

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HOAs and a Reserve Study…it’s the law! (Part 1 of a 3 part series on Reserves)

October 30, 2014 on 12:18 pm | In Common Interest Community, HOA, Susan B. Tarley | No Comments

Originally posted 2010-09-06 09:37:24. Republished by Blog Post Promoter

Yes, Virginia, property owners’ associations and condominium associations are required to have a reserve study.  At least once every five years an association must obtain a study to determine the necessity and amount of reserves (i.e. financial savings) required to repair, replace and restore capital components.  Capital components are those items, regardless of whether they are part of the common area or common elements, for which a) the association has an obligation to repair, replace or restore, and for which b) the board or executive organ determines that funding is necessary.

Continue reading “HOAs and a Reserve Study…it’s the law! (Part 1 of a 3 part series on Reserves)”

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Can an HOA prohibit the posting of political signs?

October 30, 2014 on 12:18 pm | In Common Interest Community, HOA, HOA litigation, Land Use Planning, Unit Owners Association | No Comments

Originally posted 2012-09-18 06:57:41. Republished by Blog Post Promoter

Well, it’s that time of year when signs start popping up in neighborhoods as election day draws near. In neighborhoods governed by a homeowner or condominium association, boards of directors are sometimes asked to enforce sign restrictions when one neighbor complains about another’s political sign (and probably, the neighbor’s choice of candidate).

A person’s first response typically is “I have the right to free speech and you can’t stop me from posting my political sign on my property!” However, is that the end of the discussion? This blog post reviews a community association’s rights and responsibilities regarding political signs.

Continue reading “Can an HOA prohibit the posting of political signs?”

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Can HOAs suspend pool privileges to collect unpaid assessments?

October 30, 2014 on 12:18 pm | In Common Interest Community, HOA, HOA litigation, Jason Howell, Susan B. Tarley, Unit Owners Association | No Comments

Originally posted 2011-06-07 09:00:08. Republished by Blog Post Promoter

As summer begins and the temperature rises, people are eager to cool off in community pools. For homeowner’s associations and condominium associations, this can be an opportunity to encourage members behind in their assessments to get caught up.

Before an association starts suspending pool passes to encourage members to pay their dues, however, it should be aware of provisions in Virginia Law that affect what actions it can take. Both the Virginia Property Owners’ Association Act and the Virginia Condominium Act allow an association to suspend services (including use of common areas such as pools) for failure to pay assessments, as long as the association complies with certain requirements.

Williamsburg Virginia Business and HOA Lawyers ADA

Swimming Pools and ADA

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7 reasons to consider amending your HOA’s governing documents

October 30, 2014 on 12:18 pm | In Common Interest Community, HOA, HOA litigation, Susan B. Tarley, Unit Owners Association | No Comments

Originally posted 2011-10-11 08:45:38. Republished by Blog Post Promoter

In other posts we have discussed a homeowner association’s governing documents. Many communities were established 20-40 years ago with governing documents that worked well for the developer, and for the most part the community association. However, many of these governing documents are outdated.  Virginia and federal laws pertaining to community associations have changed substantially.  If your board of directors has not engaged in an audit of your communities governing documents in the past 5-7 years, it should.

What is an “audit” of our governing documents?

An “audit” of your documents is an in-depth review by your HOA’s board of directors in conjunction with your association attorney.  The Board reviews each document noting any sections that lack clarity, are no longer enforced, appear to not apply to your community, protect a long-gone developer, or do not provide the association with adequate remedies.  The Board prepares a list of concerns or issues facing the community, such as homes that are not being maintained, large amounts of delinquent assessments, or enforcement capabilities of the association.  The Board provides this information to the association attorney.

Continue reading “7 reasons to consider amending your HOA’s governing documents”

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Ban on kids playing football = housing discrimination lawsuit against Virginia HOA

October 30, 2014 on 12:18 pm | In Common Interest Community, HOA, John Tarley, Real Estate Strategies, State & Federal Litigation | No Comments

Originally posted 2010-10-26 09:30:25. Republished by Blog Post Promoter

Boards of Directors are empowered by statute in Virginia and often times by the governing documents of the community association to enact rules and regulations concerning common areas, common elements, recreational facilities or other areas of association responsibility.  Rules related to the use of common areas or common elements and recreational facilities should be based on concerns about safety, sanitation and nuisance.  In certain instances a Board of Directors may want to enact a rule to address the activities of children – limiting their pool time, forbidding children under a certain age from using recreational facilities or prohibiting certain activities on common areas or elements.  Be careful, the rule you enact may violate the federal and state Fair Housing Act.

According to a Complaint filed against a Chesapeake condominium association, the association had a “Group Sports Activity” rule that banned organized sports activities in the common areas without approval of the board. Concerns were raised whether this rule banned activities such as a parent and child passing a football.The Commonwealth of Virginia’s Fair Housing Board filed a housing discrimination lawsuit against Cedarwood Condominium Association, a Chesapeake condominium association. There have not been many of these lawsuits.

 

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HOAs and Transition from Developer Control – 101

October 30, 2014 on 12:18 pm | In Business Law, Business Planning, Common Interest Community, HOA, HOA litigation, John Tarley, Susan B. Tarley, Unit Owners Association | No Comments

Originally posted 2013-11-12 15:58:04. Republished by Blog Post Promoter

Owners in most community associations—both homeowner associations and condominium associations—eventually reach the point where the developer transfers control of the Board of Directors to the owners. This blog post provides an introduction to the transition process and what owners can expect.

Susan Tarley

Continue reading “HOAs and Transition from Developer Control – 101”

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