Originally posted 2011-01-25 09:00:35. Republished by Blog Post Promoter
It’s the beginning of a new year so let’s start with some basic nuts and bolts information regarding homeowners associations. We’ll begin this series of blog articles with a discussion of the phrase “Governing Documents” which is used by board members, managers and homeowners.
What are the Governing Documents? Continue reading “HOAs – What are your Governing Documents?”
Originally posted 2012-04-23 08:15:23. Republished by Blog Post Promoter
The Virginia Code has provisions that provide members of condominium associations and homeowner associations with the ability to request copies of books and records. The statutes have also permitted associations to recover the costs of copying the requested books and records.
This blog post highlights a new statutory provision affecting common interest communities. On July 1, 2012, HOAs and condo associations will only be able to recover these copying costs if the association has adopted a cost schedule.
Originally posted 2012-12-20 07:31:25. Republished by Blog Post Promoter
Mention the unauthorized practice of law when discussing homeowner and condominium associations and typically the room gets very quiet. Associations, board members and managers strive to keep their budgets low, but compliance with new laws and regulations, keeping up with the collection of assessments, and the upswing in litigation involving homeowner and condominium associations makes it very difficult. When matters become a “legal issue,” board members and managers are best advised to seek legal counsel to ensure that the association is being adequately protected and represented, and that the board members and the managers are not engaging in activities that the Commonwealth might find to be the unauthorized practice of law.
We previously blogged on questions of the unauthorized practice of law when an unlicensed attorney serves on the association’s Board of Directors. In our next two blogs, we will review other issues involving questions of the unauthorized practice of law. In this blog, we discuss where we look for guidance, and in a subsequent blog, we will review Virginia decisions and opinions on the unauthorized practice of law.
What does it mean to be on the Board of Directors of your HOA? Fiduciary Duties (Part 1 of a series)
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)”
Originally posted 2011-12-22 09:22:39. Republished by Blog Post Promoter
Selecting an attorney is one of the more significant decisions made by the board of directors for a community association. Often times, the association makes its decision based upon price alone. Although “price” is a valid factor to consider, there are other important factors the board should review during its selection process. This article addresses three of the major considerations.
First, the board should determine the prospective attorney’s experience level in the representation of community associations. Attorneys for common interest communities are similar to the general counsel in major corporations because of the wide range of issues that arise. Extensive experience in many of the possible legal issues facing community associations should be a prerequisite.
Originally posted 2013-01-15 07:15:57. Republished by Blog Post Promoter
Many of us are so busy in performing the work that we are hired to do that we often neglect the housekeeping we should do for our businesses. Management agreements with community associations may fall into this category. As with many agreements in which sections are revised but the whole contract is not reviewed, management agreements can take on a life of their own as they are tweaked here and there. In this blog, we discuss the need to take time to have your forms and contracts reviewed to ensure that your management company is protected by the agreement, that it reflects current law, and that it comports to any required regulations.
Originally posted 2012-06-05 08:00:04. Republished by Blog Post Promoter
We blogged about the extension granted by the Department of Justice for existing pools to comply with the new ADA Standards for providing accessible entry and exits. Just days after issuing its “Final Rule,” the Department of Justice published a fact information page with Questions and Answers regarding Accessibility Requirements for Existing Swimming Pools at Hotels and other Public Accommodations. The DOJ’s Q&A attempts to answer questions regarding whether your pool shall require accommodations. This blog post analyzes the Q&A.
Part 2 on Virginia’s Unauthorized Practice of Law Rules and HOAs – What is considered the unauthorized practice of law?
Originally posted 2013-01-08 07:00:01. Republished by Blog Post Promoter
We blogged previously about finding guidance in Virginia’s rules on the unauthorized practice of law as they pertain to community associations. In this post, we will review Virginia opinions that address whether certain work performed by managers is the unauthorized practice of law (“UPL”).
Originally posted 2011-08-09 11:59:33. Republished by Blog Post Promoter
The enforcement of covenants, conditions, and restrictions (“CC&R’s”) is among the most criticized of the duties performed by the Board of Directors of community associations, but is also the most important responsibility. CC&R’s govern many activities in a community including house designs, parking regulations, maintenance and repair of the common areas, and collection of assessments. Sensational “Gotcha” type news stories highlight enforcement practices of some associations, which contribute to a false perception that associations in general lack common sense. However, studies repeatedly show that the overwhelming majority of people living in neighborhoods governed by HOAs believe that the rules in their communities benefit them.
Okay, how do we establish a funding plan for our HOA’s Reserves? (Part 2 of a 3 part series on Reserves)
Originally posted 2010-09-08 07:35:29. Republished by Blog Post Promoter
Once an association has obtained a reserve study, two questions arise: 1) Do we have to fund a reserve account? and 2) If so, how do we fund a reserve account?
The statutes for condominiums and property owners associations require an association’s budget to include, among other things, an annual amount to fund the reserve account that is consistent with the obligations in the reserve study. This means that an association should be placing funds into the reserve account that permits it to meet is obligations to repair, replace and restore capital components based on the estimated replacement cost, the estimated remaining life and the estimated useful life of the capital component.