protecting aesthetics hoa arc may 2011
DESCRIPTION
Training about enforcing aesthetic covenants in an HOA setting. Idaho examples.TRANSCRIPT
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Protecting Community Aesthetics:
The Duty to Maintain
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Board Duty to Preserve and Maintain
Common Propertyo Perhaps the most important Board duty is protecting, preserving, and enhancing property values within the community.
o This includes the maintenance, repair, and replacement obligations imposed on most Associations.
o People want to live in a beautiful community and home.
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Idaho Lawo Investors Ltd. of Sun Valley v. Sun
Mountain Condos 106 Idaho 855 (Idaho App. 1984).– Recognizes binding nature of covenants.– Recognizes Association is manager of condo.– Recognizes Association has responsibility to maintain
property.
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How Does An Association Maintain Aesthetics?
o ACC or ARC decisionso Pass rules and regulationso Enforcemento Special Assessments
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ACC’s Job:
• Protect aesthetics• Control quality of materials and
construction
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How to Pass Regulations
1. Check Declaration2. Check Bylaws3. Check local architectural guidelines
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Review Processo Be consistento Have written guidelines for processo Courts should uphold ARC authority if
process was followed
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Application Procedure Basics
o Application requirements– Documents?– Fees?
o Specific deadlines for approval– Automatically approved?– Reasonable
o Follow up and appealo Enforcement
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Enforcing Standardso Fineso Self-Helpo Legal Action
– Injunctive Relief– Damages
o Meetings
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FREQUENT ARC ISSUESo Failure to Enforce ARC Restrictions• Estoppel• Laches• Waiver
o Violations “In Progress”o Unauthorized Approvals
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Political Signs
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Height Restrictions
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Flagso “Flag Act” – “Freedom to Display the Flag
Act”
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Satellite Dishes: OTARD
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Fences
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Outhouses and “Other Improvements”
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Limits on Common Area Maintenance?
o “There shall be no capital improvements of the Common Areas and Facilities requiring an expenditure in excess of $3,000.00 without prior approval of a majority of the Owners.”
o Somewhat common provision in older CC&Rs.
o What are capital improvements?
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10/11/08
Lawsuits Commonly faced by Directors
o Failure to Maintain and Repair Common Property
o Failure to Adequately Fund Reserveso Improper Budget Managemento Failure to Collect Assessmentso Negligent Hiring and Supervisiono Selective Enforcement of Governing
Documents
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Questions?Next Manager Lunch: June 23 at noon
Please invite your boards to attend training next Thursday night at 7 pm.