Rent Real EstateAsk the Homeowner Association Expert: Making Rules
Question: Our board seems to be making rules up as they go. How should they
be doing it?
Answer: The board has the authority to enact reasonable policies. Before
meting out justice, however, they should adopt policies or resolutions that
define the issue, the penalty for noncompliance and the appeal process. The
basics are money collection, parking, pets, architectural and appearance.
There is no need for a rule when there is no problem. And each new rule
should be circulated to the homeowners for comment prior to adoption by the
Board. This way, no homeowner can say they had no say in the matter. Once
formally adopted and documented in the minutes of a board meeting, a copy of
the approved policy should be sent to every owner. It is always wise to
comment in newsletters or bulletins about certain critical rules as a
reminder.
Question: Our Board is considering installing speed bumps and I’m concerned
that it might decrease the property values. Your advice?
Answer: Speed bumps should be implemented only after an association wide
discussion of the merits and alternatives. I would not recommend them unless
all other alternatives have been exhausted (use of local law enforcement,
repeated violation notices to offenders, etc.). An alternative to speed
bumps is traffic circles. These circular obstructions require traffic to
slow or stop and go around.
Most people dislike speed bumps and believe they detract from property
values much the same way that installing "security" bars in response to
break-ins do. They are indicative of an out of control problem that requires
drastic measures.
Question: Our Board writes rules such as: "... tasteful attire must be worn
in the common areas." No definition of "tasteful attire" is offered and as
far as I can tell, we don’t even have a problem. Another rule: "Payment of
the monthly assessment must be made by check or money order. Cash will not
be accepted." Is this legal?
Answer: When it comes to rules, wording is everything. What exactly is
"tasteful" attire? As far as the payment rule: Cash is legal tender for all
debts (says so on the currency) and the association cannot refuse it. But
something like: "Please make all payments by check or money order to ensure
proof of payment" explains the practicality of money security which all can
appreciate.
High handed rules are counter productive to building a harmonious community.
I’d encourage the Board to adopt a rule making philosophy that includes:
Only make rules that are genuinely needed (like policing pets, no parking
in the fire lanes, etc.) and don’t make them to control scofflaws who
challenge all rules. You simply can’t out rule rebels
To respect residents’ intelligence. (The dress code example does not).
We have enough unenforceable rules to deal with elsewhere. Don’t add to the
list unnecessarily. Community associations are based in a principle of
democracy, not autocracy. The board that heeds the difference will shine.
For more on this subject, see www.regenesis.net.