Over half of the community associations (HOAs, Condos, Townhomes, Mobile-Modular, Co-ops) throughout the United States are self-managed. Furthermore, that number is rising. Geographical areas experiencing extensive foreclosures often must choose between paying a monthly management fee or and street lighting. Here we offer time-tested suggestions and the best management practices of our industry.
Before reading on, your community’s success with self-management requires your understanding that:
Your authority and responsibility as a director and administrator is defined by your community’s documents: the declaration of condominium, CCRs, Bylaws, etc. In addition, your state’s statute may call for further restrictions or requirements.
Volunteers be assigned to key positions and that each position clearly defines that volunteer’s tasks, responsibility, and the scope of their authority.
Each member of the board and committees understand their responsibilities and duties with respect to their community documents and state statute.
Consistency and accountability are vital to establish credible leadership and enforceability.
Before you begin…
Success requires plans, systems, and policies in place. In the last blog article, we considered collections. We began with a sentence in the documents that provided the board with the authority to collect. From there, we reflected on a sampling of three collection policies that a board might adopt. Once adopted by the board at a properly called meeting, prudence requires sharing that policy with the members prior to the commencement of enforcement.
In this article, we will look at the components that lead to the successful enforcement of rules.
Violation or Covenant Enforcement:
The very term enforcement causes a reaction. Some owners will nod their heads approvingly and think…it’s about time! Others will shake their fists and think…no one is going to tell me what to do with my home and property! In that enforcement typically divides the Hatfield’s from the McCoy’s, it is best to broach the topic gingerly.
Before a board can attempt enforcement, understanding the enforcement policy is required of the owners and members of the board.
With respect to historic enforcement, your association will fit one of the following scenarios.
Only the worse violators are sent violation notices
Violation letters are sent when the board notices or is informed of a violation
Violation letters occur from community inspections, but inspections are inconsistent or haphazard, as is escalation of the offense for noncompliance.
Owners expect uniform enforcement. Performance of inspections is timely and consistent. Escalation and legal action is the consequence of noncompliance.
Congratulations to those communities that fall under 4. This Board has it together. Your tangible reward is compliance. Furthermore, you have earned the owners’ respect; they can count on you for fairness and follow through.
