When Considering a Condominium Purchase, Check How Long the President Has Ruled the Roost

If you are looking for a condominium that you’ll feel comfortable with, check how long the current board has been in power. If the board doesn’t turn over, it’s the same names year after year, then add additional caution when purchasing in the condominium or HOA.

I’ve read, and had some personal experience, about too many “lifer presidents” (an example here) that over time begin to treat the board as their exclusive play grounds. Where most elected bodies recognize the threat to good governance elected lifers create – even the President of the United States has term limits – no such measures exist for community associations.

The risk is, and it seems to come to fruition, that over a period of time the basic principles of the board get eroded.

Take for example the board of President Lorraine Walsh, who has held her title for over 20 years at the Deveonwood, Hercules California, condominium. According to one resident the board hasn’t held an election since 2005. Further, though there is a vacancy on the current board and an owner volunteered to fill it till next election – the current board voted down the appointment 4 to 0.

Other shenanigans appear to be happening there as well: holding in camera executive sessions in the middle of public meetings. That’s clearly a method to shut down the meetings.

Often long serving boards tend to use fining as a heavy handed method to enforce compliance, or threaten owners financially if they raise trouble. For the Deveonwood, first time violations carry $350 fines and have been handed out for improper window coverings and poor garden pot locations.

Sometimes I wonder if the property management firms hired by these long term boards are somewhat responsible for the condominium’s or HOA’s decline. If there really hasn’t been an election since 2005 the property management company should resign or make public notice that the board is failing to abide by all rule and regulations. The problem is management companies can fear failing to comply with the board will result in a non-renewed contract. It’s hard to protest the board that pays you. For the Deveonwood, one owner appears to have asked for the record of past elections to confirm when and how the last elections were held, and the management company denied to fill the request.

Condominiums are great places to live, but like any organization they benefit deeply from a regular turnover of the board, and a rotation of the roles. There is nothing scared or amazingly difficult about being on a board, and normally a management company will ensure all the i’s are dotted and the t’s crossed. I have yet to see a new board, with none of the old guard remaining, mess up a community.

Condominium Board Fines Resident $4500+ for Flowers

I don’t know if Kimberly Bois, of the Portsmouth’s Atlantic Pointe condominiums, New Hampshire, is the nefarious evil doer her condominium board makes her out to be. I mean, if the board doesn’t stop her green thumb, perennial planting, capers – who knows what seeds of chaos and tendrils of civil unrest she may cause to root in her neighbourhood.

Seriously though, the specific perennials that she’s planted (daisies, irises, lavender, hydrangeas and tulips) may be counter to the by-laws and she may very well have to dig them up. I indicate specific perennials, because this sales video shows numerous colourful swaths of flowers when tooling through the condominium complex. There definitely are flowers there.

What I very much object to, and I think Kimberly has a leg to stand on, is the overbearing and unreasonable process of fining that is going on. On 24 October 2011 the board started fining $25/day, and has since increased it to $50/day.

That is completely unreasonable, and a great example of a condominium board – being judge, jury and executioner – attempting to financially bludgeon an owner into cowed submission. I very much think that Ms. Bois should be legally refuting all demands from the board, and use that in front of every judge as a means to be excluded from any judgement against her.

Boards have a duty and a responsibility to act reasonable, especially given the fact they act as the sole body to enforce and punish for condominium by-law infractions. A board failing to respect the powers they have been granted (and that’s not the power to cudgel owners) needs to be rapped on the wrist, turned around, and sent on their merry way.

It’s especially important, as many boards are filled with “regular joes” who, though have the best intentions, fail to act outside of personal emotion and vendetta. There are significantly too many complaints about the mismanagement of board power. Colorado Division of Real Estate recently found:

What we discovered was that the complaints we received primarily involved the board of director’s failure to follow corporate governance rules and procedures of the HOA; the transparency of the board of directors, particularly as it related to the finances of the HOA; and harassment and bullying of homeowners by the board of directors and management company by arbitrary fining, preclusion from providing input into the associations’ affairs, and verbal harassment.

Ahh, that last point is specifically applicable to this situation. The inordinate and unreasonableness of the fine Ms. Bios has received shows it.

The board needs to get their feelings and their actions pruned.

HOA vs. Kangaroo – HOA Avoids Bad Press and Possible Suit

The Estates of Legends Ranch, Texas, HOA has jumped back from their decision to oust a kangaroo from the association. The six month old kangaroo named Mike resides with Jeni and Nick Dreis, and their daughter Kayla.

When the HOA found out the kangaroo resided with the family, they issued a demand letter for the animal’s removal. Kangaroos, it seems, are not deemed household animals. As such, they’re not allowed in the HOA.

The HOA relented though, and has allowed the animal to exist at the Dreis residence till the Texas Downs, a special needs education and enrichment facility utilizing a wildlife park and organic farm, is completed (estimated mid 2012).

Honestly, the HOA didn’t have much of a choice. The Texas Downs is founded by the Dreis, and Kayla has Down syndrome. The kangaroo is expected to be transferred to the wildlife park when it becomes habitable for the creature, and in the meantime acts as a companion pet for Kayla.

A simple search on “HOA Kangaroo Dreis” will return 149,000 results – and you can read the massive amount of attention this issue has received. The utter cuteness overload of Kayla and the kangaroo would have been a public relations nightmare if the HOA insisted on enforcing the bylaws (stating the kangaroo isn’t a household pet). The Dreis could have also filed a civil rights suit, as the kangaroo may fit under the Americans with Disabilities Act – which defines a service animal as (and the underline is theirs):

The ADA defines a service animal as any guide dog, signal dog, or other animal individually trained to provide assistance to an individual with a disability. If they meet this definition, animals are considered service animals under the ADA regardless of whether they have been licensed or certified by a state or local government.

I’m personally ecstatic that the HOA has relented on its booting of the kangaroo, and has accepted its bouncy lifestyle until it transfers to the wildlife park. Beyond the public relations issue, it’s OK (really, more than OK) for HOAs to realize that the concept of community is important in an association. That home is more than a house people huddle in, away from their neighbours. It’s a place to form relationships, friendships, and show some decent basic humanity to your fellow neighbours.

The Estates of Legends Ranch has put a great foot forward with their support of the kangaroo. They are to be commended.

Condo Loses Court Case, Considers Fining Defendant Anyways

Gateway Plaza Condominium Association, Vail Colorado, has been unsuccessful in preventing the Arthrex company from opening a surgical training centre in their complex.

The complex, a mixed use building, holds 9 residential condos and about 9 current commercial tenants (realtors, a couple marketing/media companies, designers, financial advisors, and some home contractors and an upscale restaurant). The space Arthrex is looking to utilize previously held a medical office with OB/GYN and ear, nose and throat doctors.

Charles Lipton, president of the condo association, in what I can only read as an act of pettiness and donkey-ness, has indicated the board will examine fining the company for every day it runs the surgical training center. This is a classic example of a board looking at its quasi-judicial powers, and the ability to be their own judge, jury, and executioner (as the real courts didn’t award them their court case) to sledgehammer whoever ticks them off or fails to meet their level of decency.

Hey, if you don’t win in a actual, honest to goodness, real court – you might as well utilize your divine right of condominium to correct that!

Arthrex’s cardinal sin – the surgical (note “surgical”) training lab will utilize parts of actual cadavers. Specifically, the training will use human joints in educating surgeons on orthopedic procedures.

It’s not like the training lab is serving Soylent Green. There’s already a restaurant in the complex.

Compulsory Board Education for Condominiums, Strata and HOAs

In 2008 Florida enacted mandatory education for condominium boards. From some accounts the move has been an overwhelming success, and to others it has been simply more paperwork.

Having argued that the housing represents the largest asset, and form of enforced savings, that all but a few people will ever have – extra diligence and care should be taken by boards in managing condominium and HOA complexes. A poorly educated board can cause significant hardship to a huge amount of people, and jeopardize their financial well-being with only a few poor decisions.

To that, I fully support some sort of mandatory education process even though this is a volunteer, non-profit organization. I recognize this education requirement is more restrictive than business boards which have no mandatory requirements.

It is important to realize that this is mostly an issue for self-managed condominiums or those that don’t retain a paid manager at their board meetings.

A condominium management company fulfill the need for mandatory education. Management companies (generally) have exceptionally qualified individuals who know the local and federal legislation, and are trained in manners of ethics and process. They act as an in-person book of knowledge for boards. They are the best resource (and are worth a lot of the management contract cost) for a board.

But for those that don’t have a manager at their board meetings, training of the members is essential.

For disclosure, I serve on the Canadian Condominium Institute’s National Executive; teach condominium board education classes through the CCI, and our Ontario chapters in conjunction with ACMO have presented opinion to the provincial government supporting director education.

Condos Can Equal Free Fuel for Electric Cars

Three years ago, when I was president of a 107 unit condominium, I suggested that we may have to take steps to regulate the electrical outlets in the underground parking. I was assuming that at some time an owner would buy an electric car and plug in at night. As electric charges for all common AND titled spaces were paid out of condominium fees (no individual meters) for that condominium, I wasn’t about to have someone freeload their “gas” off the rest of the owners.

I was scoffed and laughed at (awww, poor me!).

Well, Mike Nemat of South Keys condominium, Ottawa Ontario, was doing just that – slipping his power cord into a common property wall socket for his 2012 Chevrolet Volt. Now, once he got caught, he’s been offering to pay $50/month for the right to plug in (he estimates the actual electric bill is about $24/month).

The board is having nothing to do with it, and requires Mr. Nemat to install a $2000 meter to continue his siphoning ways. That’s not going well with Mr. Namat.

The board is within their power to demand a separate meter. Indeed, they’re well within their rights to deny Mr. Nemat access to any electricity served through the common property – and unless the condominium’s by-laws are really poorly written, they should back up the board on that fact.

While I am all for getting off the monkey’s tail of fossil fuels – older, and even newer condominiums – aren’t designed for electric car charging. All new construction moving forward though should have parking stalls that, at minimum, have the wiring and sufficient grid to power every car at once – even if they’re not activated or metered till sometime in the future. Retrofitting will be a pain.

Mr. Nemat should in all honesty have approached his condominium board first before buying his car. It’s much like new owners who buy a condo already possessing a vehicle that’s longer or taller than the by-laws allow, and then complain about the board preventing them from using their titled parking spot. Too bad.

Arizona State Senator Thinks HOA Off-Leash Fining is Mostly Very Silly

I fully support Senator Lori Klein’s comment that the off-leash fines issued to homeowners (which she quotes as 25% of all HOA fines) are, as she states, “Most of it is very silly.” I would actually go further and find that most all fines handed out by HOAs tend to be “very silly.”

The problem is I think Senator Klein is picking the wrong fight – highlighting off-leash rules is one that can be easily refuted using real life experience. Even in my own life a close friend’s dog (who was on leash) was viciously attacked by an off-leash dog which charged off  its owner’s front yard. The only reason her dog is alive is because of a local neighbour bludgeoned the attacking dog with a bike lock until it released its grip on her dog. The attacking dog was later removed from the owner and put down. Her dog was put through excessive vet bills. Something she was never compensated for.

I’m also familiar with an acquaintance who laughed at the fact his dog jumped his backyard fence and killed two dogs walking by. This was especially cruel as the dogs’ teen owner was right there with them, and failed to save them.

Senator Klein highlights an elderly resident that keeps getting fined for her tiny Chihuahua. Agreed, this example seems very silly, and I would hope that the HOA realizes fines are not a tool to enforce compliance, but a last resort after trying other methods.

Leashing dogs in public, based my own experience, is a necessary evil. Good dogs are sadly affected by leash laws, but they are required to help control those that are uncontrollable.

Arizona state lawmakers are currently considering a bill put forward by Senator Klein to allow insured dogs off-leash. I would have to say I object to such allowance.

Boards Can Enforce Parking Restrictions Even After Years of Not Doing So

There’s a recent ruling by the Ontario Superior Court of Justice between Toronto Standard Condominium Corporation No. 1737, and Farrah Hakim and Jaffar Kayyali, regarding board enforcement of owner parking.

Jaffar and Farrah bought a unit – with titled parking – and proceeded to park, according to by-laws, an overheight vehicle there for 3 years before the board informed them they were in violation. The couple fought the board and demanded the right to continue to park their vehicle in their titled spot. After 3 years of dispute the court ruled that the couple’s claim was invalid and ruled in favour of the board.

It’s important to note – because this comes up ALL (all!) the time with boards I deal with – that the court ruled the board didn’t have to grandfather the vehicle because the board issued and started enforcing the overheight violation on all deliquent owners (there were 7 at that time in violation) in a fair manner.

Many owners often argue that there is a “timeliness” requirement to be caught in their bylaw infraction. That requirement doesn’t exist. A board needs not be omniscient, nor perfect, in their application of the bylaws. They do need to show fairness when enforcing them, and that the board enforces bylaw infractions as they become aware of them.  That’s about it.

So, if you’re an owner raging against a board claiming that they “ignored the situation for years” and that should invalidate any restrictions listed in the bylaws, you might not find that a convincing approach to gain favor from a judge.

Contractor Required to Give Condo 10% of Revenue To Work Onsite

Swim coaches that the residents of the Azalea Park condominium, Singapore, have hired are being told that they need to give the condominium 10% of their revenue to continue their services at the condo’s pool.

It’s punitive because the lessons aren’t being offered to non-residents – so the act only punishes owners from the full use of their pool. It’s arbitrary because it’s based on the coaching fees, not directly the number of students or time used in the pool. And it’s onerous because the additional overhead and red tape will drive away the coaches.

All in all – a 10% fee doesn’t correlate with control of the facilities (which the condominium already has added time restrictions). Nor does it equate with a “worry of additional wear and tear” because the owners are already paying for that in their monthly contributions (its owners using the coach, not off site individuals).

I can only imagine if this idea catches on, maybe condominiums would just have a 10% surcharge to all contractor work purchased by residents. Want to renovate? 10% please.

Rich Use Condo Bylaws to Ensure Class Segregation

While there is a significant amount of growing resentment over the pettiness, corruption, and mismanagement that seem to be growing in condominiums and HOAs – the rich are looking at them to entrench the divide between them and the common riffraff.

For top end bare land condominiums and HOAs, if you don’t want “the help” cluttering your sidewalks – just pass a bylaw indicating they’re not allowed enter the area on foot. And if it’s not apparent who are residents and who are “the help” – just pass a bylaw requirement that domestics (nannies, gardeners, maintenance and builders) must dress in an easily identifiable style indicating they are “the help”.

Seriously. The El Algarrobal II in the ritzy Chicureo area of Santiago banned domestic help from entering the grounds on foot. Golf club Las Bresis de Chicureo mandates domestic help must always be in uniform.

Understandable, it can be downright problematic as a moneyed person that you might mistake a common person as somebody worth having a conversation with. Reminds me of a New Adventures of Old Christine episode I was forced to watch once, where Christine strikes up a friendship with a Portuguese mother at her son’s school only to find out she’s the neighbour’s housekeeper. Awkward!

Anyways, this seems complicated and hard to enforce. What if the uniform wasn’t obvious enough? Maybe it’s too stylish. Wouldn’t it be just easier to issue evey visitor a large id tag with travel and ownership (who they are working for) information that had to be worn prominently on their clothes. Or how about something even simpler like a giant yellow badge.