Understanding HOA Management and Enforcement Process

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Explore the role of HOAs in property value protection, the responsibilities of management companies, the enforcement of covenants, and the process involved in resolving disputes within a homeowners' association. Learn about the significance of addressing violations, the impact of severability and waiver clauses, and the steps taken when grievances arise.

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HOA Management & Enforcement Presented by Danielle Frederick, CMCA, AMS

How did HOAs come about?

HOAs were established to protect (or increase) your property values

Accounting Accounts Receivable Accounts Payable Financial planning Work with vendors on maintaining common area Point of Contact for Homeowners Advisor to the Board Manage closings/refinancing on homes Compliance enforce the covenants and rules What your Management Company does

What your management company is not Attorneys Engineers Police

Enforcing the Covenants Severability and Waiver Clause

Enforcing the Covenants Severability clause: Example - the provision hereof shall be deemed independent and severable and the invalidity or partial invalidity or unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of any other provision hereof i.e., if one part of your covenants is found to be unenforceable it does not affect the rest of your covenants and restrictions.

Enforcing the Covenants Waiver clause: Example no delay or failure by any person to enforce any of the restrictions of to invoke any available remedy with respect to a violation or violations thereof shall under any circumstances be deemed or held to be a waiver by that person of the right to do thereafter i.e. just because you haven t enforced something in the past, doesn t mean you can t enforce it in the future. Example trash cans must be stored out of public view Example I got a violation letter but my neighbor didn t

Management Company will send letters If no resolution from management company's letters: start the grievance resolution process 10 business days to meet with the Board to dispute 10 calendar days to hire arbitrator or mediator No resolution, then go to court Enforcing the Covenants The process

Enforcing the Covenants Cannot fine in the State of Indiana Self help/tow Be careful of fair housing laws Revoke privileges use common sense Be consistent & unbiased If property is a rental send violation letter to both tenant and deeded owner Deeded owner ultimately responsible City ordinance violations

Rental Restriction Amendment Suggestions Must own for X amount of years prior to being able to rent Challenges with rental caps (especially with large communities) Lease must be 12 months in length Allow a hardship Existing rentals grandfathered in Look to see how many yes votes you need vs how many rentals you currently have in community Be prepared to go door to door, obtain street captains, hold townhalls, email blasts, signs @ entrances

First what's considered a rental? Parents own, kids live in it or vice versa not a rental Trust owns it not a rental Burden of proof lies with the homeowner Closing department questionnaire from mortgage company We also notify title company at closings with actual documentation We have ongoing list internally Board must be willing to help keep an eye (and ear) out Act quickly if you suspect someone is breaking the rules Call but follow up with email or letter Don t be afraid to get legal involved Enforcing Rental Restrictions