Condo Media - October 2022 - 37

Even with new owners who do understand how HOAs work, the
board's job is made more difficult because of the intricacies of condominium
documents or covenants. Many unit owners have expectations
that are unrealistic with respect to their condominium homes. They
enter into the community expecting that they can do whatever they
want as in a single-family home ownership situation. They believe
that the board is there to do their bidding when, in fact, the board is
required to follow the documents, enforce the bylaws, and protect the
best interests of the association. Sadly, the objectives of some unit owners
and the best interests of the community can be in direct conflict.
SELF-MANAGED ASSOCIATION CHALLENGES
For the board of a self-managed community, the situation carries
an additional challenge as the trustees must deal directly with their
neighbors without the buffer of a professional management company
through which to filter rules enforcement. This can be especially
difficult because ensuring that everyone complies with the rules is
probably not going to achieve hero status for the trustees of the
self-managed association.
Because residents are living in close proximity to each other, the
board often must consider competing interests. As members of the
HOA themselves, the trustees attempt to allow each resident to enjoy
living in the community to the fullest possible extent. At times, one
unit owner's full use and satisfaction may conflict with that of another
homeowner. In these situations, it is the obligation of the board to
set guidelines for behavior that balance the interests of all residents.
These guidelines may be in addition to those found in the Master Deed,
the Declaration of Trust, CC&Rs, and the bylaws. The rules promulgated
by the self-managed board are designed to allow residents to live in
harmony while taking into consideration the best interests of everyone.
To ensure unit owner compliance, condominium documents may
also provide consequences for failure to abide by the rules, regulations,
policies, and procedures, including the assessment of fines. If these
are not clearly defined, the board of the self-managed association
should 1) adopt a policy that will address violations of the Rules and
Regulations; 2) have this document recorded by legal counsel; and
3) distribute it to all unit owners. To withstand court scrutiny, fines
should always be reasonable, although there are some rules violations
that are so egregious and that jeopardize the safety of the violator and
other residents of the community, that penalties should be established
that will dissuade residents from failing to comply. A method for a due
process hearing or fact-finding meeting should also be in place so that
unit owners can present their case and/or dispute the violation.
The board of the self-managed community must strive for consistency
in the administration of the bylaws, rules, regulations, policies,
and procedures at all times. Should an unhappy unit owner seek court
intervention in a rule violation matter, the board will have to show
evidence that similar measures were taken and fines charged with
other non-compliant homeowners.
Consulting with legal counsel is an excellent first step in understanding
the Master Deed, Declaration of Trust, CC&Rs, and bylaws
and determining what the board of the self-managed association
actually has the authority to regulate. The board should also rely on
the association's attorney for making and recording new regulations
and crafting a procedure for rules enforcement.
October 2022 CONDOMEDIA 37
Condo Media - October 2022

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