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Tag Archives: important

Association Liability

Latest articles about condo’s and HOA’s, found on the internet, compiled by the Community Associations Network

Without a doubt, the most common question I am asked as an attorney by my homeowners association clients is “What can we do to protect ourselves from getting sued?” My answer is always the same: “Nothing!” In this era of quick-trigger and frequent litigation, there truly is nothing that an association can do to stop itself from being sued. However, it is important to understand that the clients are asking the wrong question. Instead, they should be asking what the association can do to protect itself from being held liable in a lawsuit.
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Sizing up Safety

Despite entrance gates, security patrols and neighborhood watch groups, community associations are not immune to crime. As the slow economy leads to layoffs and tightened personal budgets, desperate people may break the law.  Perhaps now may be the best time for an association to review its safety and the steps it can take to help prevent crime. 

“I think we’ll see an increase in crime with the number of homes that are vacant due to foreclosure,” says Melinda Johnson, CMCA a senior property manager. ” With banks posting notices of ownership…, criminals may begin to look for the right opportunity.” 

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Reserve Studies Minimize Liability

These days it seems that boards are being barraged by many issues that weren’t even considered only a few years ago.  Lawsuits and claims of financial mismanagement are taking place on a daily basis.  They are at best a nuisance, and at worst very costly and stressful. 

Over the years, homeowners have volunteered to serve on the board because they had expertise and skills from professional careers that were applicable to the association.  Examples include attorneys, accountants, and engineers.  Boards were comprised of people with these skills as well as other owners who were simply concerned about protecting their most important investment – their home.  This approach generally worked well in the early years of the association industry.  Today, however, community associations are required to be managed more like a business. One example of this is the need to plan for future capital repairs with an adequate reserve fund. 

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Saving your Sanity: Developing a Communications Policy and Protecting the Association

One of the best things a homeowner’s association board can do to protect the associations from liability and restore sanity to volunteer service is to develop a comprehensive communications policy that limits what Board members and committee members can say when they are speaking (or e-mailing) in their in individual capacity.  I have served on three separate homeowners association boards.  As an attorney. I also represent homeowners associations in my practice.  It is with this experience in mind that I offer the proposal and suggestions that are set out in this article.  It is my hope that this article, which contains a mix of legal and practical advice, will help you restore sanity to your volunteer service on the Board of Directors.

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