This week’s tip gives you a heads up before you approve funds to make capital improvements at your homeowners association or condo association.
Association boards must be vigilant to consistently enforce the association’s CCRs and bylaws. Inconsistency or looking the other way can create a defense of waiver or estoppel for the errant homeowner to use against the association in court. However, in Kneale v. Bonds 452 S.E.2d 840 (S.C. Ct. App. 1994), the South Carolina Court of…
In the Kneale case, the Bonds submitted an application to extend their condo by 2,200 feet, which would extend the unit into the common elements of the Condo Association. The Board approved the application, but several property owners brought suit against the Bonds seeking a temporary restraining order and to enjoin them from further construction. In return, the
What can a board do if its building is faced with extensive capital work while recovering from the real estate slump of the early 1990s? Assessments are unpopular and reserves are low. There’s a desire to have construction operations completed as quickly as possible, but an aversion to parting with too much money at one time. One way to solve this dilemma is to phase in the capital programs over an extended time. Undertaking construction in distinct stages offers many advantages as well as potential pitfalls. Armed with the proper information, however, the board can organize the building’s construction into phases that best suit their purposes.