Tag Archives: plans

Reserve Funds

 

One of the primary business duties of community associations is maintaining and preserving property values of homes and the common property.  To do this properly, associations must develop funding plans for future repair or replacement of major common area components, such as roofs, boilers, elevators, swimming pools, balconies, asphalt surfaces and decks.

An association has several funding options, including periodic assessments over the life of assets, special assessments at the time of replacement, borrowing funds when needed, a combination of the above or the most common method – and in many states the only lawful alternative: setting aside funds in a special category commonly called reserve funds.

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Selective CCR Enforcement

If you’ve served as a member of a community association’s Board of Directors for any length of time, chances are you’ve heard the term “selective enforcement” when you have attempted to enforce the covenants.  There is good reason for this:  the selective enforcement defence is one of the most commonly used defenses to a Board’s covenant enforcement action.  There is much misunderstanding among Board members and homeowners as to exactly what selective enforcement means.  The purpose of this article is to provide an explanation of the underpinnings of the selective enforcement defense and to provide some guidance for insuring that your Board’s decisions can withstand a selective enforcement challenge.  

A Board has a duty to enforce the covenants of a community in a proceedurally fair and reasonable manner.  The defense of selective enforcement arises when an owner argues a Board breached this duty.

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