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BonnieG1 (Nebraska)
Posts: 1,186
Posted:
We are now on our third lawyer since 2012. The first lawyer (among other issues) took way too long to respond to us. The second lawyer was in another city an hour away from us. If you want me to I will explain how we chose a lawyer an hour away I will but for this post it is sufficient to say he was an hour away.
Our current lawyer is within 2 miles of our building and in my opinion is a good lawyer.

I just talked to our Secretary (We were both doing wash in our laundry room) who thought we should get another lawyer. She mentioned she thought we should have a lawyer well versed on condo law since we are hoping to update our documents. I did tell the Secretary that it was my opinion our lawyer can read and understand the condo laws and I don't think we need another lawyer.

Then she mentioned maybe we could still use our current lawyer, but choose a lawyer well versed in condo law who would be willing to work with our current lawyer.

I know that I certainly don't want to go through the process of getting another lawyer. However, If I didn't think our current lawyer was doing I good job I would be more than willing to go through the process again.

KerryL1 (California)
Posts: 14,550
Posted:
Your current HOA lawyer is not well versed in condo law, Bonnie?? What kind of law does s/he practice? What services are provided by your current HOA attorney?

Is your current firm on retainer with you, or do you just phone or email them when you need an opinion?

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By KerryL1 on 12/30/2014 5:22 PM
Your current HOA lawyer is not well versed in condo law, Bonnie?? What kind of law does s/he practice? What services are provided by your current HOA attorney?

Is your current firm on retainer with you, or do you just phone or email them when you need an opinion?


He is on retainer with us. But I think we have used up most if not all of his hours.

I believe he has had much experience going to court.
After we interviewed our current lawyer our PM who was present at the interview actually advised us to use him instead of the PM's lawyers.

I know that our Secretary usually gives us good advise.

I am thinking having two lawyers may not be a bad idea. But I am concerned about the expense.

I know our present lawyer has given good advise regarding letters I compose to send to one of our problem off site owners.
KerryL1 (California)
Posts: 14,550
Posted:
It might be worth it, Bonnie, to interview 2-3 actual HOA attorneys to see what they'd charge to rewrite your documents. it should be an entirely separate function from your other needed legal work. How long are your CC&Rs? Your bylaws? And, unlike CA, maybe NE law isn't so complicated, so perhaps it wouldn't cost a whole lot.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By KerryL1 on 12/30/2014 6:38 PM
It might be worth it, Bonnie, to interview 2-3 actual HOA attorneys to see what they'd charge to rewrite your documents. it should be an entirely separate function from your other needed legal work. How long are your CC&Rs? Your bylaws? And, unlike CA, maybe NE law isn't so complicated, so perhaps it wouldn't cost a whole lot.

Including everything about 100 pages. I am quite certain NE law is not as complicated as CA law or ever FL law.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By KerryL1 on 12/30/2014 6:38 PM

It might be worth it, Bonnie, to interview 2-3 actual HOA attorneys to see what they'd charge to rewrite your documents.

Although I agree that at times it's best to hire attorneys versed in specific fields for specific purposes,
I disagree that the attorney should actually rewrite any Associations governing documents.

Instead, I believe that it best to:

1) Form a committee to review existing documents with current laws, with documents from similar Associations within the same county and propose a draft rewrite to the Board. The committee should be made up of non-board members.

2) The Board should review the rewrite to existing laws, the current documents and make necessary changes in a revised draft.

3) The revised draft should be published to the membership and a meeting held to discuss the changes along with hearing feedback on possible changes. Those who can not attend the meeting can provide possible changes directly to the Board.

4) The Board then reviews the revised draft and makes changes based on the feedback received into a draft proposal

5) The Board then sends the draft proposal to the attorney for review, comments and suggestions.

6) The Board reviews the attorney's comments and makes changes to the draft proposal as they see necessary. Once those changes are made, the document is now considered a proposal.

7) The Board then makes the decision to go for the whole ball of wax or to vote on each proposed change individually.

9) The proposal is published to the membership along with a meeting notice and, if allowed, proxy forms (I prefer directed proxies). The proposal should include a letter from the Board explaining the process that was gone through and encourage participation.

10) Prior to the meeting, the Board actively goes after proxies

11) Meeting is held, vote is taken.

This process, in my opinion, allows for the greater chance of success. This is because members of the Association were included in making the changes. The last time we did this, it took over a year from requesting volunteers for the committee to final vote.

Alternatively, the Board could write the initial draft and give it to a committee for review.

RichardP13 (California)
Posts: 1,767
Posted:
I would agree with Tim 100%.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By RichardP13 on 12/30/2014 8:16 PM
I would agree with Tim 100%.

Tim's suggestion sounds good to me too. I will seriously consider it.

Although not impossible in our senior community, it may be a little difficult to get active participation for the committee. But it sounds like the best way to handle this major undertaking.

Thanks
CyrstalB (Maryland)
Posts: 457
Posted:
What is your % needed to amend? In an attempt to update our docs, we followed what Tim has suggested to you, and we did not get the necessary votes to change them, the ACC we formed started out by throwing us under the bus, and although we knew it was a waste of time and energy, we, the board ended up doing all the work, canvasing the HOA etc. So before you hire the attorney(s) take a good look at whether or not you can get the %.

Also, a good point given to me via this forum was that if your state law trumps any one article in the CCR's etc, you don't need to spend money to change them. The change exists regardless of what your docs say, so why pay someone "delete" it.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Bonnie

Amending your Covenants is one issue. Simply having an attorney update them (as in remove old information) is another issue.

As an example our docs refer to the Declarant, etc. but as our association has been turned over to we owners, none of the Declarant stuff is applicable. One just has to "read" through it. Ours could use an update but as of now it is not high on our list.

Hope this helps.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By CyrstalB on 12/31/2014 4:12 AM
What is your % needed to amend? In an attempt to update our docs, we followed what Tim has suggested to you, and we did not get the necessary votes to change them, the ACC we formed started out by throwing us under the bus, and although we knew it was a waste of time and energy, we, the board ended up doing all the work, canvasing the HOA etc. So before you hire the attorney(s) take a good look at whether or not you can get the %.

Also, a good point given to me via this forum was that if your state law trumps any one article in the CCR's etc, you don't need to spend money to change them. The change exists regardless of what your docs say, so why pay someone "delete" it.

I hope to have a member vote at the annual meeting to place ourselves under the law for associations established after January 1, 1984. Then since state law trumps our documents the process of updating our documents should be easier than if we had to update them through amendments to them. I had had to educate some of our members to the fact that state law trumps our documents.

We need a 2/3 majority of all owners to amend most sections in our documents. There is on section that needs 100% agreement of all owners. I know getting 100% agreement on anything is next to impossible. That requirement may be another issue for another post.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By JohnC46 on 12/31/2014 6:08 AM
Bonnie

Amending your Covenants is one issue. Simply having an attorney update them (as in remove old information) is another issue.

As an example our docs refer to the Declarant, etc. but as our association has been turned over to we owners, none of the Declarant stuff is applicable. One just has to "read" through it. Ours could use an update but as of now it is not high on our list.

Hope this helps.

Thanks John

I did mention in a Board meeting that according to the way I understand the law, we don't have a declarant and a Board Member got upset. So I just dropped the issue for the time being until we hear from our lawyer.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By BonnieG1 on 12/31/2014 6:48 AM

I did mention in a Board meeting that according to the way I understand the law, we don't have a declarant and a Board Member got upset. So I just dropped the issue for the time being until we hear from our lawyer.

Bonnie,

Are you saying that the Board chose to ask the attorney for clarification on if a Declarant was still in the picture?
EllieD (Vermont)
Posts: 446
Posted:
BonnieG,

1. To comment on your subject line question re a lawyer to update documents.

If it were my Condo Association I would look for an Attorney, Law Office, that specializes in Condominium Law, even if you have to look in another city an hour or two away, because I suspect that you will want to Restate (completely rewrite) your Declaration and ByLaws to meet the requirements of the current Nebraska Condominium Act.

I would try to locate an Attorney who has already Restated Documents for a number of other Condominium Associations, because then they will probably have a template of sorts already written, which they can adapt for your Association.

I am not an Attorney, nor do I work in the legal profession or related, but I think an Attorney specializing in Condominium Law might discourage any attempt to revise, as being more costly and difficult to do, vs, to completely restate, re-write. But not necessarily “a good thing”, because from your standpoint it is going to be much harder to figure out (and much harder to explain to your Owners) exactly what has been added, revised, amended, and or changed.

2. As you know, but others reading may not, January 1, 1984 is an important date, along with the words “before”, “created before” and “after” as used in the “applicability section” of the Nebraska Act.
----------------------------------------------
For reference, copied from: http://www.ncsl.org/documents/environ/NEcondo.pdf

76-826. Sections, applicability.

(a) The Nebraska Condominium Act shall apply to all condominiums created within this state after January 1, 1984. Sections 76-827, 76-829 to 76-831, 76-840, 76-841, 76-869, 76-874, 76-876, 76-884, and 76-891.01, and subdivisions (a)(1) to (a)(6) and (a)(11) to (a)(16) of section 76-860, to the extent necessary in construing any of those sections, apply to all condominiums created in this state before January 1, 1984; but those sections apply only with respect to events and circumstances occurring after January 1, 1984, and do not invalidate existing provisions of the master deed, bylaws, or plans of those condominiums.

(b) The provisions of sections 76-801 to 76-824 do not apply to condominiums created after January 1, 1984, and do not invalidate any amendment to the master deed, bylaws, and plans of any condominium created before January 1, 1984, if the amendment would be permitted by the Nebraska Condominium Act. The amendment must be adopted in conformity with the procedures and requirements specified by those instruments and by sections 76-801 to 76-824. If the amendment grants to any person any rights, powers, or privileges permitted by the Nebraska Condominium Act, all correlative obligations, liabilities, and restrictions in the act also apply to that person.
------------------------------------

3. If you go the route of using a Condo Law Attorney, IMO, the initial draft of the Restated Declaration and Bylaws should be written by that Attorney – and then, after you have the initial “draft” in hand, as TimB4 suggests, form a committee to review, etc., etc.

Also, just because “it is what the Attorney wrote”, that does not mean that you have to agree with everything written as a “first” draft – and you probably will not. So be prepared for a lot of back and forth.

4. You wrote “I hope to have a member vote at the annual meeting to place ourselves under the law for associations established after January 1, 1984.”

Is it correct to assume you want to ask your members (advisory vote only) “shall we amend, restate, our Documents to incorporate the provisions of the Act, which currently do not apply to us, Condominiums created before January 1, 1984, so as to have them apply to us?”

And will you have a list of ten (10) reasons why it would be an advantage to do so. And maybe, or maybe not, talk approximate cost to amend. And/or have the Attorney present at the meeting, possibly at no cost to the Association, to “sell” the reason(s) for new Documents.

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Is it correct to assume you want to ask your members (advisory vote only) “shall we amend, restate, our Documents to incorporate the provisions of the Act, which currently do not apply to us, Condominiums created before January 1, 1984, so as to have them apply to us?”

And will you have a list of ten (10) reasons why it would be an advantage to do so. And maybe, or maybe not, talk approximate cost to amend. And/or have the Attorney present at the meeting, possibly at no cost to the Association, to “sell” the reason(s) for new Documents.

Yes it is correct I want to ask our members "shall we amend, restate, our Doucments.......

I hope we have at least 10 reasons why it would be an advantage to do so. I don't know about the cost, but that is something we should seriously consider.

I get so much good advice on this site. Thank you.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By TimB4 on 12/31/2014 7:14 AM
Posted By BonnieG1 on 12/31/2014 6:48 AM

I did mention in a Board meeting that according to the way I understand the law, we don't have a declarant and a Board Member got upset. So I just dropped the issue for the time being until we hear from our lawyer.


Bonnie,

Are you saying that the Board chose to ask the attorney for clarification on if a Declarant was still in the picture?

Basically yes that is what I am saying. I did not want to start an argument at the meeting. I have stated my opinion on other items before and the Board didn't listen to me. But when our lawyer/owner said the same thing the Board listened to her.

It frustrates me that some of our Board members either aren't reading our documents and have very little understanding of the law and our documents. I know I don't completely understand the documents but I have read and studied them.

The Board member who got upset about the declarant previously had asked me what the state law has do to with anything. She did ask this before she was a Board member. I think she has a slightly better understanding of state law and our documents.

She also thought that although we own our units the church organization may still own the common elements in the building. She got on the Board. We hired and attorney and one of the items the Board wanted him to check on was "Do we or the church organization own the common areas" I was just one vote on the Board so my opinion had very little weight. Fortunately we have not given the lawyer specific direction to check on this. In my opinion it would be a waste of money for a lawyer to check this for us.

I don't know if we have these types of problems because we are a senior community or if other associations have similar problems.
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Posted by Ellie

If it were my Condo Association I would look for an Attorney, Law Office, that specializes in Condominium Law, even if you have to look in another city an hour or two away, because I suspect that you will want to Restate (completely rewrite) your Declaration and ByLaws to meet the requirements of the current Nebraska Condominium Act.

Bonnie's response

The lawyer who was an hour away was no more versed in Condo law that our current lawyer. The lawyer that had his office in the other city advised us to have a straw buyer for a unit whose off site owner was giving us some problems. I did not like that idea at all. Since we didn't have the money to buy the unit, we didn't follow his advise.

Our Previous President had a farm in the city where the lawyer was located. I really don't want to say too much more about the long distance lawyer.
KerryL1 (California)
Posts: 14,550
Posted:
Maybe I'm missing something, Bonnie. But are you saying you/your board doesn't know WHO owns your common elements/areas?? Whether it's your HOA or the church? If the church, aren't they paying property taxes on those common area?? Or, if not, who is?
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By KerryL1 on 12/31/2014 4:42 PM
Maybe I'm missing something, Bonnie. But are you saying you/your board doesn't know WHO owns your common elements/areas?? Whether it's your HOA or the church? If the church, aren't they paying property taxes on those common area?? Or, if not, who is?

I think it is one or two Board members on the Board who was a little confused about this. I have explained and re explained the concept of a condominium and I think I might have gotten the message across.

The Board member who was upset when I mentioned not having a declarant had a mother (recently deceased at 104) who lived here many many years. The church organization according to this board member was taking care of everything for us. The treasurer and myself had to explain we were being charged for what was being "taken care of"

If it does come up again, I will remind anyone who mentions it that we are paying for all upkeep of the common areas and the owner is responsible for the upkeep.

I am quite certain the Secretary understands how condos work and I was able to explain it to the Treasurer and Vice President. It is the member at large that may not have a complete understanding of how condos work. It is very hard to get Board members in our senior community. Many are literally too old and frail although they moved here when they were quite active.

Also because it was a church organization that built the building It is my opinion that some older owners feel it is wrong to say anything negative about the "declarant". Even to the point still believing the church organization is our declarant.

I believe part of my job is educating our members without being abrasive.

KerryL1 (California)
Posts: 14,550
Posted:
But hasn't the declarant been out of the picture for a very long time--years? And if so, why would anyone say anything "negative" about the (ex??) declarant?
KerryL1 (California)
Posts: 14,550
Posted:
But hasn't the declarant been out of the picture for a very long time--years? And if so, why would anyone say anything "negative" about the (ex??) declarant?

Maybe you can try explaining to us your understanding of a condominium and maybe some of us can help you explain the concept to your older, more frail owners. Just a few different words might do the trick!
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By KerryL1 on 12/31/2014 5:33 PM
But hasn't the declarant been out of the picture for a very long time--years? And if so, why would anyone say anything "negative" about the (ex??) declarant?

Maybe you can try explaining to us your understanding of a condominium and maybe some of us can help you explain the concept to your older, more frail owners. Just a few different words might do the trick!

The "declarant" has not been out of the picture for a very long time. We had a contract with the church organization for housekeeping and maintenance until January 1, 2014. The Care Center adjacent to us and connected to us by a tunnel is owned by the church organization. In fact when I first moved here, I was unfamiliar with what a condominium actually was and thought the church organization that owned the Care Center adjacent to us also owned this building.

Owning a condo involves community living. A person owns one (or more units) in a condominium building or I understand some condominiums can actually be individual houses. But I live in a three story building with 43 units.

The common areas are owned by all owners. A percentage is allocated to each unit determined by the square feet of the unit. Each unit owner's vote is determined by the percentage allocated to his or her unit. Mine is 1.997% But all owners have an undivided interest in the common areas.

A condominium building is built by someone or some organization referred to as the "declarant" and initially governed by the declarant. Once a certain percentage of units (determined by the documents) have been sold and a full Board of (in our case) owners have been seated that the "declarant" releases the governing to the association.
In our case this didn't happen. The first lawyer that we had said the church organization had a sweetheart deal.

I don't go into such detail when trying to explain a condominium to our older owners.

Our documents state that the management can not be taken from the church organization without 100% agreement of the owners. Long story but we "broke away" with a 14-16 vote but still signed a management contract with the church organization. This happened a couple of years after I moved here before I was on the Board.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Bonnie

Your situation is quite tricky meaning the "relationship" with the church. Be the relationship real or perceived, I think many of your residents believe the church is "taking" care of them.

I believe it would be near impossible to get all to agree to severe/modify this relationship so it leads me to ask you, why try? What is to be gained?

BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By JohnC46 on 01/01/2015 10:40 AM
Bonnie

Your situation is quite tricky meaning the "relationship" with the church. Be the relationship real or perceived, I think many of your residents believe the church is "taking" care of them.

I believe it would be near impossible to get all to agree to severe/modify this relationship so it leads me to ask you, why try? What is to be gained?


Basically we severed the relationship with the church organization in 2010 and became self managed. Self management was a nightmare. I know now but did not know at the time the vote was taken that the documents said we needed 100% agreement to cut ties with the church organization as our management company. The President of the Board at the time said that we had, then resigned. The new President signed a housekeeping, maintenance contract that also indicating it was a managing contract. The church organization never contested anything and it was the church organization that cancelled the contract with us effective January 1, 2014.

If I understand the law correctly (which I admit I may not) since the church organization hasn't contested us "breaking away" (estoppel) from them and were the ones that actually cancelled the only contract we had with them, the church organization now has no voice in any of our business.

That being said, since the church organization owns the Care Center adjacent to us, we want to be good neighbors and work together on certain items such as parking.

It is the owners have been here since before I moved here than have the idea the church "took care of us". I don't believe new owners have that idea.

Our documents are over 30 years old and in my opinion (with or without reference to a declarant) need to be updated.
KerryL1 (California)
Posts: 14,550
Posted:
Can you give us the exact passage about only the church can be your management company? I'm curious about it. And what document it's in?

Did your current mgmt. company say anything about that passage?

Also out of curiosity, who/what firm now handles your maintenance/custodial?

I do agree that you need to rewrite your documents. And I think I remember there's some question a bout who owns parts or all of your exterior parking areas?
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By KerryL1 on 01/01/2015 12:30 PM
Can you give us the exact passage about only the church can be your management company? I'm curious about it. And what document it's in?

Did your current mgmt. company say anything about that passage?

Also out of curiosity, who/what firm now handles your maintenance/custodial?

I do agree that you need to rewrite your documents. And I think I remember there's some question a bout who owns parts or all of your exterior parking areas?

I don't have time today to find the exact passage about only the "declarant" can be our management company. But I do need to study the documents before our annual meeting in February. I do remember seeing the passage when reviewing our documents with our lawyer/owner.

Our current mgmt. company did not say anything about that passage.

I don't think we are allowed to name specific companies on this forum. What I can say is the company was started in 2011 by a young man who previously had worked for a management company and appears to still be on good terms with the company he worked for. I am very pleased with our PM.

We had our property surveyed in 2014 so we have a map of our parking spots. At this time we are using the parking on a first come first serve basis. I would like to continue using the parking this way. The parking in the lot has always been difficult during the day and got more so when the Care Center started a major remodeling undertaking. Dumpsters took many parking spaces. There is so much detail I could go into, but prefer not to at this time.
KerryL1 (California)
Posts: 14,550
Posted:
Thanks, bonnie, and I didn't want you to name any firms--just what kind and it sounds like your current PM. Re: the outdoor parking area, I was wondering if, based on the survey, you know what part of it your HOA owns and what part the church owns?
BonnieG1 (Nebraska)
Posts: 1,186
Posted:
Quote:
Posted By KerryL1 on 01/01/2015 2:03 PM
Thanks, bonnie, and I didn't want you to name any firms--just what kind and it sounds like your current PM. Re: the outdoor parking area, I was wondering if, based on the survey, you know what part of it your HOA owns and what part the church owns?

Based on the written information in the survey we own 11 spots on the South West side of the lot. As mentioned previously we share all spots. Some of our vehicles park in the Care Center's lots and many of the employees of the Care Center park in our lots. It is currently a first come first serve basis. We have talked about posting signs on our lots indicating Condominium parking only. But have done nothing about this so far.

That being said, I currently am parking outside and one snowy icy day I had to get to my car. There is a slight incline to get to the cars that are parked on the for West side of the lot. It was quite difficult for me at 67 year old with arthritis all through my body to get to my car.

Thus I prefer first come first serve, but we will work with the Care Center on this.

If I don't get a good spot when I come home, I can usually go our later in the evening and move my car to a better spot.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Bonnie

As someone said earlier, name me 10 good reasons as a fellow owner that I should listen/vote to you to and change things? No need to name them to us, but be prepared to do so to fellow owners.

Many will think well if it is not broken, leave it well enough alone.

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