Community in Distress

Recently I bought a house in a community in Pennsylvania. The community is a bit run down but I know it has great potential. The reason I know this is I remember visiting this community with my folks almost forty years ago. I swam in the lake and ate at the ice cream stand and had a ball. Since then the lake has been drained and the bath house is dilapidated the snack bar vacant and vandalized. Through poor management and little or no enforcement of HOA rules many houses are trash ridden and falling down with junk strewn all over the property.
I recently became involved with the HOA and became a board member.Needless to say; if you envision the picture I have just painted; we need lots of help and I have lots of questions!!

1). One of the problems which is not a new one for many of you fellow HOA's is money!! Our annual dues are extremely low but still delinquency is rampant. HOW can you institute a collection policy that has some "teeth". It's frustrating. People have no fear of non-payment.What is our best "toothy" approach?

2). The township has been little or no help. The board members tell me that "the township doesn't want to hear it" or "the township doesn't want to get involved". How can the township collect tax monies and offer no services. Shouldn't they be enforcing township codes and ordinances within the community? Can they legally refuse to come into the community? The same with the local sewer authority?

3). One of the biggest offenders of all of the above is the original owner/developer who still owns a significant number of lots and buildings within the community.The bath house,snack bar and other buildings with abandoned vehicles and heavy equipment and trash everywhere. What can be done about him? Can we involve the local municipality in this in any way? Is there any way to give him the "boot"?

Any advise or pointers that anyone could give would be greatly appreciated by alot of folks that would like to see this community brought back to its original peaceful and tranquill splendor.

Thanks,
Charlie J.
P.O.A.S.V.L. B.o D.

Sounds like you need to contact a good homeowners association attorney in your local area who is up on all the procedures and legalities specific to your area.

I have no idea what a "township" is nor why it should or should not be involved in cleaning up your area.

Charles, are you sure your HOA is really mandatory and not voluntary? Harold

Charlie, first read and study your Declaration of CC&Rs to establish what the association can and can not do. Are you are allowed to assess properties (this is not dues which are paid voluntarily to a non manditory HOA)? Are you allowed to fine, lien, and forclose? Can your association establish Rules? If so establish Rules and Regulations on Delinquent Assessments, provide them to all members, give them 30 days grace period, and then instigate the Rule. Attached is an example for an HOA where there seldom are delinquencies. When there are serious delinquencies the charges would need to be increased significantly to "encourage" prompt payment.

I would definately look the CCR's and establish a collections policy. We worked with our attorney last year and liened out 4 properties. Before we lien them that go to a collections agency and then after a specified time, our attorney files liens. The collections agency gets their fees added onto ours and of course the attorney tacks on his fees for services on top of the lien itself. Sometimes, I fear that if the property might not be worth a lot or if the Property is heavily mortgaged, that we're standing 2 or 3 deep in line sometimes for our money. We could always be standing behind IRS, First Mortgage and Second Trust; whereby there might not be a whole lot of money left on the table. Then the other question I haven't figured out yet, is.. can we force the sale of the home. We'll see.

In addition - Our bylaws say that privileges can be suspended after their accounts are 60 days in arrears. Is that the case here? Can you restrict them from using common area resources? Pool, Lake access, boat ramp, golf course, voting privileges, parking?

Charlie:

You enforce your CCR's according to what the documents state. You follow the Planned Community Act in your state. Send late notices with late fees, and send a 30-day final notice. Place liens on the ones who fail to pay and then your last straw for collection is the possible foreclosure.

As for the Town, they have to enforec their own ordinance. Contact the Zoning Officer and Code Officer and start a repour with them. A good Article to read is the Association Times "Are you in the Zone" by Mark Lewis. Their copyright states that reproduction is granted as long as credit is given to them, therefor I did and here is his article:

Besides the usually Covenants, Conditions, and Restrictions (CCR's) or Rules & Regulations in your homeowner association declaration, the association can also access and review the ordinances of its local municipality. Your city, town, or county will generally have a complete set of zoning ordinances that are laws that govern residential, commercial, or industrial development. These ordinances cover a wide range of architectural, health, and safety standards that can aid your association in protecting and enhancing property values. Most municipalities have posted the Zoning Codes online. This makes a quick review easy, and more importantly a wise choice when reviewing architectural submittals, enforcing CCR's, or providing an alternative for homeowners who are seeking additional resolution to disputes with neighbors.What kinds of zoning ordinances should your association or your homeowners know about?Property Setbacks – Homes built within a subdivision will usually have a setback for the lot. This means that the structure must be placed so that the minimum setback surrounding the house structure is maintained. For instance, if the front setback is 20 feet, then the front of the structure can be built starting at least 20 feet from the front property line. For side setbacks, if it is designated as 15', then there must be at least 15 feet from the side of the house structure to the side property line; and the same would hold true for the neighboring property, making the two structures at least 30 feet apart. If your association is reviewing architectural plans for house additions, or other structures, check out the setback requirements, so that the new addition meets the minimum setback. This will be particularly important in maintaining privacy between adjacent lots.Signage – You don't want your association cluttered with signage of various sizes, colors, or messages. Besides the restrictions placed in your CCR 's, the local municipality will have its own standards for signage. There may be restrictions on how long a signage can be visible (for instance a political sign); if the signage can be illuminated; or if a sign can be operated with any motorization.Outdoor Lighting Standards – This is always a hot issue between neighboring properties, when homeowners are feuding over light “pollution”. Many towns and cities have adopted regulations on light shielding, fixture height, and illumination. Dark sky ordinances exist in many communities to allow for the enjoyment of the nightly stars.Swimming Pools – Nowadays, municipal codes require that property owners who have swimming pools install pool fencing, with proper gate enclosure. In addition, environmental standards may be imposed that restrict the pool filter backflushing. Home Office – With more and more homeowners working from home, it is a good idea to review your association documents as well as your zoning ordinances. Many municipalities restrict home offices in residential neighborhoods to protect residential neighborhoods from becoming cluttered with commercial activity. In the past, these ordinances were strictly enforced to keep residents from conducting any sort of business from their home, even if it did not have a visible impact on the rest of the neighborhood. Now, there is less enforcement on the actual letter of the law; however, if your association receives complaints from homeowners and your association documents are silent or very ambiguous on this issue, a good place to steer these complaints is your local zoning inspector.Inoperable Vehicles – How many times have you heard from homeowners about neighbors with inoperable vehicles? Municipalities are taking a more aggressive stance on regulating that unregistered, inoperable, or dismantled vehicles be garaged.Property Rentals – Leasing a residential unit with a short-term rental contract (less than one month) is generally regulated by the commercial zoning codes. CCR's may or may not spell out minimum rental terms, so the association may be at loss to enforce short term contracts. However, CCR's usually define that the lot be used as a “single family residential use”. Read the local commercial zoning code on rentals to find out what period of time constitutes a commercial use so that your association has additional resources when enforcing leasing of units.Building Height – It's there for a number of aesthetic reasons. In residential zones, building heights attempt to reduce the look and feel of large masses of structures being built in close proximity; and to allow the residential building to have a flavor on being part of the surrounding environment. As your association reviews architectural applications from homeowners, check that any modification to the house or lot complies with the height restrictions in force for your local municipality; adding a sundeck may appear to be architecturally pleasing, but may be too high.Nuisances – What constitutes a nuisance to one is not necessarily a nuisance to another. Loud noises, unusual smells, or dog barking are just some of the normal gripes between neighboring properties. If your homeowners are seeking resolutions beyond what the association can offer, their local government official may be able to assist them.Landscaping – Review the location of plants, shrubs, or trees. For corner lots, sight visibility triangles come into play, and landscape vegetation is prohibited in these areas of the lot. There may also be restrictions on what can be placed in the right of way areas, near public sidewalks, or natural areas within environmentally protected spaces.This is just a small list of zoning ordinances that can affect the appearance of the lot or structure. Take the time to compare your own CCRs or Design Guidelines to your local regulations. You may find that your association and your membership have additional measures at their disposal. The importance of knowing the local ordinances and zone codes is not to enforce such restrictions, but to recognize the additional and sometimes contradictory rules which may exists between your association's governing documents and the local zoning codes. In some cases, these local ordnances and zoning codes will assist the association in addressing awkward situations, and/or developing more detailed rules for property use and modifications.

Hi Charles:

First off, I'm scratching my head, wondering why you bought into a dilapidated community?

Second, do you have any pictures from when you were young, that you can share with the rest of the board and with the community - to recall the "glory days," and to share a vision of what is possible for your community? If you have and can share a vision, that may be the most powerful thing you could do to change things; get other people to "buy into" it and the values you espouse for your community.

Best of luck!

JPM