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AugustinD
Posts: 5,144
Posted:
My condo's Declaration has a use restriction that is discretionary. It says something like, "Unless the Board approves, all Owners must have wood-colored horizontal blinds in their windows." A member has been cited for a violation of the use restriction. He has wood-colored vertical blinds. The Board feels the appearance is not harmonious. The Board knows it is obliged to enforce the Declaration and ensure the harmonious appearance of the exteriors of the buildings and units, to ensure property values. The member asks for and receives a hearing. He has put the board on notice that he is talking with an attorney. At this point all he wants is the board's reasoning. Would your board be comfortable explaining in writing its reasoning for not approving the wood-colored vertical blinds the Owner has? This is a reality check.
PitA
Posts: 1,416
Posted:
..... It says something like, .....


What, PRECISELY, does it actually say ?

Unless, of course, you are actually seeking Tauric Ka-Ka
KerryL1 (California)
Posts: 14,550
Posted:
Augie: "My condo's Declaration has a use restriction that is discretionary." What does "discretionary" mean in this context?

Per PitA, let's see the exact wording of the window covering topic.

AugustinD
Posts: 5,144
Posted:
Hi Kerry, the exact wording is: "Unless otherwise approved by the Board, all windows shall have wood-colored horizontal window blinds."

"Discretionary" to me means the board can use a "fair and reasonable" standard to allow blinds that are not "wood-colored horizontal."
TimB4 (Tennessee)
Posts: 21,059
Posted:
Would my board be comfortable? Yes.

Personally, I don't see an issue with it but I understand some do.

Hence the reasoning would be (in my opinion):

After discussing your request, the Board voted unanimously (or x yea to x nay) to deny your request. It is this Boards opinion that the wood colored blinds, identified in section x Article y of the Declaration, be adhered to as it is the aesthetic look the developer desired and may have been a factor in attracting many to purchase. A future Board, as authorized by the Declaration, may indeed think differently and come up with additional approved colors in future guidelines. Until such time occurs, this Board has made it's decision.

If you would like to be part of the decision process, please consider running for a seat at our next election or volunteer to chair a committee to review our existing architectural guidelines.

AugustinD
Posts: 5,144
Posted:
Thank you, Tim. I too wanted the member to know something like, "... it is the aesthetic look the developer desired and may have been a factor in attracting many to purchase." He's very confused, a little upset, and obviously a newbie to how condos, Declarations and property values all work together. To me, it could have been a teaching moment. I suppose it is not a big deal, other than I feel one person's negative emotions could have been quelled some by a rational response rather than just throwing the Declaration wording back at him.
KerryL1 (California)
Posts: 14,550
Posted:
I agree with you, Augie. Courtesy & friendliness can go a long way.

Just FYI, our 200 condo high rise permits white and off-white window coverings of any style. The originals are vertical fabric. 16 years later we have many different materials, vertical & horizontal in use including a aril number of plantation shutters.

To tell the truth if I'd been limited to "wood" colored blinds I wouldn't have bought in your HOA. Just my fast, of course, but it would've felt too dark in color (if it's dark) and I'm not a fan of wood. But that's just me.
AugustinD
Posts: 5,144
Posted:
Thank you, Kerry. Reading your experience helps. The new board does a lot of (vicious ouch!) arguing behind closed doors. But I feel it still has made good progress with infrastructure, transparency, getting a grip on reserve funding, and lighter meetings in front of members.
MarkM31 (Washington)
Posts: 494
Posted:
Quote:
Posted By AugustinD on 07/03/2017 10:29 AM
I too wanted the member to know something like, "... it is the aesthetic look the developer desired and may have been a factor in attracting many to purchase.".

That is sayimg much too much.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
In our patio home HOA our covenants call for all window dressings in windows facing the street to be white or off white. We do not specify what type window dressing, just color. Same as all front doors must be black and any storm/screen doors must be full length with white trim.

We had one owner paint their door red. When notified they said they did not know the restriction existed. They were not happy about it but they repainted it black.
AugustinD
Posts: 5,144
Posted:
MarkM31, If you were the member's attorney with instructions to do all possible to win your case, how would you use what I quoted against the HOA? I tend to think any competent attorney would explain to the member that his case is terrible, and a judge would hate the attorney for bringing it to court.

This is an academic discussion at this point. I am not going to worry about giving an explanation to the owner. I figure he will talk with neighbors and learn from them why things are as they are.

JohnC46, thank you for the input.
KerryL1 (California)
Posts: 14,550
Posted:
Sounds like your board is making progress on the civility front, Augie. I'm sorry to say that after years of improvement, civility & honesty on our Board is declining.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I just quote the rules of the HOA. If it's in a section of the rules, then I cut and paste that out. Our HOA we had a rule about only having white shades in the front windows. So we were able to cut and paste that portion to the violator.

BTW: HOA do NOT maintain "Home Values". They are for keeping home "ATTRACTIVENESS" to potential buyers. By keeping the homes conforming and area in good shape, attracts more potential buyers. Home values are based on REAL numbers. So your HOA is trying to make sure the homes are staying conforming by enforcing this rule at their discretion to keep up appearances NOT values...

Former HOA President
MarkM31 (Washington)
Posts: 494
Posted:
Quote:
Posted By AugustinD on 07/03/2017 12:33 PM
MarkM31, If you were the member's attorney with instructions to do all possible to win your case, how would you use what I quoted against the HOA? I tend to think any competent attorney would explain to the member that his case is terrible, and a judge would hate the attorney for bringing it to court.

The more expansive reasons given against doing something, then there are more avenues to attack. For example: It is against the CC&Rs, give one thing to attack.

Saying the "thr developer and architect thought..." then you can also argue whether or not in fact the developer and architect thought that, and how it affects values and appearance.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By AugustinD on 07/03/2017 7:33 AM
My condo's Declaration has a use restriction that is discretionary. It says something like, "Unless the Board approves, all Owners must have wood-colored horizontal blinds in their windows." A member has been cited for a violation of the use restriction. He has wood-colored vertical blinds. The Board feels the appearance is not harmonious. The Board knows it is obliged to enforce the Declaration and ensure the harmonious appearance of the exteriors of the buildings and units, to ensure property values. The member asks for and receives a hearing. He has put the board on notice that he is talking with an attorney. At this point all he wants is the board's reasoning. Would your board be comfortable explaining in writing its reasoning for not approving the wood-colored vertical blinds the Owner has? This is a reality check.

Potentially I do not like open ended items in the CCR's. Items which state "Unless the Board approves" means that the Board potentially must come up with a very valid reason for NOT approving. If the documents had left off the first part of "Unless the Board approves" and just simply stated "All owners must have wood-colored horizontal blinds in their windows" that would be simple to enforce!

The first question I would ask is how long has the owner had "wood-colored vertical blinds"??? It is one thing if the owner put up very recently and being called to task; however, if the owner put up 6 months or more in past why was the issue not addressed in more timely manner? I have found in past that vertical blinds are more expensive than horizontal blinds ... therefore, if an owner has put out an expense for blinds the BOD needs to have a VERY valid reason for any denial because your documents allow for discretion. Again ... that is why I like to see more black and white options vs leaving to personal opinions.
AugustinD
Posts: 5,144
Posted:
Hi JanetB2, as I am sure you know, the Covenants are what they are, and amending is no easy feat. The Association is presently stuck with the 'Unless the board approves... ' qualifier for this use restriction. As for the time the blinds have been up, it is way over six months. Worse, the blinds were cited in October 2015 as being a violation. In October 2015 the member asked for a hearing. The gov docs require a hearing when requested. The HOA never responded, ever, until this past spring when, to the member's alarm, suddenly he was cited again.

I thought long and hard about the law here. I wrote two drafts for my position on this as a director. One draft approved the blinds, stating the Association had let too much time go by. Going the latter route could lead to (a) other members threatening legal action for the board's seeming failure to enforce, allowing a poor exterior appearance of this building; and (b) others using these blinds as precedent for installing their own incongruent blinds. Weighing all, I decided instead that I was obliged to ask that the blinds be restored to compliant ones. I have a duty to 'enforce the covenants' and strive for harmony in the exterior appearance of the condo units here. This seemed the route that would result in the least threat of litigation and controversy. I also asked the Board to issue an unequivocal apology from the Association for dropping the ball in 2015. (I do not think this will happen. The two other board members are not that sharp. They are angry they even had to have a hearing. The gov docs require a hearing, if requested. I told them, annoyed, that the member wrote the board specifically to say he was talking with an attorney. If the board does not have a hearing, count on the judge in small claims yada to rule in favor of the member.) At least the member ultimately did get his hearing with a board majority. The President ducked out at the last minute and did not attend the hearing. I think he did not want to do something he felt wasted his time. His absence will not help if this goes to court. I got some clarification on why he did what he did and do not think nearly as badly of his action as I did.

The court note at the bottom of this opinion also figured in a bit: http://law.justia.com/cases/georgia/court-of-appeals/1993/a93a1073-0.html . I do not live in Georgia. But I am aware that the Courts want to see a HOA follow its Declaration. I tend to think my HOA's dropping-the-ball in 2015 was not as serious as allowing the non-compliant blinds to stay up.
AugustinD
Posts: 5,144
Posted:
Then again, here's a case where a HOA Declaration again had a discretionary covenant ('Unless board approved, no signs are allowed in windows.): http://law.justia.com/cases/new-jersey/supreme-court/2012/a-65-10.html . Free speech rights trumped the Declaration.

Other covenants cases of course do talk about timeliness, particularly when significant money has been spent. E.g. here's a case that talks about a building that was constructed at a height allegedly in violation of the covenants but raises timeliness concerns: http://law.justia.com/cases/new-mexico/supreme-court/1985/15458-0.html

What would I do if I were the judge? Because of the lack of timeliness and the HOA's failure to respond to a request for a hearing in 2015, I would require the HOA to pay for compliant blinds.

I appreciate people posting with their impressions and experiences. I served on a different HOA board previously and immersed myself in the gov docs. But gov docs differ. Also I want to get things as right as possible in my early decision-making. "The devil is in the detail." Reading the governing documents carefully and, also hearing members who often pore over the gov docs, will pay off later and make this task easier in the future.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Janet

It would be impossible to list all aspects/angles of something such as what blinds are allowed. It also opens up the possibility that if something was not on the list of not allowed then it is allowed. There can only be general guidelines such as horizontal, white of off white blinds only with the BOD having the final say. Yes it could make the BOD the arbitrator of good taste or give them power you do not want to give them, but I see no other way.

Fence guidelines are a good example of impossible to list all types allowed but one could say no chain link of any kind.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By JohnC46 on 07/05/2017 9:16 AM
Janet

It would be impossible to list all aspects/angles of something such as what blinds are allowed. It also opens up the possibility that if something was not on the list of not allowed then it is allowed. There can only be general guidelines such as horizontal, white of off white blinds only with the BOD having the final say. Yes it could make the BOD the arbitrator of good taste or give them power you do not want to give them, but I see no other way.

Fence guidelines are a good example of impossible to list all types allowed but one could say no chain link of any kind.

Yes ... and stating No Chain Link of any kind is different that stating "Unless the Board approves". The issue is with the OP's post the CCR's state "Unless the Board allows" that all blinds shall be Horizontal. The issue the OP has is the blinds were installed and cited in October 2015. We are now July of 2017 which is close to TWO years later. Potentially the issue the OP will run up against is if the HOA had an issue ... they should have fully addressed in 2015. They addressed, but dropped the ball. Therefore, should a homeowner who expends potentially thousands of dollars on various window blinds for their home be on the hook to pay MORE money simply because the HOA did not perform their job??? In my new HOA an owner built a large shop/barn with materials not matching the stucco color of their home ... I have already warned that if our HOA does not take steps within one year or less of the installation ... the Owner gets to keep what they installed. That would be per our State Laws. In my state the HOA after one year would LOOSE that barn battle.

Sometimes you have to choose your battles wisely ... if it has been close to two years ... I potentially would not take on that costly legal battle. When I estimate the HOA winning you can pretty much "flip a quarter" ... and when I take on a potential legal battle I have higher estimated odds of winning!

DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By MelissaP1 on 07/03/2017 2:53 PM

BTW: HOA do NOT maintain "Home Values". They are for keeping home "ATTRACTIVENESS" to potential buyers. By keeping the homes conforming and area in good shape, attracts more potential buyers. Home values are based on REAL numbers. So your HOA is trying to make sure the homes are staying conforming by enforcing this rule at their discretion to keep up appearances NOT values...

I can't count the number of times I've read this from you. Please stop. It's the same thing. An attractive home sells for more than an unattractive one does; in the same neighborhood. Why else do realtors strongly suggest cleaning the yards, painting the houses, etc. All it takes is one redneck neighbor to store a few cars in the yard, or place the hot tub in the front yard, and everyone's property values go down. Because, a home is only worth what it will sell for. The numbers you see on willow, zillow and other sites, are just references. Before I purchased my latest home, the wife and I had to drive through a crappy area to get to a real nice lot and home on the side of a mountain. The crappy neighborhood lowered the value of that home for me. I may have bough it for 50K less, maybe not, but probably would have.

Purpose of a Home Owners Association:

The primary purpose of a homeowners association is to ensure that an individual or group cannot negatively impact the market value of homes in the neighborhood. The rules and regulations established by a HOA are designed to protect the value of each property. As a result, rules become a necessity. While many people may be turned off by rule sand regulations, it is one of the primary reasons that HOA remain popular.


See where it says "Market Value"?

No offense meant. I'll slide off my soapbox now.....
DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By JanetB2 on 07/04/2017 11:22 PM

Potentially I do not like open ended items in the CCR's. Items which state "Unless the Board approves" means that the Board potentially must come up with a very valid reason for NOT approving. If the documents had left off the first part of "Unless the Board approves" and just simply stated "All owners must have wood-colored horizontal blinds in their windows" that would be simple to enforce!

The first question I would ask is how long has the owner had "wood-colored vertical blinds"??? It is one thing if the owner put up very recently and being called to task; however, if the owner put up 6 months or more in past why was the issue not addressed in more timely manner? I have found in past that vertical blinds are more expensive than horizontal blinds ... therefore, if an owner has put out an expense for blinds the BOD needs to have a VERY valid reason for any denial because your documents allow for discretion. Again ... that is why I like to see more black and white options vs leaving to personal opinions.

Even without the "unless the board approves.." statement in the CC&R's, the Board can grant a variance. They should be very careful granting them though. One will lead to more....

How many different colors of wood are there? Cedar and salt cedar are very different. Is it maple? or Pine? That's where the Board could be of use in determining if the color meets the standard.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
MARKET value does NOT equal "HOME Value". Market value is pretty much saying what been saying the whole time. It's MARKETING your home to be ATTRACTIVE to potential home buyers. Home Values are REAL numbers. They are based on how much homes of similar size/features have sold/foreclosed for in about a 6 month period in a designated area. A 3 bedroom 2 bath house next door sold for $100K then your house has a basic $100K home value. (In the generalist of terms).

Former HOA President
RichardP13 (California)
Posts: 3,868
Posted:
Appraisal value does not equal market value

An appraisal is an opinion of real estate value by a licensed appraiser, employed when a house or condo is under contract or sale pending with a mortgage, so that the lender does not over-invest. In other words, when an appraisal is used in escrow, it is to protect the bank which is lending money on the property. Appraisals may be used at other times, too.

Market value is what home buyers and sellers will agree on as the sale price of a property. When Realtors work up a comparative market analysis or competitive market analysis, they try to figure out where the home will sell in the future, or what the market value will be. They will also strive to bring that sale price to the top of the possible range of likely values – or go beyond it.

Put another way, appraisals attempt to determine the most precise value for what a home should be worth. Home buyers may or may not agree with an appraisal’s results, though. The appraisal value does not equal market value. The market may find the property to be worth more or less than what an official appraisal states as the worth of the real estate.
PitA
Posts: 1,416
Posted:
Unless, of course, you are actually seeking Tauric Ka-Ka


Yep, seems so.
DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By MelissaP1 on 07/07/2017 6:47 PM
MARKET value does NOT equal "HOME Value". Market value is pretty much saying what been saying the whole time. It's MARKETING your home to be ATTRACTIVE to potential home buyers.

For what reason? If the home being attractive to buyers had nothing to do with it selling for more, then why do it. Think of it like an auction. The more people you have willing to bid on an object, the more it will sell for.

Quote:
Posted By MelissaP1 on 07/07/2017 6:47 PM
Home Values are REAL numbers. They are based on how much homes of similar size/features have sold/foreclosed for in about a 6 month period in a designated area. A 3 bedroom 2 bath house next door sold for $100K then your house has a basic $100K home value. (In the generalist of terms).

Correct! And if that house next door to mine was a beautiful well-kept home, and mine is a dump, cars on jacks, dogs running loose, hot tub in the front yard, piles of scrap and crap everywhere, that well-kept home will sell for less than it's true potential.
REAL numbers come from sale prices. Sale prices come from what the home sells for.

Imagine two neighborhoods, built at the same time, just a few miles apart. Both are site built stick homes that cost about 80K to build on lots that are worth 20K. On one neighborhood, Builder creates the association and also has model homes up front with outstanding landscaping and furnished with the finest decorations and furniture. The other neighborhood also has the model homes, but no CC&R’s or association.

Now, fast forward 10 years. The neighborhood with the HOA is still beautifully kept up with clean yards, trees trimmed, etc.
The other has houses that are in desperate need of repair and/or paint. Broken down cars in the front yard, dead grass, dirt spots and dogs that chase you down the street as you drive by.
Which homes will sell for more? Why?
Which homes will have a higher market value? Why?
Remember, these two neighborhoods started out as equals. That is why HOA’s CAN/WILL have an effect on home values. HOA’s can allow your home to appreciate at the highest rate possible simply by removing many things that make homes less desirable. HOA also prevents trashy homes next door causing your home to sell for less than it could have.

DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By RichardP13 on 07/07/2017 7:11 PM
Appraisal value does not equal market value

An appraisal is an opinion of real estate value by a licensed appraiser, employed when a house or condo is under contract or sale pending with a mortgage, so that the lender does not over-invest. In other words, when an appraisal is used in escrow, it is to protect the bank which is lending money on the property. Appraisals may be used at other times, too.

Market value is what home buyers and sellers will agree on as the sale price of a property. When Realtors work up a comparative market analysis or competitive market analysis, they try to figure out where the home will sell in the future, or what the market value will be. They will also strive to bring that sale price to the top of the possible range of likely values – or go beyond it.

Put another way, appraisals attempt to determine the most precise value for what a home should be worth. Home buyers may or may not agree with an appraisal’s results, though. The appraisal value does not equal market value. The market may find the property to be worth more or less than what an official appraisal states as the worth of the real estate.

And determining who "The Market" is, can sometimes be difficult.

My house appraised for 19K more than I paid for it. It could have been fixed up nicer and would have sold for more. I chose to do the work myself and have the instant equity. It's in an HOA but the HOA has/had no authority to do the repairs to the home. Mine selling for less because it needed repairs hurt the market value of all the rest in the neighborhood.

Appraisers are crooked as hell. That's why they ask what the appraisal is for. Their appraisal will vary depending on whether it's for a seller, a buyer, or for home equity loan. In the mid 2000's this area had stick built homes being appraised for 300K+. Someone paid them for the bloated amounts. Those appraisals did not protect the banks(lenders). They did not protect the buyers either. Those appraisals put a lot of money in the pockets of builders and sellers. People walked away from their homes/loans costing the banks/lenders millions. Many of them simply refinanced their homes and walked with 100K in their pockets.

What never changed was the price per square ft to build the home. Wages did not go up, material costs did not go up. It's not rocket science to figure out what a house SHOULD sell for. People are sometimes willing to pay more for a nice home. No one pays more for a crappy looking home. HOA help that.

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