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MichaelS56 (Minnesota)
Posts: 858
Posted:
Each state has laws that pertain to how Condos and townhomes are to operate. What I have discovered is that no one is expected to be monitoring the Boards. Self-governing Boards may not even know all of the laws that they are expected to follow. If a state law indicates that a townhome association is to have adequate Replacement Reserves, who makes sure that they do? No one.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By MichaelS56 on 02/01/2021 4:25 PM
Each state has laws that pertain to how Condos and townhomes are to operate. What I have discovered is that no one is expected to be monitoring the Boards. Self-governing Boards may not even know all of the laws that they are expected to follow. If a state law indicates that a townhome association is to have adequate Replacement Reserves, who makes sure that they do? No one.
Many or all of the state Condo statutes state that the Courts have the power to enforce the provisions of the statute.
KerryL1 (California)
Posts: 14,550
Posted:
Do you have a question or point, Michael?

How does your subject relate to your post?
JohnC77 (California)
Posts: 562
Posted:
Quote:
Posted By AugustinD on 02/01/2021 4:28 PM
Posted By MichaelS56 on 02/01/2021 4:25 PM
Each state has laws that pertain to how Condos and townhomes are to operate. What I have discovered is that no one is expected to be monitoring the Boards. Self-governing Boards may not even know all of the laws that they are expected to follow. If a state law indicates that a townhome association is to have adequate Replacement Reserves, who makes sure that they do? No one.
Many or all of the state Condo statutes state that the Courts have the power to enforce the provisions of the statute.

I was in Small Claims Court a week ago last Friday for a former client. The Judge of Commissioner didn't know that HOA are supposed to provide due process prior to handing out fines.
TimB4 (Tennessee)
Posts: 21,051
Posted:
Quote:
Posted By MichaelS56 on 02/01/2021 4:25 PM
If a state law indicates that a townhome association is to have adequate Replacement Reserves, who makes sure that they do? No one.

To be honest, this is the job of the membership.

Unfortunately, most members don't want to be involved or serve in HOA/COAs. Members of this site refer to this as membership apathy. If members aren't interested in serving, then they elect those who are willing to serve regardless of the motivations for serving.

Sure, governments will get involved for something criminal (embezzlement as an example). Otherwise, the Association is looked upon as a contractual agreement (CC&Rs) and is considered a civil matter and conflicts are resolved through those who are involved in the issue or the courts (if one desires to bring legal action).

AugustinD
Posts: 5,144
Posted:
Quote:
Posted By JohnC77 on 02/01/2021 5:43 PM
I was in Small Claims Court a week ago last Friday for a former client. The Judge of Commissioner didn't know that HOA are supposed to provide due process prior to handing out fines.
This little anecdote turns out to be incredibly timely and 'good to know' for some litigation with which I am helping. For the most part, the above point is at the heart of the litigation. On the one hand, the judge seems quite good. On the other hand, I am betting this judge has never tried a HOA dispute before. My friend's defense features a failure of the Condo to provide the due process that state law and the covenants require.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By MichaelS56 on 02/01/2021 4:25 PM
Each state has laws that pertain to how Condos and townhomes are to operate. What I have discovered is that no one is expected to be monitoring the Boards. Self-governing Boards may not even know all of the laws that they are expected to follow. If a state law indicates that a townhome association is to have adequate Replacement Reserves, who makes sure that they do? No one.

Short, non-snarky answer: the homeowners do. At least in theory. Which, as many of us have discovered, works about as well as you'd expect.
GenoS (Florida)
Posts: 4,276
Posted:
I'm sure my state isn't the only one where laws and statutes re. HOAs and Condos really "have no teeth". Unfortunately, there are no "HOA Police". I think the knowledge of most judges nationwide is just about what you see from someone like Judge Judy when she gets a case (infrequently) revolving around an HOA dispute.
TimB4 (Tennessee)
Posts: 21,051
Posted:
Let me verbose my answer:

In general, the CC&Rs (deed restrictions) are considered a civil contract between all owners of the properties that have the same deed restrictions attached. Associations are formed to maintain and/or operate the common area and fulfill any services (trash/recycling, snow removal, street lighting, etc.) required by the CC&Rs. Per the CC&Rs, the Association is also given the authority (in addition to the owners) to enforce the covenants, restrictions and conditions of the deed restrictions (contract). Typically, Associations are incorporated (usually as a nonprofit) as this provides them certain advantages. As a corporation they must also comply with corporate laws in addition to any HOA/COA laws.

As we know there are civil laws and criminal laws. Criminal laws are usually enforced by the State. Civil laws are usually enforced by the individuals involved and they do this through the court system. Since contracts, hoa/coa laws and corporate laws are considered civil laws, it is up to the members to hold the Board accountable.

Sure the State corporation commission may fine for not filing the annual report on time. The IRS will certainly go after the Association for failing to file taxes. The District Attorney will prosecute if criminal laws are broken (example embezzlement). However if the Association doesn't comply with the Bylaws or a civil law, it's up to the membership to hold the Board accountable. The easiest way would be to recall the board or not reelect them to the Board. The more expensive option is to go through the court system.

This is why it's imperative that the members remain active in the development and actually take an interest in how the Association is governed. If apathy sets in (and, unfortunately it does), it becomes that much more difficult to change things when issues are discovered.

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