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CarolynG9 (Colorado)
Posts: 6
Posted:
Our large HOA (600+) changed management companies Feb 1, 2024. The previous company has refused to turn over documents from all of 2023. In that group of documents is an ARC application that, based on other information, appears to be approved inappropriately. (Outgoing staff member approved it on a Sunday night, left employment a few weeks later. Not sure if she quit or was fired). There are significant variances from the covenant and the public application submitted to the city. This should have triggered a full review.

The new company is saying that they can't retract it, even though their employee may have approved it because of her friendship with the homeowner. This has significant impact on the house next door - it blocks the windows on one entire side of the house - in an area where houses were deliberately staggered to give everyone a view. View is not protected - but covenants clearly state that projects cannot be approved that hurt property value. Specific elements require Board approval - no approval was sought or granted.

New management company refuses to reopen. What recourse does the impacted homeowner have?
JackieB4 (California)
Posts: 398
Posted:
In my humble opinion (LOL), and to expedite the process, the affected owner should visit a reputable specialized attorney with every ounce of documentation. Sometimes "the expense saves one's sanity."
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By CarolynG9 on 01/08/2025 2:36 PM
Our large HOA (600+) changed management companies Feb 1, 2024. The previous company has refused to turn over documents from all of 2023. In that group of documents is an ARC application that, based on other information, appears to be approved inappropriately. (Outgoing staff member approved it on a Sunday night, left employment a few weeks later. Not sure if she quit or was fired). There are significant variances from the covenant and the public application submitted to the city. This should have triggered a full review.

The new company is saying that they can't retract it, even though their employee may have approved it because of her friendship with the homeowner. This has significant impact on the house next door - it blocks the windows on one entire side of the house - in an area where houses were deliberately staggered to give everyone a view. View is not protected - but covenants clearly state that projects cannot be approved that hurt property value. Specific elements require Board approval - no approval was sought or granted.

New management company refuses to reopen. What recourse does the impacted homeowner have?

Generally, once an application has been approved by the HOA there is no review or retraction. Many HOAs also have a maximum time to act on the application or it is deemed approved. HOAs do not delegate ACC application approvals to the management company, but it the management does not process the application, it is an approval.
CarolynG9 (Colorado)
Posts: 6
Posted:
There are specific exceptions to the 45 day rule - this application had 2 of the forbidden "automatic denial" items, plus a 3rd item that isn't automatic denial but needs a board exception.
ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By CarolynG9 on 01/08/2025 2:36 PM

New management company refuses to reopen. What recourse does the impacted homeowner have?
First, the million dollar question: Has the neighbor with the approved HOA Architectural application begun work to implement what is on the application?

Second, the HOA, not the MC, approves ARC applications. If the Board gave the MC some limited authority to approve or deny ARC applications, then the MC did so in the name of the HOA corporation.

Third, if the HOA approved a violation of the covenants without having an extraordinarily good reason, then the owner can sue the HOA and possibly the owner for violating the covenants. If the management company was granted some kind of authority to review and approve/deny applications, then the company did so in the name of the HOA corporation.

The impacted homeowner should hire an attorney immediately. The more time that goes by, the less seriously a court will effectively take this.
KerryL1 (California)
Posts: 14,550
Posted:
Isn't WHO approves ARC apps in your CC&Rs, Carolyn? Doesn't it specify the Board or an Arch, Committee?

KerryL1 (California)
Posts: 14,550
Posted:
Isn't WHO approves ARC apps in your CC&Rs, Carolyn? Doesn't it specify the Board or an Arch, Committee? if so, that approval cannot be delegated to management.

CarolynG9 (Colorado)
Posts: 6
Posted:
Yes, the project was started. An immediate objection was filed. 4 months later - after multiple hearings, refilings, a stop order from the city for violating THEIR permit
, construction has begun again.
TerriS6 (California)
Posts: 3,284
Posted:
I don't know Colorado's statute of limitations for enforcing HOA restrictions but I doubt it's too late or final so that you can't challenge it. It might be only 1 year for architectural issues.

From CO DRE:
Are there any rules regarding how a board or committee must approve an application for architectural or landscaping changes?

Section 38-33.3-302(3)(b) of the Colorado Common Interest Ownership Act states that decisions concerning the approval or denial of a unit owner's application for architectural or landscaping changes must be made in accordance with standards and procedures set forth in the declaration or in duly adopted rules and regulations or bylaws of the association, and shall not be made arbitrarily or capriciously.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By CarolynG9 on 01/08/2025 4:01 PM
There are specific exceptions to the 45 day rule - this application had 2 of the forbidden "automatic denial" items, plus a 3rd item that isn't automatic denial but needs a board exception.

Usually exceptions to any time limits to process an improvement application require a written consent from the applicant.

,
TimB4 (Tennessee)
Posts: 21,059
Posted:
Here is the problem:

The HOA approved the exterior change.
The owner started construction on the project based on the approval.
IF the HOA now said they made a mistake and reciend the approval, the owner (who acted in good faith with the HOA) would incur damages and can bring action against the HOA to recoup those damages (money spent for the work already done and the money needed to return exterior to previous state prior to the start of construction).

Alternatively:

If a member brings action against the owner for violating the covenants, they might win.
However, because the owner acted in good faith, they could bring legal action against the Association to recoup the damages they incurred (perhaps even legal fees for defending themselves in court).

HOA D&O insurance may or may not cover.
KerryL1 (California)
Posts: 14,550
Posted:
Isn't WHO approves ARC apps in your decoration, Carolyn? Doesn't it specify the Board or an Arch, Committee?

Or, somehow, your HOA's contract with the MC permits them to approve such apps?

Ah, but the City has stepped in--good.

Are you, Carolyn the "impacted owner" or a member of the Board, or?

CarolynG9 (Colorado)
Posts: 6
Posted:
Fair points. Now what if the homeowner knowingly violated the covenant (owner was ON the ARC committee for years), got compliance manager to write letter of approval - NOT IN GOOD FAITH switched the plans. Neighbor brings this to the attention of hte new management poo-poos it and delays action.
SheliaH (Indiana)
Posts: 6,964
Posted:
Can you prove that? You may be correct, and from what you've said so far, the odds seem to be in your favor. However, it's not about what you THINK - it's about what you can PROVE.

Like Kerry, I don’t see where the BOARD approved this and you still haven’t said, so we can give you our opinions, but in the end, you will still need an attorney to hash this out because most of us aren't that, and we live in different states with different laws anyway. This will likely end up a throwdown between you, the neighbor, the city, the previous management company and the board, because someone wasn’t paying attention to what was going or let the committee do whatever it wanted for whatever reason.

Interesting that the previous company hasn’t coughed up the association’s 2023 records - you do know there has to be a back story behind that don’t you? I bet money has something to do with it and it may slow down part of this process, so be prepared for that as well.

In addition to getting a copy of the old management company’s contract, get the one for the new company and check if there’s language stating what they’re supposed to do regarding pending ARC requests at the time of the changeover – that may explain why they can’t retract the approval (you don’t know if the employee’s relationship with the homeowner plays into this or not – at least not yet, so focus on getting the paperwork. This is beginning to smell like a big big pile of horse, cat and dog poo – good luck to you.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By CarolynG9 on 01/09/2025 12:31 PM
Fair points. Now what if the homeowner knowingly violated the covenant (owner was ON the ARC committee for years), got compliance manager to write letter of approval - NOT IN GOOD FAITH switched the plans. Neighbor brings this to the attention of hte new management poo-poos it and delays action.

Might have been what happened.
However, one would have to prove it.

ElleN (Idaho)
Posts: 1,334
Posted:
Quote:
Posted By CarolynG9 on 01/09/2025 12:31 PM
Now what if the homeowner knowingly violated the covenant (owner was ON the ARC committee for years),
I do not think this is relevant right now.

Quote:
Posted By CarolynG9 on 01/09/2025 12:31 PM
got compliance manager to write letter of approval
Also not relevant.

The only thing that matters is whether the approval unlawfully authorized a violation of the covenants.
Quote:
Posted By CarolynG9 on 01/09/2025 12:31 PM
- NOT IN GOOD FAITH switched the plans.
Are you saying that what the application requests does in fact comply with the covenants? But then the applicant did not do construction consistent with the application?

Quote:
Posted By CarolynG9 on 01/09/2025 12:31 PM
Neighbor brings this to the attention of hte new management poo-poos it and delays action.
If what the ARC application requested was in fact consistent with the covenants, but the owner then did something that violated the covenants (pretending he had approval to do so), then the correct approach is to submit a complaint to the board of a violation of the covenants, then escalate as needed.

Whoever has a problem with this alleged violation of the covenants needs to lawyer up. This forum cannot take you much further on the few hard facts you presented so far, in my experience.
CarolynG9 (Colorado)
Posts: 6
Posted:
It appears that lawyering up is the next step.

I promise to come back with pictures and documents when the lawyering is done.

KerryL1 (California)
Posts: 14,550
Posted:
I'm still stuck back at : WHO, according to Carolyn's declaration, approves ARC plans? I see there is a Committee. Doesn't it approve ARC plans? Ours does as is required by our declaration.

What verbiage is in writing in the governing docs or the contract with the MC that states the MC may approve such plans?? I have never seen such a thing in years on this forum.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By CarolynG9 on 01/09/2025 12:31 PM
Fair points. Now what if the homeowner knowingly violated the covenant (owner was ON the ARC committee for years), got compliance manager to write letter of approval - NOT IN GOOD FAITH switched the plans. Neighbor brings this to the attention of hte new management poo-poos it and delays action.

That is quite the conspiracy theory.
CarolynG9 (Colorado)
Posts: 6
Posted:
The ARC committee approves the project. The MC writes the actual letter.

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