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EdieL (Virginia)
Posts: 86
Posted:
When CCR'S, Bylaws, Articles of Inc., state
"The HOA shall protect the health, safety, and welfare of the
community.," exactly what is the meaning of this statement. There
is a community that has levied a $1000.00 bond to any owner that rents
their home via the BOD policies, hanging their authority on this statement.
The CCR's do not address renting of homes.
Edie
EdieL (Virginia)
Posts: 86
Posted:
Sorry, forgot to say this was done by the BOD not by majority
vote of members.
Edie
ClaytonG
Posts: 19
Posted:
Is that the full sentence? Usually there is additional language attached to that boilerplate paragraph found in many CCR's.

A recent NC Supreme Court decision declared an amendment that contained similar language was too broad, thus ruled it unenforceable.

We hold that amendments to a declaration of restrictive
covenants must be reasonable. Reasonableness may be ascertained
from the language of the declaration, deeds, and plats, together
with other objective circumstances surrounding the parties’
bargain, including the nature and character of the community.
Because we determine that the amendment to the declaration sub
judice, which authorizes broad assessments “for the general
purposes of promoting the safety, welfare, recreation, health,
common benefit, and enjoyment of the residents of Lots in The
Ledges as may be more specifically authorized from time to time
by the Board,” is unreasonable, we conclude that the amendment is
invalid and unenforceable.
EdieL (Virginia)
Posts: 86
Posted:
ClaytonG
This $1000.00 assessement was not by an amendment to the CCR's, but by the
BOD policy.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Edie,

In many HOAs, the BOD is given the authority in the bylaws to act "in all instances" on behalf of the homeowners, with certain exceptions or exclusions, such as changing the qualifications of the board members, amending CCRs, determining the size of the board, etc.

As far as the sentence you quoted goes, you've taken it out of context and it's meaning can't be determined precisely. Normally, there's a lead-in clause that says something like, "In order to do blah blah blah, the HOA shall do this, and shall do that, and shall "protect the health, safety, and welfare" etc. You need to give us the part that's missing.

Standing alone, as the sentence is quoted, then why can't the HOA have a fire department on premisis or hire a police officer 24/7 to protect the safety, or have a health clinic on the premisis to protect the health, etc. You get the idea.

What the $1000.00 bond is about or how it relates to that sentence is beyond me.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By EdieL on 05/06/2008 6:36 AM
ClaytonG
This $1000.00 assessement was not by an amendment to the CCR's, but by the
BOD policy.

BruceF1 (Connecticut)
Posts: 2,535
Posted:
Quote:
Posted By EdieL on 05/06/2008 6:36 AM
ClaytonG
This $1000.00 assessement was not by an amendment to the CCR's, but by the
BOD policy.

Edie,

Is it an assessment or is it a bond?

It is an assessment levied against those who DO rent their units? You said according to some policy; what policy? What does it say?

In addition to needing more details, we would have to know what the CCRs and your state laws have to say regarding renting and regarding assessments.

EdieL (Virginia)
Posts: 86
Posted:
BruceF1
Yes I get it. Instead of the BOD amending the CCR's, they write these
policies and then try to enforce. The $1000.00 is to allow rental of homes
and for the tenants to use the common areas. Our covenants state that common
areas are appurtenant to all common areas. (meaning running with or addition to)
Edie
ClaytonG
Posts: 19
Posted:
Edie,

If you believe the BOD is "hanging their authority" on the covenant containing the "health, safety, and welfare" sentence, could you post that paragraph word for word as it appears in the CCRs?

BruceF1 (Connecticut)
Posts: 2,535
Posted:
Edie,

The BOD has no authority to amend the CCRs, only the homeowners can do that. The BOD also gets it authority to write rules from the CCRs. However, the BOD cannot write rules that conflict with the CCRs, or write rules restricting something that is not in the CCRs. In other words, if the CCRs do not say anything about renting units, then the BOD has no authority to write any rules restricting or pertaining to rentals because by so doing, they are in effect re-writing or amending the CCRs, which they do not have the authority to do.

As far as the "health, safety, and welfare" thing, it sounds to me like an attempt to circumvent the CCRs. It probably wouldn't stand up in court. But, as I said before, we really need to know a little more. You might also want to check your state laws.

If you don't like what your board does, you can also try to recall them.
ClaytonG
Posts: 19
Posted:
Bruce,

You bring up a point that is still unclear to me. When the legal documents that govern an HOA are void of a specific subject, such as, whether the HOA permits rentals, does the board have the authority to create a policy either for or against, or does the matter default to state law?
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Clayton,

If the CCRs are silent on the issue, then I would say it would defer to state law. Of course, it also depends on how the state law is worded. For example, our state law begins many paragraphs with, "Unless otherwise provided in the Declaration..." which means that the particilar provision in the state law is a default provision, to be used only if the CCRs are silent on a particular issue.

However, if both the CCRs and the state law are silent on an issue, then, IMO, the BOD has no authority to create any rule it wishes. It can only create rules that enforce the provisions given in the documents or permitted to it by law.
SidneyP (Florida)
Posts: 302
Posted:
This post does not have anything to do w/placing a $1,000. deposit on rental property but it does protain to what I feel is a health, safty and welfare issue.

For over a year the rental unit next to my unit has been empty. This owner took a second when prices were sky-rocketing and then fled. I believe the bank has finally taken possession as the lock was changed last week....The problem I have is that the last tenant had stuffed two pieces of a nasty old couch in the shed, a nasty rug((dog pee), etc. I called the owner after the tenant left and told him of my concerns, he said he would take care of it. Instead he flew to who knows where....I pasted this information on the the Board and MC right away (year ago) I told them this is a health hazard because I had seen a rat come out of this shed, this property also backs up to the woods, where there are many snakes.....Mind you I have brought this up many times by e-mail to them , asking them to please take care of it....Nothing has been done, it's still there. Also this same house has about a foot of wood rot around the door frame, this could be termite damage. I don't know. The Board has done nothing about this either....

Even if this was/is an investment property, isn't the Board responsible for the other owners welfare? Isn't there anything they can do? Since the lock has been changed, I have suggested they call the bank about this problem...This unit also has a $2,600. delinquent account. I'm sure this money is long past collection by now...At what point does the bank have to pay association fees?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Sidney:

Is this a detached home?

If so, I'm not sure what you expect the board to do about the shed and/or bad condition of the home.

We have no power to go onto people's property (short of a court order) to handle situations like that.

We can initiate warning letters and ultimately end up in court, and thereby get a court order, however, those types of actions don't happen overnight, nor do they even happen in a few months.

Each of the actions we've had to take to court took almost 2 years to actually reach the stage where we were in front of a judge.

So to someone having to look at the mess every day, it would APPEAR that we are "doing nothing," when really we're doing the best that we can, under the circumstances, as quickly as we can, under the circumstances.

One thing you and the board CAN do, but, quite frankly, since you live next door to it and have more details, is to report the condition to your local board of zoning code enforcement. They have much stronger and sharper "teeth" than the HOA board would have.

BruceF1 (Connecticut)
Posts: 2,535
Posted:
Sidney,

Michele has good advice. The government has more authority than the HOA does when it comes to situations such as you describe. Try either the zoning board or the health department.

If a mortgage holder has taken possession of the property, there's probably not much that can be done without going to court. There are news articles every day about HOAs that are losing funds because units have been foreclosed on and mortgage lenders do not pay association dues. How do you think the HOA is going to force them to take action on anything else?
MaryA1 (Arizona)
Posts: 7,043
Posted:
Bruce,

You stated: "For example, our state law begins many paragraphs with, "Unless otherwise provided in the Declaration..." which means that the particilar provision in the state law is a default provision, to be used only if the CCRs are silent on a particular issue."

My interpretation of that phrase is that the gov. docs trump state law. Another phrase commonly used in AZ statutes is: "Notwithstanding any provision in the declaration, bylaws or other documents to the contrary" which means that no matter what your docs say, the state law rules.

I do agree with you in saying that the BOD can only create a rule that pertains to a specific issue contained in their gov. docs. However, I'm not so sure that the Board can make rules to interpret State law. I believe there would need to be a State law giving them this power.

MicheleD (Kentucky)
Posts: 4,491
Posted:
No, "Unless otherwise state in declaration . . ." means that the law is X, Y Z UNLESS the declarations provide otherwise.

"Notwithstanding..." does mean, "in spite of," but "unless otherwise stated," is not the same thing.

BruceF1 (Connecticut)
Posts: 2,535
Posted:
Mary, Michele,

I think we're pretty much in agreement here. Michele, I think Mary was merely giving an example of another commonly used phrase. I don't believe she intended that the two phrases meant the same thing.

As for the interpretation of "Unless otherwise provided" or some similar clause, perhaps it's best to use an example straight from the CT law:

"Unless the bylaws provide otherwise, a quorum is present throughout any meeting of the association if persons entitled to cast twenty percent of the votes that may be cast for election of the executive board are present in person or by proxy at the beginning of the meeting."

I interpret this to mean that if the bylaws specify a different percentage for a quorum, say 10% or 30%, then, as Mary said, the bylaws would trump state law as to the percentage of the quorum. However, if the bylaws say nothing about a quorum then the state law becomes a default requirement and the quorum is 20%. (Note that if Robert's Rules applied and the bylaws said nothing about a quorum, then it would default to 50%).

So, it can be said that if the subject is covered in the documents, then they prevail over state law, but if the subject is not covered in the documents, then the state law governs, which makes it the default provision.

By the way, CT's HOA laws are called The Connecticut Common Interest Ownership Act, and are based on the Uniform Common Interest Ownership Act which has also been adopted by Alaska, Colorado, Minnesota, Nevada, Vermont, and West Virginia. I think the New Jersey and Texas legislatures were also looking into adopting it.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
"then it would default to 50%"

Sorry, I meant a majority.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Re: Edie's question: When CCR'S, Bylaws, Articles of Inc., state
"The HOA shall protect the health, safety, and welfare of the
community.," exactly what is the meaning of this statement. There
is a community that has levied a $1000.00 bond to any owner that rents
their home via the BOD policies, hanging their authority on this statement.
The CCR's do not address renting of homes. "

The Board has probably determined that rental situations have not worked out and are detrimental to the property or personal safety of the residents. So they are slapping a renter's "bond" to ensure that if there are problems, there will be money to cover renter's trashing of the units, etc. It also is a deterrent to rent our your unit, isn't it? That's what the board is trying to do, also.

If they have situations and/or research or facts to back up that renters tend to lowered property values by their behavior, and that money needs to be secured in case of, then they could very well argue their point effectively.
GlenL (Ohio)
Posts: 5,491
Posted:
While our BOD has the power to: In any case of flagrant or repeated violation by a Unit Owner, he may be required by the Association to give sufficient surety or sureties for his future compliance with said covenants, conditions, restrictions, By-Laws, Rules and Regulations.

IMO it would be improper to arbitrarily require a bond in the situation described "just in case" unless the CC&R's were changed to allow it. But seeing one section of the CC&R's out of context of the others or the resolution to implement the bond it is hard to say whether or not it is allowable. The BOD's should always go after the H/O for any violations of the CC&R's. However this is one of those things that will probably end up being decided in a court of law.

Studies show that 5 out of 4 people have problems with fractions
SusanW1 (Michigan)
Posts: 5,202
Posted:
Why?

IF the CCRs allow renting, and the board can prove from past documented expereince that renters are a high risk, I see nothing wrong with placing a "bond" on the owner who wants to get involved in this side endeavor with his/her property.

It's no different than a security deposit, only it goes to the association.

I think it's a judgment call from the Board. Apparently, there have been problems with renters. Any costs should be forwarded on to the renter.

This would be laughed out of any court. Never get that far.
EdieL (Virginia)
Posts: 86
Posted:
BruceF1
Sorry for the delay in answer. Articles of Inc.:
Whole paragraph: To promote the health, safety and welfare of the
residents within the property described in Article IV a. above and
any additions thereto as may hereafter be brought within the jurisdiction
of this Association. (Art. IV a refers to the community name, recorded
covenants, HOA responsibility to maintain, etc) nothing concerning rentals.
State laws only address rentals in a section that states:
The BOD shall have powers to the extent of the covenants, to suspend members
rights to use facilities........ for none payment of dues, provided access through
the common areas is not precluded and provided that suspension shall not
endanger the health, safety, or property of any owner, tenant, or occupant.
Yes I do believe the BOD is using their BOD Policies to circumvent the covenants.
Edie
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Edie,

There must be something before the paragraph -

"To promote the health, safety and welfare of the residents within the property described in Article IV a. above and any additions thereto as may hereafter be brought within the jurisdiction of this Association."

That's not a complete sentence, so there has to be something preceding that paragraph which states the purpose.

Susan states a reasonable argument, but the law isn't always fair and is almost never logical, so I don't necessarily agree that the board's actions would be upheld if it were tested in court. Are there any prior similar cases that anyone knows about?
GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By SusanW1 on 05/07/2008 4:55 AM
Why?

IF the CCRs allow renting, and the board can prove from past documented expereince that renters are a high risk, I see nothing wrong with placing a "bond" on the owner who wants to get involved in this side endeavor with his/her property.

It's no different than a security deposit, only it goes to the association.

I think it's a judgment call from the Board. Apparently, there have been problems with renters. Any costs should be forwarded on to the renter.

This would be laughed out of any court. Never get that far.

Susan, au contraire mon amie if I had a rental property and someone was using the clause cited to require me to post bond, I would have them in court in a heart beat. I'm not saying they can't do it. I would have to read all of their CC&R's, read the resolution and be familiar with Virginia law etc. before I could arbitrarily say with any degree of certainty that they can't. And while the H/O certainly has the right to pass the costs of any enforcement action to the tenant if it's in their lease the HOA should be dealing with the H/O.

When our BOD drafts a resolution we have it vetted by our attorney to make sure it's proper and allowed by our CC&R's and state law. This does not mean that it will automatically stand up to a challenge just that we have done our due diligence and believe it to be proper and allowable. We do not know if this was done in this case.

Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
Edie was there a resolution passed by the BOD to enact this policy citing their authority to do so or did the BOD simply say let's make anyone who rents their property post a bond?

Studies show that 5 out of 4 people have problems with fractions
EdieL (Virginia)
Posts: 86
Posted:
GlenL
No resolution. The covenants state the BOD can adopt rules & regs. for
common areas only. Their 6.2 Property Owner Rental Requirement Policy,
that is handed out to all new purchasers and posted on the Web Site,
actually states, "A review of our covenants and other POA's fail to disclose
any provisions specifically relating to the renting of homes."
Edie
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Edir,

If the CCRs really say that the board can adopt rules for common areas only, then it seems to me that answers the question. Any rules regarding dwellings, which are not part of the common area, are off limits to the board. If the CCRs really say that, then IMO any rules regarding rentals are null and void because they would be conflicting with the CCRs.

Furthermore, if the board writes and adopts any rules, there must be a resolution (a duly made and seconded motion which has been voted on and passed) at some meeting to adopt the rules. This has to be done every time the rules are changed.
BruceF1 (Connecticut)
Posts: 2,535
Posted:
Now, if I can only learn to type.
BradP (Kansas)
Posts: 2,640
Posted:
If rentals are allowed I don't see any legal way you can require the owner to post a bond...to me that is outside the scope of the boards power.

To cite the all misused phrase of health, safety, welfare, etc...well I can take just about anything and put that spin on it and argue you to death on it. I would post ridiculous examples but I will spare your welfare...
BradP (Kansas)
Posts: 2,640
Posted:
Quote:
Posted By BruceF1 on 05/07/2008 9:21 AM
Now, if I can only learn to type.

not to worry, my 9 and 7 year old kids can work a computer better than me....I am not even that old...
MicheleD (Kentucky)
Posts: 4,491
Posted:
Quote:
Posted By BradP on 05/07/2008 10:13 AM
Posted By BruceF1 on 05/07/2008 9:21 AM
Now, if I can only learn to type.


not to worry, my 9 and 7 year old kids can work a computer better than me....I am not even that old...

Define ". . .that. . ."

EdieL (Virginia)
Posts: 86
Posted:
Well I guess we have all exhausted this thread. Thanks to all.
At least I know I'm not as insane as those on the BOD.
Edie
TracyT (Maryland)
Posts: 228
Posted:
Hi all,

Before we leave this post, I have a separate but related question on this subject. Specifically, the BOD made a rule about renters, when the CCR was silent on the issue. What is the difference in this being an invalid rule vs. compiling rules/guidelines for the ARC? For example, my CCR is silent on solar power. How do I develop a guideline/rule for this?

Thanks

MaryA1 (Arizona)
Posts: 7,043
Posted:
Edie,

Unless I missed something in your posts, I'm unsure as to why the board wants to impose this $1,000 on members who rent their properties. IMO, it just boils down to a penalty for renting! And what is it the BOD thinks a renter might do that a member won't? I really take exception to the mindset of so many boards that renters should be treated as second-class citizens. Some people seem to forget that most of us were renters at one time!

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