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How does your community address complaints?  Is there a published procedure or is every complaint handled differently?  Who has authority to handle the complaints?  HOA Leader recently published an article with tips for handling homeowner complaints.  Here is a link to one of the tips:

HOA Complaints:  Turn Owners' Frowns Upside Down

How many times have board members heard the following complaints and made the following responses:

1. The unit owner across the hall from me constantly cooks food that stinks up the entire hallway, can’t you do something about this? (Typical Board response: What stinks to you may be perfume to others, please be tolerant.)

2. I’m afraid of my next door neighbor’s large dog. I saw him lunge at another dog, and he’s always growling. I think he might attack another animal or a child. (Typical Board response: Dogs are expressly allowed by our documents. There’s nothing we can do.)

3. This is the third time I’ve complained about water intrusion into my apartment from upstairs. Why won’t you fix the problem ? (Typical Board response: The water is coming from the upstairs neighbor’s unit, not the common elements and, therefore, we aren’t responsible.)

4. One of the unit owners continually harasses me, and I can’t stand it anymore. Lately, every time I see him he shouts out derogatory racial slurs. It’s getting to the point that I can’t even stand living here. (Typical Board response: This is a problem between you and your neighbor; we can’t control what people believe.)

Did the board respond appropriately? Maybe yes, maybe no – it’s a matter of degree.

The first complaint is in the nature of a nuisance complaint. The owner claims that the neighbor’s use interferes with the peaceful possession and use his or her unit. Under this circumstance (or similar complaints regarding noise, music, etc.), the board has an obligation to determine whether the behavior actually constitutes a nuisance in violation of the documents. The board is put in the position of balancing competing interests and determining whether the use is reasonable versus whether the use creates an actual, material, physical discomfort to a person of average sensibilities.

The second complaint may deserve more attention. An association may be held liable for injuries resulting from a dog bite, if it is proven that the association had knowledge of the dog’s propensity for violent or aggressive behavior. Even when the association’s documents allow for pets, it may be entitled to an order removing the dog, if it becomes a nuisance.  I'll explain more about dangerous dog laws in another post.

The third complaint is heard often. Since the association has the duty to maintain, repair, protect and replace the common elements, it has the obligation to investigate the situation in order to ascertain the source of the water leak. If the water is leaking from the common elements, the association has an obligation to fix the problem. The association may have certain avenues available if a water leak from one unit results in damages to the common elements or other units. An “enforcement of maintenance” or other self-help remedy in the governing documents is extremely beneficial under these circumstances.  Note - I haven't mentioned insurance - that subject will be addressed in a future posting on this site.

Finally, “harassment” is very difficult to define and even more difficult to remedy. Nothing an association can do will turn people into nice or pleasant people. However, if the level of harassment rises to physical violence or unlawful discrimination, the association may be held liable. In Casa del Mar Condominium Association, Inc. v. Richartz, 641 So.2d 470 (Fla. 3rd DCA 1994), the Court held that an association has standing (authority) under Section 718.303, Florida Statutes, to seek an injunction against a unit owner to prevent future acts of physical violence, or threats of violence, against the association, its directors, employees and residents. Moreover, in at least one case, an association paid more than a half million dollars to settle a case in which an African-American unit owner claimed that the board did nothing to protect her from the racial and sexual slurs, derogatory comments and physical threats of another owner.

Association boards must be cognizant of the happenings in the community and take member complaints seriously to avoid liability.  

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One of the provisions of SB 1196, which became effective on July 1, 2010, requires each newly elected or appointed board member to make certain representations to the association in writing.  New Section 718.112(2)(d)3.b., Florida Statutes says:

b. Within 90 days after being elected or appointed to the board, each
newly elected or appointed director shall certify in writing to the secretary of
the association that he or she has read the association’s declaration of
condominium, articles of incorporation, bylaws, and current written policies;
that he or she will work to uphold such documents and policies to the best of
his or her ability; and that he or she will faithfully discharge his or her
fiduciary responsibility to the association’s members. In lieu of this written
certification, the newly elected or appointed director may submit a certificate
of satisfactory completion of the educational curriculum administered by a
division-approved condominium education provider. A director who fails to
timely file the written certification or educational certificate is suspended
from service on the board until he or she complies with this subsubparagraph.
The board may temporarily fill the vacancy during the period
of suspension. The secretary shall cause the association to retain a director’s
written certification or educational certificate for inspection by the members
for 5 years after a director’s election. Failure to have such written
certification or educational certificate on file does not affect the validity of
any action.

Many readers have asked where can they find a sample certification form.  The Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares and Mobile Homes has published a form on its website.  Click the link below:

Of course, board members also have the option of completing an educational curriculum administered by an approved education provider instead of submitting this certification.

Sample Condominium Association Board Member Certification Form

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Within hours of any disaster, affected communities will be besieged with offers by companies and individuals offering disaster recovery assistance.

 Please resist the urge to contract with these initial providers until you have done the following:

1. Activate Your Disaster Plan. Once residents are safe, the community must begin surveying the property and assessing the damage. A designated information facilitator should set up system of information sharing among local homeowners and a disaster coordinator should serve as liaison to emergency services providers;
2. Secure your community from acts of vandalism and looting;
3. Remove storm debris to prevent accidents from occurring on the property;
4. Secure building structures to mitigate further damage;
5. Evaluate & Determine needs for immediate reconstruction and evaluate financing options including advances from insurance company for financial advances. BEWARE OF ANY INSURANCE COMPANY OFFERING MONEY IN EXCHANGE FOR RELEASES OR SETTLEMENTS.
6. Suspend or cancel on-going contracts such as lawn or pool maintenance if allowed for in your contract;
7. Review governing documents particularly anything related to "repair after casualty" provisions in the insurance section to establish process for reconstruction;
8. Initiate reconstruction planning using the five phases of reconstruction: project planning/scheduling; construction bidding; contract negotiations; construction/repair/rehabilitation; project completion/close out.
9. Review Insurance policies to determine filing requirements for proof of loss forms.
10. Meet with licensed professionals familiar with your community which may include: a) architect/engineer to assess damage and prepare plans; b) construction manager to oversee selection of general contractor and begin competitive bidding process; c) attorney to review insurance policies, governing documents, construction contracts and any vendor agreements; and d) public adjuster who is independent of your insurance company's adjuster who can be helpful with the nuances of an ambiguous insurance policy. Most independent adjusters work for a fee based upon percentage of insurance proceeds.

Following these ten steps will help communities recover and rebuild as quickly and effectively as possible.

Best Advice: Make sure every contract is with a Florida Licensed and Insured Contractor and that it is reviewed by a Licensed Florida Attorney, prior to signing.

We thank all the webinar participants who shared personal experiences and submitted well thought-out questions to the facilitators.  If you could not attend today, please return to this site for a link to the recorded presentation.

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In anticipation of Friday's webinar, here is the first in our two-part checklists for community associations.

Becker & Poliakoff's 12-point Hurricane Preparedness Checklist includes the following tips for those who need to prepare their communities for the upcoming hurricane season: 

1. Disaster Plan – Do a risk analysis of potential consequences of a storm and develop a complete disaster plan, designating a responsible community member as Disaster Plan Coordinator and another as Information Facilitator to field queries and respond to from community members;
2. Evacuation Routes - Establish clear building or community evacuation routes and be sure that all community members are provided with copies or printouts and that routes are clearly marked as storms approach; conduct building or community evacuation drills in the weeks leading up to hurricane season;
3. Emergency Generators & Supplies – Be sure emergency generators are in working order and have adequate fuel supplies, stock a building or community emergency supplies storeroom with flashlights, batteries, water and other necessities for residents and employees in the aftermath of a tropical storm;
4. Backup Computer Files – Be sure that computer files crucial to running the building and association are backed up to CDs or Portable Storage Devices and keep a list of office computer hardware and software vendors and repairmen in case computers crash or systems fail; 
5. Secure the Premises – Make preparations for routine lockdown of the building or other facilities as a storm approaches, so the building is secure during the storm and safe from vandalism or looting if a hurricane strikes; 
6. List of Owners & Employees – Have on hand a current, hard-copy reference list complete with the names all property owners, emergency contact numbers and details of second residence addresses, as well as a list of all association employees, with full contact details; 
7. Photograph or Video Premises – Keep a visual record through video or photographs of premises, facilities and buildings to facilitate damage assessment and speed damage claims in a storm aftermath; 
8. Building and Facilities Plans – Make sure a complete set of building or community plans are readily available for consultation by first-responders, utilities workers and insurance adjusters following a storm; 
9. Insurance Policies & Agent Details – Be sure all insurance policies are current and coverage is adequate for community property, facilities and common areas and compliant with State Law; full contact details for insurance companies and agents should be readily available in the event of a storm; 
10. Bank Account Details & Signatories – Keep handy a list of all bank account numbers, branch locations and authorized association signatories, and make contingency plans for back-up signatories in case evacuation or relocation becomes necessary; 
11. Mitigation of Damages – In the immediate aftermath of a storm, take the necessary steps to mitigate damages -- this includes "Drying- In," which is the placement of tarps on openings in the roof and plywood over blown out doors and windows, and " Drying –Out," which is the removal of wet carpet and drywall to prevent the growth of mold; and, 
12.  Debris Removal – Have a plan for speedy removal of debris by maintenance staff, outside contractors or civic public works employees, should a hurricane topple trees and leave debris in its wake. 

Learn more valuable tips during the free webinar Anatomy of a Disaster Claim, presented by Board Certified Construction Law attorneys and special guest engineer Rick Slider.  Return to this site for a checklist of items for communities to consider immediately after a storm.

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PLEASE NOTE THE CHANGE IN TIME FOR THIS PRESENTATION
We apologize for any inconvenience.

Live Webinar
Friday, July 23, 2010 from 10:00 Am–11:00 PM EDT
(9:00 PM-10:00 PM CDT)

Anatomy of a Disaster Claim
With hurricane season upon us, now is the time to gear up for the potential of a disaster claim against your insurance company. Learn what you can do now to prepare a complete and well-documented claim, thereby lessening the worry and ensuring the likelihood of a maximized recovery.

Steven B. Lesser, Esq.	Herbert O. Brock, Jr., Esq.	Rick Slider, P.E.

Join Board Certified Construction Lawyers Steve Lesser, Esq., and Herb Brock, Esq. of Becker & Poliakoff, along with Rick Slider, P.E., of Slider Engineering Group, a firm specializing in structural engineering and forensic investigation, for this live webinar on the Anatomy of a Disaster Claim.

Register below and you will receive a confirmation email with information on how to participate.

http://event.vcallinteraction.com/r.htm?e=226711&s=1&k=023C0E8B69E94BF7A3493AF48E9B32E9

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The Miami-Herald reported a story about the widow of the Nova Southeastern University professor that was attacked and killed in his Plantation home.   She filed a civil lawsuit Friday alleging negligence by the management company and condominium association - she claims those entities were supposed to conduct background checks on tenants.

The article quotes the attorney for the widow who said ``They certainly did not meet up to their obligations concerning a proper background check as well as an approval of Randy W. Tundidor,'' Williams said. ``A very simple check would show evictions and the like.'' 

Tenant background checks are not required by state condominium law.  In fact, an association can only perform a background check if such action is authorized by the governing documents.  In this particular matter, the tenants resided in a townhome condominium owned by the slain professor.  The professor and his family did not reside in the same complex, so its hard to understand how the condominium association (or its management company) would have been able to prevent these individuals from allegedly driving over to his house, allegedly entering his house and engaging in the alleged attack. 

Even if the "simple" background check did show past evictions and the like, the condominium association and its management company are specifically prohibited from sharing that information with the landlord/owner.  Section 718.111(12), Florida Statutes prohibits the association from sharing any information obtained in connection with its investigation of a proposed tenant.  That statute also prohibits the board from sharing social security numbers, credit card numbers, credit history reports or "any personal identifying information" with the members.  Federal laws likewise prohibit disclosure of credit and other background information.

What happened to the professor is a tragedy.  How anyone could commit such a heinous crime is beyond me, especially if what has been alleged is true and the whole dispute involves payment or non-payment of a security deposit and/or maintenance of the rented property.

That being said - was this murder the condominium association's fault?  Was it the management company's fault?  I hope you agree that the condominium association and management company should not be held liable for this tragic loss.

"Take-aways" for community leaders and managers:

1. Make sure the governing documents of the community specify that any information obtained in a background investigation cannot be shared;
2. Make sure the governing documents advise the owners that any investigation or background checks are solely for the benefit of the association (as the association cannot act as a guarantor);
3. If the community does engage in background checks, make sure those documents are safeguarded and the governing documents authorize the board of directors to reject certain applications for tenancy approval based upon articulated justifications; and
4. Review transfer approval procedures with association counsel - you may be surprised to learn your community does not have many options, even if the applicant does not seem 'suitable' for one reason or another.

Finally, speak to your legal counsel and perhaps insurance professional if crimes have been committed within the community.  You may have options to improve community safety while limiting the association's exposure to liability - all at the same time.

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Lawsuits Against Employers for Violations of the Fair Labor Standards Act & Other Employment Claims are on the Rise.

Some community associations have one employee, while others may have a hundred or more employees.  Think about it - maybe your community employs a CAM, grounds maintenance people, a concierge, office assistants, front desk personnel, activity coordinators, beach attendants, valet, building engineers, cleaning staff - the list of people necessary to operate many community associations goes on and on.  These individuals may have access to sensitive or proprietary information, such as unit owner or resident medical or health related records.  When the economy is tight (like now) employment related claims and lawsuits rise dramatically - I read one article that said the number of lawsuits filed against employers for violations of the Fair Labor Standards Act (FLSA) rose by 40% each year for the past several years in a row! 

• How will you protect your association from wage and hour claims?
• Do you have time cards or require employees to "clock" in or out?
• Do your employees often work during non-business hours?  How do you account for that time?
• What is your association's policy on overtime or "comp" time?
• Do your employees have access to the association's office, unit owner files, keys to units or the Internet?
• Do any of your employees ever enter any of the units when the owner isn't present?
• Do your employees leave the property as part of their job (trips to home depot, bank runs, etc.)?
• What is your policy on allowing employees to perform work for individual unit owners?
• Do any of your employees have use of a unit as part of their compensation package?  If so, what policies are in place in that regard?  What if someone is hurt in that unit?  What if there are damages to the unit?  What happens if the association wants to terminate that employee?
• Does your community classify the maintenance person, landscaper, office assistant, bookkeeper or manager as an independent contractor?  You may be surprised to learn that such classification may not protect you from employment related claims.

If you are a member of a Board of Directors of a community association and have answered "yes" or don't know the answer to any of these questions, an employee manual should be a priority.  Unfortunately, many community associations neglect to spend the time or devote the funds to this task.   A well-drafted employee manual can minimize your exposure to both employment related and third-party liability claims - but make sure to have a Labor and Employment Attorney from your state draft and/or review the manual.  Since employment laws vary from state to state and change quite frequently, using a 'form' from a neighboring community or from the Internet may do more harm then good.

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Live Webinar
Friday, July 23, 2010 from 2:00 PM–3:00 PM EDT
(1:00 PM-2:00 PM CDT)

Anatomy of a Disaster Claim
With hurricane season upon us, now is the time to gear up for the potential of a disaster claim against your insurance company. Learn what you can do now to prepare a complete and well-documented claim, thereby lessening the worry and ensuring the likelihood of a maximized recovery.

Steven B. Lesser, Esq.	Herbert O. Brock, Jr., Esq.	Rick Slider, P.E.

Join Board Certified Construction Lawyers Steve Lesser, Esq., and Herb Brock, Esq. of Becker & Poliakoff, along with Rick Slider, P.E., of Slider Engineering Group, a firm specializing in structural engineering and forensic investigation, for this live webinar on the Anatomy of a Disaster Claim.

Register below and you will receive a confirmation email with information on how to participate.

http://event.vcallinteraction.com/r.htm?e=226711&s=1&k=023C0E8B69E94BF7A3493AF48E9B32E9

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Pinellas County Assists Homeowner With Battle Against Homeowners Association Over Operation of Assisted Living Facility.

HOA restrictions and covenants typically contain provisions limiting use of the property to a "single-family" residence.  These use restrictions likewise typically prohibit any "business" or "commercial" use of the home.  However, as discussed in other posts on this blog, enforcement of deed restrictions or covenants may implicate other laws, particularly the Fair Housing laws.  Associations are prohibited by Federal, State and many local laws from discriminating against  protected classes.  Unlawful discrimination includes, among other things, the refusal to make a reasonable accommodation in policies or practices and interference with the lawful use and and enjoyment of the residence.

In the past, Florida courts have interpreted Section 419.001(2), (addressing community residential houses), and Section 393.062, (addressing developmental disabilities), of the Florida Statutes as support for the premise that a group home is the functional equivalent of a single family residential unit and does not justify enforcement of deed restrictions to the contrary.  In at least one of the cases the court found that the association must show the use (three unrelated disabled adults) constitutes a nuisance and the mere fact that the residents of the home were not related was not a violation of the single-family use restriction.  Another case found that enforcement of the prohibition against commercial or business use was discriminatory as applied against a particular small group home.

The county has joined efforts on behalf of an owner, based upon a legal memorandum prepared by the County Attorney's Office, after a finding of reasonable cause was issued by the Pinellas County Office of Human Rights.  TBO.com reported the story.

What does this mean for Homeowners Associations?

• First - community leaders and managers must be aware that fair housing laws may impact enforcement or other board decisions.
• Second - it is important to create fair housing policies and procedures to evaluate fair housing claims, requests for accommodations or modifications and the transfer approval process.
• Third - do not treat fair housing investigations lightly.  Work with counsel and the investigating office - the investigators attempt to conciliate these matters before issuing any findings.
• Fourth - review your insurance policies.  Many policies do provide coverage for defense and other costs.

Finally, there are many educational resources available to community leaders and managers.  Take advantage of those opportunities. 

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Community Leaders Can Challenge Property Tax Assessments With Board Resolution.

Hasn't the real estate market changed in the last few years?  Owners and Board Members long for the days of escalating prices when everyone paid maintenance fees and even if they didn't, there was plenty of equity in the property to satisfy delinquencies after or in connection with a foreclosure. 

That has all changed.  Revenue is down and so are property values.  Shouldn't you pay less?  Of course you should and probably do - property appraisers have been adjusting values, but are the new numbers realistic?  Both the multi-family and single family home values fell dramatically - now is the time to establish a lower base assessment for yourselves and your owners.

How?  Pursuant to Section 194.011(3), Florida Statutes, condominium, cooperative and homeowners associations can file a joint petition.   The relevant portion of the statute says:

A condominium association, cooperative association, or any homeowners' association as defined in s. 723.075, with approval of its board of administration or directors, may file with the value adjustment board a single joint petition on behalf of any association members who own parcels of property which the property appraiser determines are substantially similar with respect to location, proximity to amenities, number of rooms, living area, and condition. The condominium association, cooperative association, or homeowners' association as defined in s. 723.075 shall provide the unit owners with notice of its intent to petition the value adjustment board and shall provide at least 20 days for a unit owner to elect, in writing, that his or her unit not be included in the petition.
 

Thus, once the Board of Directors passes a resolution it may file the tax appeal petition with the Value Adjustment Board.  The Value Adjustment Board will appoint a Special Magistrate to conduct a hearing to determine whether the market value of the property set forth on the TRIM notice was higher than the actual market value on January 1 of this year.

The collective power of the association is useful in the appeals process.  First, the per property fee for filing is less.  The fee may be paid by the Association, in fact §718.111(3), Florida Statutes and §720.303(1), Florida Statutes specifically authorizes the association to protest ad valorem taxes for the common facilities.  The common elements and facilities are nominally valued for tax purposes, since the actual value is included in the value of the homes/units. 

Factors to Consider in a Protest:

• Part of the property may qualify for an exemption
• Foreclosure & delinquency rates
• Structural or storm damage / construction work limiting use of the property
• Changes in the surrounding area i.e. blocked views from new construction
• Increased property insurance costs
• Changes in use - chinese drywall & other limitations on use

Each unit or home owner is given the opportunity to opt-out of the appeal if they want to pursue an appeal on their own or just don't want to participate.

Use professionals to assist in the tax appeal process.  A professional should know how to craft the appeal, can determine whether any exemptions apply and understands the process - all to present your case in the most favorable light. 

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