Be familiar with the governing documents

You should check all documents and bylaws of your homeowners association to see what the minimum standards are for board members and officers. This will include information about attendance at meetings, communication with other board members and what authority they do and do not have. A failure to meet standards of the board could lead to removal. If such qualifications are not included, associations should consider amending the bylaws to include a code of conduct for members of the board.

Attempt to limit authority

You can aim to prevent rogue board members from becoming an issue by putting limitations on their authority. You can do this by clearly defining scopes of authority in your organization’s bylaws, or by
specifically removing troublesome board members from certain committees or positions, at least until they’ve corrected their behavior. This includes removal from their specific office within the board.

Seek to correct the behavior

Sometimes it might just take some conversations and education to correct the behavior of a troublesome board member. This is always a good method to try first—you shouldn’t seek to remove a board member until you’ve exhausted all of your other options, and while having a conversation may be difficult or awkward, it’s the mature and right thing to do. Sometimes board members overstep their boundaries accidentally or make mistakes, especially if they don’t have a background in real estate or haven’t served on other boards before. Try to correct the issue through one-on-one conversations and avoid calling them out in front of the rest of the board.

Request resignation

If the problematic board member can realistically see that they will sooner or later be removed from office, you can instead request their resignation to help them avoid a more public fallout. Again, this is a step you’d only want to take after you’ve already attempted to correct their behavior and after you’ve given them an opportunity to defend themselves. If the board member refuses to resign, they may be subject to removal by members, which is governed by Arizona statute.

Wait out their term

If you have any reason to believe that requesting a resignation or holding a vote for removal could unnecessarily create some bad blood, you could just wait out their term and then encourage someone else to run for the position instead. This is a good course of action to take, especially if the issues you’re having with the board member are bad enough to be a nuisance but not so bad that they actually compromise or damage the board’s operations or relationships.

Seek relief through the court

Arizona law does not allow a board to simply exclude a rogue board member from meetings and decisions of the board. If a rogue board member’s conduct is significantly detrimental to the board and/or the association, the board may consider approving a lawsuit to be filed against that board member. The Association would seek injunctive relief from the Court ordering that rogue director to comply with the duties they have to the association as a board member. Of course, lawsuits can be expensive, and boards should make such a decision after carefully evaluating the facts on a case-by-case basis and after consulting with an attorney.
For more tips about how you can deal with troublesome HOA board members, we encourage you to contact the experts at the Goodman Law Group today and we’ll be happy to provide more advice about dealing with rogue HOA board directors in Arizona.

The post How to Handle Rogue HOA Board Directors in Arizona appeared first on Goodman Law Group.

Associations should be aware that, under this ruling, no amendment is safe.  In a world where a community association may not redefine livestock from “including but not limited to, horses/cattle” to “chickens, horses, and cattle only” because “reasonable landowners may have believed chickens were not livestock under the original declaration, and therefore not subject to the number limitation,” it is difficult to fathom what amendment the Arizona Supreme Court might approve.  This is not to say Associations should not pursue amendments, but they should draft them extremely carefully to be reasonable and reference provisions in the governing documents that put homeowners on notice of the potential amendment.  If you want to amend your CC&Rs, work closely with an attorney to minimize the chances of homeowners disputing the amendment and maximize the changes of the amendment withstanding scrutiny.

The Details of the Holding

Historically, like most states, Arizona courts construed restrictive covenants narrowly and in favor of the free use of land.  In 2006, Arizona joined the modern trend of departing from that negative view of restrictive covenants passed down from English common law and instead treated them the same as any other contract.  The Arizona Supreme Court stated that “restrictive covenants should be interpreted to give effect to the intention of the parties as determined from the language of the document in its entirety and the purpose for such the covenants were created.”  Powell v. Washburn, 211 Ariz. 553 (2006).  With this ruling, Courts no longer stacked the deck against the enforcement of restrictive covenants.  They would interpret the CC&Rs fairly as against both parties, try to figure out what the parties intended to agree to, and impose that interpretation on the parties evenhandedly.  This meant community associations no longer faced an uphill battle in court.

All that changed on Tuesday.  At the outset of the Kalway opinion, the Arizona Supreme Court announces it is issuing a sweeping opinion rewriting Arizona jurisprudence and returning us to the old days of stacking the deck against community associations.  “Although CC&Rs are generally enforced as written, we interpret such restrictions to reflect the reasonable expectations of the affected homeowners. Construing such provisions narrowly, as with any restrictive covenant on real property, we hold that a general-amendment-power provision may be used to amend only those restrictions for which the HOA’s original declaration has provided sufficient notice.”  [Emphasis added.]  

Calabria Ranch is a small HOA in Tucson with only five lots ranging between 3.3 to 6.6 acres, except that Mr. Kalway’s lot is 23 acres.  Every homeowner in the community gets one vote, except Mr. Kalway gets two votes.  In 2018, the other property owners amended the CC&Rs by majority vote without Kalway’s consent or knowledge.   Mr. Kalway sued arguing that the amendments were void without unanimous consent because the original declaration did not give notice that amendments on specific issues could be imposed non-consensually.  The Association argued that the amendments were harmonious with the purpose of the CC&Rs and that the general statements in the original CC&Rs gave notice of potential amendment.

The Court reviewed the amendment provisions one-by-one, merely re-writing the amendment to strike out unreasonable provisions and preserving reasonable provisions.

The Court ultimately struck most of the amendments, finding the general purpose statement of the CC&Rs and the amendment provision did not provide sufficient notice:

• Amendment redefining “dwellings” to require 60% living space and 40% garage space was invalid because prior “single family residence” requirement did not give notice that sizes of residences would be limited.  Instead, the Court re-wrote the amendment to delete the 60/40 language.

• Amendment revising 50-foot setback requirement to apply to “Improvements” instead of “structures” found to be unreasonable as it “prevents landowners from digging even one hole within fifty feet of their property line,” where previously they were only prevented from building structures.  Instead, the Court re-wrote the definition of “Improvements” to exclude references to “driveways, grading, excavation, landscaping, and any structure or other improvement of any kind.”

• Amendment stating that, in the event of future subdivision, newly formed lots did not get votes was found to be unreasonable where the original CC&Rs were silent on the issue.  The Court struck the amendment and preserved the original language.

• Amendment changing livestock definition from “including but not limited to, horses/cattle” to “chickens, horses, and cattle only” was stricken because “reasonable landowners may have believed chickens were not livestock under the original declaration, and therefore not subject to the number limitation.”  [Emphasis in original.]

• Amendment changing limits on livestock from six per 3.3 acres to add an upper limit of 15 regardless of the size of lot was stricken because “the original livestock amendment is different in kind from that in the original declaration.”

• Amendment limiting non-dwelling structures to 2,500 total square feet and 18 feet in height was stricken because “nothing in the original declaration put a reasonable homeowner on notice that his or her neighbors might impose such restrictions.”

• Amendment putting architectural requests to a vote of the homeowners was stricken because “[n]othing in the original declaration put a reasonable property owner on notice that an otherwise permissible use of his or her property would be subject to approval by a majority vote of his or her neighbors.”

• Other restrictions on subdividing without approval of a majority of the other owners, requiring submission of improvement plans before constructing improvements, limit on number of out buildings, and restrictions regarding fallen deadwood and fire safety were all stricken because the original declaration did not put owners on notice that such language might be adopted in the future.

The Implications of the Ruling

The plain language of this decision makes it hard to imagine a community association ever adopting any amendment.  You would like to think that, for example, if a community had a 30-day rental restriction that would put the homeowners on notice of the Association’s intention to restrict rentals and the Court would allow a rental restriction of a different duration, but if the Arizona Supreme Court says that “including but not limited to horses/cattle” cannot reasonably be amended to say “chickens, horses, and cattle only,” all bets are off.  No amendment is safe.

There is, however, hope.  It is doubtful the Court intended to toss Powell v. Washburn to the wind and abandon the idea of interpreting restrictive covenants as written and to give effect to the parties’ intent.  I would expect the Courts of Appeals or the Supreme Court to turn aside such interpretations as relying on “dicta,” language stated in the decision but that is not part of the formal decision.  It is also possible that this decision was disproportionately driven by the facts.  Although the Court does not dwell on the facts a great deal, it appears the neighborhood teamed up to change the CC&Rs specifically to impact Mr. Kalway.  They did not even give him notice or send him a ballot.  That speaks volumes.  There are myriad examples in Arizona jurisprudence of cases that end up being outliers, and subsequent rulings distinguish them based on their unique facts and decide not to apply the holding to later cases.

As noted above, if your planned community wishes to amend its CC&Rs, it should work closely with an attorney to minimize the chances of homeowners disputing the amendment and maximize the changes of the amendment withstanding scrutiny.

The post Kalway v. Calabria Ranch HOA, LLC appeared first on Goodman Law Group.

Property Taxes on Association Common Area

In Arizona, planned communities own portions of common area. The common area is usually deeded to the Association from the Declarant upon turnover. As the owner, in addition to the maintenance and upkeep of those areas, the association is responsible for paying the property taxes on the parcels of common area. 

Typically, an association can combine all parcels of common area and request that the County Assessor value those parcels as “Residential Common Area.”  Each common area parcel that is classified and valued as such is valued at $500.00 and assessed at 10%, which is much lower than the property would otherwise be assessed. 

But what happens if an association does not pay the property taxes owed on common area parcels? 

When property taxes are unpaid, the State auctions off tax liens for any parcels with unpaid taxes owed – including Residential Common Area. The tax lien auction occurs in February each year (auctioning the taxes for the previously preceding year). The auction price is the amount of taxes due plus interest. The winning bidder is the one who submits a bid for the lowest interest rate. The winning bidder receives a “tax lien,” which it may foreclose upon in the future. 

A tax lien holder may foreclose on its tax lien after three years from the date the lien was sold. Tax liens expire after ten years from the sale date. If the tax lien holder files a foreclosure lawsuit and the taxes are not paid, the tax lien holder receives a Treasurer’s Deed – and that lien holder becomes the owner of that parcel of common area.

Tax Liens Against Owners’ Property

The other common context where tax liens may affect associations are unpaid property taxes owed on an owner’s property within the Association. 

Under Arizona law, associations have a contractual and statutory lien for unpaid Assessments and other amounts. This means that if an owner fails to pay Assessments owed to the association, the association may collect the amounts by foreclosing on its Assessment Lien. 

There are only a few types of encumbrances that have priority over an association’s Assessment Lien, and tax liens recorded against the Property are one of those categories. 

That means that if an owner fails to pay one or more years of property taxes for his or her Lot – a tax lien holder may foreclose on its tax liens for one or more of those years and become the Owner of that property.  The state auctions off tax liens for individual owners’ properties by the same process outlined above. 

If a tax lien holder moves to foreclose on its lien – the association’s Assessment Lien stands to be extinguished if the foreclosure is successful. This means that the association’s lien would be “wiped out,” and the association would likely be limited to collecting delinquent amounts from the owners personally. 

If the association would like to ensure that its lien is not extinguished in that context, it can “redeem,” or pay the outstanding amount of taxes owed on the property secured by the foreclosing tax lien holder. Note that paying the outstanding amount of taxes and interest does not affect the title to the property – it merely extinguishes the tax lien against the property. The individual owner remains the owner of the property and the association’s lien remains in place.  

The post Property Taxes and Tax Liens appeared first on Goodman Law Group.

Help is here.  The first step for community managers faced with construction defect concerns is to acknowledge the obvious fact that they are community managers and not architects, engineers, or lawyers.  Handling construction defects is really no different from any other problem that arises in a community association – the community manager helps the board members find the best experts to advise the Association’s board members on the problem, and let the board members make the decisions.  Community managers usually have to juggle a lot of burdensome tasks without much help.  Construction defect claims usually involve juggling a few big tasks, but with a lot of very good help.

Once the Association’s board members have a team in place, including an attorney and construction experts, the community manager gets to take a back seat and let the consultants offer the tough advice and guidance.  Community managers should not be expected to advise the Association on what constitutes maintenance or repairs, or whether any given condition constitutes a construction defect or not, or whether the Association even has any valid claims.   The manager’s focus is free to shift back to the more routine duties of management.

The post Construction Defects: An Overview of the Manager’s Role appeared first on Goodman Law Group.

For more important HOA guidelines and HOA information tips, contact our office at 1-844-785-2470.

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Does the Board Liaison to the Architectural Committee have to be present for the committee to review business?  

The statutes do not answer this question.  Nor does the case law.  All the statute says is that the board member must chair “the committee” in Planned Communities (there is no corresponding Condominium statutes)… not the actual “meetings” of the committee.  Specifically, A.R.S 33-1817(B)(1) says:

Membership on a design review committee, an architectural committee or a committee that performs similar functions, however denominated, for the planned community shall include at least one member of the board of directors who shall serve as chairperson of the committee.

Here is a link to the statute:  https://goodlaw.legal/arizona-az-hoa-statutes/33-1817-declaration-amendment-design-architectural-committees-review/?highlight=committee

Because neither case law nor the statutes expressly answer this question, the first place we turn is to the governing documents. If those documents are silent, then our opinion generally is that the liaison does not have to chair each meeting. If the Committee otherwise has a quorum, the liaison doesn’t have to necessarily be in attendance.  

A resident in our community is growing marijuana in their backyard. The new law allows people to grow weed for personal use but does this new law prohibit an HOA from doing anything about it? 

Residents cannot grow weed outdoors. The most recent law (A.R.S. 36-2852) allows individuals (at least 21 years of age) to “cultivate” not more than 6 marijuana plants for personal use at the individual’s primary residence (or a max of 12 plants at a single residence where two or more individuals reside together). The cultivation must take place within a closet, room, or other “enclosed area” that has a lock or security device to prohibit access by minors and should not be visible from public view.

If those are complied with, the Association generally has to allow the growth of plants. However, it sounds like that is not the case here. The Association could enforce its nuisance provisions under the CC&Rs, but it may also be a police issue. Growing weed outdoors is still illegal as far as we interpret the statute. First call the police and see if they are willing to help. Second, call your attorney for advice on what the board can do to address it. 

The post Committees and Weed appeared first on Goodman Law Group.

How To Collect Delinquent HOA Dues

In this article, we’ll explore some of the options you have when a member of your homeowners association isn’t paying their dues.

Send Reminders and Allow A Grace Period

Providing a reasonable grace period for payment of dues can save your staff plenty of time and effort in chasing down payment from members who have irregular income. If there are faithful payers who are always late because they have irregular income, for example, you can find ways to work with them within reason. Be sure to send reminders and collection notices to all members as scheduled to prevent claims of selective enforcement in the future.

Payment Plans

If you’re dealing with someone with a temporary hardship, your best bet is to work out a payment plan. The idea is to give the member a reasonable time to pay while still protecting the association’s interests by preventing the need for costly legal action.

Protocols

For cases that have been approved by the board of directors but not specifically covered by payment plans, you need to be very methodical and consistent in following your procedures. Failing to follow any step along the way may set back your timeline for being able to collect or even lead to a foreclosure. The last thing you want is to give the member with overdue payments an actionable complaint against you or lose your ability to conduct future collections.

Special Assessments

Problems become more complicated when the board has to impose a special assessment because of an accidental gap in the insurance coverage or because the reserves were insufficient to cover the need. People rarely budget for special assessments so if your board imposes one, you should expect a few people who won’t be happy to write a check at the moment, for whatever reason.

More Serious Options to Enforce Due Payments

Bringing in an Attorney – When cases aren’t covered by a payment plan and you need to follow protocol, you may have to get an attorney involved. Attorneys such as our experts here at Goodman Law Group have the knowledge and expertise to help associations enforce payments. 

Filing a Lien – This is usually a lot cheaper than trying to garnish wages. Wage garnishment suits can be quite costly so such an attempt should be among your last resorts.

Restrict Access – Revoking the right to use common areas such as fitness centers, tennis courts and pools, even for renters, will often force the owner to cave and pay their dues.

Anticipate Defenses to Foreclosure

Ultimately, you may be forced to foreclose on a member’s home. If that’s the only way to recover unpaid dues, it helps to be aware of potential defenses you’ll have to overcome:

• The lien was not properly recorded.
• HOA didn’t properly allocate payments.
• HOA doesn’t have the authority to do a special assessment.
• HOA has accounting errors.
• HOA doesn’t have the authority to foreclose.
• Fees and charges for late payments are unreasonable.

Bottom Line

With these options, you now know how to collect delinquent HOA dues. Bear in mind that the foreclosure process can be traumatic and rather expensive, so don’t proceed unless you’ve checked all possible defenses against the action and covered all your bases. You also don’t want to wait too long before taking action.

The post How To Collect Delinquent HOA Dues appeared first on Goodman Law Group.

Urban farming is all the rage these days. With a growing emphasis on knowing where food comes from and eating high-quality, organic ingredients, many homeowners are starting to keep chickens (or even horses) in their backyard as well as installing and maintaining backyard farms. Many owners are under the mistaken belief that if the local city or municipality permits owners to keep chickens, etc. that their homeowner’s association must also permit them. That is not the case. A homeowner’s association has the right to regulate or even prohibit certain animals and/or farming activities in the owners’ backyards.

Here’s our best advice for navigating owners’ requests for chicken, horse, or other backyard farm related activity:

• Find out about your city’s local laws: Your city is very likely to have laws on the books regarding what kind and how many animals you can keep within their territory. For example, in Phoenix, it’s legal to keep chickens, provided you follow the rules about location (80 feet from your residence unless explicitly excepted) and quantity (20 chickens per half-acre). Roosters, however, are prohibited. You should also look into your town’s nuisance laws, which often extend to any kind of animal that creates a disturbance. Many Cities and Towns also have regulations/codes relating to food production.
• Look into your HOA’s CC&Rs: Next, even if your City permits chickens or other farm animals, you must still determine whether the HOA’s Covenants & Restrictions and/or rules reference keeping fowl as well as reference backyard farming. Many HOA’s CC&Rs expressly prohibit chickens or other farm animals, your Association may have the authority to grant a variance to the requesting Owner if the HOA determines that the benefits outweigh the risks.
• Factors to consider before granting or denying an owner’s request: The Board must consider the noise, smell, and appearance as potential hazards. Determine whether the owner has any ways to mitigate those concerns. The Board may also consider the likely complaints and objections from other owners.
• What if others get on board: Oftentimes, if an owner is seeking to engage in backyard farming activities, they enlist the help of other owners. The Board may consider whether other owners/neighbors are in favor of the backyard farming activity, such support is not, in of itself, the determining factor to the Board’s approval. The Board must consider the health and safety and environmental impact on the entire community.

Get advice on backyard farming regulations in Arizona

Goodman Law Group can help you wade through your city’s and HOA’s restrictions in Arizona. If owners are requesting backyard farms and you are concerned about what your HOA is authorized to approve/deny, call the experts. Our practice focuses on HOA law in three major areas: collections, compliance enforcement and general counsel services. Whether you need one-time advice, seasonal guidance or year-round assistance, we can help you deal with or manage your HOA, in compliance with all applicable state and local laws. Reach out to us today to find out more or schedule a consultation with one of our attorneys.

The post As a Board, May Your HOA Deny Backyard Farms in Your City? appeared first on Goodman Law Group.

Read on to find out why it’s so important that you and your pets follow HOA laws to the letter.

Why HOAs enforce pet restrictions for homeowners in Arizona

Your homeowners association has the power to regulate your pets thanks to the Codes, Covenants & Restrictions (CC&Rs) that you signed when you moved in. The association membership is mandatory for those living on the community property, and it’s presumed to be for the benefit of everyone in the community.

Pets can often be a safety issue for HOAs and their members. Even dogs (or cats) who have never attacked another animal or human before can get spooked and fly off the handle, causing injury and property damage. Most HOAs have, at the very least, rules about pets being on leashes, how long those leashes can be and where on the property animals are welcome to play or walk. This is to preserve the maximum enjoyment for all residents.

What can happen if you break the rules

You might be tempted to ignore the rules, especially if it doesn’t seem like your HOA is very strict about enforcement. We urge you to think twice before you commit any pet-related violations—the consequences can be serious.

If your HOA finds that you’ve violated their rules, they’ll probably warn you first—but the CC&Rs may not require them to do so. You could also be hit with a costly fine. Some HOAs levy fees of up to $1,000 for first offenses, and you’re legally required to pay them.

While your HOA can’t force you to sell your home, they can continue to levy fines against you for subsequent offenses. If you can’t pay those off in a timely fashion and they keep piling up, the HOA could take a lien out against your home and foreclose on the lien.

In short, potentially losing your home is a severe consequence for letting Fluffy wander off his leash.

Navigate HOA pet restrictions for homeowners in Arizona

Goodman Law Group is a full-service HOA legal firm that does nothing but help HOAs. Our highly specialized firm is focused on the multitude of legal issues that an HOA can face in conducting its daily business. We stay on top of the latest in Arizona HOA law in order to make your life easier. If you’re dealing with legal issues thanks to HOA pet restrictions in Arizona, reach out to us today for a consultation. We look forward to meeting with you soon.

The post From Leash Enforcement to Total Pet Restrictions: Why HOAs Are Harsh When You’re Caught Breaking the Rules appeared first on Goodman Law Group.

Holiday lights are one of the season’s simple pleasures—or at least you would think so. Conflicts can arise when HOAs seek to regulate the community’s seasonal decorations. Can they do that? How can you find out what the rules are, and how can you appeal to change regulations you feel are unfair?

HOA holiday lighting restrictions in Arizona can be a minefield of differing opinions and regulations, but once you know the general rules, you’ll be able to navigate the season successfully.

Can HOAs regulate your decorations?

HOAs are in place to regulate any activities that might affect the neighborhood as a whole. This can and often does include the quantity and nature of outdoor seasonal décor. Just as an HOA has rules regarding upkeep of your exterior property, it can govern how you decorate for the holidays, including how long the lights can stay on each night or whether specific décor (such as inflatable decorations) is prohibited. Any rules should be listed in the Codes, Covenants and Restrictions (CC&Rs) that you agreed to when you bought your property.

If you violate these rules, you may encounter consequences, such as warnings, fines or suspended member rights. On the other hand, your HOA may take no action whatsoever. The risk rests upon you as a homeowner, so it will behoove you to make an informed decision.

How can you find out what the rules are?

The best way to learn the rules is to check your CC&Rs to see if there’s anything that governs whether you can decorate, and how. You might find that you’re limited to a single strand of string lights, or you might learn that your HOA doesn’t care, as long as everything comes down by January 2.

How can you appeal for change?

There are three things you can do if the HOA holiday lighting restrictions chafe. First, talk to your neighbors about their experience, and whether they find that the rules are strictly enforced. Second, consider going before the board to petition for a rule change. You may want to gather support among neighbors first, if possible. Many HOA members find that this is an effective and respectful way of raising the issue.

However, because you agreed to the CC&Rs when you moved in, you are bound to abide by them—and if the HOA board is resistant, you might need to go to court to challenge the rules. Ultimately, it is up to you whether the effort you put forth is worth the potential end result, or if it’s better to take your decorations inside.

Goodman Law Group has years of experience navigating HOA holiday lighting restrictions in Arizona. Our practice focuses on HOA law in three major areas: collections, compliance enforcement and general counsel services. Whether you need seasonal guidance or year-round assistance, we can help you manage your HOA efficiently and in compliance with all applicable state and local laws. Reach out to us today to find out more or schedule a consultation.

The post Holiday Lighting and Your HOA appeared first on Goodman Law Group.

Most HOAs have parking rules in their bylaws, including what kinds of vehicles can be parked, where they can park and for how long. These rules will differ based on the type of community in question, as well as state and local laws that may affect the rules.

Private vs. public streets: Where’s the line?

What is the policy regarding HOA parking liability in Arizona? Whether you’re a member of the association or a member of the board, it behooves you to know more about this common source of potential conflict. Because parking is such a crucial part of everyday life for so many HOA members, making and enforcing parking rules can be a frustrating part of the association for everyone involved. Members want to be able to park their vehicles reliably and conveniently, whereas HOA boards have a vested interest in keeping the community running efficiently, providing a reasonable amount of parking and looking great. This often results in bitter battles.

Most HOAs have parking rules in their bylaws, including what kinds of vehicles can be parked, where they can park and for how long. These rules will differ based on the type of community in question, as well as state and local laws that may affect the rules.

Private vs. public streets: Where’s the line?

Generally, HOAs have the right to regulate parking within the private streets in their developments, which applies to both HOA members and the general public. An HOA can restrict the number of vehicles allowed to park, limit or prevent commercial and/or recreational vehicles from parking there or even require that cars must be parked in garages.

The HOA, state and local laws govern what an HOA can do to enforce these rules within their own development, but consequences typically include levying fines, towing and suspending their members’ rights.

When it comes to public streets, HOAs usually have no power to regulate parking—but they may be able to regulate whether commercial and work vehicles are parked on public streets within the community. This will vary depending on the community and state, so it’s crucial to know the laws before taking any action.

How to enforce HOA parking rules

The goal of an HOA should be to provide reasonable parking accommodations, of which members of the community as well as members of the public are reasonably aware (posting signs, giving a 96-hour notice, including rules in bylaws). They also have a responsibility to enforce parking laws fairly.

The key components to being able to enforce parking rules (by towing, among other consequences) include prior notice of the parking restriction (through signs and bylaws), written authorization for the laws and regulations and reporting the tow to local law enforcement within an hour (rules may vary depending on location).

Making sure your HOA rules are compliant with legal standards can be a complex undertaking, but having a clear and fairly-applied parking policy is the key to ensuring community happiness.

Goodman Law Group focuses on Arizona HOA law, and specifically on providing HOAs with the knowledge and tools they need to manage their communities effectively. We provide a wide range of services, but focus on three major areas: collections, compliance enforcement and general counsel services. For answers to your questions regarding parking liability in HOAs in Arizona, or for general assistance with managing your HOA, contact us today.

The post HOAs and Parking: What You Need to Know appeared first on Goodman Law Group.

Liability

This is the big one. If repairs by a licensed contractor prove to be inadequate or anyone gets hurt on the job, their insurance covers it. The same is true if your tenants are injured by the contractor’s negligence—they can pursue their insurance and keep the HOA out of it. This is not true if you hire an unlicensed handyman. If there are any injuries, property damage or other impacts, the expenses land on the HOA. Tenants can sue the Homeowners Association for getting hurt due to negligent conditions, and the handyman can also sue if they are injured on the job. You also need to consider third parties, such as tenants’ visitors or people passing through to make deliveries and run other errands. If they slip and fall or get hit by falling debris, the HOA can be liable for those injuries as well.

Work Quality

Contractors pay heavily for insurance and bonds, which is why they charge more. But these efforts also protect you as the HOA who hires them. Besides liability, there is also protection from bad workmanship. Contractor bonds pay for damage or for work that must be finished or fixed by another contractor. If you hire an unlicensed contractor, this all falls onto you and becomes a significant out-of-pocket expense. Considering this, the original cost savings on an unlicensed handyman quickly become not worth it.

Reduced Property Value

You likely want to keep attracting new residents to your neighborhoods and condominium communities. When potential buyers consider your property, they will be looking for quality repairs and ownership without significant maintenance concerns. This is compromised when you do not hire the right contractors. Unlicensed contractors likely cut corners and if they skip an essential step, like securing a permit, it becomes nearly impossible to sell a property. This is not just about expenses, but also about maintaining the reputation of your community. Goodman Law Group recommends our HOA clients hire licensed contractors in Arizona for maintenance and repairs on their properties. If you are currently facing the risks of unlicensed handymen, contact us today to schedule a consultation.

Goodman Law Group recommends our HOA clients hire licensed contractors in Arizona for maintenance and repairs on their properties. If you are currently facing the risks of unlicensed handymen, contact us today to schedule a consultation.

The post Four Reasons to Choose Licensed and Bonded Contractors Over Handymen appeared first on Goodman Law Group.

Require insurance

Property is much more likely to be fixed regularly if it carries insurance. While proving insurance after a disaster is often commonplace, we often recommend association require owners to provide insurance certificates for the association to have on file each year after policies renew. This way, you have the information handy and the Association has one less thing to worry when disaster strikes.

Make terms clear

Agreements and Board Resolutions should all clearly state that damage to common elements that arises from a homeowner’s negligence or misconduct is their responsibility. If the HOA must pay these costs due to absentee owners, the owner still owes the debt. That often discourages neglect and encourages homeowners to carry insurance.

Be proactive:

Depending on the damage that concerns the association, regular inspections are a reasonable proactive approach to avoiding serious damage to units. For example, it is winter, and pipes could freeze. If a unit is unoccupied for over seven days, indicate that there will be an inspection to ensure everything remains in good condition. You can also require that the owner shut the water off to the unit if they or their renters are gone that long, and require owners to provide the association with the contact information of an emergency contact if they will be away from the Unit for a long period of time. Regular inspections are often a better way of ensuring any water leaks are caught before they become destructive.

Do not overestimate common sense

It may seem obvious that residents should not pour grease down drains (which can lead to sewage backups) and ensure that doors and windows do not allow the elements to get into units. However, not everyone has excellent house maintenance skills. Place specific duties like these in your resolutions, including a requirement to immediately notify the association if there are any leaks, floods or other seriously damaging elements occurring in the Unit. 

Your association can enforce its rights and maintain the quality of its community through good communication and skilled legal experience. Goodman Law Group is here to help when HOA rights on tenant negligence in Arizona must be enforced. Contact our office today to schedule a consultation. 

The post Tips for Avoiding Damage Caused by Owner Misconduct appeared first on Goodman Law Group.

HOA security liability in Arizona

HOAs have a responsibility to report suspected security risks to their members as part of their fiduciary duty. Foreseeable and/or reported problems are a source of liability. This is addressed in Martinez v. Woodmar IV Condominiums Homeowners Association, Inc. (1996), 930 P.2nd 485. This opinion decided whether you, an HOA, has a responsibility to your residents to protect them and their and visitors from harmful conditions they knew or should have known about. The answer is yes—if you, a homeowners association knew or should have known about a security risk, you have a duty to inform and fix the problem.

Clint Goodman of Goodman Law Group provides this insight: “The main takeaway is that a board of directors has a duty to protect all residents and guests visiting its property from foreseeable harm on the land it controls. For example, if a kid is dragged behind overgrown HOA trees and assaulted, which has happened before, that HOA is likely liable because it did not cut the trees.”

He continues, “People complain all the time about aggressive dogs running loose in the neighborhood, and sometimes a resident is attacked. The HOA is likely liable if they did nothing to stop the aggressive animal behavior. Similarly, when a tenant complains to the manager that the parking lights in the parking area are out, nothing is done about it and that tenant is then shot in the parking lot, the HOA may be liable.”

Your responsibilities as an HOA

We recommend having a security and safety inspection conducted. An on-site security inspection should be able to identify any particular risks or vulnerabilities in your community, including physical security (Are the doors and locks solid? Have the locks been regularly rekeyed as residents move in and out? Do windows close and lock completely?) as well as addressing more nebulous risks like good lighting, parking, mailbox risks and even how shrubbery can affect residents’ safety.

In addition to a security inspection, we encourage our HOA clients to enact a neighborhood watch program. Even small measures, such as ensuring that parking space numbers don’t match apartment numbers, can drastically increase the wellbeing of your housing community.

Homeowners associations can also increase neighbor and community engagement, which helps pinpoint any suspicious behavior well before any problems arise. Ultimately, whenever you can increase engagement, you can increase security.

Need help understanding HOA security responsibility in Arizona?

Staying abreast of all legal issues is part and parcel of your HOA board. Goodman Law Group can assist with all legal matters related to homeowners associations. Get in touch with us today to learn how our services can ease your HOA’s legal concerns and costs.

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