By: Brindee Collins, Collins Law PLLC

Enforcement of the CC&Rs or the rules and regulations of a community association is one of the most important responsibilities of the board of directors and the management companies that are hired to help run an association. Despite its importance, it is one of the most difficult jobs, due to lack of proper enforcement tools, interpersonal conflict, mistakes in documentation, and differences of opinion. The question of how best to address violations and improve compliance in a neighborhood is one of the most common questions I am asked as a legal practitioner in this field. Over the years, I have noticed that associations with enforcement problems tend to have a number of things in common and that the following tips and tricks can help smooth the way for a better enforcement process, success in addressing violations, and avoiding conflict with homeowners.
​
Know Your Governing Documents
A board of directors and their manager must be intimately familiar with the terms of the governing documents of an Association, including the CC&Rs, the plat map, the rules and regulations, the articles of incorporation, and the bylaws. These documents are both the sources and the limits on the Association’s powers and responsibilities, and almost every enforcement issue revolves around the terms of these documents. In Idaho, restrictive covenants are viewed skeptically, as being contrary to the right to use property freely. Any restriction that is not clearly expressed in the terms of the governing documents will likely be considered unenforceable, so it is important to ensure that you have a good understanding of exactly what restrictions your association’s governing documents actually place on the land within the development, and that the language is drafted in a clear way, that is easy for everyone to understand, with no ambiguity. You can only enforce the language of the governing documents based upon its clear meaning, not based upon what you thought it meant or what you might wish it meant. It is also crucial that you be aware of any language that limits your right to enforce, such as required mediation or alternate dispute resolution clauses, which are becoming more and more common. 

By: Jessika Reed - HOALiving

When you think about volunteering—just the concept of it for now—what images come to mind? People in neon T-shirts handing out water bottles at marches, walks, and runs? Musicians donating their time and talents at VA and children’s hospitals? Maybe you envision environmental efforts or holiday-specific commitments.
Maybe your mind is beating me to the punch line and you’re already thinking about the board of directors at your community association.
                It’s true—this world of HOA living and managing (and developing and advising) relies heavily on the selflessness and cooperation of volunteers. Merriam-Webster defines volunteer as “a person who voluntarily undertakes or expresses a willingness to undertake a service.” This certainly applies to the individuals who step up and run for board positions—those who are elected, those who are appointed to officer positions (president, treasurer, secretary, etc.), and those who are appointed by the board to different committees.
                Neil Schiffman is a Community Manager for FCS Community Management, part of the HOALiving network of companies. He works directly with community associations and their respective boards, interacting firsthand with the volunteer network that is characteristic of HOAs.
                “HOAs function best with volunteer participation,” Schiffman said. “Owners feel that they have a say in the operation of the community, even if they are simply paying more attention to the landscape or janitorial services. Associations that have strong committees to help provide guidance and feedback to the board are very high functioning. Owners who are willing to effectively communicate their feedback through surveys and board meeting participation seem to be happier with the outcome.”
                Community associations run on volunteer efforts, but this past year and a half has seen countless changes in how nearly everything runs. The same force that has us covering our faces, increasing our distance, and working from home must surely be affecting the volunteer landscape, as well, right?
                Right!
​

By:  Jeremy Newman CPA. - Newman Certified Public Accountant PC.

• ​Engagement Letter – Sign Early

Obtain Board approval of the CPA’s engagement letter three to six months before year end and transmit to the CPA.

• Scope Changes – Early Communication

Let your auditor know as early as possible if there has been a change in the scope of the audit. Scope changes include management/accounting transitions, new special assessments, new loans, new litigation.

• Documentation Flow

Ensure all of your documentation is in place.  You should have documents to support every transaction, and every balance sheet account. Ensure documents and reports are provided to the auditor as completely and as early in the process as possible. Gather, save, and share documents related to significant transactions.

• Irregular Transactions

The auditor will need supporting documents for non-regular transactions such as laundry rent/commission agreements, cell tower leases, other rental income leases, insurance claims – reimbursements and expenses, special assessments, loans.

• Investments

If your association has investments in treasuries, mutual funds, stocks, bonds, municipal bonds, the auditor will need to determine market value and cost, together with realized and unrealized gains and losses. Ensure you obtain a transaction history report for the whole year from the investment advisor or brokerage. For income tax purposes, it is vital to present accurate gain or loss amounts. Often, brokerages provide annual tax reports which should be provided to the auditor and tax return preparer.

• Changes in Management

Obtaining all accounting report, transaction documents, agreements, contracts, governing documents and many other documents from prior management is vital to successfully completing an audit; let alone completing an audit efficiently. We recommend a checklist is used to ensure all association reports and documents are transitioned.

• Responses to Auditor Inquiries

Complete and timely responses to auditor inquiries can ensure the audit is completed efficiently and with less email exchange.

• What are Typical Causes for Incomplete Audits?

Missing bank or investment statements, incomplete insurance claim documentation, prior management incomplete records, incomplete responses, poor tracking of special assessment activity.

• Concluding the Audit

Upon provision of the draft audit report, auditors also provide boards and management with a representation letter.  The representation letter is from the board and management to the auditor. Auditors cannot release final audit reports is the representation letter has not been signed and returned to the auditor.

• The Good News

We can walk you through every step of the audit process.  Our goal is to make the audit experience as easy as possible for you. Audits do not need to be challenging. Communication and complete documentation are vital.

restricting or preventing a member of the association from displaying the flag of the United States on residential property within the association. This means that an American flag is allowed to be displayed.
 
This does not mean any U.S. Flag can be displayed in the Association. This act only allows protection for the traditional, red, white, and blue, 13 stripes and 50 stars flag, “Old Glory”, originally designed by Miss Betsy Ross herself. The act does NOT protect variations of the U.S. flag.
 
Please note that even though federally you can display a U.S. flag, the Association still has the ability to reasonably restrict the time, place, and manner of where you display the flag. This means that you should check your Association’s rules if you are ever unsure about whether your flag is allowed. These restrictions would be found in your Community Association’s governing documents, which usually include the Declaration of Covenants, Conditions, Restrictions and Easements (CC&Rs), Bylaws, and any other rules and regulations adopted by your community.  ​

​I’m certain that there are many communities (another word “associations”) out there that are getting ready to do improvements around their properties during this perfect season such as resurfacing asphalts, exterior building painting, entrance water feature renovation, etc. Of course, summer projects come with the question of “Are we adequately funded for these projects”. Preparing a bucket list of summer projects will help the association properly evaluate the timeline of project items/components that “need to be completed” and when funds are ready and become available for the project.
 
Funding options are varied depending on the community association’s financial status. The most common options are:

1. Reserve (Saving) Fund Account
2. Special Assessment- additional assessments that are needed for planned/unplanned repairs/replacements (not budgeted as part of the annual operating expenses).

​By Ella Cox

As the U.S. reopens, many community associations are continuing to navigate conversations with residents about COVID-19 vaccines. Since there is so much information surrounding them, navigating the myths and truths has been an ongoing challenge for board members and community managers.
When the vaccine rollout started in December, some community associations took initiative by partnering with health care providers to organize clinics where vaccines were administered on-site to residents as they became available. Others set up neighborhood-wide carpooling events for residents without transportation to help them get to a vaccination site.

Read the full article here...
article courtesy of ​ HOA Resources

Let’s talk about Association Volunteers! 

Who doesn’t love and appreciate anyone willing to help out?!  Of course, we all do, but is our Association covered?
Typically, we all hear the term “Workers Compensation” and immediately think that would only apply to businesses. “We don’t have any ‘employees’”, “we hire independent contractors”.  How does this apply to my Homeowners’ Association? 

First, let’s understand what coverage Workers Compensation provides. 

Workers’ Compensation is provided to protect employers for work related injuries to their employees.  The benefits can be medical expenses and income compensation that is provided to the employee, regardless of who is at fault. 
Workers’ Compensation coverage should be utilized by any Associations that have direct employees and indirect employees such as board members, volunteers, and committee members.

Of course, you are still wondering why would my Homeowners’ Association need this?  

​by Phoebe E. Neseth, Esq.

Close to 80 million U.S. households have an animal in their home. Pets come in all shapes and sizes and provide companionship to their respective families, but there also are animals that play an important role in the lives of people with disabilities and mental health issues by assisting with day-to-day activities or giving emotional support.
In honor of May being National Pet Month, we offer a summary of what constitutes an assistance animal, laws and regulations that apply to their ownership, and the approach community associations can take to rules and regulations specific to these animals.
Federal laws such as the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA), as well as state and local laws govern assistance animals in community associations (commonly known as homeowners associations, condominiums, and housing cooperatives.) Assistance animals are categorized in three groups:

• Service animals. Specifically trained to work or perform tasks for individuals with physical disabilities.
• Therapy animals. Provide psychological or physiological benefit to individuals or groups in a clinical environment.
• Emotional support animals. Provide comfort to people with mental health issues.

​Read the full article here
article courtesy of CAI Advocacy Team

A Reserve Study is a financial plan for funding the future replacement of major common area components in an association.  Roofing, exterior paint, streets, and pools are some examples of common areas that are shared by homeowners in an association.  Maintaining these common areas in order to preserve or improve the property values requires setting aside a portion of your association fees into a reserve fund. A Reserve Specialist gathers essential information from the association’s board or manager in addition to conducting a site inspection that aids in quantifying common area components as well as determining the estimated remaining life of each component.

The Reserve Specialist looks at things like the total of cash reserves currently set aside, the condition and remaining life of each component and the estimated current replacement cost of major components. He then prepares a budget for the association's reserve fund to ensure that when the major components have reached the end of their useful life there is money to replace or repair the component.