March 13, 2023
Co-op board rejection rules in NYC may soon require written explanations when boards deny qualified buyers. New regulations would force co-op boards to provide written justifications for rejecting potential buyers.
Anybody who has thought of purchasing a co-op is aware that the last stage of the process includes a meeting with the board to finalize the agreement. The selection committee is not under any obligation to provide a reason if it rejects your application at any point between the offer and the interview. If approved, NYC would halt this.
The proposed legislation, one of three aimed at promoting co-op openness, would call on co-op boards to disclose this information within five business days following a board decision. Also, the statement must have sufficient details so that you may modify any subsequent applications.
If you’ve ever experienced rejection, you definitely recall how painful it was. The whole goal of these suggestions is to “discourage co-op boards from turning individuals down. Additionally, the written, solemn declaration of the board about the denial must include a three-year history of the number of applications that the co-op has denied.
Co-ops that violate the legislation would be subject to fines ranging from $1,000 to $25,000 under the proposed revisions.
Exposing Cooperatives to Legal Action
One of the other recommendations involves altering how co-op application submissions are made in order to avoid the purchasing process taking months. This plan would regulate the application process so that potential buyers would learn the outcome of their application within 45 days, with the possibility of a 14-day extension, if necessary.
This would stop a buyer from feeling pressured or, worse, from losing a cheap mortgage rate because a co-op board took too long to make a decision. Yet under the proposed changes, the co-op would also be liable for penalties for missing the new deadline and run the risk of having to pay legal fees if a co-op was finally sued for breaking these requirements.
The measure addressing co-op board rejections also includes provisions for fines and legal fees.
Crisis Created By Progressivism or an Urgent Need?
Co-op application legislation changes have previously been proposed and are not a recent development. In 2021, the New York State Senate made an attempt, but the measure was unsuccessful.
Those content with the status quo points out that anti-discrimination laws are already in place to protect New Yorkers at the federal, state, and local levels, and there are commissions and agencies in place to carry them out. So, if you believe you have been the victim of discrimination, you may file a complaint with the NYC Commission on Human Rights (CCHR).
According to the most recent yearly data, 778 complaints regarding housing discrimination were submitted to the CCHR, albeit there is no evidence that these complaints are related to co-op board rejections.
The first step for any buyer hoping to avoid a co-op rejection is to satisfy the building’s financial requirements.
The financial requirements for purchasers are sometimes very severe in co-ops. The majority of co-op boards mandate that you put down at least 20–25 percent of the buying price, and some very stringent co-ops may ask for as much as 50 percent of the asking price. The issue of post-closing liquidity, or the amount of money left over to pay your maintenance expenses, is another.
Although the majority of board packages are created digitally, certain papers are still needed, such as financial data, disclosure statements, tax returns, and letters of recommendation. Updates or omissions must be explained. For instance, if you’ve just gone through a divorce, be ready to provide specific details on alimony payments, whether you provide or receive them.
Your reasons for purchasing the co-op should be your next factor to examine. Many co-ops forbid second home purchasers and demand that the unit be used as your primary residence. Choosing a co-op with accommodating pied-à-terre or sublet regulations is a good idea if you don’t intend to live in the unit full-time.
Brokers frequently claim that the interview is only a meet-and-greet and that once you get to this point, your chances of being accepted are quite good. Yet, you can encounter some unexpected questions. Remodeling may be challenging, particularly if you intend to remove the kitchen.
Be sincere, but be sure to stress how you’ll take care of your neighbors while you make progress on your apartment modifications.
March 8, 2023
Can homeowners in HOA communities consume marijuana?
Does the association have any means of limiting marijuana smoking?
Let’s look at the situation more closely below.
In HOA Communities, Can Boards Regulate Marijuana?
The use of marijuana in particular has recently gained popularity among homeowner organizations. However, many states have already made its usage for recreational or therapeutic purposes legal, despite the fact that it is still prohibited by federal law (or both). As of the time of this posting, marijuana is already legal in 21 states, including New York, California, Arizona, and Nevada. The question of whether HOA-run communities can control marijuana use has arisen as a result of the legalization of the drug in several jurisdictions.
Associations may desire to limit marijuana use for a number of reasons. The first is passive smoking. Most people are now aware of the dangers secondhand smoke poses to their health. Experts are concerned about the potential effects of secondhand marijuana smoke on human health, particularly lung health, despite the lack of a conclusive relationship at this time.
The smell is the second factor. The smell of marijuana smoke is really overpowering and not everyone enjoys it. Smoke can spread, so it doesn’t take much for neighbors to smell it, especially if they are close by.
The last justification is that it poses a fire risk. Whether it’s tobacco or marijuana, smoking has some risks for the environment. Property can become stained or discolored by the smoke, and a lit cigarette or blunt can start a fire. Also, it is common knowledge in HOA neighborhoods that allowing smoking results in higher fire insurance costs.
If the HOA already prohibits smoking, a separate marijuana policy is probably not necessary.
Its smoking regulations would also apply to marijuana use. It is nonetheless advisable to double-check that smoking marijuana is included in your smoking policy’s definition.
Relevant Policies for Smoking Marijuana in The HOA Area
State regulations may already prohibit the use of marijuana in public places. For instance, the Clean Indoor Air Act of Colorado forbids smoking in some indoor spaces, but not in indoor dwellings. The common areas in HOA communities may be subject to this Act. Similar regulations have been passed by other states to limit exposure to secondhand smoke.
Because an HOA owns its common areas, which are often accessible to all members, it is possible for HOAs to ban marijuana use in those places. Nonetheless, it is crucial to confirm that this power is recognized by state law or the association’s bylaws.
If the governing documents forbid the HOA from enforcing smoking restrictions, it may be time to explore revising them. Yet, many associations would need to receive consent from more than half of the membership. Yet if the majority of members support banning marijuana smoke in public spaces, getting this vote through should not be an issue.
What about private spaces, though? Can a homeowners’ association forbid a resident from using marijuana at home? The hard part comes at this point. In general, an association cannot restrict what homeowners can do privately (apart from illicit activities). Condominiums present an even greater challenge because smoke can spread between apartments and owners share walls.
Terminalizing Smoking and Taking Preventive Measures
There is a delicate line here, but an association may be able to control smoking in private areas under its laws about nuisances.
What exactly is a nuisance? And at what point does marijuana smoking bother a neighbor? Is it the smoke getting into the adjoining apartment or the thought of someone smoking pot?
The association will typically define nuisance differently. Nonetheless, it can be worthwhile to remedy the issue first before moving on to a nuisance violation, especially for condominiums.
If the complaint is about smoke leaking between units, for instance, an HOA can think about adding better screens or seals to stop the leakage. Owners can occasionally settle disagreements without the assistance of the HOA. It’s crucial to keep in mind, though, that residents have sued HOAs for failing to enforce smoking restrictions.
It is advised to take these remedial measures prior to outlawing marijuana usage in private spaces since they could show that the HOA is making an effort to address the issues at hand. It may demonstrate that the organization did not establish its smoking policies at random.
An HOA should also compile all the complaints it gets regarding marijuana use. Describe the complaints in detail, including the names of the people involved, the time and date of the complaint, and the problems raised. Maintaining thorough records of these complaints can aid the association’s efforts to impose a smoking ban and even act as proof in the event that a homeowner decides to file a lawsuit.
HOA Communities’ Use of Medical Marijuana
It is no secret that cannabis has aided numerous sufferers of chronic pain. Medicinal marijuana has been used to treat particular symptoms in people with epilepsy, AIDS, cancer, and multiple sclerosis. The same fundamental idea is true when it comes to medical marijuana.
Homeowners associations have the authority to prohibit the use of medical marijuana in public places. Some would insist on being given special permission to consume medical marijuana in public spaces under the Fair Housing Act. The federal government still forbids the use of marijuana, and smoking is not a protected class.
As a result, an HOA might not be required to make this situation reasonably accessible.
Associations should exercise caution when policing the use of medical marijuana in private residences, though. After all, a lot of patients require medical marijuana in order to lead active lives. It is important to get legal counsel if a neighbor complains and calls it a nuisance in order to limit culpability on both sides.
Final Verdict
In HOA communities, associations have the authority to prohibit the use of marijuana in public or communal places, but not always in private locations. It may be covered by the HOA’s laws on smoking or nuisances, however, the latter can create some challenging circumstances. Yet it’s vital to remember that these laws might differ from one state to the next, particularly if that state has already made it legal to smoke marijuana.
March 5, 2023
When buying a co-op or condo in New York City, there are a number of crucial things you should ask. Others may be concerning limitations placed on you by the board or the terms of the seller. Some queries will be about the culture or vibe of the building.
Before you submit an offer, a buyer’s broker would be well-positioned to learn the answers to all of these queries, but you must know what to enquire about.
Usually, the listing will state the down payment requirements, but you don’t want to learn after the deal sheet has been issued that the board forbids dogs or won’t allow you to refinance for two years, especially if these restrictions are crucial to your offer. These are the queries that need to be addressed.
Up to 50% of the asking price may be needed as a down payment in some especially rigorous co-ops. Post-closing liquidity, or the amount you’ll have available in the bank after you close, could be another criterion. Find out the criteria from your broker.
You must fulfill or surpass these conditions to avoid being rejected by the co-op board.
All of this translates to: Don’t assume your dog will be accepted just because you see someone else leaving the lobby with a dog.
While your attorney will investigate this as part of the due diligence, another strategy is to discover whether your lender has granted mortgages to other occupants of the building. If your lender has recently allowed acquisitions in the building, you can be more certain that this issue won’t cause you problems as you proceed, just like with the matter of the building’s reserve money.
If there are several owners, make sure they are all represented.
They won’t be able to sell the property if probate hasn’t been completed. And that means you can forget about all those carefully thought-out deadlines and the intended closing date since the backlog in probate courts is currently nine to twelve months, which might ruin your purchase.
8. Is a Washer/Dryer Permitted? Many people strive to have a washer and dryer in their apartment, and for good reason. Yet, there are some apartments that have a washer/dryer that has been “grandfathered” in.It is better to be aware of the laws in advance because buildings can be severe about installation requirements.
A building with cheap monthlies could look like a steal, but if it needs a boiler replacement or a façade restoration, the low monthlies may end up costing you more than you anticipated.
Many apartment buildings require you to register who will live in the apartment. In a co-op and some condos, the person who will live in an apartment must submit financials and recommendation letters, as well as be interviewed.
Each building has different rules about how many apartments can be renovated at the same time.
There may be a window policy that requires an incoming shareholder to repair or replace windows as needed. If the windows are in poor condition, a buyer may wish to negotiate a closing credit.
If you have questions about whether maintenance increases are expected or assessments are scheduled, the property manager can assist you. You can also inquire about recent inspections or outstanding building violations with the property manager.
This is usually a question for the sellers who pay the commission. However, it’s still a good question to ask. It is a good bargaining tool that agents use in the buying process by lowering their commission to make a deal work.
March 3, 2023
Are you thinking to purchase a property and confused about an HOA and its fees?
Read below to find out more.
The monthly cost for some types of residential property owners’ homeowners associations is referred to as the homeowners association (HOA) fee. These fees are gathered to help the organization with property upkeep and improvement.
Although they may also be applicable in some single-family house areas, HOA fees are generally always assessed to condominium owners. Common charges or maintenance costs are other names for HOA dues.
Owners’ associations are organizations set up to develop and enforce rules for specific properties and the residents who live there. These organizations frequently start in planned communities, subdivisions, or condominium complexes. When someone buys one of these homes, they instantly join the organization. As a result, they must pay monthly fees known as homeowners association fees to cover their dues.
Most frequently, HOA dues pay for the upkeep of communal features including lobbies, patios, landscaping, swimming pools, and elevators. Many times, the prices include certain basic services like water, sewer charges, and trash removal. If the association’s reserve funds are insufficient to pay for a significant repair, such as a new elevator or roof, special assessments may also be levied from time to time.
HOA dues vary greatly, but according to some estimates, they typically fall between $200 and $300 per month and can range from $100 to $1,000. The type of property and the facilities it offers determine the HOA fee level; the more services and amenities, the higher the costs. Incorrect management of an association’s reserve funds may result in higher fees for owners.
The HOA may take legal action against property owners who fail to pay their monthly or yearly dues, as well as any special charges. The agreement between the homeowner and the HOA governs these activities. Some let the HOA impose late fines, while others permit them to file a lawsuit, put a lien on the home, or seize the owner’s home in order to recoup the unpaid balance.
Owners of numerous condominiums, co-ops, and specific areas must pay HOA fees. These expenses go for the upkeep and maintenance of communal spaces like parking lots, lobbies, corridors, and elevators. Additionally, it typically includes gardening, snowplowing, and damage to public spaces.
Condo owners should include HOA fees when calculating their monthly costs.
March 1, 2023
Public housing funding in NYC remains critical as aging buildings require repairs and rent collection declines.
Years have passed since public housing in New York City received adequate funding from the government to address the deteriorating structures, erratic heating systems, broken elevators, vermin, and other issues that have made it a symbol of neglect.
The nation’s oldest and largest public housing system is currently experiencing a problem that could get worse due to residents’ declining rent payments.
The Department of Housing and Urban Development reports that more than 1,600 public housing agencies nationwide, from those in Richmond, Virginia, to San Francisco, have seen a “significant decrease” in collections as a result of tenants missing work or spending more on cleaning supplies and other safety precautions. They were able to skip payments without worrying about losing their homes when evictions were suspended.
Local agencies had to cope with the implications because it was sometimes difficult to get assistance to help cover the mountains of unpaid rent or left individuals in public housing out totally.
Yet, nowhere has the situation been as bad as in New York.
In the 12 months prior to December, the New York City Housing Authority only received 65% of the rent it had charged, the lowest percentage in the organization’s almost 100-year history and a worrying decline from the yearly pre-pandemic rates of 90% or higher.
The rent issues are a new setback for an institution that, despite its numerous flaws, is crucial to New York, offering some of the city’s few truly affordable houses in one of the most expensive cities in the country. 340,000 people live in the more than 270 projects owned and managed by NYCHA.
Yet, the over $500 million shortfall poses a threat to the agency’s capacity to maintain daily operations, fix leaking roofs and broken elevators, as well as perform the extensive construction work necessary to address lead, mold, and other deplorable conditions in thousands of buildings. Rent may be withheld as a result of the irate residents.
The cost is already being felt by the agency. It terminated around 150 open positions this year and dozens of contracts for legal, financial, and administrative tasks. Additionally, NYCHA has been using up its meager financial reserves, which are so low that they are not even enough to pay for one month’s worth of bills.
The public housing program in New York was previously praised for giving working-class residents dependable, secure housing. The federal government’s departure from the housing market, however, has left it at the center of one of the city’s most pressing challenges and a prominent example of its impacts. To restore its complexes to livable conditions, NYCHA predicts that it will require an astounding $40 billion.
In order to pressure NYCHA to fix its issues, a monitor was appointed as part of a 2019 deal with the federal government. The monitor gave the agency a mixed review of its performance. For instance, according to the monitor, 108 elevators were to be replaced by the end of 2022.
In an effort to reduce reliance on erratic government funding, Mayor Eric Adams of New York is pushing a divisive plan to hand over the operation of the city’s housing buildings to the private sector. The city announced earlier this month that it has either finished or started renovating 36,000 apartments as part of the plan between 2015 and the year’s end.
The typical rent cap is 30% of resident income, and it is changed if a household’s income changes. The organization received more than 500,000 requests for rent changes between 2019 and 2021.
The overall amount of rent payable has increased despite several changes.
One of the biggest issues is the way New York’s now-empty epidemic rent relief program was created by the state’s legislators. Because lawmakers believed tenants of public housing had access to other safety nets, they were given the lowest priority among those eligible for help.
Governor Kathy Hochul and state legislative leaders have not committed to providing additional funding, and it is unclear that the federal money would be replenished now that Republicans, who have regularly attacked NYCHA, are in charge of the House of Representatives.
This implies that unpaid back rent is now a new source of ongoing anxiety for the tens of thousands of NYCHA residents who are already coping with the effects of failing buildings.
NYCHA said that it had previously applied for rent credits and abatements totaling close to $9,500 and that no additional abatements had been agreed to.
February 24, 2023
HOA parking rules help communities manage vehicles, reduce disputes, and maintain neighborhood order through clear parking policies.. Understanding what regulations the HOA can and cannot enforce is the key to resolving parking-related issues.
Living in an HOA community entails adhering to the numerous rules and restrictions in place to keep the neighborhood in order. However, one of the most contentious rules in any given HOA is often related to parking. It’s easy to see why, given that the United States has approximately 273.6 million registered motor vehicles.
Your board must first consult your governing documents when enforcing homeowners association parking regulations. Your HOA parking policies should be clear in your CC&Rs. There should be no room for misunderstandings in your policies, which should be clear and concise. When writing your parking rules, use specific language so that homeowners know exactly what to expect.
Parking restrictions imposed by HOAs can be tricky to balance with maintaining homeowner satisfaction. However, because the HOA exists to keep the community together, you must make it clear to all members that these rules are for the benefit of the association.
What kind of parking regulations are typically enforced by homeowners associations?
The rules can differ from one community to the next. However, HOAs implement new rules regarding what types of vehicles aren’t able to be parked within the community. Which vehicles have permission to park, how long vehicles may be there, and what time periods vehicles may be parked in a given spot.
In other cases, associations may only permit homeowners to park in a specific area during specific times. For example, homeowners may only park in the clubhouse parking lot between the hours of 8 a.m. and 8 p.m.
Can An HOA Limit Public Street Parking? The answer is dependent on whether the street is public or private. Associations rarely have authority over public streets. As a result, they can’t really say whether or not members can park there unless state laws prohibit it. Law enforcement has jurisdiction if a violation occurs on a public street. HOAs, on the other hand, have the authority to regulate parking on private streets within the community.
If the general public, i.e. non-HOA members, can use the street, it is a public street. The government is in charge of maintaining public streets. Private streets, on the other hand, are maintained by the HOA and are only available to members.
Can Your HOA Command You To Park In Your Garage? It may appear unfair, but the HOA has the authority to require you to park your vehicle in your garage. This is typically done by associations for vehicles that do not meet their standards or are prohibited in the community. It is a matter of preserving aesthetics and keeping the community visually appealing.
Can The HOA Limit Driveway Parking? Yes, some associations have the authority to limit the type of vehicle that homeowners may park in their own driveway or on the street in front of their house. HOA driveway parking rules exist to keep the neighborhood looking nice. It all comes down to aesthetics once again.
Can The HOA Implement Speed Limits? In general, homeowners associations can impose speed limits within the community, as long as they only apply to private streets and your CC&Rs give you the authority to do so. However, make certain that the speed limit does not conflict with any local ordinances. If it does, you will be unable to enforce it.
Is It Possible For The HOA To Limit The Number Of Cars? While organizations cannot usually restrict the number of automobiles you can own, they can restrict the number of cars you can park in your driveway or in common areas. Condos and flats often allow just one parking space per owner. As a result, if you own a large number of vehicles, you must (legally) locate another location to park them.
Enforcing HOA Parking To Ensure Owners Comply Enforcing HOA parking restrictions is just as tough as creating them. Violations do occur, and they may also occur with parking. Can your HOA, however, issue citations and tow vehicles?
Privileges Are Temporarily Revoked While not all HOA boards have this authority, some do have the ability to temporarily withdraw owner privileges following a violation. The procedure varies based on the organization, but it normally entails mailing an HOA parking infraction notice along with the option of holding a hearing. However, due to the harshness of this sort of punishment, it is normally only for repeat offenders. Check your CC&Rs to see if you have the authority to suspend owner rights.
Tracking Vehicles Is it legal for the HOA to tow automobiles that violate parking restrictions? Can the HOA tow without notice? These are frequent inquiries from homeowners regarding towing. The answer is that it depends on your state’s legislation. In general, though, organizations have the authority to tow automobiles that violate parking regulations.
You should also notify your local traffic enforcement department about the towing within the same timeframe.
You can tow automobiles, but it should be your last resort. Taking this path will almost always end in a more convoluted and heated disagreement between the owner and your board.
How To Fix Parking Concerns in The Common HOA Every organization runs into parking issues. The key is to figure out how to cope with them.
–There is insufficient parking for residents. You can convert some guest parking places to resident parking if you don’t have enough parking for residents. This is assuming you reside in a neighborhood where the common spaces are owned by the HOA.
–Residents park in visitor spaces. If this is not permitted in your neighborhood, you must notify all homeowners and display appropriate signage. Imposing penalties and suspending privileges is an effective strategy to discourage this sort of forbidden activity. If the situation persists, you may have to resort to towing.
–Guests have few parking options. If you reside in a planned community, you can charge guests who park in guest slots a parking fee. You might also require guests to get HOA parking permits. This will help you to keep conflicts amongst owners at bay. However, make careful to examine your governing papers to determine if you have this authority.
–Handicapped parking is insufficient. Certain federal laws, such as the Fair Housing Act and the Americans with Disabilities Act, compel you to provide reasonable accommodations to handicapped individuals. Make sure there is adequate disabled parking. If it isn’t possible, consider redesigning the area to make it more accessible to handicapped residents.
Can the HOA limit parking?
The quick answer is yes.
An association can implement HOA parking requirements if the CC&Rs explain the HOA’s jurisdiction to do so. However, while developing and implementing these regulations, ensure that they conform with federal, state, and local laws. Your governing papers should also empower the HOA to implement them.
February 16, 2023
Co op board responsibilities include monthly meetings, policy decisions, financial oversight, and long-term planning for shareholders and building operations.
Meetings are held at least once a month, along with the associated planning and follow-up.
Contacting a current or former board member is one way to get more information. Asking about their experience is the best method to learn more about the obligations.
As trustees for shareholders, building managers, and future co-op planners, the board contains three key duties. The president, vice president, secretary, and treasurer serve as board officers.
Members join boards for a number of reasons, which affects how big they are as well. In comparison to board members, board executives often devote more time to their duties.
The levels of time and engagement vary, despite the alignment between all of these positions. Being an officer is not something you have to volunteer for as a new board member.
You’ll need to invest some of your valuable time in membership.
How long do these meetings last?
Some important questions to ask current or past members include whether they make decisions between sessions.
This includes how well the current board members get along with one another.
Serving on a board is an unpaid, voluntary activity. Everyone has various objectives, which will influence the amount of time they are ready to devote.
Board meetings that last more than an hour may indicate that members are dealing with complex issues.
This indicates the problems need a lot of time to resolve.
Alternately, protracted meetings could indicate sloppy preparation or a lack of a defined agenda.
Effective boards should conclude meetings in less than two hours.
Another indicator is whether or not they make decisions via email or other forms of communication in between meetings. This shows the board’s capacity to deal with problems as they emerge and reach decisions fast.
It also demonstrates the board members’ responsiveness, communication skills, and commitment to the success of the co-op community.
If the co-op hires a property management company, many of the day-to-day concerns will involve a solution by them. However, numerous boards have committees that focus on specific aspects of the building operations. This could include landscaping, sales, leasing, or any other board-supporting activity. Serving on or overseeing one of these committees will increase the amount of time spent on board-related matters.
It is not uncommon for board members to come at problems from different perspectives. Volunteering on a board where members do not get along can be draining and stressful.
Volunteering with another like-minded resident is one way to avoid some of this tension.
Under 10 hours of total volunteer time per month would be a reasonable time commitment.
An activity that you are passionate about usually requires more time and effort from you.
If you live on a high floor, and your elevator routinely breaks down, you might be passionate about helping to replace it. As a board member, you can lead the initiative to create a roof garden on the vacant tar roof. As a shareholder, you have no influence in the decision.
The apartment they live in is frequently one of the biggest investments for co-op shareholders. Having more time available will benefit the neighborhood and your investment in your property.
February 10, 2023
HOA meeting attendance remains a challenge for many communities because homeowners often feel disconnected from association decisions. A large majority of homeowners simply don’t seem bothered about association issues, which has a negative impact on attendance. However, you can take steps to increase your participation at HOA annual meetings, believe it or not.
Why it’s important to increase attendance at HOA annual meetings
An annual HOA meeting is what? The annual meeting is one thing that almost all homeowner organizations have in common. Every fiscal year, the HOA holds an annual meeting that normally happens at the start of the year and sets the tone for the events to come.
Board members address important topics at this meeting, including the yearly budget, dues, significant projects, and homeowner complaints. Elections are held during the yearly gathering as well. Homeowner attendance at the HOA annual meeting is only logical given that some of the most crucial issues are discussed there.
Furthermore, a quorum is often required for meetings to progress. The bare minimum of members required to perform association business is known as a quorum. You might not have the necessary quorum if there are too few people present. You are unable to propose the budget, take votes on matters, or conduct elections if a quorum cannot be reached. Governing documents and state legislation may have different quorum requirements.
It is obvious that involvement and attendance from homeowners are essential during yearly meetings. However, many organizations have problems getting homeowners to these meetings on a regular basis. After all, attendance is not always a requirement that homeowners must meet. However, there are several methods you may employ to increase attendance at HOA annual meetings.
Homeowners frequently skip yearly meetings because of their hectic schedules. But if you give them enough time, they can mark the day in their calendars.
State laws and your governing papers will determine the notice requirements for the HOA annual meeting. For instance, groups in California are required to give at least 10 days’ notice, but no more than 90 days.
You may promote your annual gathering using additional channels of communication. This entails putting up notices on notice boards, adding the date to the calendar on your HOA website, and designating a part of your newsletter to it. Even better, if your organization has social media profiles, you may advertise the annual gathering there.
Aside from the start and finish hours, remember to mention them in your announcements. If the meeting ends in time for supper or their preferred program, homeowners are more likely to come up.
The location, in addition to the day and time, has a big impact on how many people show up to the annual HOA meeting. You need a location that is both big enough to fit all of your members and near enough that nobody has to drive too far. It could work if your neighborhood’s clubhouse has a function room. A basketball court would also be excellent.
Sharing the meeting agenda, though, won’t only be a necessity; it will also let homeowners know what to anticipate. They are more likely to attend when they are aware of the topics that will be covered, especially if they have a particular interest in one of them. Your agenda should include each topic in detail and, if at all feasible, set time limitations for each item’s discussion.
However, make every effort to keep the yearly meeting brief. This is the purpose of your agenda. Maintaining your agenda can help you keep the conversation on track. If necessary, think about including breaks so that residents may get some fresh air or process what they have heard. People will be more inclined to just get up and leave a meeting as it continues.
The presenters must work hard to keep the audience’s attention in addition to the presentation itself. Speaking slowly and monotonously can put a householder to sleep more quickly than anything else.
It’s a wonderful strategy to maintain homeowner happiness and boost HOA annual meeting attendance to ask residents about their top neighborhood concerns. Conduct a brief poll of homeowners in advance of the meeting to compile their queries and worries. Tell them that the board will discuss these matters at the annual meeting after that.
However, don’t keep it a secret. Promote this extra advantage since you’re aiming to entice people to the meeting, don’t forget. Free food and beverages will always be accepted by homeowners.
A raffle with a significant reward might also be held at the conclusion of the meeting. Just be sure to remind residents that in order to be eligible for the raffle, they must attend the full meeting. By doing this, you’ll prevent members from showing up late solely for the raffle.
Homeowners in HOAs frequently feel disengaged or uninterested in neighborhood issues. As a result, fewer people attend HOA annual meetings in the end. Given the significance of these meetings, you must make every effort to get homeowners to attend. One aspect of a successful HOA community is homeowner engagement.
You should start looking for an HOA management company if you want assistance with notice distribution, budget preparation, and holding yearly meetings.
Find the top one nearby by using our online directory right now.
February 9, 2023
The numerous daily chores necessary to run and maintain your community are overseen by your board of directors, but they are not the only ones who must be involved. Painters, plumbers, electricians, landscapers, repairmen for equipment maintenance or emergencies, exterminators, and other vendors will be expected to be hired by your property management company. Additionally, you will require vendors to handle any capital improvements, unplanned emergencies, or urgent maintenance.
Hiring members of the property management team or the board of directors’ immediate families, close friends, or other close associates is never recommended. The improper vendor selection can have an adverse effect on more than just the caliber of the services rendered; it can also subject your community organization to liability due to the vendor’s behavior, the contract’s conditions, or possibly both. In that case, your homeowners’ association and neighborhood could face serious financial losses and legal repercussions.
Asking a specialist who can direct you toward reputable vendors with established track records is one technique to choose a property management vendor. If you deal with a property management company, its experienced personnel can help you pick who to choose—and whom not to choose. An experienced board member may be able to relate past vendor experiences.
In order to ensure that service providers have the necessary qualifications and adhere to strict service standards, management companies have developed long-term relationships with reliable vendors.
Some of them may even have their own vendor certification procedure. Additionally, management companies regularly collaborate with the association’s lawyers.
As a result, once you’ve chosen a vendor, the lawyer might craft the contract’s clauses to shield your association from liability.
It’s a legal responsibility, so picking the correct provider for your association is no easy task. Before granting contracts or agreeing to services, you must conduct due diligence and verify potential vendors satisfy all prerequisites and are suitably licensed, bonded, and insured. Your board owes it to homeowners to ensure that only licensed service providers continue to operate in the neighborhood.
For any association, choosing an unlicensed vendor could prove to be an expensive error. Many states require individuals who intend to provide products and/or labor valued at more than a certain amount to have particular licenses in order to provide their services. Let’s say they lack the appropriate insurance and bonds as well. If that happens, it might be disastrous on both a financial and legal level, putting your community in danger of fines or financial ruin as a result of the vendor’s conduct.
As we previously indicated, some property management companies have formed proprietary certification systems. As a result, prospective vendors must demonstrate that they meet certain criteria before being authorized to work in the company’s managed communities. If your management company doesn’t certify vendors or your association is self-managed, you can check a possible vendor’s licensure and history of legal disputes by visiting the website of your state’s licensing board.
Any company must understand whether its vendors are independent contractors or employees since it might mean the difference between making an informed decision and one that could result in expensive blunders that could have been avoided. Checking IRS Publication 1179 for a detailed analysis of both categories and what is required of you as the client when hiring them is one approach to figuring out which employment classification best meets your association’s needs.
To help you choose the best kind of vendor for your needs, it’s also a good idea to speak with an attorney or a reliable property management business. There is still the issue of the services contract, though, regardless of the type of vendor you select.
Remember to solidify your commitment with a written agreement when choosing a supplier. Make sure an experienced attorney is involved in the drafting process so that this document can be legally binding and clearly explain the terms of both parties. The association must be safeguarded, and each party must succeed.
Hiring a friend or someone you find online is considerably simpler than choosing a property management company. After all, your association may face significant financial and legal consequences if things don’t work out.
You’ll be in a better position to select a reputable vendor that can satisfy the demands of your association, your neighborhood, and its inhabitants if you stick to the guidelines we described and speak with your association counsel.
February 8, 2023
Rent stabilization law in New York remained valid after a federal appeals court upheld 2019 tenant protection changes. A federal appeals court decided on Monday that the tenant-friendly adjustments made to New York City’s rent stability laws in 2019 were constitutional, rejecting two complaints from landlords.
The New York City Rent Stabilization Law amendments were upheld by the US Court of Appeals for the Second Circuit on the grounds that they adhered to due process and the Fifth Amendment’s takings clause, which demands that the government pay fair market value when seizing property for a public purpose.
Writing for the appeals court, Judge Barrington D. Parker highlighted the US Supreme Court’s “long line of consistent authority,” which has regularly maintained rent stabilization and rent control systems against related claims over the last century.
Despite the fact that “the caselaw is extraordinarily clear that legislators enjoy considerable jurisdiction to regulate land use,” Parker stated, “we acknowledge that many economists believe that rent control legislation is an ineffective approach of ensuring a supply of affordable housing.”
In a statement to Bloomberg Law late on Monday, a spokesman of the landlord groups stated that they intend to appeal the case to the US Supreme Court. According to the statement, the groups “always acknowledged” that their claims were unlikely based on Second Circuit precedent.
The spokesperson stated that numerous decisions by the US Supreme Court “undermine those earlier Second Circuit opinions and clearly signal that regulations like this burden property owners in an unlawful manner.” “We always expected the Supreme Court to rule on these matters and look forward to advancing the case,”
According to landlord organizations, restrictive rent rules like New York’s result in the production of less housing rather than more.
The landlord groups presiding over the parallel cases made broad attacks on the statute in one and narrower claims that the statute is unconstitutional in light of the situation in the other, but the appeals court rejected these broad-based arguments.
The court determined that the rent rule does not represent either a typical “physical take,” which occurs when the government strips an owner of all of their rights over a piece of property or a “regulatory taking,” which involves excessive property use limitations.
That justification holds true for both eviction restrictions and laws requiring landlords to permit tenants to transfer their leases to family members in certain situations, according to Parker. He draws attention to the fact that both provisions must first meet a number of conditions in order to be effective.
The judge stated in his ruling that it is “clearly established” that a tenancy’s termination restrictions have no impact on taking as long as an eviction is a possibility.
The court agreed that diminished return expectations “may be reasonably aggrieved” by landlords who made their investments prior to the modifications. Any property owner, however, “could not fairly expect” any particular set of rules to persist indefinitely, Parker asserted, “given the RSL’s ever-changing requirements.”
Additionally, he rejected the claims of due process, asserting that rent stabilization regulations—regardless of their wisdom—have a direct connection to the issues that legislators sought to address, such as homelessness, transience, and the eviction of low-income residents, including vital workers.
Even when, as in this case, they may clash partially with the judgments of some experts, a rational foundation review is not a method for judges to question legislative judgment, Parker said. “There is no question that neighborhood stability and continuity are legitimate justifications for passing legislation.”
Judges Susan L. Carney and Guido Calabresi join the opinions. The decisions support the decision made by Judge Eric R. Komitee of the US District Court for the Eastern District of New York.
Both the state and New York City have their own legal counsel. The landlords had representation by Covington & Burling LLP in one case and Mayer Brown LLP in the other.
