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Post responsibly: How to avoid legal risks and negative effects on social media in your community

Social media tools are a great way for community associations to increase engagement with their residents, but they can leave communities vulnerable to potential legal risks if managed inappropriately.

Adopting a social media policy can allow communities to assign responsibility over its use and minimize abusive practices, says attorney Katrina Solomatina of Berding & Weil in Walnut Creek, Calif.

Platforms such as Facebook, Twitter, and Nextdoor, as well as websites, online newsletters, and email blasts, allow community associations to facilitate communication between homeowners, provide real-time updates, and give members the ability to offer instant feedback to the board.

At the same time, social media can be abused by users through practices such as cyberbullying, defamation, and invasion of privacy, Solomatina notes.

Comments made through social media can have a negative effect on a community. That’s why it’s important for communities to determine who will manage and update social media platforms, who will monitor and respond to comments, who can control or remove content, who can post, and what type of content is prohibited. Community associations should adopt a policy that covers the above.

When an association operates a closed group or discussion board, like Nextdoor, for residents, Solomatina recommends a user policy that includes the following terms:

  1. You must be a resident or property owner in the community association
  2. Anonymity is prohibited
  3. You must use your real name
  4. Be respectful of others at all times
  5. Ranting is prohibited
  6. Personal attacks are not tolerated
  7. Commercial advertisements are prohibited
  8. Violators will be suspended

Solomatina will be presenting a session—Social Media: Community Association Friend or Foe?—at the 2019 CAI Annual Conference and Exposition: Community NOW, May 15-18, in Orlando.

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Homeowner education: Be resourceful with CAI’s HOAResources.com

The best community associations have knowledgeable governing boards, highly-engaged residents, and educated and trained professional managers leading their communities. CAI has believed that since its founding in 1973, and it’s why we offer information, education, and resources to members and the general public. It’s why we recently launched HOAResources.com, a digital news site for the millions of residents living and working in condominium communities and homeowners associations worldwide.

We recognize that the community association model has evolved and grown up over the years, becoming a well-established and increasingly successful form of community governance and an essential component of the U.S. housing market.

There’s an increasing need to educate, train, and provide the latest news and resources to the millions of potential homebuyers, homeowners, and renters living in these communities. After all, 61 percent of all new housing built for sale is in a community association.

The new site lets CAI members and the general public find practical advice on common issues in the community association housing model. The site will address HOA basics, financial planning, rules and governing documents, as well as security and safety. Many time-tested best practices are showcased on the site, often through free, downloadable documents.

Go to www.HOAResources.com, and share the information with homeowners, friends, and colleagues.

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Talent wanted: How to hire and retain skilled community association managers

Recruiting and retaining skilled managers can be challenging for community associations and management companies, especially in a very competitive labor market and with communities limited by tight budgets.

In this reality, it becomes even more important for associations and management companies to highlight their strengths and address organizational shortcomings, says business speaker and author Peter Sheahan.

The founder and CEO of Karrikins Group, a Denver-based business growth strategy consulting firm, Sheahan has been an innovative business thinker for more than 20 years. He has advised leaders at companies such as Apple, Microsoft, Hyundai, IBM, and Wells Fargo. He’s also authored seven books, including the recently released Matter: Move Beyond the Competition, Create More Value, and Become the Obvious Choice and Generation Y, a book about the millennial workforce.

Peter Sheahan

Generation Y came about due to Sheahan’s experience as manager of a hotel in Sydney, Australia. “I noticed there was a very big disconnect between what the young people that I was hiring wanted from their experience of work and what I needed from them at work, as their employer,” he says.

Since that formative experience, Sheahan and his team have strived to help company leaders understand ways to attract talented workers.

“People think that the secret to attracting and retaining talent is little things like, ‘Let’s give them free lunch’ or ‘What perks can we offer?’ or ‘What are our benefits compared to the benefits down the road?’ But at the end of the day, it really comes down to the quality of the organization,” Sheahan says. “Is it successful? Is it high performing? Because good, smart people want to work in those environments.”

Sheahan recommends a few best practices for community associations and management companies for recruiting and retaining talent:

    1. Stop thinking about tactics, and start thinking about the performance of the organization. The focus should be on building an organization that is robust and resilient. “Great organizations have no trouble attracting and retaining talent,” says Sheahan.
    2. Build a culture that people want to work in. The perks and benefits can’t be the only lure for bringing in talented workers. Sheahan warns that if the culture doesn’t reflect what was promised to the manager when hired, “You’ll find yourself in bigger trouble.”
    3. Be courageous. It’s important to brave a tight labor market to find talented people, says Sheahan. It’s also about having the courage to build a high-performing team. “A team is only as strong as its weakest link, so we need to be capable of managing the performance of the underperformers or, at times, even having the courage to move people on,” he says.

Sheahan will be one of the keynote speakers at the 2019 CAI Annual Conference and Exposition: Community NOW, May 15-18, in Orlando.

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Crisis communicator: A board president’s coordinated strategy during Hurricane Irma

Michael Kulich, the overall winner of CAI’s 2018 Outstanding Homeowner Leader award, went above and beyond to help the Turtle Creek Homeowners Association in Orlando, Fla., deal with Hurricane Irma’s destruction. As president of Turtle Creek when the storm struck, Kulich led efforts to develop and implement the community’s disaster plan, and during Irma, he turned his home into a “war room” to give board members and vendors a space to provide the community with updates and review action plans.

When the skies cleared, Kulich—a management consultant by trade—took time off from his day job to coordinate vendor activities and lead the cleanup until the community was back on its feet.

What should homeowners do before and after a hurricane?

Residents should stock up on critical supplies and identify how to stay connected to the police and the association. It’s equally important for residents to be patient after the storm passes. Turtle Creek residents were eager to begin the cleanup process after Irma. While their intentions were good, it’s better to pause, confirm everyone is safe, and confirm it’s safe to begin clearing debris.

Michael Kulich

What must a community disaster plan include?

Our plan focused on preparing our infrastructure and homeowners for potential damage and partnering with local vendors and government officials to establish communications lines for continuous updates. Between computers and cell phones, Turtle Creek board members were in constant communication with local government officials, local law enforcement, and utility companies. This approach allowed us to gather pictures of the damage and have video conferences with our landscaping vendor to develop a cleanup plan. We were back to normal operations within a couple of weeks as opposed to months.

What makes a community leader effective?

Communication is an essential quality. As a board member, I use MailChimp for email updates, Twitter, and I recently launched a YouTube channel to livestream our board meetings. Residents appreciate our efforts to keep them informed, as it lends itself to another trait of a successful community leader: transparency. Operating an association board shouldn’t be a mystery. Residents should feel welcome to attend all activities, and feedback should be encouraged.

Why do you volunteer?

Volunteering gives me an opportunity to remove myself from the daily grind and focus my time and energy helping someone else. Since high school, I’ve made it a priority to find a cause or an organization where I can volunteer.

What do you enjoy about serving on your board?

As president, I find the ability to address a homeowner’s concern and find a resolution extremely rewarding. But my main source of enjoyment stems from the relationships I’ve built with our homeowners and local vendors.

What else do you enjoy?

Traveling with my wife and daughter and adding to my sports card collection. Lately, my free time is spent writing. I’m creating my first blog, which focuses on community association topics and trends.

April is National Volunteer Month. Read our articles about preparing for a volunteer role and five steps for effective community leadership. And you can read about the inspiring work done by a homeowner leader who put his community toward a path of financial stability.

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Turnaround leader: How a board president revitalized a community in financial disarray

When Michael Shucart took the helm as president of Leisure Town Home Association’s board more than five years ago, financial disarray and outdated amenities plagued the 1,150-home community in Vacaville, Calif. Now, the retired banker is credited with putting Leisure Town back on a path to success.

Development of the 55-and-older community first began in the early 1960s, and the association had gone without a professional community manager for more than 50 years. There had been little resolve from the board to raise assessments and make improvements. “The community was left deferring maintenance with little in the reserves for replacement or repairs,” says Shucart.

Undoing decades of neglect, Shucart developed a list of priorities “to help define our vision” after consulting with the community’s 1,800 residents. The board developed a plan to overcome years of deferred maintenance.

Michael Shucart

Drawing from his experience as a banker specializing in wholesale mortgages, Shucart also reviewed each line in the association’s budget for cost-saving measures. He saw that the reserve study replacement costs were unrealistic and that vendor contracts could be improved.

“I realized all of our vendors were friends of friends. As a result, most of them were not giving us favorable conditions,” says Shucart.

In addition, after more than five decades without a manager, the board decided to hire a full-time, on-site manager to fill the void in day-to-day operations.

Through these steps and a few others, the community recently unveiled updated amenities including a new bocce court, a lawn bowling field, a remodeled swimming pool, and a new fitness center for residents. 

Because of the contributions that have improved Leisure Town’s financial standing and infrastructure, Shucart was named Homeowner Leader of the Year by CAI’s Northern California Chapter in 2018.

Shucart credits the success of Leisure Town’s turnaround to the collaboration with the other members of the board. He also points out that effective leadership “starts with identifying the concerns of membership, putting a plan together that addresses those issues, and working together in the best interests of the association toward a solution.”

But the work is far from over. Shucart has already set future goals to address at Leisure Town. “We are figuring out how to deal with the closure of our golf course, trying to bring in recycled water to use for the roughly 17 acres of green space, and installing new solar panels to offset the cost of electric usage,” he says.

April is National Volunteer Month. Read our articles about preparing for a volunteer role and five steps for effective community leadership. And stay tuned for another look at inspiring work done by a homeowner leader.

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Made in the HOA: 5 steps for effective community association leadership

Some volunteers who have served on a community association board have realized that much of what works for them in their day job doesn’t work as well in the context of board governance. That’s because, in an association, no single person is in charge. Decisions are made by the consensus of board members, so the chain of command is horizontal and less hierarchical.

The best board members understand this very different paradigm. They also prepare for the role and follow the steps below.

Embrace group decision-making

The individual director typically has no power. Once directors embrace the framework of the board as decision-maker, they understand that they cannot make individual promises. This restraint can be very freeing since no individual is responsible for the association and its actions.

Know limitations

A director’s role is in the title; he or she is a person who gives direction. Directors are not normally required or expected to act. The board directs its manager, employees, and service providers to act through association policy and individual decisions.

A director has got to know his or her limitations. The best accept that they do not know everything; they rely upon managers, consultants, and committees. Such directors handle board disagreements much better by accepting the possibility that another sees or knows something that they do not.

Prepare for meetings

The dynamic between group decision-making and relying on experts should be on full display during association meetings.

The most productive and efficient meetings are the result of committed and prepared volunteers, normally assisted by a great manager. To help bring about the best board meetings as a director:

  • Read the agenda packet.
  • Stay on topic.
  • Talk to the board, not the audience.
  • Ask the manager for input on most motions.
  • Encourage open forum as an important part of meetings, and pay attention.
  • Don’t comment on every motion.
  • Respect your board colleagues.

Handle disputes without hostility

During your board service, there will occasionally be violations of the governing documents or other un-neighborly conduct. Try to work things out. Gentle escalation is almost always preferable to “going legal” right out of the gate.

Don’t assume the violating homeowners are disrespecting the board. They might not understand their rights and responsibilities. Give them a chance to do the right thing.

In addition, don’t be too quick to take sides in a dispute between residents, unless there is independent corroboration of the problem. Encourage residents to work things out as neighbors.

Recruit replacements

Finally, begin identifying and preparing your replacement on the board. Volunteer service should not be a life sentence. Committees are a great place to identify people who not only have the interest but will demonstrate commitment to the association and proper attitudes of service and governance.

April is National Volunteer Month. Stay tuned for a look at some of the inspiring work done by homeowner leaders.

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How to prepare for a community association volunteer role

A community association is no better than the board of directors that leads it. If an association is to be excellent, willing volunteers must be developed. 

Excellent board members understand that their position is one of service rather than control. They serve their neighbors; they don’t supervise them. A service-forward attitude results in a less defensive perspective in which new ideas and opinions are welcomed and not perceived as insults or threats. 

Before seeking a board seat, the best candidates improve their readiness for the position. They should: 

Read the governing documents at least once. The governing documents are the framework (along with applicable laws) within which the board must operate. 

Join CAI and take advantage of all its resources. CAI is the only respected resource in the U.S. and around the world for homeowners to better understand effective community governance. CAI offers excellent introductory publications, training courses to better serve your community, and both online and in-person workshops.  

Understand the business judgment rule. The business judgment rule separates careful board members from liability for the decisions they make while governing the association. Learn the boundaries of that rule.  

Attend at least four board meetings. Familiarize yourself with board meeting procedures, and observe the current issues being addressed.  

Talk to the community manager.  The manager may not endorse or oppose any board candidate (ethics bars it), but he or she can tell you what makes a good director. 

Read the annual budget. Study the budget and see where the association’s money goes before you pass judgment on the current board. 

Read the most recent reserve study. If the board has been reluctant to raise assessments in several years, and repairs aren’t being made in the community, the board may have suspended reserve account deposits.  

Avoid predetermined agendas. Board candidates often run on platforms that sound great but are based on inadequate information. The sitting board almost always has much more involvement and information than non-directors, so avoid making promises before you learn if you are right. 

April is National Volunteer Month. Stay tuned for more tips and tricks to volunteering in community associations as well as a look at some of the inspiring work done by homeowner leaders.

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Condominium assessments and bankruptcy: What can associations collect?

Courts across the nation are split on whether post-petition community association assessments constitute dischargeable debts under Chapter 13 of the U.S. Bankruptcy Code. To make matters worse, in November, the Supreme Court denied a petition to review the issue, leaving the community association industry wondering if the existing dispute among the courts will ever have a concise national remedy.

This past July, the Ninth Circuit Court of Appeals, which comprise several Western states, had held in Goudelock v. Sixty-01 Ass’n of Apartment Owners, No. 16-35385 (9th Cir. July 10, 2018), that an individual’s pre-petition debt or claim for assessments—created when a property owner takes title to property and which contractually obligates the owner/debtor to pay assessments—is dischargeable when the owner/debtor successfully completes a confirmed Chapter 13 plan. In November, CAI attorneys drafted and submitted an amicus brief in tandem with the (now denied) petition to the U.S. Supreme Court appealing the Ninth Circuit case.

CAI’s amicus brief made it clear to the Supreme Court that the rationale employed by the Ninth Circuit in Goudelock has far-reaching implications for community associations throughout the U.S., as it threatens the lifeblood of community associations—the continued ability to levy and collect assessments and dues for the maintenance and preservation of community property. Due to the Supreme Court denying the association’s petition, the Goudelock decision stands. This decision is already negatively impacting community associations in the Ninth Circuit, as courts have cited the Goudelock decision in their reasoning for denying community associations the ability to collect debts in Chapter 13 bankruptcies.

Yet not all courts across the country agree with this decision. In February, the U.S. District Court in New Jersey handed down a decision that positively impacts the amount of money a condominium association with a properly recorded lien is entitled to receive when a unit owner files for Chapter 13 bankruptcy.

In an appeal filed by the Oaks at North Brunswick Condominium Association, the New Jersey court reinforced that a condominium association lien that is recorded in accordance with the New Jersey Condominium Act is given elevated priority over other claims and that said lien is partially secured and no amount of the lien can be stripped because of the Anti-Modification Clause. This means that condominium associations should receive the full amount of their lien claim when a unit owner files a Chapter 13 bankruptcy.

For now, these conflicting rulings leave our community association attorneys confused and frustrated. Outcomes such as the Oaks at North Brunswick case provide hope for dischargeable debts in our industry. However, Goudelock provides that pre-petition condominium assessments are dischargeable in Chapter 13 proceedings but leaves some critical questions unanswered. This being the first circuit court case on the issue, chances are the other circuits may weigh in. At the end of the day, attorneys need to be aware of Goudelock and its possible application to every Chapter 13 case where the debtor owes community association assessments.

This post also is running on CAI’s Advocacy blog, where you can read about the latest court cases, state and federal advocacy efforts, public policies, and more.

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Pothole Patrol: What community associations can do to maintain pavement

It’s that time of year again, when rain, snow, and changing temperatures cause potholes to form, wreaking havoc on roadways, parking lots, and driveways. According to the American Automobile Association (AAA), pothole damages cost U.S. motorists roughly $3 billion per year. On a per-pothole-incident basis that comes out to about $300 per driver. Additionally, AAA reports two-thirds of U.S. drivers are concerned about potholes on local roadways.

No asphalt or concrete surface will last forever, but it is easy to prolong the life of your association’s pavement. Community association managers and boards of directors have several pavement maintenance and repair options from which to choose.

Crack Filling
Cracks in the asphalt should be cleaned of dirt and vegetation and allowed to dry completely before filling. Cracks should be filled with emulsified asphalt slurry or a light grade of liquid asphalt mixed with fine sand.

Asphalt Patching
Patching is done in areas with severe alligator cracks and/or potholes. When the patch is cut out, the sub-base material should be examined and compacted thoroughly before patching. The patch should be tack coated, to ensure firm bonding between the old and new surfaces. Base course material is laid and compacted first, and new surface asphalt is laid and compacted on top of that. The patch should be rolled to a smooth finish, and all edges should be coated to minimize water penetration.

Overlays
Overlays are placed over existing asphalt to create a new surface. In recent years paving fabric, placed on the existing asphalt prior to the overlay, has gained popularity as an effective agent to bond the new asphalt to the existing asphalt surface. Once the existing asphalt has been prepared, the paving fabric is laid down and a new surface quality asphalt is laid over it. It is then rolled to a smooth finish to match existing grades of asphalt.

Sealcoating
Sealcoating is a controversial aspect of asphalt maintenance. Generally, sealcoating provides an additional 2-3 years of protection against the elements and use by providing an additional layer of protection. It is also cosmetic, in that it covers old and new asphalt to create a uniform look in the community and increases curb appeal. Sealcoating is best done approximately one year after a new surface has been laid. It should be applied by the squeegee method if possible to ensure the sealing of cracks too small to fill by the traditional method.

For more information on repair road and paving, check out The Road Repair Handbook, available for purchase at CAI Press.

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What to know before you rent your home

If you own a home in a community association and want to rent it out, you can make the leasing experience successful and positive for everyone by understanding your responsibilities. This will help preserve your property value specifically and maintain the association’s property value in general.

Before you make your home available for rentals (short-term or long-term), be sure to check your association rules and local laws. Some communities and municipalities specifically prohibit rentals or may regulate the terms (length, frequency, number of renters, etc.). You also should contact your homeowners insurance carrier to be sure you’re covered for any incidents related to rentals.

Assuming all checks out, follow the simple steps below to ensure you, the tenants, and the association all have a positive experience.

Provide your tenants with copies of association rules. Your tenants may not be familiar with common-interest community living. Take a few minutes to explain to them that living in a community association is very different from living in a rental apartment community.

Ensure that tenants comply with association rules. Your tenants, like all residents, are subject to the rules and regulations of the association. The board and manager can assist you in this area, but the responsibility lies with you.

Advise tenants on the proper use of association facilities. Provide your tenants with written copies of all policies and rules regarding community amenities and common areas. You can obtain copies of these and other useful documents from the board or manager.

Use a written lease agreement, and make sure it requires tenants to comply with all association governing documents. As a landlord of a home in a community association, the lease you use must require tenants to comply with the association’s governing documents.

In the event your tenant fails to comply with these documents, including the bylaws, or its rules and regulations, a representative of the association will first contact your tenants in an attempt to remedy the problem. The association will send you a copy of any notice sent to tenants.

If the tenant doesn’t correct the violation, the association will contact you and expect you to remedy the violation using the recourse available to you through your lease agreement. If you are unable to correct the violation, the association may pursue appropriate legal action against the tenant, and possibly against you.

Provide the association with contact information for your tenants. The association will add your tenants to its mailing list, and they will receive the newsletter, invitations to participate on committees, notices of social activities, and general association-related information. This information also will be used in case of emergency.

If you’re a renter and don’t have a copy of the association rules or if you’d like more information about the association, contact a board member or manager.

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