November 7, 2010 |
Question: It is my understanding that homeowners associations are required to carry insurance coverage to protect the titleholders and those who serve on the board from liability for actions conducted by board directors in good faith during the ordinary course of business. I'm on my homeowners association's board and we do carry this insurance for the directors and our third-party property management company. One of our three directors believes we don't need this coverage since all the individual homeowners have their own liability insurance, and he has proposed dropping this coverage to save around $5,000 a year.
December 1, 2013 |
Question: A majority of titleholders want to abandon our present homeowners association. Several thousand homes were to be built in our new subdivision, but fewer than 60 have been purchased. There were supposed to be five phases, but the builder stopped at phase one and won't finish the development. When we purchased our homes, we asked to see the association's governing documents, rules and covenants, conditions and restrictions; nothing made sense to us. Had we understood what a developer-controlled association meant, most of us would not have purchased our homes here.
October 4, 2009 |
Question: A developer is suing both our master and maintenance associations for not allowing new development on vacant lots in our association. Since our monthly assessments are being used to pay legal fees for this lawsuit, does the board of directors have a fiduciary duty to notify the homeowners of the pending legal issues as well as the costs involved? As of this date, no notice has been given to the owners. I also believe that potential buyers should be given written notice of the current legal issues in case of a special assessment to pay settlements if the association does not prevail in court.
March 2, 2014 |
Question: Is our homeowner association's board obligated to disclose legal actions to titleholders? Does the board have a duty to disclose the costs of legal fees incurred for such legal actions, or do we owners just sit back and wait to be slammed with several thousand dollars' worth of special assessments months or years later to cover those fees? Our pro forma annual report is sparse, so how can owners protect themselves from something like this? Answer: Owners should never sit back and wait to be slammed with assessments.
May 6, 2012 |
Question: My homeowner association board of directors keeps owners in the dark and treats its actions and duties as if they were secrets to be kept from owners. I keep asking my board for documents, and the directors act as if they don't know what I'm talking about. I'm losing patience with their game-playing in avoiding circulating very important documents. As an owner, what should I be asking for? Answer: As an owner in a common interest development you are entitled to obtain certain documents.
August 23, 2013 |
Question: Looking to buy a home, we found a single-family residence only to learn it had a homeowners association, so we looked at condominiums. Each had different documents. With the HOA fees on top of our mortgage payments, the house and condo became unaffordable. We want to buy that house but don't want to be part of the association. Can we remove it from the HOA? We're not understanding the concept of these developments and associations. We're at a loss what to look for when buying property.