Ask The HOA Expert

Provided By Realty Times

Question: Our board is discussing a possible rule preventing minors from entering the sauna without adult supervision. In light of Fair Housing regulations regarding the discrimination of minors, is this advisable?

Answer: What is the board's goal, health and safety or to reduce vandalism? Typically, young children (under 8) should not be in the sauna for health safety reasons. Ask the sauna manufacturers about health and safety guidelines and let the board post them. Coming up with some random policy may indeed get challenged under Fair Housing guidelines. If found guilty, the penalties are severe so the board should not do anything that would attract this kind of challenge or attention. Safety guidelines, though, are reasonable.

Question: Our master association governing documents have always had a restriction concerning logos on vehicles, especially trucks and vans. However, variations on such logos have gotten more complex and hard to define. For example, law enforcement and governmental vehicles are usually exempted. Then there are medical supply vans that presume to have emergency calls, etc.

Historically, we have required magnetic flexible covers over logo signage, or vehicular covers, if the vehicle is not stored in the garage. Do you have any advice regarding logo signage?

Answer: How about full body vehicle decals? Yes, this issue has gotten very complex. Parking restrictions are usually intended to control the number of commercial vehicles parking in the HOA like vans, trucks and delivery vehicles used strictly for business purposes. Since vehicle advertising has changed a lot, the board should be more lenient when a personal vehicle is being used (real estate agent, insurance agent, etc.) with a small decal or magnetic sign. Having to cover up all vestiges of signage large or small is a losing battle. Focus on strictly commercial vehicles.

Question: We live in a building built in 1939 and converted to a condo in 1987. The building has never been well maintained and needs renovation to the roof and walls, lobby and hallways at a cost $450,000. Many of us paid high prices for our units and we want to upgrade the building to a high quality standard. What financing alternatives are available?

Answer: The most expedient way to raise money is by special assessment, where each member pays a proportionate share of costs according to guidelines in the governing documents. But before you consider this, the board should order a professional reserve study which takes into consideration the cost and timing of all common element repairs, not just the ones you list. Reserve studies take into consideration all such repairs over a 30 year projection period. PRA (Professional Reserve Analyst) members of the Association of Professional Reserve Analysts carry the highest credential available to perform this work. See www.apra-usa.com for a list of PRA members.

While borrowing money is an option, it carries a higher interest rate, short term pay-back and will significantly raise the monthly assessments to all member that participate. It is usually much more cost effective to have individual members fund their own share of the costs by whatever means available and leave the HOA out of the banking business.

Question: Our property manager is also a leasing agent for several unit owners in our homeowner association. The board has given full authority for the manager to handle HOA maintenance requests. Does the manager have a conflict of interest between the HOA and landlords?

Answer: As long as the manager is providing leasing only services that comply with HOA guidelines and is careful to enforce all applicable HOA rules on the tenants, there is no conflict of interest. The role you describe is very common in HOAs where there are many second homes. It is important to have a local agent overseeing the rentals and the HOA manager is often the best fit.