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August Survey Results
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How does your association intend to make the annual disclosures as required by SB 100?
75% Put on Website
10% Mail
10% Literature book/table
5% Hand Deliver
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Associations and Management Companies Must Balance Competing Interests and Indemnification Clauses
The owner of a mid-rise suburban condominium had been complaining to the manager for months about water leaks in her unit, to no avail. Predictably, the water damage created mold, the mold made the owner sick, and she sued the association for damages. The association then sued the association’s management company and the management company counter-sued, each claiming that the other was the negligent party. The result: a complicated and costly — not to mention counterproductive — legal mess that a properly worded indemnification clause in the management contract could have avoided.
[FULL STORY]
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As a Homeowner Here, I’d Like To Give My Two Cents
SB 100 & Owner Participation Rights at Board Meetings
“I serve on the board of directors of an extremely troubled association with several hostile homeowners. In the past these homeowners have attended board meetings with the apparent agenda to heckle and interrupt proceedings. You can imagine how upset the board was to hear that we may be required to allow homeowners to participate at board meetings because of SB 100. We have heard different interpretations from attorneys – one that such participation must be allowed and one that although the new law may require owner participation, it does not definitively state such a requirement. We don’t know what to do! Must we allow homeowners to participate at our board meetings or not?”
[FULL STORY]
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Revising Bylaws and Writing Policies & Procedures to Comply with SB100
Why Your Association's Manager May Just Say 'No'
My association board relies on our manager to advise and assist us in conducting association business. We requested that she revise our bylaws and draft our required policies to ensure compliance with SB 100. She refused saying that, among other reasons, she feared that doing so would create liability for her and her management company and would be practicing law. We offered to pay her, but she still refused. This refusal has angered several board members, who believe that revising the bylaws and drafting policies and procedures to reflect current law falls within our manager’s job description. What is the unauthorized practice of law anyway? And what other reasons could she have for not revising our bylaws or drafting our policies and procedures?
[FULL STORY]
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Proceed With Caution: Common Defenses to Covenant Enforcement Actions
Covenant enforcement … explaining to a homeowner that the expensive new fence he built all by himself, but without permission from the architectural committee, must go … breaking the news to the elderly woman who holds her new puppy in her arms that the association’s rules prohibits animals … telling the belligerent couple on the corner that although purple is a great color for grapes, it’s not approved as an allowable color for their siding. As a board member, your duty to enforce your association’s covenants might well be one of your least favorite responsibilities. However, as unpleasant as taking action may be, it is imperative not to put it off until another day. Remember, because of the application of certain defenses, time and careful planning is indispensable when it comes to successful covenant enforcement.
[FULL STORY]
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Using Proper Protection
Now that we have your attention, association board members and managers should ensure they have the best protection available should they be named in a lawsuit. One way to accomplish this is to carry adequate Director and Officers ("D&O") insurance. Orten & Hindman, in connection with St. Paul Travelers Bond, is presenting three special workshops to aid you in understanding the following important topics:
• What good D&O insurance covers
• How to tell if your D&O policy is adequate
• How the claim process works
• What to expect from your insurance carrier
The classes will be held:
October 17, 2005 from 6:30pm - 9:00pm at The Ramada Plaza and Convention Center in Northglenn
October 18, 2005 from 12:00pm 2:30pm at Orten & Hindman's Wheat Ridge Office (managers only)
October 18, 2005 from 6:30pm to 9:00pm at the Four Points Sheraton in Denver
You can register online at www.ortenhindman.com or by phone at 303-432-9999.
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Q&A
Each month we answer legal related questions asked by our readers.
[FULL STORY]
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The University
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Upcoming Classes:
SB 100 Seminars
September 22, 2005 - Orten & Hindman's Wheat Ridge Office
6:30 - 9:00 PM
September 27, 2005 - Lakewood Library
10200 W. 20th Avenue, Lakewood, CO 80215
6:00 - 8:30 PM
Click here to register
School of Association Management
SB100 Meetings and Records
Wheat Ridge Office
October 6, 12:00pm - 1:30pm
School of Association Leadership
BOD 203 - Enforcement of Covenants and Rules
Wheat Ridge Office
September 14, 6:00pm - 9:15pm
BOD 204 - Effective Governance and Leadership Skills
Wheat Ridge Office
October 12, 6:00pm - 9:15pm
Click here to register
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Community Associations Institute
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The Community Associations Institute (CAI) is a nonprofit organization that provides education and resources to community associations. To find out more about CAI visit www.caionline.org
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