In addition to state laws, a community association must also comply with federal laws pertaining to community associations. Set forth below is a summary of important federal laws for community associations. Americans with Disabilities Act (42 U.S.C. 12101 et. seq.)(“ADA”) The ADA is a civil rights law that prohibits discrimination in places of public accommodation based on disability. Typically, community [...]
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According to the 2015-2016 APPA National Pet Owners Survey by the American Pet Products Association, the number of households in the United States that have at least one pet was 79.7 million or approximately 65% of the households in the United States. With this high percentage of households owning pets, it is no surprise that pets are a hot topic [...]
Enforcement A recurring problem in community associations is owner compliance with the governing documents. An important component in the enforcement process is communication between the association and its membership. Members should have copies of all governing documents, which include the architectural guidelines, rules and regulations, articles of incorporation, bylaws and the CC&Rs. Steps in the Enforcement Process *Under Arizona law, [...]
How to Prioritize "Urgent" and "Important" Tasks A very common complaint that our law firm hears from association board members is that the board never accomplishes anything. Some boards complain that they spend a majority of their time “firefighting” maintenance issues and dealing with angry or litigious homeowners. That being said, many boards never spend time thinking about strategic long-term [...]
DISCLOSURE FEES & TRANSFER FEES ARE DIFFERENT There is confusion in the community association industry regarding the difference between a “disclosure fee” and a “transfer fee”. Mulcahy Law Firm, P.C. is frequently asked whether an association can charge a disclosure fee and/or a transfer fee, and, if so, how much. This cheat sheet will explain the differences between disclosure fees and transfer fees [...]
Introduction National and local news occasionally cover the stories of disgruntled homeowners who act out violence in associations. Difficult people and the disgruntled homeowner or board member should be dealt with very carefully to protect all involved. Communication is the key to averting problems. Dealing with Conflicts During a Meeting Name calling, interrupting and personal attacks should be prohibited at [...]
Community Association Records and Documents As a nonprofit corporation, the board of directors has a duty to maintain the association’s books and records. Pursuant to A.R.S. Section 10-11601, Corporate Records: 1. A corporation shall keep as permanent records minutes of all meetings of its members and board of directors, official recordings of all meetings if applicable, a record of all [...]
The Arizona Open Meeting Law A.R.S. 33-1804 / Condo A.R.S. 33-1248 In 2011, the Arizona Open Meeting Law A.R.S. 33-1804 / Condo A.R.S. 33-1248 was amended to add requirements and restrictions on committees. Regularly scheduled committee meetings must now follow the Arizona open meeting law which requires proper notice of the meeting, conducting a committee meeting as an open meeting and [...]
COLLECTING DELINQUENT ASSESSMENTS Almost every community association has problems collecting unpaid assessments. Most associations start the collection process by sending late notices, imposing late fees and recording a notice of lien on the lot/unit. However, if these efforts are unsuccessful,the association may want to consider taking legal action to enforce its rights. Under most association CC&Rs, the board has two options to [...]
The Community Association Budget Process A community association budget is an itemized summary based on the anticipated income and expenses for each fiscal year. Most community association documents require that the board of directors adopt a budget for each fiscal year. Most associations’ fiscal year is the calendar, and thus, the board will start work on the budget in the [...]