Real Estate & Property Law

BOARD LESSON NO. 1 - CHOOSE APPROPRIATE COMMITTEE MEMBERS

Sometimes I cannot wait to get my fingers to the keyboard and send a blog. I see and hear so many mistakes (fixing mistakes is after all one of the facets of my business), and am always anxious to pass on helpful information to Boards and owners in common interest developments in California. So I am starting a series of Board and Owner Lessons. These are the straight-on-short-and-sweet-really-think-about-doing-this-easy-to-read-and-understand blogs!

So for this one: BOARDS ... choose appropriate members to serve on committees, or do the job yourself!

This question comes up alot with regard to the Architectural Committee, one which serves a very valuable purpose and one which can serve as the basis for serious legal claims.

Committee members who know nothing about architectural issues (or other matters about the subject and purpose of the committee); do nothing to educate themselves; are incapable of looking around, listening and paying attention, or reaching to outside sources to get information; have no independent thinking mechanisms; are uncreative, unpersonable, unbusinesslike and/or too busy to do a good job ARE NOT GOOD CHOICES! Yes, I am shouting. Seat fillers are not wanted here.

I cannot tell you how many legal disputes arise because of this problem of choosing the uninformed and unconscientious folks. I know there is a shortage of people willing to serve, but placing people who do not strive to be "prudent" in their "job" and make no effort to educate themselves if they are not knowledgeable are NOT right for the job - appointing them is a BIG MISTAKE.

Here is an example. HOA in condo or townhome development has review/approval criteria in the docs for any changes that show on the exterior or affect the structure or the neighboring properties, or affect the "quiet enjoyment" of residents. That covers many HOA documents in California.

Board appoints ACC committee members that really don't want the job (note the Board could do the job but wants to delegate because it is already overloaded). No one wants to pay someone to review applications, so they do not promote applying.

Owner comes to Board and asks about adding hardwood or laminate flooring in upper unit that is carpeted (yes, in this hypothetical the owner does ask, which does not always occur, but read on, there is something for everyone here). Board refers question to Architectural committee who says " WHAT???? How would I know. You tell me."

Neither body makes any attempt to determine what this means to the structure, the neighbors, or the HOA in general. Changing out carpeted floors to hard surface flooring on upper floors, especially ones that have concrete subfloors INCREASES THE NOISE TRANSMISSION.

That is not rocket science. In fact, the web is cluttered with information and problems in condos and townhomes regarding installation of hard surface flooring.

If any Board or and Architectural Committee fails to recognize that, it's a problem. Leaving the question to a floor installer is just plain stupid. They will quote different prices to the owner and even if they recommend the more appropriate (but expensive) subfloor or underlayment of cork, they do not make the final decision. Money talks here. Leaving the question to the owner who wants to install to make a decision on their own is stupid. The owner has one person's interest in mind - their OWN!

As I have said before, some practitioners suggest that Boards stay out of disputes between owners over hard surface flooring and noise. That can be really short sighted thinking. I say, Boards, pay attention to the HOA documents. If you avoid your due diligence in the first place, you (and the HOA mostly) will be drug back in kicking and screaming, and possibly bearing the brunt of the legal battle that may ensue.

Please take heart. Due diligence on the Board (remember that you have a fiduciary duty which is a higher standard than just being in a leadership role) and/or Committee service functions is critical!

Full post as published by California Condo & HOA Law on July 31, 2008 (boomark / email).