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Tough Choices for HOAs - Is Tough Love in Order?

I recently sent out an E-news (free signup on my website) about the tough choices HOAs have today considering the assessment income dilemmas many have faced due to the foreclosure crisis. You can see this E-news archived on my website at http://www.californiacondoguru.com.

I have received a lot of great feedback, and some questions. I like it when the dialogue rolls, as we all can learn from each other.

Two of the hot button issues that touched a nerve relate to suggestions that Boards might consider (among many other things) the possibility of using volunteer work crews to do some of the otherwise paid-for work around the complex, and I also suggested that in some cases, the Boards might be considering whether to have the heat turned off in the pool, for a season, or alternate weeks, and that kind of thing.

I got feedback from both sides on both points.

I got emails from Board members that were aghast because they have heard at seminars or received legal advice saying don't ever use volunteer work crews as it would be a big problem if someone got hurt (some seemed to have been convinced that this is one of the worst things that could even be suggested, outrageous, in fact).

Well, its like anything else. Desperate times call for desperate measures, and anything a Board does or does not do comes with some kind of a risk, so the point is to minimize the risks.

Don't have volunteers do things they are not qualified to do.
Don't send them into a risky situation.
Don't have them do things that are hazardous or a safety issue.
Don't send them out with chainsaws and ladders.
Don't have them hang from trees or buildings with ropes.
Don't have them stand on high scaffolds.
Don't ask them to use their own vehicles unless they are insured (and are willing to sign a waiver/hold harmless agreement).
Do check with your insurance carriers and see if there is a way to get protection for the workers (such as forming a special work committee).
Do ask the volunteers to sign waivers of liability/hold harmless agreement and promises not to sue.
Do not let persons do work who do not have health insurance.

Minimize the risk, maximize the benefit, that is the way to think!

If you have workers sign waivers of liability, that should provide considerable protection, unless you then put them at risk or do something that constitutes negligence, such as asking them to stand under a failing deck and try to brace it, when they are not qualified or insured to do so. (Some things seem quite obvious, don't they?)

And the other statement that drew a nerve related to considering whether to continue to heat the swimming pool. Mind you it was among many suggestions, but the mere idea got the dander up of some readers. I am not advocating for any position in any HOA with regard to turning the heat off in the pool in alternate weeks, or more. As a contrast, an HOA in Palm Springs might run into less complaining about it (because the pool would tend to heat itself much of the year), whereby a vacation rental condo development in Tahoe where the owners want the pool as an amenity to offer might go ballistic at the suggestion.

I received notes from Board members saying they had decided to do it and it saved their association as much as $20,000 a month. I heard from others saying they would sue the HOA if the heat was turned off, noting that they used the pool everyday and bought their condo because of it. Some owners believe it to be some kind of fundamental right. Some want to scream discrimination. I heard from others saying why don't they turn the heat off in the spa instead claiming the board members did not like to swim but loved to party in the spa.

The question was asked - is it legal to turn the heat off in the pool? Or I should say that some claimed: "It's illegal to turn off the heat in the pool."

I know of no reason, statute, or case authority that suggests turning the heat off in the pool would violate a law. If you do, clue me in please.

Of course, the fact remains that anyone can sue anyone and so I cannot say for sure that would not happen. It's probably much less likely that would happen in Iowa (my birth state) than California though.

That's California for ya. I have heard that in any town in California, it is harder for one lawyer to make it than for two, in fact if there are two or more, they are all more likely to live well. (Get it?).

Full post as published by California Condo & HOA Law on January 18, 2009 (boomark / email).