In a previous article, we discussed some of the topics board members must be familiar with in order to serve successful terms on their community’s board of directors. This second part of “boot camp” covers the enforcement of documents, rules, and covenants, ARC issues, and some things board members should always be sure to watch out for.
Ensuring compliance with various community rules is one of the many tasks assigned to board members. Though being the enforcer may not always be fun, it is essential to the smooth running of any community association.
There are a few ways boards can go about ensuring compliance the community's governing documents and some of these tend to go better than others. When a member is found out of compliance with the governing documents, there are typically three options available: the "I'll do it myself" approach, injunctive relief, and imposing fines.
When addressing rule and covenant non-compliance, boards should follow due process. The requirement to establish due process is to give the non-compliant party notice of the violation and an opportunity to cure the violation. How should you provide such notice? It must be in writing and sent by mail, but managers may also send notifications via email in addition to the mailed notice.
When must boards provide notice to non-compliant homeowners? In SC, ten days prior to any action being taken is presumed to be reasonable. There are no specific rules speaking to this in NC - however, in NC, a hearing must be conducted before any fines are levied unless the governing documents state otherwise. Conversely, there is no hearing requirement in SC, though governing documents could speak to such. Regardless of which state you reside in, it’s always advisable to provide homeowners with the opportunity to be heard as it puts the association in the best possible position to justify fines for non-compliance.
ARC decisions are among the most controversial issues that board members will face when serving their communities. Though the nature of ARC restrictions and how they're enforced will vary for each association, there are some best practices that all board members should keep in mind.
Boards themselves can serve as the ARC or, of course, a separate committee can be created if authorized by the governing documents. The most important thing for board or committee members to do is to carefully read their governing documents and be familiar with the applicable requirements therein. There is typically a 30-day rule associated with ARC requests - if someone submits an application, many documents will specify that if the board doesn't respond within 30 days, the request is deemed to be approved. If a decision can’t be made within 30 days, the best thing to do is deny the request at that time which will allow the board to collect further information and allow the homeowner to submit the request again in the future.
What specific duties do board members or ARCs have when denying requests? This will vary from association to association, but there are some best practices when it comes to denials. First, the board (or committee) should always respond to the request in writing and provide valid reasons as to why it was denied. Boards/committees can also make suggestions to homeowners regarding how a request may be altered to receive approval.
There are, of course, things that all boards should keep in mind to maintain harmony in their communities as well as protect themselves and the association from potential liability or litigation.
As you can see, being a community association board member puts a lot on one's plate. However, keeping in line with best practices, having a full understanding of governing documents, and always aiming to act fairly can make the job a bit less stressful.
If you have questions about the running of your community or your responsibilities as a board member, please reach out to the experts at CAMS today for trusted guidance. Our experienced managers and proven processes can assist you, and your board, in being the community representatives you can be.