17 minute read
Considering Rules Compliance and Enforcement
from Echo Journal – Issue 3 2022
by Echo
BY MATT MEADORS, CMCA, AMS
Adherence to a community’s governing documents is imperative for a well-run association. The board of directors is tasked with offering guidance to the membership on complying with community rules and regulations. However, boards and communities are made up of individuals who have their own ideas and beliefs about how things should run. How can communities balance good policy and enforcement with normal human emotions? The key is communication.
Let’s explore some ways to enhance the community’s communication throughout the compliance process.
Implementation of Rules and Policies
When putting forth a proposed rule, new policy, or amendment to any current governing document, it is important to always start with the question, “Why?” The why should be at the forefront of everything that communities do, and the why should be communicated clearly to the membership, especially if they don’t get a direct vote, such as with a rule addition.
For instance, if implementing a new rule about pool hours ending earlier than the current hours, what is the goal? Is it to enhance the quietness for units surrounding the pool? To lessen the chance of someone getting hurt if there is insufficient light? A short explanation of the why can avoid issues when the rule is enforced.
The why should be clearly outlined in communications to the community. There is a lot of strategic planning and public relations work that an experienced community manager can help navigate on the front end, to minimize ruffled feathers and get the most buy-in from the membership.
The question of why can also help weed out bad rules, or rules that may have unintended consequences, before they become the law of the land. By starting with the goal in mind, the board and community will not forget the reason for the rule and will perhaps even design a better solution than the one originally intended.
It may be worthwhile to establish a rules committee so that the board can bring forth issues that can be deliberated on by a greater number of members. Greater participation by the membership will likely provide some alternative viewpoints and reduce the possibility of unintended consequences.
Initial Correspondence about Violations
interest of the members. Consider calling them “friendly reminders,” and consider reviewing the boilerplate language to ensure that accusatory language is removed. The notice should invite members to read and understand the governing documents and remind them of what living in an HOA community means. Presented this way, initial violation letters are met with a lot less hostility from members, compared to receiving a notice that reads “VIOLATION” at the top. And this strategy will undoubtedly be met with praise from fellow board members for fostering a sense of community.
Holding Compliance Hearings
Setting the tone when bringing an owner in for a hearing is crucial to get the best possible outcome. Before inviting the owner, the board should discuss what the compliance issue at hand is, and what, if any, feedback the member has given. It is a great time to be reminded of the hearing procedure, that the hearing investigates the issue at hand and clarifies any questions the board may have. It is also an important time for the board to hear the owner’s side of the situation clearly and, hopefully, concisely. The owner may have some perfectly reasonable extenuating circumstances that caused the violation, which the board should weigh in their deliberations. The investigation phase should not be a back-andforth argument on areas of disagreement, but simply the facts and how they inform the board on how to proceed.
Once the owner arrives, he/she should be given a smile and a thank-you for attending. Then the stage should be set for the hearing. Answer common questions, as appropriate, before they are asked. For instance:
Who is in the room and why are they there?
“I am the community manager for your HOA. I work on behalf of the association to carry out the day-to-day operations.” Or if there isn’t a community manager, “I am the board president. I lead the board in the performance of its responsibilities.”
Who are these people?
“These people are homeowners, like you, that make up the board of directors for the HOA. They are volunteers who work to make the community run smoothly.”
What is going to happen? This is an opportunity to have a conversation about the situation that occurred. “The board is interested in hearing your perspective about what happened. What were the series of events that caused this infraction? We would appreciate any feedback to help us decide on next steps, such as a dismissal, warning, or fine. You may ask questions, but it is the duty of the board, not the homeowner, to make the decision. They will do that, after hearing from all appropriate parties, in a closed-door session. After sufficient time to check the information and deliberate, a decision will be given to you in writing, usually a few days after the hearing concludes.”
It may be worthwhile to establish a rules committee... greater participation by the membership will likely provide some alternative viewpoints and reduce the possibility of unintended consequences.
Obviously, this is just an example, and the board of directors or the manager may alter the language for their specific situation, but having a script and letting the homeowner know what is about to happen helps disarm the member and adds some humanity to a stressful process.
The Power of Fines
Fines can be a powerful tool to gain compliance. People are more likely to change their behaviors or practices if the decision results in a fine. A monetary fine makes real what the consequences are for misbehavior. With that in mind, here are a few things to consider. 1. Ensure that the fine schedule is clear, and that the enforcement is consistent. After a fine has been issued to a member, the last thing a board wants is for the fine’s very existence to be brought under scrutiny. Have the community manager review the fine schedule to make sure there is no room for ambiguity, and make sure that all members are treated equally and fairly. 2. To have the desired effect and to promote a lasting and positive behavioral change, the fine schedule should be appropriate to the community. A $50 fine in a wealthy enclave of a city is not going to have the same impact as a $50 fine in a less affluent
Considering Compliance & Rules Enforcement Continued from page 33
rural community. Also, the fine schedule should be adjusted periodically for inflation. 3. Fines are a means of gaining compliance, not a means of obtaining extra revenue or imposing cruel and unusual punishment or meting out a vendetta. Revenues received from fines should generally not become line items in the annual budget. The goal is community compliance with the governing documents and not a source of revenue which will only serve to irk homeowners and leave the board exposed to criticism.
The Power of Thank You
The power of gratitude cannot be overstated. This is often overlooked, but a homeowner who fixes a noncompliance issue should be sent a thank you. This recognition by the HOA authority (manager or board) is a small nod to help keep the peace and to acknowledge the action of the homeowner.
Thank the membership for their review of a rule. Include in the appreciation how important their involvement is and that their participation supports building a better community. Tell them that their feedback is welcome and considered in the final rulemaking.
People generally want to do the right thing, but a little “thank you” shows board appreciation and it helps promote continued good behavior.
Nobody likes being the “bad cop” or “enforcer.” That is generally why boards hire a management company. However, anyone can enforce a rule or hold a hearing with simple attention to why and how the rule and hearings process will proceed. What one should do is ensure that rules and the hearings procedure is clear, that a professional tone is used, and words are chosen carefully when communicating to the parties. Doing this will make the process of governance and rule enforcement less painful. When the board considers compliance, its job is not only to enforce the rules but also to build community. The thoughtful application of good communication techniques sets a tone for dignity and respect for the homeowner and all persons involved and will make the process as painless and constructive as possible.
Matt Meadors, CMCA, AMS, is the chief operating officer of HOA Organizers, a fullservice, accredited community association management company serving all of California. A native of Walnut Creek, Matt oversees the company’s Northern California and Bay Area operations. Passionate about education, he has penned numerous articles for industryleading publications and is currently active in many industry associations.
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Anderson & Company
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Ascendant Association & Property Management, LLC
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The Echo Legislation Tracker: 2021–2022 California State Legislative Session
AS OF AUGUST 12, 2022 For more information on HOA Advocacy, visit the Echo website: www.echo-ca.org/article/hoa-advocacy/
The second year of the 2021–2022 California legislative session has been remarkably quiet for HOAs. Since there will be a mid-term election, most politicians are likely ducking and covering a bit in order to not upset constituents, especially after a couple of years of pandemic pandemonium and a spike in inflation. This makes sense, but next session will likely be a makeup session. Rumors are already circulating about new legislative proposals for the 2023–2024 legislative session. Stay tuned for these conversations.
As the current legislative session draws to a close, only two bills still warrant mentioning, and only because they have been mentioned in the past. Parts of AB-1410, which would have added a fair number of requirements to boards, including mandatory harassment and ethics training, have been removed. There are a few other annoyances in the bill but it’s livable. AB-916 addressed accessory dwelling unit ceiling height requirements. This narrowly construed bill will have minimal impact on Echo members.
The general election is November 8, and the legislative session adjourns sine die by statute on November 30, 2022, at midnight.
ASSEMBLY BILLS
AB-1410 (Rodriguez) POSITION: Oppose unless amended SUBJECT: Free speech, room rental, and use of metadata for hearing evidence STATUS: Senate Floor, read a second time, amended, and ordered to third reading
SUMMARY:
1) Allows members or residents of a CID to use social media or other online resources to discuss certain defined HOA business and elections. 2) Permits an owner of a separate interest in a CID to rent or lease a portion of the homeowner-occupied separate interest to a renter, lessee, or tenant for more than 30 days. 3) Prohibits HOAs from pursuing enforcement actions during declared emergencies if the nature of the emergency makes it unsafe or impossible for the homeowner to either prevent or fix the violation. 4) Requires that an HOA that seeks to impose a monetary penalty against a member shall make any physical evidence used to determine the violation available to the member. a. Any photographs used shall have a visible time and date stamp or be accompanied by digital metadata stating the time and date the photograph was taken.
AB-916 (Salas and Quirk-Silva) POSITION: Neutral SUBJECT: Zoning: Accessory dwelling units (ADU/JADU): bedroom addition. Ceiling height. STATUS: Senate. Ordered to third reading. SUMMARY: This bill makes changes to existing law governing accessory dwelling units (ADUs) to allow for additional residential square footage on existing residential properties. Limits height of new ADU/JADU to 18 feet.
ANNUAL MEETING NOTICE | November 17, 2022 | 9:00 – 9:15 a.m.
Approval of 2021 Annual Meeting Minutes • Election • Financial Review Location of the meeting: 52 Monte Vista, Laguna Hills, CA Please RSVP to dzepponi@echo-ca.org if you would like to attend.
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