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Alyssa Gautieri

How to Handle Requests for Business Records from Associations

July 6, 2021 by Alyssa Gautieri

By Alyssa Gautieri

Community associations are required to maintain books and records of expenditures, budgets, audits, receipts of operation, annual reports, and meeting minutes. Do owners have the right to review these records at any time and what is the best process for allowing them to do so? [Read more…] about How to Handle Requests for Business Records from Associations

Filed Under: Articles

Best Practices for Dealing with 
Odor-Related Complaints

March 18, 2021 by Alyssa Gautieri

By Alyssa Gautieri

Odor-related complaints are more common than you’d think—whether it’s cigarette smoke in outdoor common areas, the lingering scent of food in hallways, or the smell of perfume penetrating the walls. 

According to attorney John LaGumina, of LaGumina Law Firm in Purchase New York, an association has the obligation to get involved in most odor-related complaints. 

A board’s nuisance rules will play a big part when dealing with official complaints about odors caused by residents, LaGumina said. Nuisance rules discourage and prohibit residents from doing anything that unreasonably annoys or interferes with another resident’s right to peacefully possess, use or enjoy their home and property. While nuisance rules tend to be general and broad, the board can use these rules to address specific complaints regarding smoke, food smells, or unsanitary conditions causing odors that impact one or more residents.

From cigarette and marijuana smoke to strong perfumes and unsanitary conditions, LaGumina pointed out issues in addressing different odor-related complaints.

Cigarette Smoke

Not only is the smell of cigarette smoke unenjoyable to most bystanders, second-hand smoke can have detrimental health effects. According to LaGumina, “if a board receives a second-hand smoking complaint, it has to be addressed.”

“For decades, the law said that the board had no responsibility for what happened inside a unit, including smoking. There is a persistent trend in recent case law, however,  that holds that boards now have the duty to do something. Courts are increasingly likely to penalize boards for doing nothing about a smoking complaint,” he said.

“If the association receives a complaint about smoking, that presumably violates the nuisance rules that are already in place,” LaGumina said.  Thus, “the board can send a warning letter and if the conduct continues, the board can eventually fine the resident.”

“Residents do not have the constitutional right to smoke and outright smoking bans, if properly adopted and approved by the unit owners, can be upheld,” LaGumina said. Most governing documents also give the board alone the ability to adopt regulations concerning smoking in the common areas—which include decks, terraces, and patios.

To ban smoking inside a unit, at least two-thirds of the unit owners would have to agree to amend the governing documents. Even without an interior smoking ban, a board can still, on their own, enact a new rule and policy that second-hand smoke complaints will be considered nuisances and result in warnings and fines. 

If a resident with asthma or allergies is filing second-hand smoke complaints, it could become a more serious issue. “If an adjoining resident has a medical condition that makes them more sensitive to second hand smoke, the board’s duty to take action escalates,” said LaGumina.

According to LaGumina, the board could also hire an engineer to look at the building and decide if anything could be done to better seal off units and stop smoke from penetrating adjoining units.

Marijuana 

If there is a complaint from a resident about the use of marijuana, the association would follow the same steps as recommended for a second-hand smoke complaint—most often issuing a warning followed by a fine for breaking the nuisance rules.

“The board is not under any duty themselves to contact the police, and police departments often may not respond to calls regarding marijuana use.  However, the board can remind the complainant that they have the right to contact the police,” LaGumina said. “Unless the board members witnessed the smoking, the board usually does not have the ability to make a first-hand complaint to the police.”

If a resident is prescribed medical marijuana, condominiums and HOAs are required to offer a reasonable accommodation to their no smoking rules. If a resident complains about the use of marijuana by another resident who is legally allowed to use marijuana, LaGumina suggested speaking to the resident with the legal marijuana prescription and trying to arrive at a compromise. 

Food Smells

Whether it’s the scent of a homemade meal in the oven or the stench of burnt burgers after a barbecue gone wrong, it’s not uncommon for residents to complain about lingering food smells that come from their neighbors. Even if the smell is a good one—such as cookies baking in the oven—proper ventilation should not allow residents to smell food that’s cooking next door.

In the case of a complaint, the association should follow the same steps as they would for any other nuisance, according to LaGumina.

If an association warns or fines a resident who is responsible for distracting food smells, it must be careful to avoid any discrimination. “Any food smell policies put in place definitely need to be uniform to prevent a discrimination lawsuit,” said LaGumina. 

If there are many complaints about surrounding food smells, the associations could contact an engineer to see if there are any defects or ways to improve ventilation. “Many of the older condominiums don’t have the basic ventilation that helps circulate the air for food smells,” LaGumina said. “The association can certainly set up an inspection policy and try to require owners to install kitchen fans and encourage unit owners to use kitchen fans.”

Body Odor & Perfumes

It’s possible that a resident is allergic to the perfume used by another resident, or that a resident has an especially noxious problem. “Anything that causes annoyance to other residents can be considered a nuisance,” said LaGumina, who noted that these body odor or perfume issues are not very common. 

These issues should be handled as a smoke complaint would be. The association can resort to the typical clause in most governing documents that bans noxious fumes or odors.

Unsanitary Conditions

If a resident is hoarding, it will likely become evident to their neighbors over time—and there may also be a smell that emanates from their unit. In these cases, an association must tread lightly; a resident may be hoarding due to a mental health condition or another ailment or infirmity. The situation can be treated as a nuisance, although more extreme measures may be required. 

“Hoarding situations are unfortunate, and once they arise, it takes a long time for them to go away,” said LaGumina, who added “there are different ways for a board to approach a hoarding situation.”

According to LaGumina, the association can write a letter to Adult Protective Services (APS)—an agency that helps elderly adults (65 years and older) and dependent adults (18-64 who are disabled), when these adults are unable to meet their own needs. APS may come out to inspect the situation to determine if the person is endangering themselves. 

The association can also contact the fire inspector as hoarding conditions can constitute a fire hazard. “The association may have to be persistent in these tough situations,” said LaGumina.

Keep in mind, regarding access to a unit that may be hoarding, board members or managing agents do not have the right to enter a unit unless the owner agrees.  Without such permission, a court order would be needed which could involve costly and time-consuming litigation.

Filed Under: Articles, Feature Main

Do Managers Have the same Fiduciary 
Duty to the Association as the Board?

February 8, 2021 by Alyssa Gautieri

By Alyssa Gautieri

There are quite a few ways that an association manager can breach their fiduciary duty to the association, whether it’s acting outside of their scope of responsibility or performing a task that was unauthorized by the board. As hired workers, do managers have the same fiduciary duty to the association as the board?

According to attorney Sara A. Austin — a partner at Austin Law Firm, LLC in York, Pennsylvania — fiduciary duty is a legal concept that refers to the duty owed by one person to another person or entity. The fiduciary, whether a real estate agent, lawyer, or association manager, acts on behalf of the principal.

“The fiduciary must act in the best interest of the principal — in this case, the association — even if it would hurt the fiduciary  by doing so,” Austin said. An association manager must perform their established duties while putting their client’s interest ahead of their own and preserving good faith and trust.

A manager is hired by the board to act on behalf of the association and is essentially “stepping into the shoes of the board to complete delegated tasks,” Austin said. “In essence, managers have the same fiduciary duty to the association as the board.”

If the association is professionally managed, the manager handles most of the day-to-day operations, whereas the board deals with governance matters. “The manager has no more power than the board does, so if the board is not authorized by statute or otherwise to do something, a manager cannot do it,” Austin said.

A breach of fiduciary duty occurs when the fiduciary acts in their interest, rather than the best interest of the principal. A manager or management company signs a contract at the time of employment or engagement that should outline those responsibilities. A breach of duty may occur if a manager performs duties that are contrary to the contract or go beyond the authority that was granted to them by the board. 

For example, if a board authorizes the manager to sign a contract for a job that costs $2,000 but the contract states the job will cost $3,000. In this case, the manager has exceeded his or her authority. If there is a breach of fiduciary duty, a manager could be liable for the damages to the association.

The association must protect itself from a manager that acts outside of their authority. The board should have a clear understanding of its contract with the management company, according to Austin. The contract should outline the manager’s responsibilities, who is monitoring the manager’s performance, and how the manager reports his or her actions and performance  to the board.

The contract should also outline how checks and balances are going to occur, “especially when it comes to financial issues,” said Austin, who noted that communication between the manager and the treasurer is very important. “There has to be awareness of what is going on so if something seems amiss, it can be stopped early.”

There may also be a breach of fiduciary duty if the board directs a manager to perform a duty outside of the scope of their responsibility and the manager complies. For example, the manager alone cannot approve the budget even if the board were to ask them to do so. “The manager needs to know what the board can delegate to them,” said Austin.

If the board is pushing for a manager to perform a duty that cannot legally be asked of them, the manager should not take that action because they could be held liable if the duty is performed. Any changes in authority should be written down, whether in the bylaws or manager contract. “Having it in writing protects everyone,” said Austin. The manager can contact the president of the board or the association’s counsel, or the management company may seek their own counsel if issues persist.

When it comes to avoiding any breaches in fiduciary duty, Austin said, “it’s really important for the board and the management agent to have a good working relationship.”

Filed Under: Articles, Feature Main

When Should an Association Make an Accommodation for a Generator?

November 12, 2020 by Alyssa Gautieri

By Alyssa Gautieri

A community does not allow generators, however, a resident recently asked if they could have one because they’re afraid of losing power since they require medical equipment that runs on electricity. Another resident has requested an accommodation for a generator because they have anxiety regarding a potential power outage. When should an association make an accommodation for a generator? [Read more…] about When Should an Association Make an Accommodation for a Generator?

Filed Under: Articles, Feature Main Tagged With: Articles

The Constant Call for Transparency — What is Proper Transparency?

October 21, 2020 by Alyssa Gautieri

By Alyssa Gautieri

The unit owners’ constant echo of “more transparency” is prevalent in many associations. Some owners have the opinion that they should be presented with every contract before it’s decided upon and be involved in every decision. However, most unit owners don’t understand the amount of research and due diligence that has been devoted to these decisions during many hours by members of the board along with their management teams and professionals. Some unit owners want to be presented with these things in the matter of a few minutes at a board meeting and be given the same authority to decide as those who have done the work and also have the fiduciary responsibility in making these decisions. How can a board uphold the feeling of transparency while ensuring the association is protected, with confidential information remaining confidential?

[Read more…] about The Constant Call for Transparency — What is Proper Transparency?

Filed Under: Articles, Feature Main Tagged With: Articles

Understanding Construction Defects Related to 
Stucco, EIFS, and Brick

July 17, 2020 by Alyssa Gautieri

By Alyssa Gautieri

As a property manager, you notice that the balconies in a few of your units are beginning to show signs of water damage. Meanwhile the stucco is beginning to crack along the exterior of a few different units. Neither problem seems to be widespread or urgent at this time, but you’re concerned that similar construction defects may cause future damage to other units. How can you control the issue before it gets out of hand? [Read more…] about Understanding Construction Defects Related to 
Stucco, EIFS, and Brick

Filed Under: Articles, Feature Main Tagged With: Articles

Best Practices for Collecting 
Delinquencies from Unit Owners — 
and the Effect of the Unprecedented Times on the 
Payment of Common Charges and Assessments

June 13, 2020 by Alyssa Gautieri

By Alyssa Gautieri

In a 200-unit association, several unit owners have failed to pay their assessment fees within the last few months. What are some actions that associations can take in order to collect the debts?

[Read more…] about Best Practices for Collecting 
Delinquencies from Unit Owners — 
and the Effect of the Unprecedented Times on the 
Payment of Common Charges and Assessments

Filed Under: Articles, Feature Main Tagged With: Articles

What to Do if You’re Called for a Deposition

May 30, 2020 by Alyssa Gautieri

By Alyssa Gautieri

You’re on the board of your condominium and a unit owner has filed a civil lawsuit against the association. The attorney representing the association is working with the board in handling its defense. But, now you’ve received a deposition subpoena. What should you do? 

[Read more…] about What to Do if You’re Called for a Deposition

Filed Under: Articles, Feature Main Tagged With: Articles

Best Practices for Rules About Holiday Decorations

December 16, 2019 by Alyssa Gautieri

By Alyssa Gautieri

This issue seems to come up every year. What can an association do about over-the-top holiday decorations, and the ones that seem to stay up all year? 

[Read more…] about Best Practices for Rules About Holiday Decorations

Filed Under: Articles, Feature Main Tagged With: David Dockery

How to Get a Pickleball Program Started in a Community

July 27, 2019 by Alyssa Gautieri

By Alyssa Gautieri

Pickleball — a court sport which uses perforated plastic balls and composite or wooden paddles about twice the size of ping-pong paddles (ranging in price from $50-$150) — is now considered to be the fastest growing sport in America. According to the Sports & Fitness Industry Association (SFIA) 2018 Pickleball Participant Report, pickleball currently has 3.1 million players in the U.S. — an increase of 12 percent over the previous year. The sport has also had a 650 percent increase in numbers over the last six years. [Read more…] about How to Get a Pickleball Program Started in a Community

Filed Under: Articles, Feature Main Tagged With: Alyssa Gautieri

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