Architectural Requests

(00:00) Speaker:   It's time for AMG's 2024 Community Leaders Series podcast edition. Over the last three decades, AMG has worked to make the role of community leaders more effective and less of a headache. Seminar topics are a response to which our executive board members have requested. And now here's your host and President of AMG, Dacy Cavicchia.

(00:23) Dacy Cavicchia:  Welcome to the 2024 Community Leaders Series Podcast Edition presented by AMG. I'm Dacy Cavicchia, President of AMG and your host for this episode focused on reserve studies. I'm delighted to introduce our special guest, Tyler Hall. Tyler is the Charlotte Regional Engineering Manager at Giles Flythe Engineers Incorporated. He brings over 15 years of expertise in facility design, construction administration, and special inspections. Additionally, he's conducted cost segregation studies for various commercial real estate properties and numerous capital reserve studies for community associations. Tyler has the professional designation of Reserve Specialist from the Community Associations Institute and is a licensed professional engineer in North and South Carolina, Georgia, Texas, and Tennessee. Welcome, Tyler.

(01:17) Tyler Hall:  Hey, Dacy.  Thanks so much for having me. It's great to be here.

(00:00) Speaker:   It's time for AMG's 2024 Community Leaders Series podcast edition. Over the last three decades, AMG has worked to make the role of community leaders more effective and less of a headache. Seminar topics are a response to which our executive board members have requested. And now here's your host and CEO of AMG, Paul K. Mengert.

(00:23) Paul K. Mengert:  Welcome, everyone to AMG 2024 Community Leaders Series Podcast Edition. I am your host, Paul K. Mengert, and our topic for this episode Architectural Request, ARC. I am honored to have our AMG President, Dacy Cavicchia as our special guest today. Dacy and I have worked together for many years. In fact, she's been with AMG for over 25 years. She has all the designations in our industry CMCA, AMS, PCAM. But more, more than that, she has a lot of experience really working with customers and community members, understanding what makes associations work. And unfortunately, she's also seen some cases where they don't work. Dacy leads the AMG team of managers and is always available to assist AMG customers and others across the Carolinas with their community associations. Dacy, welcome.

(01:21) Dacy Cavicchia:  Welcome. Good morning. Thank you for having me.

(01:23) Paul K. Mengert:  Let's jump right in and get started with this. I know one of the most contentious things that can happen in community associations has to do with architectural changes in the community. What one person loves; another person hates. So please explain to our listeners the function of architectural controls and often called ARC. Why is it so important to the community and the leadership of the community?

(01:51) Dacy Cavicchia:  I think one of the biggest parts of this, Paul, is to increase property value and harmony in a neighborhood. There are so many people that move into a community, and they're looking at the governing documents. They're driving through the community and that establishes where they want to spend probably their biggest investment in their life. So, when the architectural guidelines and documents are laid out in front of them, they know what to expect, they know what to invest in. I think one of the biggest things that I would suggest to any board of director, or any community association is to work with their attorney to establish architectural guidelines, if it hasn't been established already, so that when people move in, they're educated on what is allowed, what's not allowed, and it seems very successful. That is crucial to keeping the harmony in a neighborhood when someone knows what to expect and what not to expect.

(03:00) Paul K. Mengert:  Absolutely agree. Dacy, thank you for those comments. We're going to take a quick AMG Community Leaders Series newsbreak, and we'll be right back with Dacy Cavicchia, President of AMG.

(03:12) Speaker:  And now it's time for your HOA Solutions Today newsbreak.

(03:16) Newsbreak:  In recent developments, residents who refuse to provide the necessary paperwork for accommodating emotional support animals may face fines or suspensions from their condo owner associations for violating no pet provisions. If residents remain non-compliant, COAs could seek legal intervention, which could cost up to $20,000 as experienced by a 30-unit COA in Palm Beach, Florida. Alternatively, COAs might file for mediation to resolve the issue in court.  Despite the ease of obtaining ESA certificates online, the government has deemed these insufficient proof for accommodation needs. Under the Fair Housing Act, no pet building must adjust their rules to accommodate disabled persons, including allowing animals that assist with their disabilities. However, COAs are permitted to conduct meaningful inquiries into the disability and its connection to the need for the ESA, especially if the disability is not visibly apparent. Let us know your thoughts by leaving a comment at HOACommunityleaders.com.

(04:18) Paul K. Mengert:  We're back. I'm Paul K. Mengert and I'm here with Dacy Cavicchia, President of AMG, discussing architectural requests. I know Dacy has a lot of experience working not only with communities across the Carolinas, but also with work she's done with CAI.  She’s helped facilitate workshops with attorneys, and of course, she several years ago earned her PCAM designation. So, she is one of the leading experts in our area of the country on these matters. And I encourage our clients who might have a question, to feel free to check in with Dacy if they have some concerns about maybe how things are going. Speaking of concerns about how things are going, Dacy talk a little bit about some of the recent court cases that I think have been out there talking about how architectural control committees have to function and kind of the required formalities of that.

(05:22) Dacy Cavicchia:  Thank you. Paul. The governing documents will give a lot of detail on how many people have to be on the committee, who can comprise the committee, and there has been a recent court case, and it was a situation with a developer where they had one person making all of the decisions for architectural modifications that were happening. And it is imperative when your governing documents talk about a committee, they want more than one person to review it for compliance, for harmony in the community. Is it what they envisioned? So, it's crucial to make sure that you have more than one person on this committee making the decisions. It can't be a single person. It has to be a group of people that are reviewing this with different eyes, different lenses, looking at this to make sure it's in compliance.

(06:23) Paul K. Mengert:  Yeah, I think the, the, the logic here is that when it says there'll be a committee, it envisions that you'll get multiple inputs, that it won't just be a, a single input. But you mentioned a little bit earlier about working with an attorney. Explain what the committee might ask the attorney to help them do in this regard.

(06:45) Dacy Cavicchia:  I think the attorney would be the best person to help them set up these guidelines and to guide and advise them as to if something is being requested, if it's specifically not allowed in the documents. If it is something that is not mentioned in the documents, you'll find that more than anything else, where there's not clarity on specific items. So, whenever there is any kind of vagueness or any kind of variance away from what's in the documents, they should always talk to the attorney to make sure that what they're deciding is in compliance with the law, with statutes, with case law, to make sure that what they're doing is, is appropriate.

(07:35) Paul K. Mengert:  Perfect. Well, I think that is good guidance. Ideally, we want the committee reviewed the proposal in reference to their guidelines and found x, y, and z. What you don't want to have happen is the dialogue to sound like we got the proposal, and we didn't think it would look good, because that just sounds arbitrary and capricious and unfair, frankly. So, guidelines are an important start, and having a committee is an important element of it.

(08:06) Dacy Cavicchia:  Absolutely, absolutely it is.

(08:08) Paul K. Mengert:  Well, Dacy, we're going to, uh, go to another AMG Community Leaders Series newsbreak, and we'll be right back with additional discussion about architectural control and community associations.

(08:20) Speaker:  And here's another HOA Solutions Today newsbreak.

(08:24) Newsbreak:  Many homeowners often overlook covenants and rules until the issue arises. Disciplinary hearings are intended to encourage owners to be good neighbors, not to target them. Boards typically do not publicize their enforcement activities, so don't assume you're the only one. Making the issue personal can reduce credibility and alienate the board from the start. Homeowners should take proactive steps to prepare for hearings, advises Kelly Richardson, a fellow of the College of Community Association Lawyers. Key actions include reading about the policy violation in the governing documents and determining if the violation can be quickly corrected. Confirm attendance with the community manager and plan your presentation, including both arguments and documentation, in advance. If the violation is a first-time issue, show proof that it has been corrected and request a fine waiver. Address the issue rather than arguing about the policy. HOA disciplinary hearings are not court proceedings, but meetings between neighbors, emphasizing the value of neighborliness can lead to a positive outcome for all parties involved.

(09:28) Paul K. Mengert:  Welcome back folks, I'm Paul K. Mengert, I’m discussing architectural control with the President of AMG, Dacy Cavicchia. Dacy, really appreciate you being here and helping with this. Let's discuss when an ARC committee reviews the request and denies it, hopefully because it doesn't comply with the ARC guidelines. Talk a little bit about what should happen in the rejection process and what should that look like, and how is it a chance to get some new friends out of the process?

(10:00) Dacy Cavicchia:  Absolutely. I think one of the things that most new boards need to know and understand is in a lot of the governing documents, there is a deadline for them to respond to a homeowner on whether their application has been accepted or rejected, and we find that they will start a dialogue back with the owner, we're missing this, we're missing that. And while they're doing that, that 30-day clock, that 45-day clock is continuing to tick by. So, one of the things the attorneys will say is to deny the request, but have a discussion with them, talk to them, say, this fence looks great, but we're going to deny it right now. You cannot extend your fence past your property line, or the openness requirement is 30% and you're only giving a 20% openness. So, when they're doing that, the denial comes in writing and conversations need to be had with the homeowners to say what you're requesting was denied because of this. And if you do x, y, z, that would be something that would be more suitable for approval.  Color schemes, uh, just any different factor that would cause it to be rejected. Give them an option so that when they resubmit it, that it's not going back and forth and back and forth, while nobody understands what was actually wrong with it. You want it to be a conversation. You want them to be able to have something that they want in their home, give them options as to what would be approved or denied. Um, a big right now is storm doors where it says it has to be full glass storm door, but it doesn't talk about colors, and it doesn't talk about these things. So, give them an option if you can in your in your architectural guidelines, show them pictures of what would be allowed. What is a shadow box fence because some people don't know that. Show them what it is. Show them what a full glass storm door looks like and put it right in there for them, so they don't waste their time, energy, and effort.

(12:28) Paul K. Mengert:  Well, it's certainly been my experience when committees or boards do behave like you're describing, that homeowners usually come back and say, oh yeah, we're fine with that. We just picked the one that salesman suggested, and, you know, we're perfectly fine with picking the one the association suggests. And I really like and have found some great experience with, you know, explaining to people that the why of this is that we're trying to not only we being the association, we're not only trying to help you increase your property value, but we're trying to collectively increase the value of the neighborhood. And certainly, studies have shown that in many cases, if you do find some harmonious features of architectural style in an association or community, that it does help promote growth in prices. So, you know, we've, I think, outlined a couple of important reasons with this. And, you know, Dacy, these are just great comments. We have one final, uh, newsbreak. And then we'll be right back with some closing thoughts today.

(13:34) Speaker:  And now our final HOA Solutions Today newsbreak.

(13:38) Newsbreak:  The number of condominium and homeowner associations is expected to rise from 365,000 in 2023 to as many as 370,000 in 2024, compromising nearly one third of the US home inventory, according to a recent study in forecast by the Foundation of Community Association Research. Community associations account for about 30% of the overall housing stock, which includes many new construction homes and a significant number of buildings over 40 years old, stated CAI Chief Strategy Officer, Don Bowman. In the wake of the tragic Surfside, Florida, condominium collapse that killed 98 people three years ago, policies regarding condo building safety have undergone significant changes. Fannie Mae and Freddie Mac have introduced stricter condo safety policies, such as broader use of attorney title opinion letters and improved transparency through an online tool for COAs to check project ineligibility information. While one third of the title claims involve issues not found in the routine searches. The cost of insurance coverage has decreased by almost 8% since 2004. Seller pay regimes in many states helped minimize buyer costs for insurance. However, according to the American Land Title Association, condos remain particularly vulnerable to risk.

(14:58) Paul K. Mengert:  We're back, everybody. And as we close out this edition on architectural control, I think it's always important to give our listeners a couple key takeaways, and I'll defer to Dacy, first, but you want to give your three takeaways from our conversation today, and then I'll, uh, I'll give mine.

(15:18) Dacy Cavicchia:  Absolutely. I think, I think primarily the first takeaway is communication and making sure that everyone understands what the guidelines are. If they don't know, then there's bigger chances for a mistake. So, communication. And the second thing I would say is creating harmony in the neighborhood and increasing property value across the board throughout the community. And I think the third biggest takeaway for me is working with the homeowner if something is denied, giving them options to be able to accomplish what they're what they want to set out to have, whether it's a fence or a door, and give them some options of something that would be acceptable to the association.

(16:09) Paul K. Mengert:  I think we're going to say about the same thing. I'm going to have it slightly different wording. I'm going to say, number one, it's education and explanation. Number two, it's about establishing a process and due process. And number three, about positivity and responding to requests by even if the request is unacceptable as submitted, give them a positive path they can go down. Use this as an opportunity to make friends. It's not an us and them tribunal. These are neighbors working together on collective goals of increasing property value. Dacy, thank you for your help and assistance today. I know many of the AMG clients greatly enjoy working with you, and I encourage those who haven't had a chance when they need some assistance from one of the real super experts to, uh, please check in with you. I'm Paul K. Mengert, your host of the 2024 Community Leaders Series Podcast Edition. If you'd like to explore more episodes or access additional 2024 CLS content, please visit HOACommunityleaders.com.

(17:16) Speaker: Thanks for listening to AMG's 2024 Community Leaders Series podcast edition. To find out more information on this episode, please visit HOACommunityleaders.com. This podcast is a production of BG AD Group. All rights reserved.

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