Rule Enforcement

(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. This is AMG's 2024 Community Leaders Series podcast edition. Our topic today is Rule Enforcement, and Danielle Rudisill is here to shed some light on crucial aspects and give our listeners some good pointers on rule enforcement. Danielle is the AMG Director of Operations in the Charlotte Metro area, and she also covers a lot of South Carolina. Very happy to have you with us today as a guest, Danielle.

(00:55) Danielle Rudisill:  Thank you so much for having me.

(00:57) Paul K. Mengert:  I don't know if I can say this, but I think, uh, Danielle started with AMG when she was a near child. I think she had to bring in a work permit when she got started because she was, uh, still a minor. But now. But now Danielle has come a long ways. Not only is she a CMCA, she's also an AMS and working on, uh, being a PCAM, which I hope we'll be able to announce in the near future. She brings more than 15 years of experience assisting communities, with, uh, various, matters, both on the administrative side and on the physical operations. She's familiar with both North and South Carolina procedures and is, uh, has expertise in negotiation and sales communication, um, helping community managers and boards reach their greatest success levels. Danielle, it's truly a pleasure to have you here today.

(01:52) Danielle Rudisill:  Well, thank you so much. I'm happy to be here.

(01:54) Paul K. Mengert:  I want to, uh, you know, jump right in because we have somewhat limited time and ask, ask you to, uh, talk a little bit about out of your experience, can you share some techniques that associations might want to use, to enforce, covenants and rules successfully. And I define successfully by, uh, meaning that members just agree to comply.

(02:20) Danielle Rudisill:  Well, you know, covenant enforcement is one of those, really, I think, challenging issues for a board of directors because it's probably seen the most negatively. So, there are several ways that we try to help boards frame this in a positive light for the owners, because there are a lot of advantages to it. First, I always encourage the board to discuss their expectations. We want them to work with their attorneys to develop and implement policies. They kind of discuss the violation process, such as, you know, how many notices are owners going to receive? How long do they have to come into compliance? And then ultimately, if hearing and fines are required, what fines are assessed and how they're going to be assessed, whether it's by the rule or the sequence of events. But I think most importantly is the effective communication to the owners that discuss what their expectations are, but also why covenant enforcement is so important and how compliance with the governing documents really impacts their property values and the enjoyment of their home. And I think when boards have, you know, standardized policies that treat everybody fairly and also communicate why that's important, owners are much more, inclined to come into compliance because they stop seeing the association as, you know, kind of the person they're standing off against and start seeing them as the person they're standing with because they have a common goal.

(03:51) Paul K. Mengert:  Absolutely. I know when as managers, when we can put ourselves in the role of an ombudsman for the homeowner opposed to the enforcer, and by ombudsman, I mean, you know, advocating for them within the rules. And I mean, I think that's a crucial distinction between advocating for them just period and advocating for them within the in the rules is, uh, is really important.

(04:17) Danielle Rudisill:  I absolutely agree. And you know, as a person who I've, I've, you know, as a person who's done this for 15 years, I have both acted as the manager, I've also served on my own board of directors. And, and I'm a homeowner in my own community. So, I can really see ways to make all three of those roles meet in the middle for a common goal.

(04:40) Paul K. Mengert:  Absolutely. I think when, uh, directors and managers can put themselves in the, you know, imagine themselves in the position of a homeowner who's trying to accomplish something. You know, once you use that mindset, I think you're on the on the right page. Danielle, thank you for these insights. I want to take a quick newsbreak from our discussion about rule enforcement, in our Community Leaders Series. So, stay tuned. We'll be right back with more interesting insights after this important newsbreak.

(05:11) Speaker:  And now it's time for your HOA Solutions Today newsbreak.

(05:15) Newsbreak: Condo owners in Hawaii are grappling with significantly higher insurance premiums, with some facing increases of more than double the previous rates. This spike in costs has been exacerbated by recent natural disasters nationwide, including the devastating Lahaina fires. In addition to insurance hikes, owners are dealing with rising maintenance fees. To tackle these issues, the Hawaii Economic Association convened on Thursday to discuss potential solutions. The consensus was that while risks need to be mitigated, improvements will take time. Experts also cautioned that due to climate change, insurance premiums are unlikely to revert to the levels seen three or four years ago.  To read the full story please visit HOACommunityleaders.com.

(05:58) Paul K. Mengert:  We're back. I'm Paul K. Mengert and we're here with Danielle Rudisill discussing rule enforcement. Danielle, have you encountered situations where association boards believe that half or more of the community is in violation of a rule or a covenant? And, you know, Lordy B, what do you do when you run into that?

(06:18) Danielle Rudisill:  Well, you know, Paul, that's it's not uncommon at all. There are a couple of reasons, in my perspective, this can happen. First is that, you know, oftentimes we forget that the association's documents can be 10, 20, maybe even 30 years old. So, when that happens, some of the rules in the documents can become somewhat outdated. So, we encourage the board to review the documents to determine if the rules still apply to their community and if they don't, or if the rule no longer makes sense, then we discuss the possibility and the options for the board to pursue an amendment to the documents, so that they're still doing what they're supposed to be doing as the governing body, but also acting in the best interest of the owners.

(07:05) Paul K. Mengert:  That's such a good point that it's, uh, you know, I really encourage, you know, community leaders, of course, to enforce the covenants and the and the rules fairly and evenly, but also to keep in mind that in some cases, it's in the best interest of the community to liberally construe the rules. And by liberally construing the rules, I mean, sometimes you don't want to take the definition at its full literal value, but look behind that at what was intended, opposed to, using strict construction of it. You know, we a lot of times see older covenants refer to like fencing restrictions, where some of the fencing material that's available today simply wasn't available or envisioned, you know, back 30, 40, 50 years ago. So, boards really do have to look at that. And of course, you know, within the personality of AMG to when you do run into these questions, you want to talk with your legal counsel and make sure you're on, you know, on firm ground, because board members do need to remember, they do not even have the authority to approve things that are in violation of the covenant. So, you do want to be careful when you're liberally construing, but I think that mindset is the right mindset.

(08:22) Danielle Rudisill:  Absolutely. For the rules that do apply that are still, you know, relevant to the association, and more than half of the community they believe is in violation. One of the methods that I've found most effective is sending communication to the entire community, informing them of what the rule is in the covenants and what the association's expectations are. And I think it's important to cite, you know, where in the documents it states that. So, the owners have a point of reference for where the association is getting that information. And then telling them how they can come into compliance and providing them a grace period in advance of really pursuing enforcement. So, for example, if the documents require specific home maintenance, like, you know, painting your shutters and more than half of the community shutters are faded, then I might suggest a, you know, spring letter that reminds owners that this is their responsibility and provides them with the approved colors for painting their shutters. And then gives them, you know, a 30 or 60- or 90-day grace period to come into compliance before really pursuing it. And it gives owners an opportunity to understand what's expected of them. And it feels more like a gentle reminder than the association kind of aggressively pursuing covenant enforcement for something that they may not have talked about in the last year or even five years, depending on how old the community is.

(09:32) Paul K. Mengert:  Great point, Danielle. Hold that line of thought for just a minute. We want to go to our second newsbreak. And again, this is Paul K. Mengert with the AMG Community Leaders Series podcast edition. And we now go to our second newsbreak of the day.

(10:08) Speaker:  And here’s another HOA Solutions Today newsbreak.

(10:10) Newsbreak:  Recently, an issue arose in a Manhattan co-op where a shareholder with "profound deafness" struggled to understand voices on the intercom. The resident questioned the legal requirements for an intercom system accommodating disabilities. Federal, state, and local laws mandate that co-op and condo boards are legally obligated to accommodate hearing-impaired residents who request intercom systems suited to their needs, such as visual interface devices. Non-compliance can lead to discrimination lawsuits for not engaging in "cooperative dialogue" with the resident and even award monetary damages to compensate for things such things as emotional distress.  For more information, please visit HOACommunityleaders.com.

(10:53) Paul K. Mengert:  Welcome back folks. I'm Paul K. Mengert here discussing rule enforcement with AMG's Director of Operations in the Charlotte Metro area, including much of South Carolina, Danielle Rudisill. Danielle, thanks for, you know, helping us, you know, kind of walk through this, uh, topic. Let me just add a little bit more, uh, question to this. And that is, what are some of the effective techniques you've seen associations use to educate homeowners and ensure the messages are read and understood? Because of course, we really never want to get to this enforcement kind of thing. We want people to understand and, move into the neighborhood wanting rules that they're going to have. And, um, you know, what do we do to get everybody on the same page from the get-go?

(11:38) Danielle Rudisill:  Well, as I mentioned earlier, education and communication are really important. I, you know, remind owners and board members that the association's ultimate goal isn't punishment, it's compliance. Right. So, in order to do that, um, we talk a lot about education. We encourage boards to educate owners and communicate with them using multiple methods, newsletters, email blasts, community meetings and try to reach the largest audience possible to make sure that as many owners are informed as they can be. When we send communications, we recommend citing the documents and encouraging owners to review them as well. It's not uncommon for owners to move into a community and live there for several years, and to have never read the governing document. So, making those available and, you know, encouraging owners to review them, I think is really important. But I think the most important part is explaining why covenant enforcement is important. Um, explain to owners that this impacts their property values, as well as their enjoyment and their neighbor’s enjoyment of their home. You know, I tell boards all the time that if you can really appeal to the neighborly sense of the owners in the community, I think you get a much better response. You know, an owner is much more likely to bring in their trash can because they know that that appearance impacts their neighbor, rather than the appearance impacting the association. So, you know, trying to encourage owners to look at it from not only the association's point of view, but also their own point of view and how it impacts them as well as their neighbors.

(13:24) Paul K. Mengert:  The points are very well taken. And, you know, I know when there is a problem and it's brought to the board's attention, they often want to deal with it as much dispatch as possible and trying to solve it because there are people complaining about it. And, you know, in most cases, I think directors see a big part of their job is by, uh, taking care of complaints that are brought to their attention. But it's also important to remember that the person who may be accused of being in violation is also a member of the association and is afforded, you know, all of the rights as any other member. And, you know, often we get into a situation where this is truly a balancing of rights, where boards are kind of having to help both sides find middle ground with a situation.

(14:13) Danielle Rudisill:  Absolutely.

(14:14) Paul K. Mengert:  Well, thank you, Danielle. We’re going to take our final newsbreak of the day, and we'll be right back.

(14:20) Speaker:  And now our final HOA Solutions Today newsbreak.

(14:24) Newsbreak:  A conflict over some trees blocking some HOA members' views is set to be heard by the Washington Supreme Court. This follows a state appellate court's decision to uphold the HOA's revision of an old rule that previously did not restrict trees from obstructing views. A couple who has refused to trim, top, or remove their trees is hoping the higher court will rule in their favor, arguing they should not have to comply with what they consider a new rule. In 2018, the homeowner’s association revised its rules to state that trees and vegetation in a "view and/or view corridor area" must not exceed 15 feet or the height of the first-story gutter in the front or backyard of any home.  Let us know your thoughts by leaving a comment at HOACommunityleaders.com.

(15:08) Paul K. Mengert:  We're back everyone. And as we close out today's edition, I think it's important to always remember a few takeaways. And I want to ask Danielle if you can just kind of quickly in the last few seconds we have left, give me your three takeaways on, uh, rule enforcement. Just in a soundbite, what would you tell directors the three most important points are to remember?

(15:31) Danielle Rudisill:  I think that the top three would be that successful compliance enforcement, rule enforcement, hinges on education and communication. Making sure that, you know, the owners are informed and that they understand why.  Also, that they want to ensure that they are enforcing the rules in a uniform and fair way. And that the board understands what their expectations are and has communicated those expectations back to the owners.

(16:00) Paul K. Mengert:  That's great. Interesting how you and I tend to come up with the same things on these. Uh, mine was educate, communicate and balance. So, educate the folks about the, uh, the rules and the covenants, you know, through constant communications to them. And, you know, keep in mind there's some people that just moved in yesterday. So, the fact that it was published in a beautiful handbook ten years ago isn't going to help the guy who moved in yesterday. So, we really do have somewhat of a revolving door communication process. And in the balancing of rights, check with your attorneys and, uh, make sure that you what you're doing is truly enforceable because I've, you know, sometimes seen directors get in a big tizzy over something, only to find out later, it simply isn't enforceable. Just because some board implemented it 20 years ago doesn't mean it's going to necessarily be enforceable today. Even some of the things that are in recorded covenants are no longer, uh, enforceable because of changes in public policy. And unfortunately, there are some outdated, uh, things still on the books that are, you know, really not relevant in today's world. So, Danielle, thanks so much for being here. I really appreciate it. Do you have a final thought?

(17:17) Danielle Rudisill:  I appreciate being here. And, you know, I think that, again, it's so important for boards and owners to kind of remember that they are, they hold multiple roles and try to put themselves in the place of the other people in their community because they're all owners. And when everybody works together, that's going to provide the best outcome.

(17:39) Paul K. Mengert:  Great. Well, thank you very much. I am Paul K. Mengert, your host of the 2024 AMG Community Leaders Series Podcast Edition. If you would like to explore more of our podcast episodes or access additional 2024 Community Leader series content, please visit HOACommunityleaders.com. Again, Danielle, thanks for being here.

(18:02) Danielle Rudisill:  Thank you for having me.

(18:04) 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.

• Educate homeowners on the guidelines of your community.

• It’s important to keep constant communication with all homeowners.

• Make sure that the rules are enforced in a uniform and fair way.

 ‘It Will Get Better,’ Insurance, Fees for Hawaii Condo Owners Continue to Rise

1.     Condo owners in Hawaii are grappling with significantly higher insurance premiums, with some facing increases of more than double the previous rates. This spike in costs has been exacerbated by recent natural disasters nationwide, including the devastating Lahaina fires. In addition to insurance hikes, owners are dealing with rising maintenance fees. To tackle these issues, the Hawaii Economic Association convened on Thursday to discuss potential solutions. The consensus was that while risks need to be mitigated, improvements will take time. Experts also cautioned that due to climate change, insurance premiums are unlikely to revert to the levels seen three or four years ago.

Co-op and Condo Boards Must Accommodate Hearing-Impaired Residents

2.     Recently, an issue arose in a Manhattan co-op where a shareholder with "profound deafness" struggled to understand voices on the intercom. The resident questioned the legal requirements for an intercom system accommodating disabilities. Federal, state, and local laws mandate that co-op and condo boards are legally obligated to accommodate hearing-impaired residents who request intercom systems suited to their needs, such as visual interface devices. Non-compliance can lead to discrimination lawsuits for not engaging in "cooperative dialogue" with the resident and even award monetary damages to compensate for things such things as emotional distress.

Camas HOA Rule Dispute Heads to Washington Supreme Court

3.     A conflict over trees blocking some HOA members' views is set to be heard by the Washington Supreme Court. This follows a state appellate court's decision to uphold the HOA's revision of an old rule that previously did not restrict trees from obstructing views. A couple who has refused to trim, top, or remove their trees is hoping the higher court will rule in their favor, arguing they should not have to comply with what they consider a new rule. In 2018, the homeowner’s association revised its rules to state that trees and vegetation in a "view and/or view corridor area" must not exceed 15 feet or the height of the first-story gutter in the front or backyard of any home.