Protecting Community Aesthetics:

The Duty to Maintain

Board Duty to Preserve and Maintain

Common Propertyo Perhaps the most important Board duty is protecting, preserving, and enhancing property values within the community.

o This includes the maintenance, repair, and replacement obligations imposed on most Associations.

o People want to live in a beautiful community and home.

Idaho Lawo Investors Ltd. of Sun Valley v. Sun

Mountain Condos 106 Idaho 855 (Idaho App. 1984).– Recognizes binding nature of covenants.– Recognizes Association is manager of condo.– Recognizes Association has responsibility to maintain

property.

How Does An Association Maintain Aesthetics?

o ACC or ARC decisionso Pass rules and regulationso Enforcemento Special Assessments

ACC’s Job:

• Protect aesthetics• Control quality of materials and

construction

How to Pass Regulations

1. Check Declaration2. Check Bylaws3. Check local architectural guidelines

Review Processo Be consistento Have written guidelines for processo Courts should uphold ARC authority if

process was followed

Application Procedure Basics

o Application requirements– Documents?– Fees?

o Specific deadlines for approval– Automatically approved?– Reasonable

o Follow up and appealo Enforcement

Enforcing Standardso Fineso Self-Helpo Legal Action

– Injunctive Relief– Damages

o Meetings

FREQUENT ARC ISSUESo Failure to Enforce ARC Restrictions• Estoppel• Laches• Waiver

o Violations “In Progress”o Unauthorized Approvals

Political Signs

Height Restrictions

Flagso “Flag Act” – “Freedom to Display the Flag

Act”

Satellite Dishes: OTARD

Fences

Outhouses and “Other Improvements”

Limits on Common Area Maintenance?

o “There shall be no capital improvements of the Common Areas and Facilities requiring an expenditure in excess of $3,000.00 without prior approval of a majority of the Owners.”

o Somewhat common provision in older CC&Rs.

o What are capital improvements?

10/11/08

Lawsuits Commonly faced by Directors

o Failure to Maintain and Repair Common Property

o Failure to Adequately Fund Reserveso Improper Budget Managemento Failure to Collect Assessmentso Negligent Hiring and Supervisiono Selective Enforcement of Governing

Documents

Questions?Next Manager Lunch: June 23 at noon

Please invite your boards to attend training next Thursday night at 7 pm.