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Tuesday, February 5, 2013
Tuesday, January 8, 2013
Small Housing Inventory May Push Rental Demand for Years
From HousingWire, by Megan Hopkins
http://www.housingwire.com/rewired/2012/12/31/small-housing-inventory-may-push-rental-demand-years
The next 10 years may bring five to six million new renter households. Or at least that’s what a recent infographic by the Bipartisan Policy Center is saying. So in the midst of a recovering housing market, why the shift toward a rise in rentals?
Although housing starts are up, construction will take some time to complete and the low inventory of houses may push many potential homeowners to consider renting.
“There is clearly an unmet demand for homeownership among young households,” Barry Zigas, director of Housing Policy for Consumer Federation of America, told HousingWire. “Those households are running up against a number of constraints.”
Factors such as tighter credit, larger down payments and decreased income with the rising generation will all play into the increase in renters in the years ahead.
“Credit for homeownership borrowing will likely be tighter and potentially more expensive, relative to earlier times,” Zigas said. “Families will likely have less wealth because the rising generation is starting with less wealth. If down payments are at any significant level, it will be a barrier to acquiring a home for longer than may have been the case in the past.”
There are several key groups that will be the driving force behind the rental demand, according to the below infographic. The growing number of seniors looking to downsize their homes, the young adults moving out on their own yet not ready for homeownership, the post-foreclosure homeowners and the growing number of immigrants in the U.S. will all play a significant role in the rising rental remand.
“We expect to see an increase in household formation and for a variety of reasons that household formation is likely to be more heavily concentrated among renters and households who are likely to be renters for somewhat longer than was the case for the last 20 years,” Zigas said.
CLICK ON THE PHOTO TO SEE THE WHOLE INFOGRAPHIC:
http://www.housingwire.com/rewired/2012/12/31/small-housing-inventory-may-push-rental-demand-years
The next 10 years may bring five to six million new renter households. Or at least that’s what a recent infographic by the Bipartisan Policy Center is saying. So in the midst of a recovering housing market, why the shift toward a rise in rentals?
Although housing starts are up, construction will take some time to complete and the low inventory of houses may push many potential homeowners to consider renting.
“There is clearly an unmet demand for homeownership among young households,” Barry Zigas, director of Housing Policy for Consumer Federation of America, told HousingWire. “Those households are running up against a number of constraints.”
Factors such as tighter credit, larger down payments and decreased income with the rising generation will all play into the increase in renters in the years ahead.
“Credit for homeownership borrowing will likely be tighter and potentially more expensive, relative to earlier times,” Zigas said. “Families will likely have less wealth because the rising generation is starting with less wealth. If down payments are at any significant level, it will be a barrier to acquiring a home for longer than may have been the case in the past.”
There are several key groups that will be the driving force behind the rental demand, according to the below infographic. The growing number of seniors looking to downsize their homes, the young adults moving out on their own yet not ready for homeownership, the post-foreclosure homeowners and the growing number of immigrants in the U.S. will all play a significant role in the rising rental remand.
“We expect to see an increase in household formation and for a variety of reasons that household formation is likely to be more heavily concentrated among renters and households who are likely to be renters for somewhat longer than was the case for the last 20 years,” Zigas said.
CLICK ON THE PHOTO TO SEE THE WHOLE INFOGRAPHIC:
Wednesday, December 26, 2012
Taste of Home Potluck
Not only do we have some great property management professionals here at Bell-Anderson, we have some good cooks too! Our December potluck was a "Taste of Home" theme, with every recipe chosen out of a Taste of Home magazine or cookbook. Here are a few pictures!
Shannon's Chocolate Peppermint cake
Stefanie's Cranberry Orange Bread Pudding
Lots of good stuff!
Dawn's Pumpkin Cheesecake Bars
Shannon's Chocolate Peppermint cake
Stefanie's Cranberry Orange Bread Pudding
Lots of good stuff!
Dawn's Pumpkin Cheesecake Bars
“We Have Always Done It That Way”
Courtesy of Barker Martin, Attorneys: http://www.barkermartin.com
“We Have Always Done It
That Way” Is Not A Valid Answer.
As a board member or a
manager are you prepared to answer the question, “What entitles the association
to do that?” The variety of answers we have heard over the years is
surprising and often wrong. The most common wrong answer we hear is, “We
have always done it this way.” As association attorneys, that type of answer
makes us cringe. Why? Because that answer implies that the
association did not consult their governing documents ahead of time to see if
the action was allowed - and there is the very real possibility that the
association has been acting improperly for a long time.
When it comes to the
association’s authority to take action, ignorance is not bliss. Board
members and managers must be aware of what the association can and cannot
do. Board members are not expected to know all the state, federal, and
local laws th“We Have Always Done It That Way” Is Not A Valid Answer.
As a board member or a manager are you prepared to answer the question, “What entitles the association to do that?” The variety of answers we have heard over the years is surprising and often wrong. The most common wrong answer we hear is, “We have always done it this way.” As association attorneys, that type of answer makes us cringe. Why? Because that answer implies that the association did not consult their governing documents ahead of time to see if the action was allowed - and there is the very real possibility that the association has been acting improperly for a long time.
When it comes to the association’s authority to take action, ignorance is not bliss. Board members and managers must be aware of what the association can and cannot do. Board members are not expected to know all the state, federal, and local laws that may apply to their association, but they should understand the association’s governing documents. Why? Because you can bet that the owner who disputes the action taken by the association will go through the governing documents with a fine-tooth comb looking for ways to challenge the board’s action. Understanding what authority your association has under its governing documents can help avoid unnecessary disputes and attorneys’ fees.
A cursory review of the governing documents is not that helpful. We encourage managers and board members to review the documents with a purpose and highlight everywhere the words “shall” and “may” appear so that it is clear what the board and the association must do and what it has discretion to do.
Once the board understands the association’s authority it should cite to that authority (governing documents, statutes, or rules) whenever it takes formal action. Doing so not only confirms the board’s authority before it acts, it documents that authority for owners who might otherwise have been tempted to challenge the board’s action.
Certainly, there are provisions in your governing documents that are subject to interpretation - and reasonable minds can indeed differ. However, a solid understanding of the authority granted and restrictions imposed by your governing documents can avoid a multitude of problems. Ultimately, the only time, “We have always done it this way” is a permissible answer is when if someone asks, “Why do board resolutions always list the basis for the board’s authority?”
at may apply to their association, but they should understand the association’s governing documents. Why? Because you can bet that the owner who disputes the action taken by the association will go through the governing documents with a fine-tooth comb looking for ways to challenge the board’s action. Understanding what authority your association has under its governing documents can help avoid unnecessary disputes and attorneys’ fees.
As a board member or a manager are you prepared to answer the question, “What entitles the association to do that?” The variety of answers we have heard over the years is surprising and often wrong. The most common wrong answer we hear is, “We have always done it this way.” As association attorneys, that type of answer makes us cringe. Why? Because that answer implies that the association did not consult their governing documents ahead of time to see if the action was allowed - and there is the very real possibility that the association has been acting improperly for a long time.
When it comes to the association’s authority to take action, ignorance is not bliss. Board members and managers must be aware of what the association can and cannot do. Board members are not expected to know all the state, federal, and local laws that may apply to their association, but they should understand the association’s governing documents. Why? Because you can bet that the owner who disputes the action taken by the association will go through the governing documents with a fine-tooth comb looking for ways to challenge the board’s action. Understanding what authority your association has under its governing documents can help avoid unnecessary disputes and attorneys’ fees.
A cursory review of the governing documents is not that helpful. We encourage managers and board members to review the documents with a purpose and highlight everywhere the words “shall” and “may” appear so that it is clear what the board and the association must do and what it has discretion to do.
Once the board understands the association’s authority it should cite to that authority (governing documents, statutes, or rules) whenever it takes formal action. Doing so not only confirms the board’s authority before it acts, it documents that authority for owners who might otherwise have been tempted to challenge the board’s action.
Certainly, there are provisions in your governing documents that are subject to interpretation - and reasonable minds can indeed differ. However, a solid understanding of the authority granted and restrictions imposed by your governing documents can avoid a multitude of problems. Ultimately, the only time, “We have always done it this way” is a permissible answer is when if someone asks, “Why do board resolutions always list the basis for the board’s authority?”
at may apply to their association, but they should understand the association’s governing documents. Why? Because you can bet that the owner who disputes the action taken by the association will go through the governing documents with a fine-tooth comb looking for ways to challenge the board’s action. Understanding what authority your association has under its governing documents can help avoid unnecessary disputes and attorneys’ fees.
A cursory review of the
governing documents is not that helpful. We encourage managers and board
members to review the documents with a purpose and highlight everywhere the
words “shall” and “may” appear so that it is clear what the board and the
association must do and what it has discretion to do.
Once the board understands
the association’s authority it should cite to that authority (governing
documents, statutes, or rules) whenever it takes formal action. Doing so
not only confirms the board’s authority before it acts, it documents that
authority for owners who might otherwise have been tempted to challenge the
board’s action.
Thursday, November 15, 2012
10 Tips for Tackling Stress
by Jeanne Faulkner, Contributor
From: Wellness Wire, myRegence.com
Feeling the pressure? Try these ideas for managing stress right now—and preventing it down the road.
What's so bad about stress? When it's appropriate, it can be a healthy coping mechanism that keeps you safe, focused and aware. It's your body's emergency action plan so you can go, go, go. However, living in a state of constant emergency can be hazardous to your health.
When stress levels are too high, your body sends signals telling you to take a break. If you don't listen, your body makes you pay attention with pesky symptoms like headaches, irritability, fatigue, confusion, high blood pressure and skin problems. If this goes on too long, it causes serious damage like cardiac disease, cancer and depression.
When you're stressed, stressed, stressed, you need a plan. We've got 10 tips for tackling stress right now--and preventing it down the road.
4 Tips for Fast Stress Relief
Missy Gerber, president of Organizers Northwest, has a motto: Less Mess. Less Stress. Better Life. "Clutter and disorganization cause stress [and] waste time and money," she says. "With a little focus and simple techniques, you'll create more time and space in your life."
From: Wellness Wire, myRegence.com
Feeling the pressure? Try these ideas for managing stress right now—and preventing it down the road.
What's so bad about stress? When it's appropriate, it can be a healthy coping mechanism that keeps you safe, focused and aware. It's your body's emergency action plan so you can go, go, go. However, living in a state of constant emergency can be hazardous to your health.
When stress levels are too high, your body sends signals telling you to take a break. If you don't listen, your body makes you pay attention with pesky symptoms like headaches, irritability, fatigue, confusion, high blood pressure and skin problems. If this goes on too long, it causes serious damage like cardiac disease, cancer and depression.
When you're stressed, stressed, stressed, you need a plan. We've got 10 tips for tackling stress right now--and preventing it down the road.
4 Tips for Fast Stress Relief
- Take a walk: When you notice you're stressed--say, you're snapping pencils and getting snippy with your coworker--get up and walk out the door. Any type of exercise will do, but walking is usually immediately available. Studies show it only takes 25 minutes of exercise for your body to recover from a "stress attack." Exercise lowers cortisol and blood pressure and releases endorphins. Regular exercise builds up your stress immunity.
- Take a breath: Deep breathing really works. It increases blood-to-brain oxygen and helps you calm down. Sit at the edge of your chair with your spine straight and shoulders back. Drop your hands onto your lap, and relax your belly--really let it bulge. Now breathe. Take 10 full, deep breaths. Once you're breathing deeply, you might want to go ahead and try meditation.
- Make a call: Phone your friend, family member, significant other or an office buddy and vent. Verbalizing problems instantly relieves pressure. It's like taking the lid off your steaming pot of stress and letting some go. Don't abuse this, though, or friends will avoid your calls.
- Take a stand: Or, as the song says, "Tell me what you want, what you really, really want." Don't just say what you think you can get. Once you actually say, "I want a new job and a day off," you'll likely be more focused. Knowing--and clearly stating--what you want can be an effective way to find solutions. You'll feel better just putting it out there.
Missy Gerber, president of Organizers Northwest, has a motto: Less Mess. Less Stress. Better Life. "Clutter and disorganization cause stress [and] waste time and money," she says. "With a little focus and simple techniques, you'll create more time and space in your life."
- Minimize multitasking: Gerber says: "We don't really multitask at all; we just switch rapidly from one activity to another. Our brain takes about 15 minutes to switch gears, so what we're working on takes longer, often with more errors." If you're focused for only 20 percent of an eight hour day, that's 96 minutes spent switching gears. Think what you could accomplish with 96 minutes of focused thinking.
- De-clutter: According to Gerber, "Clutter happens because we put something down where it doesn't belong, just for now. Don't put it down--put it away. Work on reducing your clutter daily for 15 focused minutes. Don't know where it goes? Make a thoughtful decision on where it should live and label the space.
- Structure sets you free: It may seem like to-do lists would add more stress to your life. Not so, says Gerber: "Checklists, processes and routines create new habits." Those habits will help you free up time to relax. Piggyback onto habits you already have. For example, brush your teeth, and then do a quick sweep of your bedroom to put things where they really belong. Create a filing system for incoming paper. Hanging files work best. At the end of each quarter, sort, toss and update your files. Come tax time, your information is in order.
- Just say no: Stop adding more activities, obligations and commitments to your schedule. Instead:
- Evaluate what you do and why you do it.
- Weed out time-wasters and events you really don't need to attend.
- Don't underestimate the time you spend surfing the Internet (hello, Facebook).
- Fill in free time with exercise and fun activities that reduce stress rather than adding to it.
- Understand Your Brain: Try cognitive-behavioral therapy (CBT) to see why you react to stress the way you do. According to Travis Osborne, Ph.D., a licensed psychologist at the Anxiety and Stress Reduction Center of Seattle, CBT involves practicing strategies to manage stress reactions, including relaxation exercises, prioritizing tasks, effective time management, identifying and challenging unhelpful thought patterns and changing behavioral patterns that cause chronic stress.
- Take Small Steps: Procrastination provides temporary stress relief, but it makes things even worse later. Instead, Osborne advises approaching uncomfortable situations through a process called exposure, a step-by-step method for tackling stress triggers that makes them feel more doable. "Start with tasks that generate low levels of stress and work up to confronting more challenging ones," he says.
Thursday, November 1, 2012
Process and Procedure Matters
Courtesy of Barker Martin, Attorneys: http://www.barkermartin.com
Associations need to take note: Process and Procedure Matter. A Florida homeowner association was recently reminded of this fact when it was ordered to pay an owner $85,000 in damages. The owner is seeking an additional $220,000 in attorney fees. The dispute stemmed from a $2,212 landscaping bill for replacement of the owner’s lawn. See the related news article at: http://www.tampabay.com/news/publicsafety/crime/new-tampa-homeowner-wins-judgement-against-homeowners-association/1253895.
In ruling against the Association, the Court made the following findings:
Keep in mind a couple of things that the Court did not find:
Boards sometimes get into the mindset that so long as they have the authority to make something happen, the process and procedure of getting to that end is largely irrelevant. The Florida association in this case almost certainly argued that any procedural failure does not change the fact that the lawn needed to be replaced and the Association had the authority to replace it. Based on the Judge’s findings, it seems like the Association had a decent “no harm – no foul” argument. The importance of following your governing documents cannot be overstated.
THE BOTTOM LINE: Associations lose lawsuits when they don’t follow the proper process and procedures. Obtaining sound legal advice to keep you OUT of court is far more cost effective than the alternative.
Associations need to take note: Process and Procedure Matter. A Florida homeowner association was recently reminded of this fact when it was ordered to pay an owner $85,000 in damages. The owner is seeking an additional $220,000 in attorney fees. The dispute stemmed from a $2,212 landscaping bill for replacement of the owner’s lawn. See the related news article at: http://www.tampabay.com/news/publicsafety/crime/new-tampa-homeowner-wins-judgement-against-homeowners-association/1253895.
In ruling against the Association, the Court made the following findings:
- The Association replaced the owners' lawn when it was not the only yard affected by the drought.
- Three Deed Restriction Committee members never inspected the property before the board authorized the work as required by governing documents.
- The person who installed the sod was an officer and board member of the Association. Governing documents prohibit board members from receiving remuneration without a unanimously adopted resolution, which did not happen.
- The fraudulent lien prohibited the Owners from selling their home, which they had purchased as investment property and rented out. At one point, when the home was valued at $215,000, they had an interested buyer. The property is now worth $100,000, according to the court order.
Keep in mind a couple of things that the Court did not find:
- The Court did not find that the Association acted unreasonably in determining the lawn should be replaced. To the contrary, the Court found it was not the only yard affected by the drought.
- The Court did not find that the Association lacked authority to replace the lawn. To the contrary, it appears the Association did have authority replace the lawn and had specific procedures for making such a decision that included an inspection of the property by three committee members.
- The Court did not find that the officer/board member could not perform the sod replacement. The Court ruled that the Association’s governing documents require a unanimously adopted resolution and the process was not followed.
Boards sometimes get into the mindset that so long as they have the authority to make something happen, the process and procedure of getting to that end is largely irrelevant. The Florida association in this case almost certainly argued that any procedural failure does not change the fact that the lawn needed to be replaced and the Association had the authority to replace it. Based on the Judge’s findings, it seems like the Association had a decent “no harm – no foul” argument. The importance of following your governing documents cannot be overstated.
THE BOTTOM LINE: Associations lose lawsuits when they don’t follow the proper process and procedures. Obtaining sound legal advice to keep you OUT of court is far more cost effective than the alternative.
Monday, October 1, 2012
Demystifying Board Member Conflicts
Courtesy of Barker Martin, Attorneys: http://www.barkermartin.com
“The greatest crimes do not arise from want of feeling for others, but from an over-sensibility for ourselves and an over-indulgence to our own desires.”
- British Statesman Philosopher Edmund Burke.
People run for the board of directors of their association for many reasons. Some see the position as a way to get more involved with their community or to meet new people. Some join out of a sense of duty or to correct perceived problems with prior boards. Some see board membership as a networking opportunity or to get directorship or management experience. Regardless of why someone joins the board of directors, the bottom line is that once a person becomes a board member, he or she has very clear duties to the association as a whole. Keeping this duty in mind may help board members avoid conflicts of interest – or even the appearance of a conflict.
Both the HOA Act and the Condominium Act provide:
the board of directors shall act in all instances on behalf of the association
and that board members have duties of care and loyalty to the association. RCW 64.38.025(1); RCW 64.34.308(1). In Oregon, these same duties are contained in the Nonprofit Corporation Act at ORS 65.357, which is cited by both the Planned Community Act and the Condominium Act. These provisions not only define the governing authority of an association; they are an edict that the board of directors shall always act on behalf of the association, the corollary being that no board member should be acting on his or her own behalf. Acting in your own or anyone’s interest other than the association’s is the very definition of conflict of interest. Simply put, a board member must place the interests of the association above (not merely equal to) all interests, including their own.
Some board member conflicts are obvious. When a board member exploits his board membership to prevent enforcement action against him, most boards and managers have no trouble requiring the board member to recuse himself from any decisions relating to his own violations of the governing documents. But other conflicts can be more difficult to identify and therefore, harder to enforce. Even the issue of self-dealing (where a board member wants the association to hire her for some purpose) can be difficult to identify as a conflict because the board member often feels that the association benefits from the arrangement as well. In these circumstances, there is still a conflict. There is also the appearance of impropriety, which should be avoided because it causes erosion of the membership’s faith in the board.
Once a conflict is identified by either the association manager or one or more of the other board members, it can be just as difficult for the remaining members of the board to decide what to do about the conflict. That is why we recommend that boards adopt a board member Code of Ethics that spells out potential conflicts and prohibits certain actions by board members with conflicts.
Adopting a Code of Ethics can easily be done under the board’s rulemaking authority. The best time to adopt such a code is before a conflict arises because most people will agree with the set of principles in the abstract, but may have difficulty adopting a set of rules that seems targeted at their own behavior.
The provisions of the Codes can vary but the terms should be specific. The Code can flat out prohibit any board member from accepting compensation from the association for any reason. This would avoid not only actual conflicts but would also avoid perceived impropriety. On the other side of the spectrum, the Code can require disclosure of even potential or minor conflicts to avoid the appearance of impropriety. For example, the Code could require mere disclosure by a board member who rents her unit when discussing changes to rental cap provisions, but require disclosure and recusal of board members who are delinquent in paying assessments from voting on issues relating to not only their own delinquency but all delinquencies. The Code should also prohibit use of information to which the board has access, such as list of homeowners, for purposes unrelated to association business so that board members cannot use such access to solicit clients for his or her business.
Having a Code of Ethics in place not only allows the manager or other board members to point to the violation of a concrete rule when a director starts acting in their own self-interest, it also serves as an excellent reminder for existing board members and those seeking board positions as to the true purpose of the board – to act in all instances on behalf of the association.
And, as always, do not hesitate to contact us if you have additional questions or need assistance on any community association legal matter.
Best regards,
Your Team at Barker Martin
“The greatest crimes do not arise from want of feeling for others, but from an over-sensibility for ourselves and an over-indulgence to our own desires.”
- British Statesman Philosopher Edmund Burke.
People run for the board of directors of their association for many reasons. Some see the position as a way to get more involved with their community or to meet new people. Some join out of a sense of duty or to correct perceived problems with prior boards. Some see board membership as a networking opportunity or to get directorship or management experience. Regardless of why someone joins the board of directors, the bottom line is that once a person becomes a board member, he or she has very clear duties to the association as a whole. Keeping this duty in mind may help board members avoid conflicts of interest – or even the appearance of a conflict.
Both the HOA Act and the Condominium Act provide:
the board of directors shall act in all instances on behalf of the association
and that board members have duties of care and loyalty to the association. RCW 64.38.025(1); RCW 64.34.308(1). In Oregon, these same duties are contained in the Nonprofit Corporation Act at ORS 65.357, which is cited by both the Planned Community Act and the Condominium Act. These provisions not only define the governing authority of an association; they are an edict that the board of directors shall always act on behalf of the association, the corollary being that no board member should be acting on his or her own behalf. Acting in your own or anyone’s interest other than the association’s is the very definition of conflict of interest. Simply put, a board member must place the interests of the association above (not merely equal to) all interests, including their own.
Some board member conflicts are obvious. When a board member exploits his board membership to prevent enforcement action against him, most boards and managers have no trouble requiring the board member to recuse himself from any decisions relating to his own violations of the governing documents. But other conflicts can be more difficult to identify and therefore, harder to enforce. Even the issue of self-dealing (where a board member wants the association to hire her for some purpose) can be difficult to identify as a conflict because the board member often feels that the association benefits from the arrangement as well. In these circumstances, there is still a conflict. There is also the appearance of impropriety, which should be avoided because it causes erosion of the membership’s faith in the board.
Once a conflict is identified by either the association manager or one or more of the other board members, it can be just as difficult for the remaining members of the board to decide what to do about the conflict. That is why we recommend that boards adopt a board member Code of Ethics that spells out potential conflicts and prohibits certain actions by board members with conflicts.
Adopting a Code of Ethics can easily be done under the board’s rulemaking authority. The best time to adopt such a code is before a conflict arises because most people will agree with the set of principles in the abstract, but may have difficulty adopting a set of rules that seems targeted at their own behavior.
The provisions of the Codes can vary but the terms should be specific. The Code can flat out prohibit any board member from accepting compensation from the association for any reason. This would avoid not only actual conflicts but would also avoid perceived impropriety. On the other side of the spectrum, the Code can require disclosure of even potential or minor conflicts to avoid the appearance of impropriety. For example, the Code could require mere disclosure by a board member who rents her unit when discussing changes to rental cap provisions, but require disclosure and recusal of board members who are delinquent in paying assessments from voting on issues relating to not only their own delinquency but all delinquencies. The Code should also prohibit use of information to which the board has access, such as list of homeowners, for purposes unrelated to association business so that board members cannot use such access to solicit clients for his or her business.
Having a Code of Ethics in place not only allows the manager or other board members to point to the violation of a concrete rule when a director starts acting in their own self-interest, it also serves as an excellent reminder for existing board members and those seeking board positions as to the true purpose of the board – to act in all instances on behalf of the association.
And, as always, do not hesitate to contact us if you have additional questions or need assistance on any community association legal matter.
Best regards,
Your Team at Barker Martin
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