“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. 

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?”

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:

• 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.

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

10 Tips for Improving Board Discussions

•  Stay engaged. Avoid side conversations and other distractions.
•  Listen with an open mind. Try to understand others' perspectives.
•  Consider two or more alternatives simultaneously.
•  Don't debate—discuss.
•  Separate facts and opinions: Discuss the facts. Vote your opinion.
•  Address interests, not positions.
•  Move the deliberations forward. Don't repeat what has already been said.
•  Judge ideas, not people. Phrase feedback constructively.
•  Identify options on which the group can reach consensus, but don't minimize legitimate disagreements.
•  Consider the interests of the community as a whole.

January/February 2009 Common Ground

Crime Prevention Update from Kent Police

Here are few tips from Kent Police about common crimes they are seeing in the Kent area. Thank you to the City of Kent and Kent Police for this info:

Save Your Honda
This last week we saw another upswing in the trend of stolen Hondas, especially overnight. Vehicle thieves and prowlers look for any opportunity; don't give them one. If you own a Honda, or any car, it is important to do all you can to prevent it from being stolen or prowled. Please follow these prevention tips:
Install and USE a club - clubs can be purchased through the Kent Police Foundation

• Park in well lit areas
• If car has an alarm, be sure it works and is on
• Remove all valuables ALL the time
• Park close to entrances of stores or apartments
• If you park outside your garage, be sure to park in drive way and install motion lights or keep outside of house well lit.

For more information visit www.kentpoliceceu.com

Residential Burglaries of Asian Family Homes Continue

This past week there were 4 residential burglaries of homes of Asian families. These have occurred during the daytime and early evening hours. In all cases, windows by the front door or rear sliders were smashed. We have learned that suspects of residential burglaries look for indicators that homes are owned by Asian families. They look for shoes piled outside the front door or Asian yard/home decorations. In some instances, electronic equipment was stolen, but almost always jewelry and cash. One of the first places they go is to the master bedroom. Please pass the word along to your block watches and other residents that would be interested. It is important to remove shoes from the front porch and to keep jewelry and money in a safe or other secure location. Document serial numbers for all electronics and take pictures of jewelry and keep in a secure location.

Board Training Seminar: Mock Board Meeting

by Maria Garcia, Maintenance Coordinator

Our first Board Training Seminar of the year was a great success!! The topic of our training seminar was “Conducting a Successful Board Meeting”.  We had David Batchelder, owner of David’s Roof Service, sponsor our meeting. He graciously provided sandwich fixings, potato salad, macaroni salad and beverages.  Also in attendance was Gil Price, Executive Director, and Jennifer Hill, Attorney, from Condo Law Group.  During our meeting we explained the roles and duties of a president, vice-president, treasurer and secretary, as well as how to conduct a meeting. With our presentation we conducted a mock board meeting about how to avoid letting a meeting get out of control. Jennifer Hill answered many legal questions for board members on disclosure, executive sessions and financials.  At the end of our presentation we gave away door prizes: two attendees walked away with a copy of the Vickie Gaskill’s book “Community Associations, A Guide to Successful Management” and one lucky winner got away with a $50 gift card to Home Depot.

Thank you to all our board members that attended and we hope to see you at the next one!  We also owe a big thank you to Jennifer Hill, Gil Price and David Batchelder for your participation and contribution!

View more pictures of the event at https://www.facebook.com/media/set/?set=a.10150641194573462.400340.92113323461&type=1&__adt=2
 

Reminder: Board Training Event Coming Up!

Join us as Tuesday, March 20th at 6:30pm pm as we discuss the role of board members with a mock board meeting.  Our broker, Vickie Gaskill, will walk you through the process and help you learn to be a more effective association. The best way to limit your liability is through education and training, so sign up today! Anybody is welcome, you do not need to be a client of Bell-Anderson to attend. Refreshments will be provided.

Agenda:
Code of Conduct
Job Descriptions of Board Members
Mock Board Meeting

For more information or to RSVP, click here! Or you can e-mail Condo Support at jmccurley@bell-anderson.net.

Wood debris recycling events set at Russell Road Park to help Kent residents with storm clean up

If Mother Nature’s rampage during last week’s snow and ice storms left your yard with a pile of tree limbs and branches, free disposal is available!  King County Executive Dow Constantine signed an Emergency Declaration making Kent eligible for the service. 

Dumpsters will be available Saturday and Sunday,  February 4 – 5 at Russell Road Park, 24400 Russell Road (across from the golf course), 9 a.m. to 3 p.m.

According to Gina Hungerford, Kent’s Conservation Coordinator, workers will be on hand to assist in unloading the materials. 

“To help speed up the process, we ask that participants please lay a tarp under the material for ease of removal”, Hungerford said. 

This collection is only for wood debris.  Stumps, logs and limbs no longer than six feet in length will be accepted. 

The following will not be accepted:  brush, leaves, grass clippings, sod or soil.  People bringing wood debris are reminded to cover their loads.  Road litter from unsecured loads is not only unattractive, it poses a serious hazard. 

For more information on what to bring to the collection event, visit KentRecycles.com or call 253-856-5549.

SAVE THE DATE: Board Training Seminar

On March 20th, 2012, we will be hosting another board training seminar at the Kent Senior Center at 6:30pm. The seminar will be a mock board meeting and will discuss the roles and duties of board members. Anyone is welcome to join us! For more information, contact Janice at jmccurley@bell-anderson.net.

Community Association Banking Introduces New Payment System

Effective today, we introduced a new HOA payment system. When users visit our website, they can take advantage of many new payment features including:

• The option to schedule payments on a monthly, quarterly, or annual basis.
• The ability to manage payment and property information through their personal homeowner profile.
• Access to transactions for up to 13 months when the homeowner creates a user profile.
• Real time credit card payments (subject to processing fees).

Reminder: Those of you with hyperlinks or coded access to our previous payment service will need to update your information. Please contact us for additional information.

View Our Enhanced Site Today: NEW CAB Online Payments Website

Questions or Comments: Clients of Community Association Banking, please contact your HOA Relationship Manager if you have any questions or comments regarding the new online payment system.

Homeowners can contact Community Association Banking Customer Service at 1(866) 800-4656 or email us at HOA@cabanc.com.

Free Webinar for Community Associations

Collecting Judgments from Seriously Delinquent Owners in Small Claims Court - August 31, 2011 at 10am
Presented by Condominium Law Group, PLLC

Taking a delinquent homeowner to Small Claims Court can be daunting for those who have never experienced it. Join an association board president and an attorney as they walk you through the process of taking a delinquent homeowner to Small Claims Court. Presented by Theresa Torgesen, Condominium Law Group PLLC and Tom Files, Association Board President

Go to https://condolaw.webex.com/condolaw/k2/j.php?ED=156298682&UID=1196860987&HMAC=c544e18391a42fb308e9dcfded4cdb0c16a5f089&RT=MiM0&FM=1 and register.

Once you register for the webinars, you will receive another email confirming your registration. Be sure and keep that email as you will need it to sign into the webinar. If you have questions about registering for this webinar or joining the webinar session on the day of the event, please contact WebEx Technical Support at 866-229-3239.

Your colleagues, boards and homeowners are welcome to participate in our Wednesday webinars. If you can’t participate in our webinars, we always record them for playback later. Just go to www.condolaw.net and click on the Webinar page to view and listen to all of our recorded webinars.

National Night Out

National Night Out is tomorrow night, August 2nd! We are looking forward to visiting with Maple Woods in Maple Lane. If you are hosting an event in your community, we would love it if you shared your photos! You can e-mail them to us at info@bell-anderson.net. Have fun!

Eight Manufacturers Recall Pool and In-Ground Spa Drain Covers Due to Incorrect Ratings

This information was sent to us by Community Associations Underwriters and applies to drain covers installed after 2008 in in-ground spas, wading (kiddie) pools, or pools with only one drain that is not a long channel drain.

Covers Pose Possible Entrapment Hazard to Swimmers

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission, in cooperation with the firms named below, today announced a voluntary recall of the following consumer products. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product.

Name of Product: Pool and spa drain covers

Units: About 1 million

Hazard: The recalled drain covers were incorrectly rated to handle the flow of water through the cover, which could pose a possible entrapment hazard to swimmers and bathers.

Incidents/Injuries: None reported

Description: The recall involves various pool and spa drain covers that can be identified by the manufacturers' name and model information listed below.

Company	Model Information (websites)	Dates Sold	Remedy
A&A	www.aamfg.com	Dec. 2008 - Apr. 2011	Replacement or Retrofit
AquaStar	www.aquastarpoolproducts.com	Dec. 2008 - Apr.2011	Replacement or Retrofit
Color Match	www.poolfittings.com	Dec. 2008 - Apr. 2011	Replacement or Retrofit
Custom Molded Products	www.c-m-p.com	Dec. 2008 - Apr. 2011	Replacement or Retrofit
Hayward Pool Products	www.hayward-pool.com	Dec. 2008 - Apr. 2011	Replacement or Retrofit
Pentair Water Pool & Spa	www.pentairpool.com	June 2009 - Apr. 2011	Replacement or Retrofit
Rising Dragon	www.risingdragonplastics.com	Dec. 2008 - Apr. 2011	Replacement or Retrofit
Waterway	www.waterwayplastics.com	Dec. 2008 - Apr. 2011	Replacement or Retrofit

Sold through: Independent distributors to professional pool and spa builders and installers.

Manufactured in: United States and China

Remedy: Pool owners/operators and consumers who have one of the recalled pool or spa drain covers should immediately contact the manufacturer to receive a replacement or retrofit, depending on their make and model. Except for kiddie pools, wading pools and in-ground spas, retrofit or replacement of installed covers are not required in pools with multiple drain systems or gravity drainage systems or for covers installed before December 19, 2008.

Consumer Contact: For additional information, consumers should contact the Drain Cover Recall Hotline toll-free at (866) 478-3521 any time, or visit the Drain Cover Recall website at www.apsp.org/draincoverrecall. Consumers with drain covers from Waterway Plastics should contact the firm toll-free at (866) 719-6044 from 9 a.m. to 5 p.m. PT, or visit the manufacturer's web site at www.waterwayplastics.com

Another Successful Board Training Event

If you weren’t able to make our training seminar last night, you really missed out! It was sponsored by Mr. Rooter Plumbing of Renton and the Speakers were Kent and Keith with CBI Consulting.

We learned about the importance of getting very specific bid specifications, the necessity for proper inspections and maintenance plans. Who knew that a five dollar price difference on a gallon of paint could affect the life of the painting for more than 5 years?! We, as property managers, are here to guide our boards and give them the best of the best in terms of vendors. These guys are the best! They have been in business for over 30 years, are certified on all levels, use the most up to date equipment, and know what they are doing. If you have any questions or would like more information about the presentation, please contact your property manager.

Also, thank you to Jennifer with Mr. Rooter Plumbing of Renton for providing such great refreshments! Mr. Rooter is also one of our preferred vendors and they don’t charge extra for after-hours emergencies.

Thank you to all the board members who were able to make it to our seminar. We appreciate your involvement.

Reminder: Sign up now for the board training event!

Bell-Anderson and Associates, LLC®, AMO® Presents:

“CBI CONSULTING & CONSTRUCTION MANAGEMENT”

Tuesday, June 7, 2011
6:00 PM to 7:30 PM
Kent Senior Center
600 E. Smith St in Kent

This informational seminar will be very beneficial for your association. CBI is a leading expert in the operational maintenance and repair of building structures. Topics that will be covered include, What to look for and how to conduct site inspections, Preventative Maintenance Plans, the power in having current up-to-date Reserve Studies, and Assistance in writing a Scope of Work in preparation for bidding and then learning how to evaluate bids when they come in.

Snacks and beverages will be provided.

As always, it is our intent to have your most important questions and concerns addressed at this seminar.

Due to limited seating, please R.S.V.P. to your Property Manager by:
Friday, June 3, 2011.

See you there!

Save the Date for June Board Training!

Bell-Anderson and Associates, LLC®, AMO® Presents:

“CBI CONSULTING & CONSTRUCTION MANAGEMENT”

Tuesday, June 7, 2011
6:00 PM to 7:30 PM
Kent Senior Center
600 E. Smith St in Kent

This informational seminar will be very beneficial for your association. CBI is a leading expert in the operational maintenance and repair of building structures. Topics that will be covered include, What to look for and how to conduct site inspections, Preventative Maintenance Plans, the power in having current up-to-date Reserve Studies, and Assistance in writing a Scope of Work in preparation for bidding and then learning how to evaluate bids when they come in.

Snacks and beverages will be provided.

As always, it is our intent to have your most important questions and concerns addressed at this seminar.

Due to limited seating, please R.S.V.P. to your Property Manager by:
Friday, June 3, 2011.

See you there!

9 Ways to Become a Better Board Member Today

by Jean S. Frankel

1. Educate yourself on both your industry and your association. Too many board members don't even know all the programs and services their association offers.
2. Do you homework before meeting. Read the background materials, understand the issues to be discussed and take part in on-line pre-meeting discussions. (Board leaders should also make certain they understand the decisions that need to be made. If you are to lead the dialogue in a decision-making process, you must be clear on what the board actually needs to decide on.)
3. Be an engaged listener. Don’t plan what you're going to say while someone else is speaking; actually listen to what people are saying. Ask questions so you understand all views.
4. Have an open mind. Don’t solidify your opinions before you hear the views of your peers. Be open to all possibilities and don’t tune out what you don’t agree with.
5. Learn and use facilitation skills. Use open-ended questions, rephrasing and other skills to help to draw out ideas. This is very important for all board members, but essential for board leaders. In fact, I believe facilitation is the most underrated board leadership skill of all. Leadership is not just about running the board meeting according to the agenda; it’s about promoting full and rich dialogue, encouraging all board members to contribute, and ensuring that you get the best out of the board as a team.
6. Respect the board’s time. No me toos or trying to restate what the last three people said, just to go on record as having said it. Don’t ask questions that could have been answered by reading the background materials. Don’t engage in side conversations or other disruptive behavior. (Board leaders, your role here is to set reasonable ground rules for dialogue that the whole board can agree to. Once the rules are established, any board member should feel comfortable speaking up when the board steps outside those parameters.)
7. Respect board decisions and be a full participant. Don’t be silent during discussions and then share your real views later in the hallways; support all decisions of the board publicly.
8. Lead change and don’t resist it. Ask tough but non-confrontational questions: Seek out all voices, both supporters and detractors (this is a critical role for board leaders to play.) Build relationships and trust across the organization. Help your board, staff and membership to be ready for change in your industry and your association.
9. Challenge yourself and grow as a leader. Seek out professional development opportunities to further your leadership skills. Mentor new board members and prospective ones. Share your experiences and insights. Board leaders who are ambassadors for the experience of association leadership can ensure their associations have an ample pipeline of qualified, enthusiastic future leaders.

Ultimately the choices are yours. What kind of board member do you want to be? What kind of relationships do you want to build? What kind of impact do you want to have? What kind of difference do you want to make?

Reprinted with permission; Jean S. Frankel is President of Ideas for Action, LLC, Boca Raton, Florida. Email: jsfrankel@ideasforaction.com

Small Claims Court - One Association's Experience

By: Yvonne Thompson, Applewood Condominiums

A Board member in an association Bell-Anderson manages wrote this great article for our Newsletter. The Association has been successful once in Small Claims Court and will very likely be successful again. This article shows to other struggling Boards that there is a way to collect a prior debt without paying out to an attorney.

Here is what happened:

1. The Board reviewed the account and decided to pursue the delinquency in small claims court. The maximum amount that can be claimed in small claims court is $5,000.00.

2. I visited the county website to get information on the small claims process and downloaded the required packet. The forms are located on the right-hand side of the page in PDF format at: http://www.kingcounty.gov/courts/DistrictCourt/SmallClaims.aspx

3. I completed the required form (be sure to check with Bell-Anderson for the delinquent amount owed and name/address information on file.) After completing the form, I visited the courthouse on 4th in Kent to file. The filing fee is $35.00. Once filed, you are given the small claims form back with a court date and receipt. You will also receive a duplicate copy of the form that must be served upon the delinquent party. Both forms are forwarded to Bell-Anderson; however I also made copies for the court date.

4. Bell-Anderson serves the delinquent party via certified mail or you may hire someone to physically serve them. You must be sure the party is served a minimum of ten days prior to the court date. At this point, you may need to hire an investigator to locate the delinquent party, especially if they have already vacated the property (as in a lender foreclosure.)

5. In preparation for court, Bell-Anderson forwarded all required documentation via email attachment to me. I printed it and took it with me on the court date as evidence of our claim. Bell-Anderson also provided the original postmarked certified return receipt to take to court as proof of service.

6. The trial took place in Renton. The court offered an "out of court" mediator service to try to negotiate/satisfy the delinquency prior to going through with the trial. If the association plaintiff decides to move forward with the trial then you will appear before the judge when called and provide all documentation for the claim. In our case, the delinquent party (defendant) appeared and the judge granted a judgment against them in our favor. Note: Be sure an actual Board member, preferably the Board President, goes to court because the plaintiff must have authority to represent the association or the case will be thrown out.

7. The defendant has 30 days to pay the judgment plus interest to Bell-Anderson on the association’s behalf. If the defendant fails to pay the judgment, Bell-Anderson and our attorney will pursue a garnishment against the defendant.

8. If the defendant fails to pay within the allotted 30 days, a Board member must re-visit the courthouse to have the judgment transferred to a civil docket for a $20.00 filing fee and forward the receipt to Bell-Anderson who will advise the attorney so they can initiate garnishment proceedings.

The Carrot Approach to Collecting Assessments

Courtesy of Valerie Farris Oman, Attorney with Condominium Law Group, PLLC

Association attorneys can talk all day long about the “stick” approach to collecting delinquent assessments, because that’s what we do – we get involved after a delinquency already exists. However, the “carrot” approach to collecting assessments – essentially preventing or at least reducing delinquencies – is equally important and can save associations a lot of time and money spent trying to collect delinquent dues.

The first way an association can adopt the carrot approach is to educate and inform your owners about the reasons behind a particular budget decision. Are you raising the dues? Educate your owners as to why. Considering a special assessment? Hold an association meeting to discuss the reasons for the special assessment with your owners. Well-informed owners are far more likely to pay both regular and special assessments than owners who feel like they are being “taken for a ride.”

The next piece of the carrot approach is to make paying assessments as easy as possible for your owners. Some ideas include:
Have the option of automatic withdrawal for monthly dues;
Have a drop box on the property where owners can put their monthly payments;
Use payment coupons so owners have a concrete reminder they can see.

Next, consider somewhat unusual strategies that encourage payment and even pre-payment of dues. For example, at your annual budget meeting, discuss the idea of offering prepayment incentives, such that owners who prepay their dues for a year in advance can receive a “rebate” or “discount” of 5%. Or, offer prizes for on-time payment of dues or for pre-payment. You might purchase raffle prizes and give all owners who pay that month’s dues on time the opportunity to win a prize. A more valuable prize, such as a free round-trip plane ticket or a free annual gym membership might be a tantalizing incentive for owners who can pre-pay their dues a year in advance.

Finally, consider offering “amnesty” from penalties under certain circumstances to reduce a high delinquency rate. An association with 200 units with a 25% delinquency rate, for example, might offer that for a period of 60 days, all delinquent owners who pay their accounts in full may receive a one-time forgiveness of all accrued late fees and interest charges. We have heard of at least one association that successfully reduced their delinquency rate as a direct result of an “amnesty” program.

Collecting assessments on time is (Captain Obvious alert!) much easier than collecting delinquent assessments. Associations should employ all strategies available to them to educate owners and make paying assessments easy and convenient.

If you have any questions we can answer, please feel free to leave a comment on the Condo Law Group Blog or contact us directly.

Letter to the Lakes at Kent Regarding Flood Levies

Reprinted with permission from the City of Kent.

July 14, 2010
Dear Lakes Community Resident:

The City of Kent has been working with the U.S. Army Corps of Engineers and the King County Flood Control District on rebuilding the Green River levees in Kent. We have successfully partnered with these agencies to repair two significant levees in the last two years. One, the Riverbend Golf Course Levee, protects the Lakes Community.

Another levee that we planned to rebuild with the Corps is the Upper Russell Road Levee (URRL). It is the north extension of the Golf Course Levee and is located along the west side of the Lakes Community. The URRL project was included in the federal Green Duwamish Ecosystem Restoration Program, which has restoration of fish and wildlife habitat as its primary objective. A major challenge in funding the URRL through the federal program has been planning and designing the project to meet the program’s wildlife habitat objective while also complying with federal levee safety standards.

The federal levee safety standards require the areas around the levee to be devoid of all vegetation except grass, while habitat restoration goals include the placement of large numbers of native trees and plantings. The types of rock and soil materials built into the levee also differ between levee safety standards and ecosystem restoration goals. These design challenges are being dealt with nationwide, but have an immediate real impact here in Kent to our public safety, economic stability and environmental health.

The City is working with the Corps to resolve the conflict. However, the federal funding that was in place for the Ecosystem Restoration Project required the URRL to be under construction by the end of September, 2010. Due to the inability to resolve the vegetation conflict prior to that deadline, the Corps has returned the project funding to its headquarters, and new funding will need to be acquired to restart this project as a partnership.

Due to these developments, while we intend to keep working with the Corps, the City is now planning and designing its own project to repair this levee to federally certifiable standards. I want to assure you that the City’s flood protection is of the highest priority, and we will continue to pursue every avenue to improve your protection. We will keep you apprised of any new developments through your Neighborhood Council.

Questions or comments? Please direct questions or comments to Patricia Graesser, Public Information Officer at the U.S. Army Corps of Engineers:
206-764-3760 or email patricia.graesser@us.army.mil

For questions about the City’s planned levee improvements, feel free to contact Mike Mactutis, Environmental Engineering Manager:
253-856-5520 or email mmactutis@ci.kent.wa.us

Sincerely,

Suzette Cooke
Mayor