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.

Dishwashers recalled due to fire hazard

from The Seattle Times Website

More than a million GE dishwashers are being recalled due to fire hazard.

The Consumer Product Safety Commission said Thursday the voluntary recall includes about 1.3 million GE, GE Adora, GE Eterna, GE Profile and Hotpoint dishwashers. The machines' heating elements can fail and cause fires. GE has received seven reports of fires, three of which caused extensive property damage. No injuries have been reported.

The dishwashers were sold nationwide from March 2006 through August 2009 for $350 to $850. They came in black, white, bisque, stainless steel and CleanSteel colors and finishes.

The government said people should stop using the dishwashers and immediately disconnect the electric supply by shutting off the fuse or circuit breaker. The government said not to return recalled dishwashers to stores where they were purchased but that GE will provide free repairs or rebates toward new dishwashers.
In a speech Thursday at the National Press Club, CPSC chairwoman Inez Tenenbaum urged people to respond right away.

"My message to consumers is to immediately stop using these recalled dishwashers and disconnect the power supply to the unit," Tenenbaum said.

Tenenbaum credited a new consumer safety law with making people safer. The 2008 law and its implementation have "created one of the strongest product safety systems in the world."

For more information on the dishwasher recall, people can contact GE at (866) 918-8760 or visit GE's website at http://www.geappliances.com/recall.

Source: http://seattletimes.nwsource.com/html/politics/2018882175_apusdishwasherrecall.html

Giant sandbags along Green River levees are coming down

Source:  http://www.ci.kent.wa.us/content.aspx?id=21572

KENT, Wash. – June 27, 2012 – After nearly three years, removal of the giant sandbags from the Green River levees will begin in mid July. 

AGR Contracting, Inc. of Monroe, Washington won the contract after submitting the lowest bid of just under $900,000 to remove the nearly 20,000 bags, each weighing one and a half tons.

The bags were placed along 12 miles of Kent’s levees to protect the community after the 2009 announcement by the U.S. Army Corps of Engineers that severe flooding was possible due to a damaged Howard Hanson Dam embankment.

“Finally we will have our Green River Trail back,” said Kent Mayor Suzette Cooke.  “We all want to see these sandbags removed as fast as possible.  Now that the Dam is operating at full capacity, getting them down is a top priority.  I will be so glad to see Kent stop looking like a war zone.”

According to Kelly Peterson, the city’s manager of the project, the first bags to be removed will be between S. 200th and S. 212th Streets and a portion of the Horseshoe Bend Levee.  “The bags in these areas are being removed first to make way for other levee improvements currently underway.”

“After these areas are cleared, the contractor will remove the remaining bags in the most efficient and cost-effective manner,” Peterson said. 

Peterson said the goal is to have all bags removed by the end of September.  “It may take longer, however, to fully open the Green River Trail if the sandbags caused damage that needs repair, but once the bags are gone, we can make that assessment.”

Since the Corps’ announcement last September that repairs had been completed at the Dam, the city received numerous suggestions from residents about how to use or dispose of the sandbags. 

According to Peterson, the material inside is low grade fill, and is not marketable as premium sand. It isn’t suitable for sanding streets, gardens, sandboxes, or constructing sidewalks and patios.

“Because of the weight of the bags, they can only be loaded into dump trucks with heavy equipment such as an excavator. Using the wrong equipment could damage the thin asphalt trail, or the levees themselves,” Peterson said.  “We also need to be mindful of the location of these bags.  Accidentally breaking or spilling them into the river could violate state and federal laws, causing even more expensive cleanup costs and potential lawsuits for damaging endangered fish habitat.” 

The King County Flood Control Zone District will pay for the project cost through delaying other levee projects along the Green River.

AGR Contracting, Inc. will deliver the fill material to Cedar Grove Composting, who will evaluate the material for its best use in their operations.

Peterson said the Green River Trail will reopen for full use when all the work is completed, though some segments may open sooner.  “While we don’t anticipate any road closures during this project, we ask the community for patience as this work gets underway.  We want to restore the Trail for full use as soon as possible.” 

Contact:
Michelle Wilmot, Community & Public Affairs
253-856-5709
mwilmot@kentwa.gov

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.

Why Renters Rule U.S. Housing Market

Check out this article re-posted from Bloomburg about some factors affecting the rental housing market. Written by A. Gary Shilling.

http://www.bloomberg.com/news/2012-02-22/why-renters-rule-u-s-housing-market-part-1-a-gary-shilling.html

"...It also means the addition of 3.9 million new renters, or 780,000 per year. This doesn’t suggest that we are becoming a nation of renters. Instead, it reflects the elimination of the widely held belief that house prices always rise and the end of loose lending practices that drove the homeownership rate to its 2004 peak."

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

Troubled Home Market Creates Generation of Renters

Source: http://news.yahoo.com/s/ap/20110524/ap_on_bi_ge/us_the_new_renters
By DEREK KRAVITZ AP Real Estate Writer
WASHINGTON May 24, 2011 (AP)

A growing number of Americans can't afford a home or don't want to own one, a trend that's spawning a generation of renters and a rise in apartment construction.

Many of the new renters are former owners who lost homes to foreclosure or bankruptcy. For others who could afford one, a home now feels too costly, too risky or unlikely to appreciate enough to make it a worthwhile investment.

The proportion of U.S. households that own homes is at its lowest point since 1998. When the housing bubble burst four years ago, 31.6 percent of households were renters. Now, it's at 33.6 percent and rising. Since the housing meltdown, nearly 3 million households have become renters. At least 3 million more are expected by 2015, according to census data analyzed by Harvard's Joint Center for Housing Studies and The Associated Press.

All told, nearly 38 million households are renters.

Among the signs of a rising rental market:
— The pace of apartment construction has surged 115 percent from its October 2009 low. It's still well below a healthy level. But permits for apartments, a gauge of future construction, hit a two-year peak in March. By contrast, permits for single-family home are on pace for their lowest annual level on records dating to 1960.
— The number of completed apartments averaged about 250,000 a year before the boom. They fell to 54,000 last year and will probably number around the same this year. But then the number will likely double to about 100,000 in 2012 and hit 250,000 by 2013 or 2014, according to the CoStar Group, a research firm. The lag is due to the time it takes for an apartment building to be completed: an average of 14 months.
— Demand is driving up rents. The median price of advertised rents rose 4.1 percent between the end of 2009 and the end of 2010, census data shows. Few expect the higher prices to stem the flood of renters, though. One reason: Younger adults don't value homeownership as earlier generations did and many prefer to rent, studies show.
— Rental housing is giving builders more work just as construction of single-family homes has dried up. Still, that economic lift won't make up for all the single-family houses not being built. Apartments account for only about one-fourth of homes. And renters are outspent roughly 2-to-1 by homeowners, who pay for items from lawn care to remodeling and help drive the economy.

Before the housing bust, mortgage rates were so low it was often cheaper to buy than rent. That was true a decade ago in more than half the 54 biggest metro areas, according to Moody's Analytics. Today, by contrast, it's cheaper to rent in about 72 percent of metro areas.

Consider Mason Hamilton, 26, an energy consultant who rents an apartment with his wife for $1,100 a month in Alexandria, Va., outside Washington. He'd like something bigger. But he says he doesn't plan to buy even though he could afford to.

"My parents always told me, 'You need to buy a place; you need to buy property,'" he says. "But the housing market is insane."

Many younger Americans see owning as risky. It hardly seems the best way to build wealth, especially when prices are falling.

"There's been this idea for years, a part of the American dream, that owning a home improves and strengthens communities," said John McIlwain, a senior fellow at the nonprofit Urban Land Institute. "But what we've learned over the past few years is that many people simply are not ready to own a home."

From the 1940s until 2007, homes appreciated an average of nearly 5 percent a year, adjusted for inflation. In the past four years, the median price of a single-family home has sunk 37 percent, by $57,500, to its lowest since 2002. Yet in some areas, owning is still too expensive for many.

"It's becoming so difficult for most Americans to afford a home, with larger down payments and tighter credit, that it is creating a renter's nation," says Robert Shiller, a Yale economist and co-creator of the Case-Shiller home price index. "The home is no longer an investment; it's a burden."

Homeownership bestows its own financial advantages, of course. Each loan payment builds equity. Loan interest and property taxes provide tax deductions. And in normal housing markets, home values rise over time.

But for now, renting is more attractive. Hamilton, the energy consultant, says his father, a 58-year-old teacher in Richmond, Va., still owes nearly as much on his mortgage as his house is worth.

"He's stuck in that house," Hamilton says. "After telling me to buy for all of those years, he'd love to rent like me."

Reminders from City of Kent

Thank you to Sara Wood with the City of Kent for these important reminders!

"We are hearing more and more instances of random people knocking on doors’ of homes during daylight hours. When the resident answers, these individuals ask a random or strange question or make some sort of excuse as to why they are at the door. This behavior is typical of “casing” homes to burglarize and these individuals are looking to see if anyone is home or not. Please report this by calling 911 and if you have a Block Watch, notify your neighbors of incidents that occur. If you happen to identify a car they are associated with, please report that and include the license plate number!

The weather is getting warmer and I just have to do my usual reminder about left open doors and windows. If you have your windows and doors open and they are not in line of sight of where you are, or you leave your house, or you go to bed, please double check that windows and doors have been locked. We start to see residential burglars gain access to homes by a left open window or door around this time of year when the sun actually decides to make an appearance."

Keeping Properties Safe Over the Holidays

Courtesy of Mary Girsch-Bock on propertymanager.com

We all know that November and December are the busiest months of the year for travel. That means that while your residents are enjoying their holidays, their apartment or home will likely be empty. While most residents are responsible and take proper precautions when traveling, is there anything property managers can do to ensure that the property remains safe when the resident is traveling during the holidays?

While you can’t police the property 24/7, you can provide some guidance to your residents on keeping their apartment or home safe while traveling. You may want to consider providing a sheet containing tips and suggestions for keeping their home safe. This sheet can be provided to your resident upon move-in, as a handy reference guide. While you may have your own suggestions specific to your properties, you should suggest the following to your residents:

* Be sure to leave a light on, preferably on a timer. Studies have shown that 90% of burglars target homes that are dark.
* Stop newspaper delivery. A pile of newspapers on the doorstep or in the driveway is a giveaway to the observant burglar that no one is home.
* Those living in multi-unit housing should consider notifying the resident manager that they’ll be traveling. This way, staff can keep an eye out for suspicious activity.
* Close and lock windows and garage doors. Burglars consider garage doors the weakest point of entry into any home. Back or side windows are also considered a prime point of entry because they are often hidden from street view.

While the possibility of a home burglary is a valid concern for travelers, it’s certainly not the only concern. It’s also important that residents remember to check and double check that all appliances (coffee maker, oven, curling iron) are unplugged. Residents may find it helpful to create a checklist and walk through the house, checking off each item on the list. This way they won’t find themselves trying to remember if they turned off the oven when they’re thousands of miles from home.

Nothing (short of armed guards) can guarantee that your resident’s home or apartment will be safe from burglars or 100% protected against fires. But taking some basic precautions will ease both the residents mind…and yours as well. Providing your residents with these simple suggestions can prove helpful, while keeping the property that you’re responsible for safe and intact.

Help is on the way; stay prepared this flood season!

September 3, 2010

Dear Floodplain Property Owner,

I’m pleased to share good news with you – President Obama recently signed legislation that funds improvements to strengthen the Howard Hanson Dam, reducing the risk of flooding to the Green River Valley. The funding allows the dam’s operator, the U.S. Army Corps of Engineers, to complete repairs by the 2011/2012 flood season. Once these measures are in place, the Corps believes that the dam could be operated at full flood-control capacity for decades.

Storms in January 2009 weakened the dam, causing the Corps to restrict the water level in the reservoir behind the dam and increasing the risk of flooding in the valley. Given the significant public safety and economic threat that a weakened Howard Hanson Dam would cause, the King County Flood Control District, along with the Corps, Governor Gregoire, King County and valley city elected officials, quickly came together to prepare for the potential impacts of flooding and to advocate for emergency repairs.

Our local congressional delegation responded and we are very appreciative of their efforts to secure the necessary funds to provide additional repairs. The repairs will provide critically needed protection and time for the Corps to evaluate whether additional long-term repairs are necessary. We must all continue to be diligent to protect the people, businesses and infrastructure of the Green River Valley and to minimize devastating economic impacts from potential floods.

What does this mean for you?

While last year’s temporary improvements were successful at lowering the risk of flooding in the Green River Valley, the dam will continue to operate at a limited capacity during the upcoming 2010/2011 flood season. Therefore there is still a heightened risk of flooding. It is important for you to get ready and stay ready.

• Buy flood insurance, if you have not already done so;
• Establish or update an emergency plan for your family, business, pets or livestock; and
• Have emergency supplies on hand.

Please help us spread the word about the continued risk of flooding during the 2010/2011 flood season and the importance of being prepared. Share this information with your family, neighbors, friends and coworkers.

For more flood preparedness information, please go to www.kingcounty.gov/floodplans. If you have questions or comments please contact info@kingcountyfloodcontrol.org. For information about the King County Flood Control District please go to www.kingcountyfloodcontrol.org.

Sincerely,

Julia Patterson, Chair
Board of Supervisors
King County Flood Control District


The King County Flood Control District is a special purpose government created to provide funding and policy oversight for flood protection projects and programs in King County. The Flood Control District’s Board is composed of the members of the King County Council. The Water and Land Resources Division of the King County Department of Natural Resources and Parks develops and implements the approved flood protection projects and programs. Information is available at www.kingcountyfloodcontrol.org.

EPA Delays Lead Certification Requirement

On Friday, June 18th, the Environmental Protection Agency (EPA) announced that it will provide additional time for contractors to become trained and certified under the new Lead Renovation, Repair and Painting (RRP) Rule. They have moved the deadline back to October 1st and will make exceptions regarding enforcement for workers who have applied to enroll or are enrolled in courses as of September 30th. Although it has delayed the certification deadline, the EPA will continue to enforce the work practice requirements set forth in the rule.

This announcement is a result of trade groups and elected officials voicing concern that contractors did not have proper access to the necessary certification courses. Contractors working on the pre-1978 target housing were originally required to be certified by April 22nd of this year.

For more information please visit the NARPM® webpage dedicated to the new lead based paint rules. There you will find helpful links to websites and important documents. Local and state governments have also started working on additional laws regarding lead-based paint. Please be sure you are monitoring updates from your local and state chapters of NARPM® to ensure compliance with all necessary laws regarding lead-based paint and residential property management.

This information is courtesy of NARPM®. For more information including contact information, Click Here.

Fannie Mae: "Deed for Lease" Program Announced

I thought this was an interesting piece of news. Thanks go to NARPM for the heads up:

Source: http://www.fanniemae.com/newsreleases/2009/4844.jhtml?p=Media&s=News+Releases

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) is implementing the Deed for Lease™ Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."

The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.

For additional information about the Deed for Lease Program, including full details on program eligibility, please review the Guide Announcement on www.efanniemae.com.