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Can homeowners associations fine me for violations?

May 8, 2016 By Tayson Rockefeller Leave a Comment

Homeowners association (HOA) violations have been a Hot Topic lately. Whether it’s the HOA acting outside of their authority based on interpretation of the development bylaws or restrictions, or imposing unreasonable fines for violations.

In 2014, Idaho legislators reported numerous complaints of homeowners associations providing unreasonable notice or demands or even fines for non-compliance of the HOA guidelines. There were circumstances in which subcontractors were hired to remedy issues or violations, and even though the HOA contracted with the subcontractor, bills were sent directly to the property owners.

To combat these scenarios and to protect homeowners, the legislatures set requirements in place to require procedures for homeowners associations to follow when working with violations.

During my continuing education course on the topic I was able to obtain information from the Senate Bill, provided by the course instructor at the Idaho real estate school.

That bill number 1310 from the Senate states:

(2) No fine may be imposed for a violation of the covenants and restrictions pursuant to the rules or regulations of the homeowner’s association unless the authority to impose a fine is clearly set forth in the covenants and restrictions and:

(a) A majority vote by the board shall be required prior to imposing any fine on a member for a violation of any covenants and restrictions pursuant to the rules and regulations of the homeowner’s association.

(b) Written notice by personal service or certified mail of the meeting during which such vote is to be taken shall be made to the member at least thirty (30) days prior to the meeting.

(c) In the event the member begins resolving the violation prior to the meeting, no fine shall be imposed so long as the member continues to address the violation in good faith until fully resolved.

(d) No portion of any fine may be used to increase the remuneration of any board member or agent of the board.

This bill is relatively straightforward, my interpretation is simple. You cannot impose a fine as an HOA unless authority to do so is set forth in the Covenants. Then, a majority vote by the HOA board is required prior to imposing any fine. A written notice of the above vote must be delivered with 30 days notice to the homeowner. In the event that homeowner even begin resolving the violation, notifying can be imposed as long as the homeowner continues to address the problem until it is resolved.

Increasing Rental Rates, Will it Stop?

January 17, 2016 By Tayson Rockefeller Leave a Comment

Increasing Rent Rates, will it stop?

As most of us know, we are seeing major recovery in the real estate and rental market. Note I said recovery, not inflation – yet. Generally speaking, we are recovered to about 2005 levels. Not yet height of the market “boom” prices, but we are still recovering. There is quite a bit of buzz regarding new construction, homes to be built on spec, and even rental complex/apartment construction – mostly based on the assumption that the market will continue to grow and improve (hence the “spec” or “speculation”)
As we know, the key driving factor is demand. The availability of homes for sale in the affordable price range is minimal, and rental supply even worse. With that said, I agree that there is a fairly safe bet for investment potential.
The above said leads me to predictions for the question. My response is – I hope that is slows, or better yet, quickly recovers to reasonable degree, levels off, and stays on par with inflation. We need to remember that there is a fine balance between a return on an investment, and real world effects. The result of too much supply too quickly coupled with National ecenomic factors (which will always be in play) is still all too fresh in my mind. We must also remember who we are in Teton Valley. I believe we will always be the “quiet side of the Tetons” a family oriented community supported by our own tourism, and proximity to Jackson and Idaho Falls. We cannot directly compete with Jackson, and we should not. We have a niche here with semi-resort real estate prices that is still an attractive place for an investor, and/or a resident.
In my opinion, we are competing for a population and commerce, but more so with areas like Alpine, WY or Rexburg, ID. If prices here become unobtainable for most (such as Jackson) the vast majority of those who support us will not be able to afford to live here. This is particularly true with rental rates. In times where supply is dangerously low, the sky’s the limit. This is a perfect opportunity for investors and owners to take advantage of the market – as they should. However, I do caution our community. We need to remember that we must work together to support each other. We still have shoulder seasons. If the cost of living becomes too high for a meal, a service, or a rental, our community will look for alternatives they can afford.
So, here’s to continued growth, recovery, and profitability – in responsible, high quality, Teton Valley Style!

CC&R’s, what you need to know

December 1, 2015 By Tayson Rockefeller Leave a Comment

CC&R’s, short for covenants, conditions, and restrictions are basically written and recorded rules of the neighborhood or subdivision. It’s important that these rules be recorded to make them binding and enforceable. They should also conform to all laws as well as local government regulations and requirements. When it comes down to a dispute with a lot or homeowner, it’s important for the subdivision to have CC&R’s that have been written and recorded correctly.

The purpose for these restrictions is to ensure conformity in a subdivision. Most of the rules are just long winded ways of saying that you have to keep your lawn mowed and weed free. Some developments have stricter rules than others. Some require certain design aspects when constructing a new home, where you can and can’t park a trailer, and so on. For the most part however, the rules are considered to be for the good of the neighborhood.

When working with Buyers, I often have requests to spefically look at lots without these restrictions. Sometimes it’s only because they want to build a house smaller than what they assume most developments would allow. However, based on that example, there are a number of developments that require a minimum of only 900 square feet, which is pretty minimal. Some developments are even along Ski Hill Road surprisingly. When searching for a home or a piece of land based on your special needs prohibited by most restrictions, it’s important to remember that all CC&R’s are not the same. Some are only a few pages long, with very few restrictions. All of the above considered, don’t rule out being in a subdivision if you can help it. Consult with your agent, most experienced agents have an understanding of the general rules in each development. Another way to explore subdivision opportunities is to take a drive around the development. Usually, if all of the homes have trailers on the side of the house or in the driveway, trailers are allowed. If all of the homes have metal roofs, you might find out if a comp shingle roof can be used. Use caution however, this is not a guaranteed way of understanding what is or isn’t allowed.

You might ask yourself how or who to contact with some of these questions. Our brokerage can usually get you an electronic copy of the CC&Rs for free, any time. If we have it on file, we can also send you contact information for the homeowner’s association (HOA) who would ultimately be responsible for enforcing the restrictions.

To conclude, be advised that CC&R’s are not the only way to restrict uses or enforce rules with a property. Even a piece of land or a home that is not located within a subdivision can still carry deed restrictions which works similarly, though I will cover those in another Ask The Expert” column!

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