HOA disputes can disrupt community harmony, especially if the board doesn’t resolve them as soon as possible. When mediating, directors need to ensure they do so fairly and consistently with applicable laws and governing documents.
What are HOA Disputes?
Disagreements among members of an HOA community can be considered HOA disputes. These may happen between residents or between a homeowner and the board.
Typically, HOA disputes would involve a breach of HOA guidelines or someone violating another homeowner’s rights. Other times, it may happen due to a simple misunderstanding.
If the association lets these problems stay unresolved, they may escalate and become tougher to deal with later on. To avoid this, the board must have a clear process and timeline when reviewing disputes.
Common HOA Issues That Lead to Disputes
Many HOA disputes arise because residents and board members have different expectations about the rules. Here are some common issues they may have that could lead to disagreements.
Rule Violations
The most common source of HOA disputes between residents and the HOA is rule violations. Usually, these violations meant that one party had infringed on another homeowner’s rights. Some common examples include disputes over parking, trash and sanitation, pets, and disruptions.
When this happens, boards should know to implement rules fairly and avoid selective enforcement. When trying to resolve the case, the HOA should send notices to the violating party about the breach and let them know which rule was involved. Of course, the board should also provide the resident a chance to rectify the issue.
Assessments and Fees
Assessments and fees are among the most common causes of disputes between residents and the HOA. After all, this involves the residents’ money.
Usually, issues arise when residents feel that an increase or a special assessment was imposed without sufficient notice or warning. Other times, homeowners may question the justification for increases or levies.
To resolve, or even prevent, this type of issue in the first place, your HOA should remain transparent. It needs to have accurate, complete financial records that homeowners can access and review themselves.
Maintenance Responsibilities
Disagreements about HOA upkeep usually stem from unclear maintenance responsibilities. For this, HOAs would need to clarify homeowners’ responsibilities and what the HOAs cover.
When clarifying, make sure to double-check if the information you are giving is accurate. Giving information that you only assumed would lead to bigger conflicts later on.
HOA Responsibility for Neighbor Disputes
Many factors can lead to HOA disputes between neighbors, and they can be tough to resolve. Usually, handling such a problem would involve more personal tensions between residents.
When your community faces this, the board should make a point of not taking sides. Instead, they should enforce rules fairly and in accordance with what is written.
When Should HOAs Step In?
The HOA’s responsibility for neighbor disputes usually arises when a rule is violated. It may also start if the entire community is affected, especially when safety concerns and HOA property damage are involved.
However, do take note that the board is not responsible for every personal disagreement in the community. If the clash between neighbors is purely private, then the association should not step in. Instead, they can suggest mediation with local authorities or with legal advice.
How to Handle HOA Dispute Concerns
As part of maintaining order in a planned community, HOAs should know how to handle HOA disputes. Board members should not ignore complaints filed with the HOA, but they should also avoid rushing to impose penalties right off the bat.
Here’s how HOAs should handle dispute concerns:
Start With Casual Communications
Some HOA disputes, especially those stemming from misunderstandings, can be easily resolved with a simple, casual conversation. For this, the association may send a board member or manager to explain the rules to the resident. They should also encourage these residents to ask questions and talk freely with the representatives to clarify regulations.
While this seems more informal, the HOA board should still keep a record of the incident. This provides a reference if things escalate.
Send a Clear Written Notice
If a casual conversation doesn’t solve the problem, the board should start formal dispute resolution procedures. Usually, this starts by sending the resident a written notice about the issue. It should identify the scenario and reference the problem at hand. It should also mention what needs to change, a timeline, and a deadline for any corrections required.
When creating this notice, remember to keep the tone firm but professional and not hostile. Doing the latter can make the resident more agitated, possibly worsening the situation.
Offer a Hearing or Meeting
Usually, your HOA’s governing documents and state laws require a hearing or meeting if the resident fails to correct the issue. These should be done before the HOA even imposes fines and other penalties on the resident.
In cases when these are not required, boards should still offer to have one, as it may help all parties involved to understand each other.
HOA Dispute Resolution Options
HOA dispute resolution shouldn’t really jump straight to lawsuits. Instead, the association should first consider the seriousness of the situation. Here are some dispute resolution options you can try:
Mediation
One way to resolve disputes is to seek out mediation, usually involving a neutral third party. The mediating party doesn’t really decide who’s right or wrong in the case. However, they can help everyone involved reach a solution. Having a mediator also gives all sides greater control over the outcome.
Internal Appeals
Some HOAs allow residents to appeal fines or enforcement decisions in disputes. If your HOA has this, the board will have the opportunity to review and recheck the original decision and the applicable rules.
When creating an appeals process, remember to include a specific timeline. It should also have written procedures and proper standards to keep the process organized.
Legal Action
Legal action should be the last resort, but it may become necessary if a resident refuses to comply. It may also be needed for more serious violations, such as extensive damage to HOA properties and breaches of contract.
However, do remember that legal mediation would take a lot of time and cost a lot of money.
If the board plans to file a lawsuit, it should first consult the association’s legal counsel. Additionally, this step should only be done after following all other protocols and requirements for dispute resolution.
Maintaining Order
HOA disputes should be handled promptly, but they should be handled with fairness and patience. Having a proper set of procedures would also help HOA boards easily handle issues in the community and prevent them from getting any bigger.
CWD Group offers management services to community associations in Oregon and Washington. Call us today at 503-488-2008 or contact us online to learn more!
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