Don't Rain on Owners' Patriotic Parade

Most Community Association governing documents prohibit exterior modifications, including the placement of banners, flags, and signs. However, as pointed out in Chapter 1 of Kaman & Cusimano LLC's booklet, "A Guide for Board Members," there is a hierarchy of laws and in several instances there are federal and state laws that supersede and overrule Community Association declarations.

One such instance is the placement of the American flag. Ohio Revised Code Section 5311.191 states that:

"No declaration, bylaw, rule, regulation, or agreement of a condominium property or construction of any of these items by the board of managers of its unit owners association shall prohibit the placement of a flagpole that is to be used for the purpose of displaying, or shall prohibit the display of, the flag of the United States on or within the limited common areas and facilities of a unit owner or on the immediately adjacent exterior of the building in which the unit of a unit owner is located."

Community Association boards would be well advised to liberally allow signs of patriotism during our nation's 4th of July celebration. I recommend that boards not only permit American flags, but also flags of our armed forces, blue star banners, and/or any other reasonable, patriotic displays.

Wall Street Journal Reports on Possible Changes to Condo Loans

In today’s Wall Street Journal, there is a report that two Congressmen are calling on Fannie Mae and Freddie Mac “to relax recently tightened standards for mortgages on new condominiums, saying they could threaten the viability of some developments and slow the housing market recovery.”

Freddie Mac and Fannie May will no longer guarantee mortgage loans to new certain new construction condominium projects, where greater than 15% of owners are delinquent, or where one owner owns more than 10% of units. These lawmakers hope to relax these new regulations. However, until that happens, there are a few things associations can do to ensure that potential buyers can still get a loan for their unit. First, boards should continue to implement and enforce a strong collections policy to keep delinquencies low. This was a main topic at the recent Financial Crisis seminar presented in April by Kaman & Cusimano, LLC. While keeping delinquencies low in a difficult market can often be challenging, the alternative could be catastrophic for the community. Second, boards often ask if they should consider reversing a no leasing amendment to the Condominium Declaration. Absent critical and unique circumstances, our answer continues to be no.

By doing these things, an association can successfully navigate through the Fannie Mae and Freddie Mac regulations so that potential owners may still get financing for their units.

The Wall Street Journal article is available online on a free basis for a limited time here:

http://online.wsj.com/article/SB124562533240635581.html

1500+ Board Members Attend Financial Crisis Seminar

The desire of volunteer board members to benefit community associations continues to amaze and impress. In April, over 1500 board members attended Kaman & Cusimano, LLC's spring seminar series entitled "The Financial Crisis - What Every Board Member Needs to Know." This seminar detailed ways for a board to manage the financial crisis and not let the financial crisis manage the board. Topics covered included a new investment tool known as "CDARS," FHA lending requirements and their impact on community associations, creative funding sources for community associations such as loans and donations, and successful collection techniques and policies.

Community Association board members from all over the state of Ohio all share the common goal of financial stability and posses the drive to make that goal a reality. Through education, planning, hard work, and diligence, there is no doubt that Ohio's condominium and homeowner associations will emerge from this crisis in a stronger fiscal position that they were before. Thank you, board members, for all of your time and hard work to make these goals a reality.

"Super Lien" Status Update

As a result of our seminars and newsletters, over 130 individuals have come forward to volunteer to help get “Super Lien” legislation enacted in Ohio. As many of you already know, condominium and homeowner associations throughout Ohio struggle to pay for necessary services. That struggle gets even worse when you and your neighbors are forced to make up for the loss of funds when a fellow homeowner is delinquent. “Super Lien” legislation would help to protect community associations in the event of a foreclosure. “Super Lien” legislation will safeguard the solvency of community associations throughout Ohio so that they may continue to provide maintenance, services, and property preservation that all owners deserve.

We are in the process of asking some volunteers to make contact with the representatives they know in an attempt to get this legislation introduced. The process of introducing legislation often takes several months. As soon as it is introduced, well will provide another status report on this blog and provide a link to the pending legislation. We will then begin a grassroots lobbying campaign. At that point, we will ask everyone to call, write, or email as many senators or representatives as possible. The Ohio General Assembly needs to be informed that a “Super Lien” is integral to the continued well-being of Ohio’s community associations.

It is hoped that the Ohio Legislature will respond to all of the volunteers’ efforts and will enact the "Super Lien” law. Stay tuned to this blog for further developments.

Pool Safety Reminder

The days are getting longer and hotter and school is almost out, which leads to but one conclusion: summer is upon us. With summer comes the opening and enjoyment of many community association pools across the state of Ohio. Kaman & Cusimano, LLC would like to take this opportunity to remind everyone that there are some new and important safety laws associations with pools must follow.

The Virginia Graeme Baker Pool and Spa Safety Act is now in effect and applies to pools in Ohio. This new law was created to decrease the number pool drownings, especially by children, caused by pool draining systems. The act requires that all pools must be equipped with federally approved safety drain covers. The act also requires that pools with a single main drain have automatic shut offs or a Safety Vacuum Release System installed. Association pools must comply with these requirements. If your pool is not in compliance with the act, it is legally not allowed to open and the association could face significant fines, or worse, an injury. After all, the goal of everyone involved is for a safe pool environment. For more information on this act, and other important pool safety information, visit the Consumer Product Safety Commission’s pool website at www.poolsafety.gov, or talk to your pool service company.