FHA Regulations Delayed

This past summer, the Department of Housing and Urban Development (HUD) announced that it was proposing new regulations for the condominium approval process of FHA loans and insurance. These new regulations, as initially proposed, would eliminate the "spot approval" process currently in place and would require existing associations to complete a new, comprehensive application process to obtain FHA approval. Once an association completes this process, it would be on a list of approved condominium associations whose units are eligible for FHA financing for two years.

Unsurprisingly, these sweeping new regulations have met with considerable resistance from both the lending and community association communities. As a result, implementation of these new guidelines has been delayed a second time, to December 7, 2009. In the coming weeks, FHA and HUD promise to release additional guidance on how to best transition an association to the new regulations. The attorneys at Kaman & Cusimano, LLC will continue to monitor this progress and will update readers on any developments. If and when the new guidelines are issued, we will provide information on how best to proceed with FHA financing. In the meantime, the "spot approval" process continues to be the easiest way for a potential unit owner to obtain FHA financing.

The Community Association Institute (CAI) has been an integral part in lobbying Congress, HUD, FHA, and the administration to make the FHA financing process as easy as possible on the millions of American community associations. Please check back to this blog in the coming weeks for additional updates from the CAI, HUD, and FHA.

HOA Legislation Introduced!

The Ohio General Assembly has introduced legislation that will govern Ohio’s homeowner associations. Senate Bill 187, entitled The Ohio Planned Community Law, enjoys bi-partisan support, sponsored by Senator Seitz (R) and co-sponsored by Senator Sawyer (D). Getting this legislation passed into law is essential to preserving and protecting Ohio’s homeowner associations, and their owners, residents, and guests, far into the future.

For some time, Ohio’s condominium associations have had a state statute, the Ohio Condominium Act (O.R.C. 5311.) The Ohio Planned Community Law does not contain new law. It takes the currently existing condominium law and applies pertinent provisions to the operation of planned communities that are not condominiums. This includes important provisions such as requiring the developer to file a declaration and bylaws with the county recorder, providing that boards be elected from among the owners or spouses of the owners, allowing amendments to the declaration and bylaws with a seventy-five percent (75%) vote, requiring associations to maintain adequate reserve funding, and giving associations the statutory right to file a lien for delinquent assessments.

This bill, if passed, will provide Ohio homeowners with the consumer protections they deserve by protecting their investment through statutorily organized associations creating strong neighborhoods and communities. While the legislation does not currently include "Super Lien" language, we are working with legislators to amend the bill and insert a homeowner association "Super Lien."

Kaman & Cusimano, LLC is now reviewing the bill and as soon as our review is complete we will be posting a bill summary and a sample letter for homeowners supporting the bill to send to legislators.

To view the full text of the bill, click here: http://www.legislature.state.oh.us/bills.cfm?ID=128_SB_187

Bill Introduced to Permit Patriotic Flags

The Ohio General Assembly has introduced House Bill 289, which if passed would prohibit Ohio community associations from passing an amendment or rule banning "A service flag approved by the United States secretary of defense for display in a window of the residence of a member of the immediate family of an individual serving in the armed forces of the United States. A service flag includes a blue star banner, a gold star banner, and any other flag the secretary of defense designates as a service flag."

This prohibition would be in addition to the restriction on associations prohibiting the American flag already found in Ohio law. The intent of passing this bill follows the common sense approach to patriotic flags that Kaman & Cusimano has advised its clients to follow in the past. Even before this bill becomes law, in these times of great national pride, especially for those serving in the armed forces, associations should consider permitting such displays of patriotism. While the association may require that the display conform to some reasonable restrictions, an outright ban will lead to angry, upset owners and even significant media attention.

This legislation is sponsored by Representatives DeGeeter and Coley and Cosponsored by Representatives Book, Boose, Murray, Gardner, Evans, Harris, Uecker, Harwood, Gerberry, Letson, Adams, R., Lundy, Luckie, Stebelton, Mecklenborg, Lehner, Ujvagi, Yuko, Phillips, and Dodd. To view the full text of the bill, click here: http://www.legislature.state.oh.us/bills.cfm?ID=128_HB_289

Super Lien Status Update

Many of Ohio's condominium and homeowner association board members and residents have been inquiring as to the status of the "Super Lien" legislation. Thanks to everyone for your interest, help and support! We are happy to report that the process is moving forward, and we hope to have the bill introduced into the Ohio legislature soon.

Over 30 individuals came forward and presented the Super Lien Information Packet to legislators all around the State of Ohio. Many of these legislators expressed a strong interest in sponsoring and introducing the proposed law. Now that the Ohio General Assembly has returned from its late summer recess and finishes up the state's operating budget, we are very optimistic that the "Super Lien" will be introduced soon. When this happens, we will post an update on this website.

Once the legislation is introduced, we will contact all of the volunteers who signed up to be part of the "Super Lien" team. At that time, we will need as many letters, phone calls, and personal appeals to legislators as possible to ensure that the General Assembly is aware that this legislation is vital to Ohio's community associations.

Again, we will keep you informed with any updates regarding the "Super Lien" or any other condominium or homeowner association law changes.

Uncooperative Owner Forced to Comply with Association's Remodeling Rules and Pay Attorney's Fees

On September 17th, in the case of Acacia on the Green v. Gottlieb, (No. 92145), the Ohio 8th District Court of Appeals affirmed the trial court’s ruling and held that a Unit Owner must receive the Association’s permission prior to engaging in a construction project, and failure to do so requires the Unit Owner to pay all of the Association’s legal fees (which in this case amounted to $18,442.55). Arguing on behalf of the Association was Kaman & Cusimano, LLC Attorney Cullen (CJ) Cottle.

The Court cited Ohio Revised Code Section 5311.081(B)(5) which states: The Board of Directors may “adopt rules that regulate the use or occupancy of units, the maintenance, repair, replacement, modification, and appearance of units, common elements, and limited common elements when the actions regulated by those rules affect common elements or other units.”

In this case, the Defendant had extensive electrical, plumbing, cabinetry and flooring work done to his unit without the prior authorization of the Board. The Acacia on the Green Declaration required prior written approval prior to making any structural improvements to a Unit, and the Board passed a rule requiring each Owner to obtain a permit from the Board prior to construction. The Association repeatedly tried to be accommodating to the Unit Owner by sending multiple notices and attempting to resolve the matter with him without litigation. However, the Association was left with no other choice but to litigate after the Unit Owner started another new project after being notified of his failure to obtain a permit from an earlier remodeling project. In ruling for the Association, the Court of Appeals found that the statute applied to the Unit Owner and the Declaration and rule provisions were reasonable.

Additionally, the Court found that the Ohio law required the Defendant to pay all of the Association’s attorney’s fees. According to Revised Code Section 5311.19(A): “All unit owners, their tenants, all persons lawfully in possession and control of any part of a condominium property, and the unit owners association of a condominium property shall comply with all covenants, conditions, and restrictions set forth in a deed to which they are subject or in the declaration, the bylaws, or the rules of the unit owners association, as lawfully amended. Violations of those covenants, conditions, or restrictions shall be grounds for the unit owners association or any unit owner to commence a civil action for damages, injunctive relief, or both, and an award of court costs and reasonable attorney’s fees in both types of action.”

Based on this provision, the Appeals Court held that the defendant is required to pay all of the Association’s attorney’s fees relating to the enforcement of the Declaration and Rules, which total $18,442.55!

Ultimately, this case is another victory for Ohio’s condominium associations. Unit Owners must follow the condominium statute in the Ohio Revised Code, AND the provisions of each association’s Declaration; and more importantly, failure to comply will require the violating Unit Owner to pay all of the Association’s legal fees – even to the tune of $18,000!

To read the entire opinion, click here: http://www.sconet.state.oh.us/rod/docs/pdf/8/2009/2009-ohio-4878.pdf

Associations Left Empty-Handed After Foreclosure

This past weekend, the Cleveland Plain Dealer ran a front page story on condominium sales in Ohio. Stagnant condo sales often have a negative impact on the association and the surrounding condominium community. In response, Ohio's community association boards have been working tirelessly to preserve their community's property values and community spirit. Reporting on these actions, the paper published another story about how Ohio's condominium associations are asking legislatures for help by joining 13 other states and enacting a condominium "super lien." According to the story by Michelle Jarboe:

CLEVELAND, Ohio -- Condo associations in Ohio want legislators to put them first in line for money when homes in their buildings are foreclosed upon.

The recession, the housing slump and job losses have meant more foreclosures and delinquent monthly fees for condos. Owners pay these fees - ranging from a few hundred dollars to more than $1,000 a month - to cover landscaping, building maintenance, utilities and other services. When owners stop paying, associations with tight budgets have two options: cut services or raise fees for all residents.

This year, the boards that represent condo communities have asked the Ohio General Assembly for relief in the form of "superliens."

Traditionally, the bank that provides the mortgage on a home has the primary lien, giving it first priority on money from a sale of the property during the foreclosure process. But when a home is sold after a foreclosure, the sale price may not cover the mortgage, especially after several years of declining home prices. In those cases, the bank recoups only part of its investment. And other lienholders, including the condo association, are left empty-handed.

Superlien laws generally require that the condo association be paid up to six months of delinquent fees before the primary lender and other creditors receive money. Such laws have been approved in at least 13 states and the District of Columbia. Ohio condo associations hope lawmakers here will take up the issue this fall.

In Northeast Ohio, most condo associations are fairly healthy, said David Kaman, a[n]... attorney who represents homeowners associations. But some associations, staggering under the weight of unpaid fees, left their swimming pools closed this summer, cut back on landscaping and started talking about payment plans with their utility companies and service providers.

"Right now, the condos in Ohio are keeping their head above water," Kaman said. "But if the economy continues to get worse, we could see that change. By enacting this legislation now, we will avoid condos' drowning."

Court Clarifies Lakefront Land Ownership

Associations that border Lake Erie and other bodies of water have often wondered where along the lakefront the Association’s property ends and the public’s property begins. Recently, The Ohio 11th District Court of Appeals in the case of State ex rel Marrill v. ODNR (Case # 2008-L-007) helped to answer that question.

The Plaintiffs, a group of landowners that border Lake Erie, argued that their property rights extend to the “shoreline” of the water, wherever that line may be. The Defendants, the State of Ohio and others, argued that the State of Ohio owns and holds in trust for the people of Ohio the lands and water of Lake Erie up to the natural location of the ordinary high water mark, regardless of the shoreline’s current state.

Siding with the Plaintiffs, the court held that the public owns the land beneath the water at any given moment, and the lakefront property owner owners the dry land above the water. In other words, the lakefront owner owns all of the lake up until the water line. Therefore, as the water levels of Lake Erie rise and fall, so too does the lakefront property line.

This ruling is good news for Ohio’s condominium and homeowner associations which wish to keep lakefront property “private.” Absent a superseding law, agreement, or further review by the Ohio Supreme Court, this court’s ruling provides important clarification regarding where an association’s property ends and the public’s begins. As an association generally has the ability to place reasonable rules and regulations on the comment element property, an association would be able to regulate individual access and activities that takes place on land up until the shoreline.

It Takes a Judge to Invalidate an Election

While it takes a judge to invalidate an election, generally owners may recall a board. Recently, we attended an annual meeting with a very close election. Nine candidates were nominated to fill four positions. While all the proper election procedures were followed, several of the candidates were unaware of their ability to solicit proxies from their fellow homeowners. As a result, two incumbents were re-elected as well as two candidates who generally favored the actions of the current board. The election results were achieved even though the vast majority of owners in the room opposed the current board and their courses of action.

Two days after the elections, a few of the defeated candidates circulated a petition among the owners aimed at calling a special meeting. The defeated candidates not only wanted a new meeting, but also wanted a new election.

The bylaws of every association must be carefully reviewed in the instance of a contested election. At this association, signatures of 25% of the owners are required to call a special meeting. The defeated candidates had no trouble getting the 25% owner signatures, however the bylaws make no provision for invalidating an election. As a result, the only way the defeated candidates could invalidate the election would be through judicial proceedings. (remember Bush v. Gore)

Bylaws of most associations do contain a provision for removing board members. At this association, removal of board members requires a vote of a majority of owners in the entire association. Last week, the special meeting of the owners was called and 85% of the owners were present in person or by proxy. Again, the results were very close, however, only 45% voted to remove the recently elected board members, while 40% voted they retain their positions. While some may think the vote to recall the board succeeded, it is important to note that the bylaws mandate that a "majority of the entire association" is needed for removal and the 45% obtained was shy of a "majority of the association." As a result, the recently elected board members remain in their positions.

If the governing bylaws had been silent as to removal, the disgruntled owners would have been left with no alternative but to go to court to invalidate the election. However, as history has shown and caselaw clearly indicates, absent out right fraud, forgery, or gross procedural injustice, courts are weary of mandating a new election.

Associations Benefit from Bailouts

As many of Ohio’s condominium and homeowner associations face many financial challenges, there has been one indirect source of relief: federal bailouts. The positive effect this generates has been noticed by many local communities, and now the press. The following is an excerpt of an article published in the Columbus Daily Reporter on 8/10/2009:

Homeowners Associations Indirectly Benefiting From Bank Bailouts, Insiders Say

RICK ADAMCZAK
Daily Reporter Staff Writer
08/07/2009

Many banks and troubled homeowners have been helped by the federal government's bank bailouts, but other beneficiaries of that assistance are homeowners and condominium associations.

During the peak of the housing crisis, which was coupled with the onset of the recession, homeowners associations started to see their revenues fall as some of their members, who perhaps lost their jobs, struggled financially and couldn't afford to pay their association dues.

In severe cases, home mortgages would be foreclosed upon.

Homeowners associations themselves, in fact, can start foreclosure proceedings against a homeowner if that homeowner has fallen far behind on its dues or fees, which can range from a few dollars a month to hundreds of dollars a year depending on how much common space and amenities need to be maintained.

But following the bank bailouts, banks started working more with their borrowers to help them keep their homes and therefore they also can keep up with their association dues, said David Kaman, a partner at the law firm Kaman & Cusimano LLC, which has an office in Columbus and specializes in homeowners and condominium legal issues.

"We've seen a tremendous impact from the bank bailouts," he said. "The biggest thing going on is the banks with bailout money. In mediation they sit down with the unit owner and work out new terms."

He said the law greatly benefits homeowners associations in foreclosure cases. If a condominium is in foreclosure the bank pays past-due fees and must also pay any associated legal fees.

Dues and fees collected by homeowners and condominium associations are used to pay for the upkeep of common areas, ponds and even community pools in some cases. For condominiums, maintenance of the buildings themselves is paid for by the dues.

Typically, if a homeowner starts to fall behind on dues payments, the homeowners associations - many of which are operated by property management companies - will send a collection letter to the delinquent homeowner.

"Usually they'll owe from $1,000 to $3,000, which isn't much when compared to losing your home," said Kaman.

If that fails to resolve the issue, a letter is sent threatening to put a tax lien against the home or condominium.

For several years many homeowners or condo owners would take out home equity loans to pay off the balance owed, but as banks cut back on those loans some owners were put in difficult situations.

"When they get the letter, most people pay. We see a lot come in at the lien stage, too," said Kaman.

In a worst-case scenario the association files a foreclosure against the owner.

"We do, by statute, have that power. We have filed hundreds of those," said Kaman.

He said the biggest mistake homeowners associations make is to wait for the bank to take action instead of taking action themselves.

"They might be losing tens of thousands of dollars in those cases. As a result the other owners have to pay the dues," Kaman said. "We get hired by some associations and find that they have $30,000 or $40,000 worth of outstanding fees. It got that high because the board was not taking aggressive action."

While many homeowners or condo associations are run by property management companies, others are run by volunteer boards of directors composed of members.

Homeowners falling behind on their association payments are only hurting their neighbors, he said, especially if it's not a large development.

"If you have a 40-unit complex and four people are not paying, the other 36 have to cough up the money," said Kaman. "We take the 'pay or lose your home' attitude. That owner is hurting his neighbors."

Every Board Needs Officers!

Kaman & Cusimano, LLC was recently hired by a condominium association in Delaware, Ohio. The association owners had validly elected its five (5) member Board of Directors. However, each Director was currently serving in an “at-large” capacity, meaning the Board had no elected officers.

Ohio Revised Code Section 5311.08 governs Ohio condominium associations. This law specifically states that “The board of directors shall elect a president, secretary, treasurer, and other officers that the board may desire.” (Emphasis added)

In other words, Ohio condominium association boards MUST elect officers. A President is needed to chair meetings. A Secretary is needed to ensure that proper minutes are kept reflecting board decisions. A Treasurer is necessary to be responsible for an association's finances. Even with a manager or management company, a board and officers are still required.

While there is currently no similar law that applies to Ohio homeowner associations, our office recommends that HOA boards follow the mandate for officers contained in the condominium law as this practice promotes good decision making, good record keeping, and proper fiscal responsibility.

For a general guide on officer responsibilities, Kaman & Cusimano clients who have attended our recent Orientation/Success Basics for Board Members Seminar should turn to page 10. Additionally, Kaman & Cusimano clients can view the article “Owners Elect Board - The Board Elects Its Officers” from the Client Articles section of our website. (www.ohiocondolaw.com)

Amendments MUST be Recorded to be Valid

Our Firm was recently hired by an association in Westerville, and another in Dayton, Ohio. Both associations were under the impression that they had enacted valid and legally binding amendments to their Declarations. The Westerville association thought they enacted a "no-leasing" amendment. The Dayton association was under the impression that they had properly reduced their quorum requirement of their annual meeting to "those Owners present in person or by proxy."

Both associations were surprised to learn their amendments were not valid or legally binding because the associations never properly recorded the amendments with a filing at their local County Records Office.

Ohio Revised Code Section 5311 clearly mandates that amendments must be recorded to be valid. Community association boards would be wise to be aware of the two step process to be followed to enact a valid and legally binding amendment. An overview of the two steps are as follows:

STEP 1

A. Decide on topic needing amendment

B. Cover letter to all owners explaining reasons for amendment (Kaman & Cusimano provides)

C. Consent form ballot for each owner (Kaman & Cusimano provides)

D. Board reviews, approves, and distributes to owners

E. Enclosed self-addressed stamped envelope for return of consents

F. Meeting to answer questions (caution - some documents require a meeting)

G. Count percentages* to determine if required approval achieved

*Some documents establish one vote per unit/lot

H. Repeat until passed or defeated

STEP 2

A. Notify Kaman & Cusimano of percentage obtained

B. Amendment document prepared for recording by Kaman & Cusimano

C. Board executes amendment document which must be notarized

- Affidavit as to number of consents received

- Affidavit as to mortgage consents (if required)

D. Mandatory recording with County

E. Distribute copy of recorded amendment to all owners (caution - some documents require distribution by certified mail)

$250,000 FDIC Insurance Limit Extended

As discussed in our recent seminar entitled "The Financial Crisis - What Every Board Member Needs to Know," the FDIC Insurance limit on bank accounts was increased from $100,000 to $250,000. This increased limit was set to expire on December 31, 2009. However, the FDIC recently extended the higher insurance limit of $250,000 through December 31, 2013. An association's board would be wise to make certain that no more than $250,000 of association funds are in any one FDIC Institution.

It is also crucial that all association funds are deposited in an FDIC insured account. As of July 11, 2009, fifty-three (53) banks have failed nationwide. If a bank fails and its accounts are FDIC insured, the FDIC will reimburse the account holder for the amount in the institution, up to $250,000. If funds are placed in non-FDIC insured accounts, when a bank fails, the account holder could lose all deposited funds.

In light of the above, association boards are clearly fulfilling their obligation to the owners by making certain that association funds are deposited only in FDIC insured accounts and in an amount no greater than $250,000 in any one institution.

Super Lien Article in Columbus Dispatch

On Sunday, July 5, 2009 the Columbus Dispatch ran a feature story reporting on the Ohio Super Lien. That story, which reported on the progress of getting this legislation passed, can be viewed by clicking the following link:

Columbus Dispatch Super Lien Article

We will keep you updated on this blog with further status updates and will inform you as soon as this proposal has been introduced.

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.