Board Members have a fiduciary duty to uphold the Association’s Governing Documents, including the Rules and Regulations.

However, blindly upholding the rules at all costs is not prudent either. Below are areas where the Board should relax the rules and live to fight another day:

1. Truck Prohibitions- People now purchase trucks as their primary passenger vehicle. Only trucks with commercial signage should be prohibited.
2. Motorcycle Prohibitions- Many people purchase motorcycles for leisure use. Do not prohibit motorcycles.
3. Home Businesses- Many people engage in ebay type activities from their homes. Only businesses that create excessive traffic should be prohibited.
4. Satellite Dish Prohibitions- Federal Telecommunications Act allows dishes and Federal law always trumps Association Law. Allow standard size satellite dishes.
5. American Flag and Political Sign Prohibitions- The First Amendment, Freedom of Speech, allows owners to display the American flag and political signs. Allow these items or risk a law suit from the local office of the ACLU.
6. Structural Modifications to Allow Access- The Americans with Disabilities Act allows modifications to structures to allow use and access by disabled individuals. The term “disabled” has been broadly interpreted by the Courts.  Allow these modification requests or risk a federal law suit with punitive damage.

In summary, be reasonable when approached by homeowners requesting waivers of the rules but make sure that the reasoning behind the waiver is fully documented

New FHA Guidelines- New stricter FHA guidelines put a real crimp in the number of condominium purchases.

FHA mortgage insurance allows buyers to purchase condominiums with little money down, thereby enhancing demand. However, the new stricter FHA guidelines severely limit the number of condominiums that wish to qualify for FHA insurance. Moreover, Fannie Mae and Freddie Mac, the nation’s largest mortgage purchasers, have adopted the FHA’s stricter guidelines, making less money available to finance condominiums.

Here is why new FHA certification is problematic:

1) Condominium executive board members are loathe to sign the FHA certification due to severe penalties for incorrect information which include $1 million in fines and  30 years in prison. Therefore, many condominium association boards stay away from FHA certification.

2) New stricter FHA guidelines do not allow initiation payments by buyers upon sale. These initiation payments provide a boost to reserve funds in a time when interest income is hard to come by. Executive board members do not want to give this money up, so they do not apply for FHA certification.

3) New FHA guidelines require much more fidelity insurance, thereby increasing association expenses at a time when revenue increases are difficult to pull off. Executive board members do not want this expense pressure and, therefore, do not pursue FHA certification.

As of the date of this writing, less than 10% of the 25,000 community associations nationwide have received FHA certification. Organizations such as the Community Association Institute continue to negotiate less strict guidelines. Hopefully, they will be successful.

In order to Enhance Our Owners Homeownership Experience, we have developed the ACRI Preferred Service Provider Program.

A list of recommended, pre-qualified, professional Service Providers covering a wide spectrum of services. Think of it as your own Acri “Angie’s List”.

The goal of our Service Providers is to consistently meet or exceed our Homeowners’ expectations of the highest standards of performance excellence. Performance will be continually monitored and measured on a timely basis.

Go check the convenient online “Acri List” the next time you need a project completed around the house.