Question: Our condominium association is currently obtaining bids on roofing, siding, painting and are looking at a special assessment of upwards of $5,000-10,000 per unit owner due to inadequate reserve funding habits in the past. What obligation, if any, does the Association have to disclose this information to prospective buyers, especially in view of the fact that the assessment has not been officially levied?

Answer: While special assessment discussions may not have yet gelled into actual special assessments, it is certainly something that should be disclosed to prospective buyers by the seller even if it's only a general statement like, "The Board is talking about approving a special assessment for (fill in the blank)". To say nothing about it as if it didn't exist is deceit. The special assessment WILL take place sometime in the near future. Buyers should be forewarned to a reasonable degree.

Question: The committees in our HOA are appointed by the Board. Could you provide some information on how they interact with our Property Manager?

Answer: Interaction varies according to committee. Committees are authorized to do what the Board decides they should do. A Newsletter Committee, for example, should normally work directly with the Property Manager to produce the newsletter. A draft should be presented to the Board for approval and the Property Manager sees that it's printed and distributed. The Budget Committee presents a draft budget to the Board for approval. The Landscape Committee typically oversees the landscape contractor and the Pool Committee oversees the pool contractor. As long as everything is going according to plan, the committee can function on its own. If there is a problem, the committee should pass the information on to the Property Manager, the Board or both, depending on the complexity.

Committees don't have authority to make policy. They carry out administrative functions approved by the Board and assist the Property Manager in their area of focus. Since the HOA can't afford to have the manager do daily inspections, a committee can assist in more regular oversight and advise the manager when action is needed, as in the case of the landscape contractor.

The Board should be sure each committee has a clear job description with limits of authority defined. The property manager should understand that committees are advisory only. If there is an issue that needs approval, the manager should take it to the Board or Board President.

Question: We have a limited space storage room that has nine abandoned bicycles in it. How should we handle the matter?

Answer: Notify all owners in writing that bike owners have 30 days to claim their bike. All unclaimed bikes can be sold or donated to charity. If bike storage space is limited, the HOA should charge a reasonable storage fee, like $10 month, added to the regular assessment so the bookkeeper isn't burdened with separate invoicing.

Have each bike storage renter sign a rental agreement which clearly identifies the bicycle by type, make and color, making each owner responsible for theft. Keep a list of those that want bike storage and make it available on first come, first serve basis.

The HOA should not rent storage space directly to renters since it has no authority over renters. Renters should arrange it through the unit owner on their behalf. That way, the HOA collects from the landlord who then gets reimbursed from the tenant. With this system, those that enjoy special benefits pay for them, the HOA can gather in an additional revenue and bikes no longer will be abandoned since rent is being paid for the storage.

Question: It was discovered last year that many of our condos have defective furnaces. We required all units to have an inspection by a licensed heating professional. Many owners replaced their furnaces but we still have a number of owners who have refused to either have the furnace inspected or when it was found defective, refused to replace the furnace. The furnaces are a potential fire hazard. Do you have any suggestions?

Answer: The HOA has the right to demand furnace replacement where there is a documented fire safety issue. Help them say "Yes" if you can rather than force them. The HOA can offer an incentive to the holdouts by facilitating multiple installations by a heating contractor to obtain a discount. Each owner would, of course, reimburse their portion of the expense. If, however, some owners still refuse, a demand letter should be delivered to each stating that the association is prepared to force the issue legally. Set a deadline for compliance of, say, 30 days after which the matter will be turned over to an attorney for further action. Explain that all legal costs will be added to their account. For more Ask the HOA Expert, see www.Regenesis.net