Question: Our board seems to be making rules up as they go. How should they be doing it?

Answer: The board has the authority to enact reasonable policies. Before meting out justice, however, they should adopt policies or resolutions that define the issue, the penalty for noncompliance and the appeal process. The basics are money collection, parking, pets, architectural and appearance.

There is no need for a rule when there is no problem. And each new rule should be circulated to the homeowners for comment prior to adoption by the Board. This way, no homeowner can say they had no say in the matter. Once formally adopted and documented in the minutes of a board meeting, a copy of the approved policy should be sent to every owner. It is always wise to comment in newsletters or bulletins about certain critical rules as a reminder.

Question: Our Board is considering installing speed bumps and I’m concerned that it might decrease the property values. Your advice?

Answer: Speed bumps should be implemented only after an association wide discussion of the merits and alternatives. I would not recommend them unless all other alternatives have been exhausted (use of local law enforcement, repeated violation notices to offenders, etc.). An alternative to speed bumps is traffic circles. These circular obstructions require traffic to slow or stop and go around.

Most people dislike speed bumps and believe they detract from property values much the same way that installing "security" bars in response to break-ins do. They are indicative of an out of control problem that requires drastic measures.

Question: Our Board writes rules such as: "... tasteful attire must be worn in the common areas." No definition of "tasteful attire" is offered and as far as I can tell, we don’t even have a problem. Another rule: "Payment of the monthly assessment must be made by check or money order. Cash will not be accepted." Is this legal?

Answer: When it comes to rules, wording is everything. What exactly is "tasteful" attire? As far as the payment rule: Cash is legal tender for all debts (says so on the currency) and the association cannot refuse it. But something like: "Please make all payments by check or money order to ensure proof of payment" explains the practicality of money security which all can appreciate.

High handed rules are counter productive to building a harmonious community. I’d encourage the Board to adopt a rule making philosophy that includes:

1. Only make rules that are genuinely needed (like policing pets, no parking in the fire lanes, etc.) and don’t make them to control scofflaws who challenge all rules. You simply can’t out rule rebels
2. To respect residents’ intelligence. (The dress code example does not).

We have enough unenforceable rules to deal with elsewhere. Don’t add to the list unnecessarily. Community associations are based in a principle of democracy, not autocracy. The board that heeds the difference will shine.

For more on this subject, see www.regenesis.net.

Published: August 2, 2000

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .