Question: One of our owners recently defaulted on a special assessment and our attorney advises that the rest of us are liable for paying for it. Is this right?

Answer: Unfortunately, there is no magic money and if one owner defaults, the rest are on the hook until the debt is paid. Fortunately, the association has the right and should pursue aggressive collection on the defaulting owner. At minimum, a lien should be filed against the unit so that the association has some recourse to collect the debt. State law may allow foreclosing on the property but that makes sense only if there is enough equity to pay the association debt plus resale costs. You may also have the right to shut off common utilities like water and sewer as well. These actions should be handled through an attorney that specializes in homeowner association law. Timely collections on delinquent account are critical. The longer delayed, the bigger the problem.

Question: Should homeowners be identified in rule violation or delinquency discussions at Board Meetings?

Answer: There is no faster way to generate community wide ill will than by humiliation tactics. The general rule is "innocent until proven guilty" and names should be kept anonymous. Even when guilt is confirmed, treat the offender with respect remembering that this is a neighbor and not a convicted criminal. Also, if something slanderous is said at the Board Meeting, there is always a chance the Board and Association could get sued. This is one area that showing them who's boss will never work. Tread carefully.

Question: Our declarations state that the association's purpose is the maintenance of common areas (entrance and a retention pond) only. We're a small community and do not have a large operation budget. The board is planning social events via a newly formed social committee. Does the Board have the right to establish this committee and use assessments to support its activities?

Answer: The Board has the right to organize and appoint volunteer committees as appropriate. If committee events are being paid for out of the general fund and this is a new cost, the Board should get homeowner approval first. If there is no cost or the events are funded voluntarily by interested owners, no issue and no problem.

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

Published: October 25, 2000

Use of this article without permission is a violation of federal copyright laws.

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 .