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Homeowner Associations: Right Appearance Creates More Value

One of the advantages of a homeowner association is that it can enforce appearance standards, what is known generally as Architectural Control.

Appearance standards are designed to protect the property values of all owners. The theory is that if all homes follow the same basic theme, the average buyer will be willing to pay more.

Most single-family home subdivisions have appearance standards, but, in truth, only a lawsuit (or hitman) can stop someone determined to violate them.

Since most neighbors hate confrontation, appearance standards usually go by the wayside, thus opening the door to the things like RVs parked along side the house, tarped "classic" cars, hubcap sculptures and eye wincing paint colors. The result is a need for appearance standards and the enforcement thereof.

Homeowner association governing documents usually outline appearance standards when they are very strict -- but often say little when they're not. The documents may define the standards but not the enforcement method. leaving the Board in an awkward position when confronted with multiple appearance "challenges".

Debates regarding appearance issues are a great topic for the Resolution Process. Resolutions are board policies that deal with complex issues like the collection of money, pets, parking and appearance standards. Resolutions provide a framework to deal with them effectively.

By the way, resolutions cannot amend or change the meaning of the governing documents. Amending the governing documents requires an appropriate vote of the homeowners, as these sample resolutions detail.

After your Appearance Standards Resolution is drafted, ask your attorney to review it for compliance with statute and your governing documents.

Then, allow the other owners to participate in the outcome. Once drafted, it should be circulated to all the owners for a 30-day review and comment period. The approval process shouldn't be rushed. Change is difficult for some.

A good way to broach the subject with the membership is to send out a newsletter discussing the reason why: To preserve property values. Consistent appearance standards are in everyone's best interests. Describe how, for example, junk vehicles, unkempt lawns, collapsing fences and weathered or hot pink paint drag property values down (without pointing fingers or naming names). Encourage attendance to a special meeting to discuss the Appearance Standards Resolution.

After the new Appearance Standard Resolution is cussed, discussed, amended and approved, it's time to start enforcement. Select the closest equivalent you have to Henry Kissinger and a hitman (that's a joke, folks). If you have none of these, after appropriate written notifications, make good use of your attorney to turn up the heat. Never be guilty of selective enforcement. Treat everyone the same.

Appearances do count and it's up to the Board to watch dog what happens in the community. Don't wake up one day and ask "Where am I going and why am I in this handbasket?" Protect your assets today!

For more information on this subject, see www.Regenesis.net.

Published: January 31, 2001

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 .








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