Question: The Board says the newsletter cannot have negative editorials. True?

Answer: While homeowners are entitled to free speech, the association newsletter is not the proper forum to air grievances. A small group of owners (often 10-20 percent, but check your governing documents) have the right to call a special meeting to discuss issues of concern. This is a more productive way of airing "dirty laundry" since if enough people show to support change, the board would be hard pressed to ignore it. An editorial may have the support of many but often appears to be the rant of one.

Question: Our association is struggling with the concept of home based businesses. A director's small daycare operation is allowed to exist while another owner's small distributorship was asked to shut down. Are there any guidelines?

Answer: Neither the daycare operation or distributorship sound appropriate. This points out the need for a clear policy and uniform enforcement.

A ban on all home businesses is unfair and unenforceable. Many people have home offices and may run their entire business from home. The issue is not whether or not businesses should be allowed but the impact on the community. If neighbors are not aware there is a business there, it's probably okay (unless the activity is illegal).

Noise and traffic are the main concerns about daycare operations. And while the daycare operation may be low impact, it wouldn't be if it grew. Maybe a conditional permit based on low impact and limit on children might work.

I suggest this as a policy: "Home businesses are allowed as long as there is no traffic, signs, noise, offensive odors or parking impact on the community."

Question: Our board is very rude and abusive to homeowners that speak at board meetings. Any recommendations.

Answer: Rude people generally don't acknowledge their rudeness nor respond to correction. However, you should send a letter to the Board President pointing out your observations of unacceptable behavior. Good leaders recognize the importance of letting others speak without intimidation. It's in the board's best interest. Stifling debate builds resentment. Venting relieves pressure. Owners should be allowed a time limited open forum at the start of every board meeting to speak, question and complain. From then on, they should be silent unless requested to speak so the Board can get on with the agenda.

Question: A real estate client took ownership of a condo four weeks ago. Two weeks ago she received a special assessment letter for $400 explaining that the HOA was over budget for the previous year because of natural gas price increases. Since she just took possession, shouldn't the previous owner pay?

Answer: Special assessments belong to whoever is in ownership at the time they are levied. Your client is certainly within her rights to ask why the budget was off by so much. Utility rate increases are usually planned many months in advance. Did the board not ask the utility companies about proposed rate increases when preparing the previous year's budget? It should have. Is the board in the habit of under budgeting? Is the budget increased by at least an inflation factor each year? If the budget has been unchanged for two years or more, the board has ignored reality.

One of the biggest flaws in most association budgets is failure to reserve for future expenses. Is there a Reserve Study in place and is it being adequately funded? Depending on the answers to these questions, your client could be in for a series of special assessments bigger than this one.

As a real estate agent, it's your duty to advise buyers and sellers of HOA property. There are many things that make HOA unique to single family homes. Get educated on the differences before you represent yourself as knowledgeable.

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

Published: September 26, 2001

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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 .