Question: Our HOA is considering doing a reserve study. We have an owner who is a CPA that says he will do one for nothing. While free is a good price, what are the downsides of this arrangement?

Answer: HOA members (regardless of profession) are rarely qualified to do reserve studies unless they have extensive construction background and knowledge of HOA operations. A reserve study is meaningless if the numbers are not reality based. Homeowners typically do not have access to reliable construction cost information or contractors so end up guessing at or using off the cuff estimates given by contractors over the phone. Accurate reserve studies require site work by trained experts that know what they are looking at.

The issue of conflict of interest with a homeowner generated reserve study is also a real one, especially if you have members pressing for lower homeowner fees (almost always the case). There will be a steady pressure to suppress reality to justify reducing fees.. This is always detrimental to the asset values and livability of the community.

Have your Reserve Study done by a trained professional with both credentials and local references to prove capability. Having and following a good Reserve Study can dramatically increase asset values and marketability. Having none or a bad one is like an appendix: absolutely useless and one day may do you in.

For more on this, see www.Regenesis.net, “Reserve Planning”

Question: Our planned community is new. Currently we are revising the governing documents and having heated debates regarding fences, sheds and swing sets. Our ownership is mixed, some young families, middle aged professions without children and retired professionals. Some outspoken Board members want total restrictions from these items. How do we create a compromise that will suit everyone?

Answer: Unless there are architectural design restrictions against fences, play equipment and sheds on owner property already in the governing documents, the Board has no authority to dictate other than what is placed in the common area. Owners are free to do as they please on their own property as long as it's legal and complies with city/county building code.

The related issues of noise, quality of installation and aesthetics (harmonious with the prevailing colors and architecture) are something the Board can be involved with but not to the same degree as common area control. For example, if an owner decided to construct a fence out of used pallets, it would definitely degrade the area property values. The same could not be said of play equipment unless the kids were allowed to run amuck and create havoc. So banning play equipment or fences on someone's private property is going too far even if the majority agree it's a good thing. Private property rights apply to HOAs just like anywhere else. Common area control, however, is a different matter and the HOA can control what goes on there. For more, see www.Regenesis.net, “Policy Samples" Architectural Design.

Question: We have an owner that doesn't want to pay his dues because he has three bricks which are loose on his outside planter. We have let him know that we will schedule repairs as soon as possible but he still refuses to pay.

Answer: This is a fairly common ploy by owners to either force their maintenance request to the top of the stack or to justify late payments. As long as the request has been received and processed in a reasonable time frame, the HOA is under no obligation to treat every request is urgent. A reasonable repair time is probably 30-60 days. But the owner should not be put off indefinitely. Give him a date. That said, if the dues aren't paid in a timely manner, charge late fees as you would anyone else that didn’t pay on time.

For more on this topic, see www.Regenesis.net

Published: April 16, 2003

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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 .