The June edition of the King County Bar Bulletin contains the following article that I co-wrote with my paralegal Elizabeth Demong. The article describes how the presence of various types of connections within community associations can help to prevent bitter disputes over new or increased assessments. Association boards are encouraged to take an active role in the creation and strengthening of such connections.
In an effort to fund England's military engagements with France during the Hundred Years War, a young King Richard II levied an unpopular poll tax upon his subjects in 1381. A large and almost certainly unanticipated uprising fueled in part by unhappiness about that tax occurred later that year. The King’s lack of connection to his subjects helped bring about a serious conflict between ruler and ruled.
In an effort to fund England's military engagements with France during the Hundred Years War, a young King Richard II levied an unpopular poll tax upon his subjects in 1381. A large and almost certainly unanticipated uprising fueled in part by unhappiness about that tax occurred later that year. The King’s lack of connection to his subjects helped bring about a serious conflict between ruler and ruled.
Whether they like it or not, owners within condominium and
homeowners associations are subject to their community’s governing documents
and the boards that enforce them.
However, the law also requires community association boards to exercise
their authority in a reasonable manner, which includes the application of proper
skill and diligence to each situation. When
boards lose touch with their owners and act in ways that are inconsistent with
their owners’ circumstances and opinions, political upheaval or (perhaps worse)
litigation are often the unfortunate result.
Like King Richard II, community
association boards are of course sometimes compelled to deal with pressing
financial concerns that have the potential to strain their connections with the
owners that they govern. However, boards
should learn from King Richard II’s example and ask themselves two questions
before attempting to raise large amounts of new revenue from owners. First, are they asking for too much? Second, are they asking too soon? Neither question can be answered in a
satisfactory manner without a strong connection to the owners.
Properly evaluating whether a
board is asking for “too much” in new assessments requires both the exercise of
due diligence (obtaining reports and/or bids from reputable local sources) and
a strong connection to the owners.
Boards should seek to discover what is important to their owners and
what challenges their owners are facing through surveys or meetings. The ensuing connection will inform the nature
and scope of the proposal and make it more likely to be successful. Seeking new funds when connections with
owners are weak can lead to ugly “civil wars” that paralyze the community.
Properly evaluating whether a
board is asking for new assessments “too soon” also requires both the exercise
of due diligence (obtaining reports from reputable local sources) and a strong
connection to the owners. Boards should
consider the local economic and real estate climate and the challenges their
owners are facing before making decisions about the timing of new
assessments. The recent defeat of a
Mercer Island school bond measure illustrates the need to carefully calibrate
requests for new revenue to economic realities.
Like King Richard II’s subjects, owners
in community associations often lack meaningful connections to the boards that
govern them. When the only contact
between board and owner concerns assessment increases, the relationship between
the two is not likely to be a warm one. On
the other hand, some community association boards make it a part of their
mission to nurture their connection with the owners and promote connections
between them. Those boards are likely to
experience fewer intense conflicts because owners will feel that they are part
of the community and that the community’s board takes their input into account. Connected owners will make financial
sacrifices to benefit the community more readily.
The creation of connections
within community associations should be tailored to the community. Suburban communities with large numbers of families
will create connectivity in a different manner than urban communities dominated
by young single professionals. Once an
emphasis has been selected, boards can periodically survey the owners to find
out more about them and what they want. Monthly
newsletters are a particularly effective way to keep owners informed and
involved.
While the creation of connections
within communities may aid in the avoidance of conflict, boards must also be
prepared to handle conflict when necessary. Sometimes this will mean “going to war” in
court, but in other situations the re-establishment of the connection between
the parties is the best option. King Richard
II limited bloodshed and preserved his rule by meeting with the rebel leaders
and at least considering some of their demands. Community association boards can
often profit from following the same course of action, whether this takes the
form of an informal meeting, a negotiation with attorneys present, or a formal
mediation.
