Can a Condominium's Common Parking Spaces Be Reserved for Board Use?

I was recently interviewed by HOAleader.com regarding the proper use of common parking spaces at a condominium.  In the resulting article, I discuss how board members who vote to reserve common parking spaces for their own use could be found to be engaging in self-dealing and abuse of authority.  Board members are entrusted with a great deal of power, and they are obligated to exercise that power for the good of the community.  Using that power to benefit themselves is almost always a bad idea.  

If a board wants common parking spaces to be reserved for its members, then the safest course of action is to submit that matter to the owners for a vote. An attorney can help the board identify the correct voting procedure and approval standard.

Paralegal Stephanie Chapman Has Joined My Office!

A quality paralegal can be an immense help to a busy attorney.  I am therefore happy to announce that paralegal Stephanie Chapman has joined my office.  Stephanie graduated from the University of Washington in 2006 and earned a paralegal certification from Edmonds Community College in 2012.  She performed office administration services at a law firm that focuses on condominium law from 2009 until 2013.  I look forward to working with Stephanie to provide our Washington condominium and homeowners association clients with the tools they need to succeed.

Seattle Seahawks Demonstrate the Power of Teamwork

The Seattle Seahawks' magnificent run to the Super Bowl has been propelled by its dominant defense.  When I took my sons to a game at the Clink this year, we were dazzled by how well their defensive players worked together to cover the field.  If a receiver got past a player, then there was almost always another player right there to assist him.  The defense played as a single entity rather than a collection of individuals.  It was teamwork at the highest level.

Washington condominium and homeowners associations should remember that their success often depends on whether their boards, property managers, attorneys, and accountants function as effective teams.  This requires each member of the team to have certain skills, to understand their role, and to be given an opportunity to excel.  When effective association teams are in place, legal obligations will be fulfilled and the common good will be promoted.  When defective teams are in place, the situation can get ugly in a hurry.  Association boards should seek to cultivate a direct relationship with each member of their team in order to make optimal use of their expertise and in order to evaluate their effectiveness over time.

Go Hawks!       

Recent Articles Discuss Rental Enforcement and Reserve Withdrawals

I was privileged to be quoted in two recent articles at HOAleader.com.  In the first article, I discuss how Washington condominium associations are increasingly using online sources to enforce their rental restrictions when there is evidence of short-term leasing.  In the second article, I discuss how Washington condominium and homeowners associations must follow certain rules when they withdraw reserve funds to address unforeseen or unbudgeted costs.  These articles also contain insights from attorneys in other states regarding those issues.             

Condominium's Leasing Restriction Ruled Invalid by Washington Court

The Washington Court of Appeals recently issued an unpublished opinion addressing a condominium association's attempt to restrict leasing of units.  In this case, the condominium's original declaration stated that no more than twenty-five percent of the units could be leased at any one time. The declaration established a first-come, first-served waiting list for owners who wanted to lease their units but could not due to the leasing limit.  The association recorded an amendment to the declaration that allowed leased units to be sold and then leased again without giving the owners on the waiting list an opportunity to lease their units.  Owners on the waiting list argued that the amendment was not enforceable.  The Court agreed.                     

The Court first noted that restrictions on owners' ability to lease their units must be contained in a condominium's declaration or in a properly approved and recorded declaration amendment.  In this case, the condominium's declaration stated that it could be amended only by the vote or agreement of at least sixty-seven percent of the owners. Since the association did not obtain the vote or approval of sixty-seven percent of the owners before recording the amendment, it was not properly approved and could not be enforced.   

The Court went on to note that the declaration amendment would be unenforceable even if it were considered to be a house rule.  First, such a house rule would conflict with the declaration, and declarations prevail over house rules when there is conflict between the two. Second, such a house rule would be unreasonable both in purpose and in application.  The house rule's purposes (to protect the value of the original rental units and to allow a board member who bought a rental unit to bypass the waiting list) would be unreasonable because they would not be consistent with improving the health, happiness, and peace of mind of a majority of the condominium's residents.  The house rule's application (favoring one group of owners over another group of owners in terms of leasing) would also be unreasonable because it would not be uniform.  

Restriction of leasing in the condominium context is fraught with peril.  Associations should obtain legal advice if they desire new leasing standards in their communities.