Law & Logic of Homeowner Association Capital Reserves

Written by Neda Dabestani-Ryba

Law & Logic of Homeowner Association Capital Reserves By Neda Dabestani-Ryba Prudential Carruthers REALTORS

In October 1999, Oregon was one ofrepparttar first states that enacted a significant improvement to its Condominium and Planned Community regarding capital reserve planning, a process by which homeowner associations plan and fund future repairs and replacements. For many associations,repparttar 150474 process became mandatory although there was an "escape clause" for pre-October 99 Oregon communities. But there's more to reserve planning than The Law. Where statute stops,repparttar 150475 Board's "fiduciary" duty kicks in. A "fiduciary" is one who is givenrepparttar 150476 trust or confidence of another. The Board is entrusted with care ofrepparttar 150477 biggest single asset that most people own, their homes. These people haverepparttar 150478 right to expectrepparttar 150479 homeowner association to be run likerepparttar 150480 business that it is...a corporation often responsible for millions of dollars in assets. The reserve study concept was developed duringrepparttar 150481 1980s as a result ofrepparttar 150482 many aging homeowner associations that found themselves in dire straits due to failure to plan for reserve expenses. The homeowners expectedrepparttar 150483 Board to plan for such events and all too many had no plan other than "dealing with it" whenrepparttar 150484 time came. Well, those "times" came all too soon and inevitability lived up to its reputation. Thus,repparttar 150485 obvious need for long range planning came about.


Written by Neda Dabestani-Ryba


Policy Federal Fair Housing accessibility requirements for new multifamily buildings should be written in building code language certified as Fair Housing compliant byrepparttar Department of Housing and Urban Development (HUD). HUD should be vigilant in compliance education and assistance as is NAHB. Use of Fair Housing Initiatives Program funding for enforcement actions should be curtailed. Any enforcement actions should be reasonable and reflectrepparttar 150473 lack of clear guidance available for complying withrepparttar 150474 Act. Background The Fair Housing Amendments Act of 1988 requires new multifamily buildings constructed for first occupancy after March 13, 1991 and consisting of four or more units to be accessible to disabled persons. HUD issued accessibility guidelines on March 6, 1991 and a supplementary design manual in August 1996 to provide guidance on complying withrepparttar 150475 law. But HUD's guidelines were poorly promulgated and not written in building code language, making it impractical for builders and local officials to define compliance, which has led to conflicting interpretations and inadvertent failures to meet certain requirements. In response, building code language was cooperatively developed by NAHB, HUD,repparttar 150476 International Code Council, and disability advocates and completed in May 2000. HUD has certified thatrepparttar 150477 building code language satisfiesrepparttar 150478 accessibility requirements ofrepparttar 150479 Fair Housing Act and NAHB is promoting state and local adoption ofrepparttar 150480 compliant code language. Federal promulgation ofrepparttar 150481 requirements must still be intensified, however, if compliance is to be improved. Addressing noncompliance of existing covered buildings (constructed for occupancy after March 13, 1991) remains contentious. Federally funded private advocacy groups and state and local housing agencies, HUD, andrepparttar 150482 Department of Justice are all actively involved in current enforcement actions and will continue to be. These actions are often threatening, based on questionably broad interpretations of federal requirements, fail to reflectrepparttar 150483 lack of compliance assistance atrepparttar 150484 time of construction, and divert resources that could otherwise be applied to more proactive solutions.

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