Disrupting The HOA Industry—Part III: Shattering the “Us v. Them” Mindset

In Part I of this series, I described the HOA “Us versus Them” scenario. In Part II, I discussed how the pervasive attitude developed. In this final post, I outline how an HOA can embrace a new paradigm for internal dispute resolution that shatters the “us vs. them” mindset.

              To quickly review, the system upon which HOA boards work is based upon an adversarial process, as if a homeowner member of the association were a stranger or third party. The HOA’s governing documents were written by attorneys working for a developer who often lack internal dispute resolution education and training.

              To unwind this mindset, we need to go back to the beginning, to the formation of the HOA and its governing documents. Depending upon the documents, they may need to be modified to incorporate a more organic, inclusive dispute resolution process as described below. Once the authoritative documents have been modified, if necessary, then a new Enforcement Policy should be written from the ground up.

              Today, HOAs are set up unequally, with all the HOA resources provided to the board. Individual homeowners have little to no direct access to these resources. The association manager “works” for the board, as does the attorney. This is not legally true (as the client should be the HOA entity itself), but practically how these vendors most often are looked upon and how they perceive their roles. When a complaint or alleged violation is received, the board relies upon managerial and legal resources, whereas the homeowner has to fend for themself. Immediately, an unequal power struggle exists, and an adversarial relationship is created (either intentionally or unintentionally).

              To combat this unjust balance of power and unilateral use of HOA resources (managerial and legal), the progressive Enforcement Guidelines [or Policy] should state up front a purpose that incorporates equal power and a level playing field. A preamble such as the following may be appropriate:

Whereas, Anytown Gardens Homeowners Association is a welcoming, inclusive community. The board of directors strives to maintain a safe environment for its members, residents, and guests, and to act reasonably and responsibly to maintain common areas and property values.

Whereas, every member of Anytown Gardens HOA is treated fairly and equally. Association board members, committee members, and others are treated the same and benefit from HOA resources no differently than ordinary Association members who do not volunteer or serve for the community.

Whereas, all members of the HOA pay for the services of Association vendors such as attorneys and managers pursuant to the assessment schedule outlined in the HOA’s Declaration.

Whereas, the board of directors has determined that complaints and other allegations of homeowner violation of the HOA’s CC&Rs, Rules, or Guidelines, or other intra-Association conflict, is best resolved through an internal resolution process.  

Now, Therefore, in keeping with the above precepts, the board of directors of Anytown Gardens HOA adopts the following CC&Rs and Rules Enforcement and Dispute Resolution Guidelines. . .”

The preamble serves as the introduction. The substance of the guidelines would include sections:

·       Setting forth roles and responsibilities of:

o   The board of directors;

o   Association manager;

o   Association legal counsel;

o   Homeowners; and

o   Complaint Committee.

·       Defining “conflict,” “dispute,” and “violation.”

·       Establishing formation and defining the role of a Complaint Committee comprised of non-board member homeowner volunteers.

·       Establishing protocols and procedures for submitting, evaluating, and resolving complaints of Rules and CC&Rs.

·       Establishing strict guidelines for involvement of the HOA’s attorney and professional manager.

In reviewing the basic outline above, you may wonder how such guidelines differ from your HOA’s current enforcement guidelines or policies. As stated within this “Disrupting the HOA Industry” blog series, the detailed information within these progressive guidelines comprises a fundamental shift from adversarial to collaborative dispute resolution within a homeowner association.

If your HOA is interested in learning more about such guidelines or would like to discuss how to shatter the “us vs. them” paradigm that exists within your community, please reach out to me through use of the “Contact” page of my website.