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HOA Architectural Committees: Are You Doing Enough to Police Yours?
Three courts in two states have recently given architectural committee actions a once-over, and the results weren't always favorable to the associations. This week's tip serves as a reminder to your board that it must oversee its committees and that your homeowners association can be held liable when your board falls down on that job. In the first case, which took place in California, a homeowners association enforced its governing documents, and the homeowners who flaunted the rules suffered big losses. Robert and Catherine Cramer purchased a lot in the Clear Lake Riviera Community Association in Lake County, Calif. They started off on the right foot by seeking approval of the plan for their new home. The association approved the plan, finding it met the association's height restrictions. However, the Cramers' lot was sloping, so where they located their home on the lot affected final compliance. During construction, the association twice notified Robert Cramer that because of the location he selected for the home, the plan no longer complied with the association's height restrictions. Cramer continued with his plans. The completed home surpassed the height guideline by nine feet and impeded neighbors' views of a nearby lake. So the association sued to force the Cramers to comply. On appeal, the Cramers contended the height regulation was unenforceable because the association failed to prove it had been properly adopted. They also argued the trial court abused its discretion by forcing them to change their home rather than pay monetary damages. After a long battle, an appellate court held that even though the association didn't have much documentation to show that its height rule had been adopted, it was enforceable. It also held that the Cramers must fix their violation to the tune of more than $200,000. The lesson for boards? First, make sure you and your committees properly document architectural guidelines you adopt. Though the court found the association's guidelines were properly adopted, the association might have had less of a fight if it had had better documentation of its actions. Second, though it can be expensive, boards must enforce their architectural guidelines. To learn more about how important that second lesson is for boards and to find out why following your own association rules may not be enough, see our new article: New Cases Scrutinize HOA Architectural Committee Decisions. Best regards, Matt Humphrey President |