ELECTRIC VEHICLES

QUESTION: How should we handle homeowners with electric cars who charge them in the garage?? The HOA shouldn't have to pay for their electricity usage.

ANSWER: Electric vehicles (EV) are trendy and cute but EV owners don't have a right to use common area power to charge them. Doing so means their neighbors are paying for the "fuel" that runs them. It's no different than siphoning gasoline from their neighbors' cars. Accordingly, EV owners should be prohibited from using common area power to charge their vehicles.

Solution. As the battery life and efficiency of electric vehicles improves and costs go down, Evs will become more prevalent. That means this issue is not going away. Owners will need a way to charge their vehicles. To resolve the problem, associations should allow EV owners, wherever feasible, to run power from their own electric meters to their parking spaces. Before doing so, boards should require that EV owners use licensed and insured electricians and obtain appropriate permits from the Building Department.

FHA FINANCING

QUESTION: I am a real estate agent who is trying to help get a condo association approved for FHA financing. We need a "condo certification" from the management company and an attorney letter. It seems to be in the best interest of the HOA to cooperate by providing the info ASAP. Without FHA financing, the condos are valued at about 20% less than similar condos in the area. Does the management company have a duty to cooperate since it is in the best interests of the association? Or is this strictly a decision of the board?

ANSWER: The management company is an agent of the board. As such, it is not their decision whether the association seeks or cooperates with FHA certification. It is the board's decision. That said, the best way for associations to improve property values is to qualify their projects for FHA loans. To find out if their own association has certification, owners can check FHA's approved projects.

FEEDBACK

Bid Shopping.Another really BIG reason not to bid shop is that when contractors realize you do this, they will not submit bids to you anymore. -Michael G.

Unrealistic Expectations. Please clarify what a manager’s duties are. Many believe we are experts in all fields and then become angry when we aren't. I’ve started bringing copies of our management contract to my meetings for board members to read as they seem to forget what they’ve hired us to do be administrators. -Barbara S.

RESPONSE: Many boards expect their managers to be CPAs, advise them on the law, be parliamentarians, have construction expertise, provide psychological counseling and not make any mistakes--all for $10 a door. Oh, and let’s not forget world peace. Sometimes you have to remind them that you can't walk on water. -Adrian

Paid Directors. On the subject of paying directors, can the board just hire owners and call them "consultants" and pay them to do board work without making the final decisions? The board would still take all facts from these consultants and make the final decisions. Our HOA is having a lot of trouble getting and retaining directors. We also have had directors that just don't do anything. -Sam M.

RESPONSE: As paid consultants, homeowners would likely lose the protection provided by your association's insurance. The services you seek are typically provided by managers, attorneys, recording secretaries, and the like. That may require higher membership assessments but there’s nothing like a healthy dues increase to motivate owners to run for the board. -Adrian

CACM Manager Ethics. Quick clarification regarding 5.01(d) of the CACM Code of Ethics, the process of sealed bids opened in front of the board is to be utilized only when a manager, or an allied, related, or affiliated company, is also providing a bid for services. -Marla H.

RESPONSE: I took another look and you're right. CACM's Code of Ethics does not prohibit bid shopping. I contacted Karen Conlon, Executive Director California Association of Community Managers to see if this issue is covered in any of their materials. Following is her response:

The CACM Ethics Course discusses this in detail and all managers obtaining their initial certification must complete the course, as well as those who must recertify every 3 years. The key obviously in this circumstance and in this aspect of our Code of Professional Ethics, is disclosure. Once disclosure occurs then the association board can weigh the information and make a determination how to proceed. If the board chooses to waive the sealed bidding process, that would be their choice as long as it is not mandated in their governing documents (which I have never seen). -Karen Conlon

Spec Bidding. One item that I do that I do not feel is unethical because I disclose it to the board and to the vendor is spec bid. If we have a future project that may or may not be done but we need a ball park cost on it I usually contact one or two vendors for the project to give me a bid for budget purposes. They are fully aware that the project is a future one and the board is aware that the costs can change anywhere from 5% on up depending on when they choose to do the work. This works well for the vendor and the board when the association is on a tight budget. -Joyce S.

RESPONSE: Spec bidding for budgeting purposes is a good idea. There is nothing wrong with it and it allows you to set aside funds for capital improvements or to fine tune reserve study line items.

 
  Sincerely yours,
 
   Adrian J. Adams, Esq.
   Adams Kessler PLC

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