Architectural Controls: Where's The Beef?
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Question: We have
just been advised by our community association's architectural control
committee that our fence is eight inches too high, and allegedly violates
some obscure rule within our association. We were told that if we do not
lower the fence within 30 days, we will be fined $25 per day until the matter
is resolved. We just purchased the property, and our seller (or his
predecessor) installed that fence. We certainly want to comply with the rules
of our association, but do not want to spend any money removing a fence that
we did not install. What should we do? Answer: This is a
very serious problem affecting community associations throughout the country.
Many associations have some form of architectural requirements, often
enforced by an architectural review committee. Although the scope of these
committees varies, the general idea is that in order to keep some semblance
of uniformity and balance within the association, owners must receive
advanced approval from a committee before any exterior work is done. However, many owners -- whether in a condominium, cooperative
or homeowner's association -- believe that these requirements create an
unnecessary, time-consuming -- and often expensive -- burden. Many owners
have also had negative experiences with their architectural control
committees; we have all read of the cases where these committees acted
arbitrarily and without using common sense. Whenever I hear these stories, I generally paint a mental
picture whereby the members of the architectural control committee walk
around the community, wearing dark trench coats and carrying binoculars so as
to get a better look at all of the problems. However, design review within an association has at least
two purposes: to establish and preserve a harmonious design for a community
and to protect the value of the property. The Community Associations
Institute (CAI), a non-profit association created in l973 to educate and
represent the nation’s 250,000 community associations, has concluded that
“properly exercised design review or architectural control protects community
association property values by creating and preserving an attractive
community.” However, CAI also warned that these associations “may
find themselves embroiled in misunderstandings, controversy or even lawsuits
if architectural control is not handled properly.” When one buys into a community association, one must
understand that it is community living. Decisions cannot be unilaterally
made, nor can the rules and regulations of the association be unilaterally
ignored. One might disagree with the need for external uniformity,
for example, but the fact remains that if the association documents require
external uniformity, that is the law of the association and is binding on its
members. You should read all of your association documents carefully, to
learn the scope and purpose of the architectural review committee. Having discussed the function and purpose of
architectural controls, however, boards of directors of community
associations must also recognize that the architectural control committee
cannot be a dictator, rendering unreasonable -- and often absurd decisions. There has been much litigation in the area of
architectural controls. The courts have made it clear that covenants are
valid and enforceable provided there are clear policy guidelines establishing
the overall standards. For example, it probably will not be acceptable merely
to say that owners may not make changes to the exterior without first
obtaining the written approval of the board or the architectural control
committee. If no specific guidelines have been developed, neither
the owner nor the review board will have any objective standards by which to
judge the validity of the proposed external change. And without such
standards, even the most well-intentioned committee can be accused of being arbitrary.
Boards of directors must establish fairly specific
guidelines, and if those rules are not already in your association documents,
they should be drafted and approved in accordance with your legal documents,
and the laws of the state in which your property is located. The directors also should be aware that the following
will be valid defenses by an owner when the association tries to seek
enforcement of the architectural standards: · Arbitrary and capricious actions have been taken. The architectural
standards must be applied fairly and consistently, across the board and in
good faith. It is improper for a board or its architectural review
committee to pick and choose the enforcement of the covenants or to go
against some -- but not all -- of the owners. · Delays have occurred. In legal terms, this is referred to as
“laches” or “estoppel”. This means that the board has permitted a lengthy
period of time to elapse before taking action against an owner. For example,
one court ruled that a board's six-month delay in filing suit against an
unauthorized fence barred the board from enforcing the covenants. If an owner is in violation of the architectural
standards (or at least the board believes there is a violation), the board
must start prompt action to assure compliance of the standards. · A waiver has been granted. Basically, if the board fails
to enforce a covenant in the case of one owner in similar situations, it may
be prohibited from enforcing the same standards against another owner. Often, the association documents require that the
committee make a decision within a specified period of time (for example 60
days from receiving the request) or the request "will be deemed to have
been approved." All too often, architectural control boards have been
accused of asserting dictatorial powers. Indeed, in one large community, the
architectural control committee is consistently referred to as the
"KGB." According to one report, committee members were often seen
"prowling around the neighborhood with their clip boards, looking for
violations." Often, boards (or their architectural control committees)
become obsessed with minor, petty violations and lose sight of reality and
common sense. A considerable amount of money has been spent by both
owners and boards of directors in litigation that should never have been
brought. Boards should first sit down with the owner who is
alleged to have violated the architectural standards and try to work out an
amicable resolution of the problem. In the final analysis, boards and their architectural
control committees must be firm but must also be reasonable and flexible. In your particular case, I suspect that if you meet with
the Board and explain the situation, they will recognize that you have
numerous defenses -- ranging from estoppel to waiver -- and may drop their
claim against you. Of equal importance, since you recently purchased your
home, you should have received a re-sale package from the Board. That document
may state that there were no current violations at the time of your purchase,
and will be an additional argument in your defense. If not, your alternatives are simple: either pay the fine
and remove the fence or litigate. In addition, you can also mount a major
political campaign within your community to either completely abolish the
architectural controls, or modify them so that your association is brought
into the 21st century. Many of these controls were drafted in the mid-
1980's, and may not have a place in today’s world. |
Written by Benny L. Kass
Copyright © 2003 Realty Times. All Rights Reserved.