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	<title>Trending Topics &#8211; HOA ALLIANCE</title>
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		<title>Inheriting a business according to the law: What you need to know</title>
		<link>https://www.hoaalliance.org/inheriting-a-business-according-to-the-law-what-you-need-to-know/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Tue, 03 Jan 2023 17:56:09 +0000</pubDate>
				<category><![CDATA[Trending Topics]]></category>
		<category><![CDATA[Legal Knowledge]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=322922</guid>

					<description><![CDATA[Written by Lawyer Monthly You may even need to sort through belongings, accounts, or property, which can prolong the grieving process. But what if you inherit a business from someone? Unless you’ve had a long time to prepare, the responsibility could quickly become overwhelming. A business is considered part of an estate for inheritance tax. When faced with the ins and outs of this process, there are a few crucial things to bear in mind. Business relief Business relief is available  to help cope with the impact of inheritance tax, which applies to certain kinds of assets, including premises, unlisted shares, and equipment. When bequeathed a share or entirety of a business, whether to keep it in the family or protect what’s been built, estate planning in advance is crucial to reduce the overall impact of potential IHT. By factoring in business relief under the guidance of financial advisors, the beneficiaries could benefit from greatly reduced tax obligations. Order for probate To begin giving out assets according to wishes expressed in a person’s Will, executors need the legal right and documentation to start that process. This authorisation is called a grant of probate. There are exceptions to the need for probate, but it’s commonly required. Although the application process itself may not take long,  you may be waiting for several months for it to be processed . However, IHT is usually payable before probate can go through. As such, for larger estates with a lot of IHT to pay, this may hinder the release of assets to beneficiaries. For such situations,  executors’ loans bridge this gap, allowing the application to start sooner  by having the inheritance tax paid directly to HMRC. Once the estate’s assets have been released, the funding is repaid from these coffers. Ownership After settling the tax responsibilities of the estate, you’ll be left with the decision of whether to run the business, sell it, or share it. The answer to this is incredibly personal: each case is different. If you’ve inherited a family business and have been preparing to take over, it could mean more to you to keep the business going. To be sure you’re fully aware of what it entails, you should look into the financial documents and succession plans. The last thing you need is a nasty surprise further down the line. If it’s a skilled trade and you aren’t a specialist in the sector, bringing on partners to run it could be the answer. As the identity of the organisation will be altered in this situation, you should keep everyone up to date with changes to keep a smooth transition. Alternatively, it could suit you best to sell it. Running a business is an immense undertaking for which there may not be space in your life. Shared from Lawyer-Monthly.com]]></description>
		
		
		
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		<title>The Essentials of Estate Planning for Women</title>
		<link>https://www.hoaalliance.org/the-essentials-of-estate-planning-for-women/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Fri, 09 Dec 2022 19:11:33 +0000</pubDate>
				<category><![CDATA[Trending Topics]]></category>
		<category><![CDATA[Legal Knowledge]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=322590</guid>

					<description><![CDATA[Written by Zakiya Norton &#038; Somita Basu Norton Basu partners Zakiya Norton and Somita Basu share their expertise on the subject in this article, along with sound advice for women on ensuring that their assets and end-of-life wishes are protected. Creating a succession plan which honours lifetime achievements and benefits loved ones is imperative for everyone but can be particularly crucial for women. Oftentimes, it is the woman of the family who feels strongly about protecting the children, the assets and the sentimental items which she holds so dear. Women devote themselves to the care and protection of their family, so they value the benefits of an estate plan which preserves their legacy and ensures that close relationships among family members endure. A Woman’s View As co-founders of Norton Basu, LLP, a minority woman-owned estate planning and probate law firm, we have counselled hundreds of women on matters related to law, finance and estate planning. Listening to their needs and desires has taught us many things, and primary among them is that each woman’s profile is like a snowflake. Her culture, history, ethnicity, education and experience all bring her to the point at which she is today and strongly inform her intentions to live beyond death by bequeathing her wealth to precious loved ones, preferred charitable organisations and cherished pets. A Woman’s World In many ways, a woman’s perspective on estate planning may be unique. As a daughter, mother, grandmother, businesswoman or wife, she may play various roles during her lifetime as it relates to the estates of herself, her parents, her partner and her progeny. There are many reasons why estate planning is of vital importance for a woman. At different stages of life, she may be a single mother and primary breadwinner, the caretaker of her parents or grandparents, a newlywed, a widow, or a divorcee. Each of these life stages may thrust her into different roles and responsibilities which affect her and her dependents alike. Putting the proper plan in place, or updating a current plan, may be especially urgent for women. In many ways, a woman’s perspective on estate planning may be unique. Reasons to Create an Estate Plan (For Everyone): Nearly everyone would be well advised to create a revocable living trust and will. Here are the top three reasons: To avoid probate Probate is a costly, time-consuming and arduous public process. Saddling your survivors with the stress, expense and headache of probate is probably not how you would like to be remembered. To decide who is in charge and who will inherit your assets A revocable living trust allows you determine how your estate is managed and what happens to your assets after your death. To enjoy benefits during your lifetime It is good to know that your estate plan will kick in if you pass away, but the assurance that your trustee has the authority to access your financial accounts if you are incapacitated during your lifetime may be even more comforting. Reasons to Create an Estate Plan (Especially for Women): To organise multiple inheritances Women often inherit twice in their lifetimes – typically from their parents and a second time if their spouse passes away first. Often, they are the primary caregiver of older relatives, spouses and sometimes even adult children. Their nests may never be truly empty. To protect your children While all parents have the best interests of their child at heart, a mother may be most focused on protection. Setting forth a guardianship document which appoints a family member or friend to raise her children is a far better strategy than allowing a court to make that determination. Financial protection is of utmost concern as well. With her hand-picked trustee in control of distributing money to minor children, and possibly to adult children as well, a mother can take comfort in the knowledge that her beneficiaries will not have the ability to squander their funds due to the folly of youth. To avoid disputes in blended families Most people would agree that being a stepparent is complicated. This becomes even more so with end-of-life issues at play. Women tend to live longer than men. So, when her husband passes away, a widow may be faced with disgruntled stepchildren who ordinarily would have inherited their father’s wealth at that time, but the assets passed to their stepmother instead. If the stepmother joined the family when the children were at a tender age, they may have established a bond like the one they enjoy with their birth mother. But if the marriage took place in their adulthood, a relationship of this nature may not exist. That disconnection can make the entire process more difficult because the stepchildren may not feel compelled to cooperate. Blended families can be a spiderweb of legal, financial and personal complexity, so getting the estate plan right can make a woman’s life easier. Women of Colour According to recent headlines, women of colour are less likely than white Americans to have executed a trust and will. One of the reasons for this may be the misconception that estate planning is only for the super-rich. Passing generational wealth is critical for minority women who wish to lead their descendants to success and elevated achievement. Estate Planning Tips for Women of Color You do not have to be rich to have an estate (but it is also necessary if you are!) While many of us envision mansions on the hill, swimming pools and yachting excursions when we hear the word ‘estate’, this word simply refers to everything you own. This includes, but is not limited to, banking and investment accounts, retirement funds, the home in which you reside, etc. If the total value of your holdings exceeds the probate limit in your state, a comprehensive estate plan is in order. Proper planning prevents poverty Creating a trust and will is an unselfish act because the primary benefits will be enjoyed by your inheritors. That is also why it]]></description>
		
		
		
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		<title>HOA Board Conflict: Can An HOA Management Company Intervene?</title>
		<link>https://www.hoaalliance.org/hoa-board-conflict-can-an-hoa-management-company-intervene/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Wed, 30 Nov 2022 20:29:54 +0000</pubDate>
				<category><![CDATA[Trending Topics]]></category>
		<category><![CDATA[Legal Knowledge]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=322237</guid>

					<description><![CDATA[Written by Denise Every now and then, an HOA board conflict will arise. When that happens, what should the HOA management company do? Should the company even intervene in the first place? Reasons an HOA Board Conflict May Arise HOA board members are not immune to conflict. Just as neighbors can have disputes, board members can also fight among themselves. Conflicts are not uncommon in an HOA setting — or any other setting where there are leaders. When it comes to homeowners associations, though, conflicts can arise because of several reasons. First, and perhaps the most common reason, board members can disagree on business matters. Board members can have differing opinions on how to handle certain issues. A board member may not like the way others vote on an issue, resulting in harsh words or feelings. This type of situation can devolve and plant negativity in that board member’s mind. What they view as an unfavorable outcome of a vote may cause them to harbor a personal vendetta against other members. So, the next time another vote takes place, they might intentionally vote the other way out of spite. This is particularly dangerous because board members have a fiduciary duty to make decisions that are in the best interest of the community. When they stray from this, they breach that fiduciary duty. Sometimes, this personal vendetta might be aimed at a homeowner instead of a board member. This often results in the board member actively seeking ways to punish or penalize that homeowner. Other board members may take notice, leading to a confrontation. And then there are new board members who are just eager to make changes in the community. While their intentions may be pure, their actions may come across differently. When a new board member suggests reforms, older board members tend to act defensively because they view it as a critique of the way they’ve been doing things. The Importance of HOA Board Conflict Resolution Disagreements are a natural part of leading a community. But, when HOA board members fight, it is imperative to resolve the conflict as soon as possible. Prolonged conflicts send a bad message to homeowners. These conflicts depict a divided board — one that can’t agree on anything. As a result, homeowners lose their trust in the very leaders they elected. In addition to this loss of trust, conflicts also prevent a board from doing its job properly. Because of differing viewpoints or just plain personal rivalry, board members can’t make unanimous decisions or act as a single unit. More often than not, it is the homeowners and the general community that suffers. When homeowners have had enough, they will take action and start removing board members. How to Resolve an HOA Board Conflict When faced with a conflict, it is best that HOA boards handle things internally and privately first. Keep things professional and respectful. Dressing down the problem board member in public may only trigger them to lash out further. Fellow board members should keep the following pointers in mind: Remain objective. There is no use in getting angry, too. Maintain a calm demeanor and examine the situation objectively. Board members who emotionally detach themselves from the conflict are better suited to resolve it. Find the root cause. The next step is to get down to the root cause of the conflict. Board members should listen to all sides of the story to arrive at a compromise or resolution. While it is important not to get emotionally involved, expressing sympathy will help calm the situation. Stand firm. Sometimes, even when board members try their hardest, an angry board member simply won’t cooperate. They might try to shift the blame or justify their own actions. When this happens, board members should remain steadfast in their decision. Most of the time, board members can resolve the conflict by talking things out. But, there are cases when the problem board member/s just won’t listen. When that happens, other board members have the option of asking that person to step down from their position . Keep in mind that board members don’t have the power to demand or force the resignation. While removing a board member is possible, it usually requires a vote from the membership. For instance, for Tennessee condominiums, Section 66-27-403(f) of the Condominium Act of 2008 requires a two-thirds vote from unit owners present at a meeting where there is a quorum. Similar or differing provisions may exist within the governing documents  of an association, though. What Can an HOA Management Company Do? Homeowners associations are managed by a set of directors and officers known as the HOA board. This board is responsible for the community’s operations, which involve preparing the budget, collecting dues , maintaining common areas, hiring and coordinating with vendors, and communicating with homeowners. Sometimes, an HOA board will hire an HOA management company to help carry out the day-to-day and administrative tasks necessary to keep the community functioning. But, does an HOA management company have the right to intervene when conflict arises among board members? Typically, it does not have to come to that. Board members usually take action first before the company has to step in. The board members themselves are, after all, normally good at policing that type of thing. It is important to remember that the role of the HOA management company is to provide advice, implement the board’s decisions, and oversee day-to-day operations. Thus, the company should not get too involved in the conflict. What the company can do, though, is gently advise the other board members to take action. Let them know that failing to resolve the conflict will only interfere with the operations of the community. Furthermore, an HOA management company can assist with mediation. The community manager should not take it upon themself to mediate the dispute. Rather, it is best to hire a third-party neutral , with the manager or company simply offering assistance. A United Board Every association should try to]]></description>
		
		
		
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		<title>6 Estate Planning Tips And Advice For Your Retirement</title>
		<link>https://www.hoaalliance.org/6-estate-planning-tips-and-advice-for-your-retirement/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Tue, 29 Nov 2022 17:49:58 +0000</pubDate>
				<category><![CDATA[Trending Topics]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=322223</guid>

					<description><![CDATA[Written by Lawyer Monthly For many, it’s a common misconception that estate planning is only for the wealthy. However, it may be time to change your mindset since having an estate plan early on will ensure your retirement years will be hassle-free. Remember that proper estate planning will go a long way in protecting and growing the wealth you have accumulated over the years. Although circumstances will vary for each individual, there are several general considerations when  planning for retirement  to cater to all your needs while securing your family’s future during your retirement years. Here are several estate planning tips to keep in mind. 1 – Give Importance To Life Insurance A crucial consideration when securing your retirement is to prioritize life insurance early on. Life insurance will always be necessary since it offers financial preparedness and peace of mind if an unforeseen event happens. However, it can also be considered a crucial component of your estate planning to ensure a financially secure retirement. Generally, life insurance provides your beneficiaries with funds without additional taxes while also serving as replacement income for family members who depend on you financially. 2 – Scrutinize Your Expenses Looking closely at your income and expenses may provide insight into what you’ll have during your retirement years. Although the retirement vision varies for each individual, you must secure your finances early on. It’d be best to envision what you want your retirement to be so you can prepare. Although various circumstances might come and go, you have an idea of what you want to achieve. If your current lifestyle is beyond your means, it may be best to hold back. 3 – Switch To A Roth Individual Retirement Account (IRA) As for your retirement account, consider converting your traditional Individual Retirement Account (IRA) into a Roth IRA. If you’re familiar with the difference between the two, a Roth IRA involves paying taxed contributions right away and enjoying tax-free withdrawals in the future. As for traditional IRAs, contributions are deducted with taxes paid on the withdrawals you make later. Doing so will ensure you’ll pass funds to your beneficiaries without taxes. In most cases, the converted amount will be subject to regular taxes, but any withdrawals you make or by your inheritors will no longer include taxes. The best approach is to pay the taxes on the money now rather than later. 4 – Take Disability Into Consideration During estate planning, the estate plan should include several crucial considerations if you end up disabled. There are several legal documents you need to prepare, such as a living will, an advance health care directive, and a power of attorney. A living will outline your end-of-life care wishes where you can indicate any medical treatments, medications, or procedures you want or don’t want to receive. If you overlook one, you might end up undergoing medical measures that you wouldn’t have wanted in the first place. An advance health care directive addresses your specific wants for your medical care and allows you to assign someone to make health-related decisions once you’re no longer capable. A living will and an advanced health care directive seem strikingly similar. The difference between the two will depend on the state you reside in and how the state defines both terms. A  power of attorney  appoints an individual you trust to make financial decisions for you. The chosen individual will take charge of your finances if you become incapacitated. Make sure the person you assign is someone you truly trust to manage your finances properly. 5 – Draft A Will Drafting a will should be a priority during estate planning. Generally, the document outlines the distribution of your assets in case you pass away. If you fail to create a will, it’s likely for your estate to be divided during probate. In such circumstances, there’s a high chance that what you wanted for your estate won’t happen. However, even with a will on hand, it’ll still go through the probate process. Even if you already have a will, make sure to thoroughly review your list of beneficiaries after major events such as the death of a family member, birth of children, divorce, or marriage. Additionally, keep your beneficiaries up to date with your estate plan to avoid possible conflicts in the future. 6 – Consider Setting Up A Trust One way to ensure you can retain money in your family is to set up a  trust. Having one ensures that money will move from one generation to the next, and the best aspect is that it’s protected from lawsuits, divorces, or potential claims from creditors. In the simplest form, a trust allows you to assign a trustee to oversee your finances according to your specified instructions. A well-structured trust will assure you that your wishes will push through the way you want. Consider employing the services of a lawyer specializing in estate planning and trusts. Final Thoughts Although the estate planning process can be challenging for many due to the constantly changing regulations and tax laws, not taking action might not bring the ideal retirement years you’ve envisioned. Even if you consider yourself financially secure, proper estate planning is necessary even before retirement. Considering these valuable insights will give you a head start in keeping your family secure and ensuring hassle-free retirement. Shared from Lawyer-Monthly.com]]></description>
		
		
		
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		<title>What Does IRS 528 Say?</title>
		<link>https://www.hoaalliance.org/what-does-irs-528-say/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Thu, 17 Nov 2022 17:55:08 +0000</pubDate>
				<category><![CDATA[Trending Topics]]></category>
		<category><![CDATA[Legal Knowledge]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=322080</guid>

					<description><![CDATA[Written by Denise When it comes to federal taxes, many homeowners associations find themselves in a bind. While HOAs are required to pay taxes and file tax returns, they fall into a specific category under the Internal Revenue Service — IRS 528. Understanding HOA as Non-profit Corporations In many states, homeowners associations are structured and formed as nonprofit corporations. Despite the term and the fact that HOAs don’t exist to earn income, associations are still subject to taxation. This is because homeowners associations still do earn income in the form of membership dues and assessments. Before changes in the tax code, homeowners associations fell under IRS Code 501(c). There are a number of organizations under this category: 501(c)(3) Religious, Educational, Charitable, Scientific, Arts Organizations 501(c)(4) Civic Leagues and Social Welfare Organizations 501(c)(6) Trade and Professional Associations (Business Leagues) 501(c)(7) Social and Recreational Clubs 501(c)(8) Fraternal Associations In the past, homeowners associations were typically classified as 501(c)(7) organizations, paying taxes on net income generated from nonmember activities and investment earnings. Some qualify under 501(c)(4), making them exempt from income taxes apart from unrelated business activities. However, the tax code was changed to include IRS 528, a category that is specifically dedicated to homeowners associations. What Is IRS 528? IRS Section 528 was enacted under the provisions of the Tax Reform Act of 1976. The objective of this section is to give homeowners associations an alternative when it comes to exemptions outside of falling under 501(c)(4). Homeowners associations that qualify under IRS 528 are only taxable to the extent provided in the code. Under this section, the tax imposed on an HOA shall equal to 30% of the association’s taxable income. For timeshare associations, the taxable percentage is 32%. What Counts as a Homeowners Association Under IRS 528? According to the code, a homeowners association is a condominium association, residential association, or timeshare association if it meets the following: The organization is organized and operated to acquire, construct, maintain, manage, and care for association property; At least 60% of the organization’s gross income for the taxable year is solely comprised of membership dues, fees, or assessments from owners; At least 90% of the organization’s expenses for the taxable year went to acquiring, constructing, maintaining, managing, and caring for association property (for timeshare associations, it is for activities provided to or on behalf of the association’s members); None of the organization’s net earnings is for the benefit of a private individual or shareholder; and, The organization elects to operate under this section for the taxable year. Taxable Income for Homeowners Associations According to IRS 528, these are the definitions of the following terms: Taxable Income. This is the amount equal to the excess of the association’s gross income for the taxable year (not counting exempt function income) over the deductions permitted under this code and calculated with the modifications defined below. The deductions are those that are directly related to the production of gross income (not including exempt function income). Modifications. The section allows a specific deduction of $100. Another modification is that no net operating loss deduction is permitted under section 172 . Finally, the chapter also does not allow deductions under part VIII of subchapter B . Exempt Function Income. According to this section, exempt function income is any amount the association earns in the form of membership dues, fees, or assessments from the owners in the HOA. IRS 501(c)(4) vs 528 Section 501(c)(4) offers tax exemptions for certain organizations. This can include homeowners associations if they qualify. However, seeing as 501(c)(4) provides for a much stricter standard for HOAs to qualify for an exemption, most associations opt to qualify instead for either 501(c)(7) or 528. If an HOA wishes to reap the tax benefits under section 528, it must file Form 1120-H . To do this, the association must elect to follow this section, and it must do so separately for every taxable year. The election must also happen by the due date of the income tax return (including any extensions). Keep in mind that filing an extension only extends the deadline for filing the tax return. It does not extend the due date for paying the tax itself. The due date for filing Form 1120-H is on the 15th day of the 4th month following the end of its taxable year. If an HOA’s fiscal year ends on June 30, though, it must file by the 15th day of the 3rd month following the end of its taxable year. After filing Form 1120-H, an HOA cannot rescind its election for the same year. The only way to do so is to have the IRS consent to the overturning of the election, which you can accomplish by filing a ruling request. There is a user fee that the HOA must pay to file ruling requests. Qualifying for IRS 501(c)(4) It is infinitely more difficult for a homeowners association to qualify for exemption under 501(c)(4). This is because the standard for qualification is much higher and stricter. There are two types of organizations under 501(c)(4): social welfare organizations and local associations of employees. The only type that applies to HOAs is the first one — social welfare organizations . To qualify as a social welfare organization, an HOA must organize as a for profit organization and exclusively operate for the benefit of the general public. Earnings may not benefit private shareholders or individuals. The operations of the association should all go toward promoting social welfare. As HOAs typically don’t operate exclusively to promote social welfare, the IRS does not approve most requests. Homeowners Associations Must Still Pay Taxes Since the objective of an HOA is not to primarily earn profits, it is difficult to reconcile the idea of it with having to pay taxes. But, federal law does require associations to pay taxes and file tax returns. Thankfully, changes to the Internal Revenue Code have made it much easier for HOAs. With IRS 528, associations can exclude exempt function income]]></description>
		
		
		
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		<title>Looking at the abandonment of HOA restrictions</title>
		<link>https://www.hoaalliance.org/looking-at-the-abandonment-of-hoa-restrictions/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Mon, 31 Oct 2022 19:02:49 +0000</pubDate>
				<category><![CDATA[Trending Topics]]></category>
		<category><![CDATA[Legal Knowledge]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=321937</guid>

					<description><![CDATA[Written by bkabritsor If you help run a homeowner association (HOA), you could encounter a wide variety of challenges. From delinquent accounts to dealing with a dispute, filing paperwork and the enforcement of deed restrictions, many different issues can arise. Sometimes, unexpected hurdles come up. For example, if an HOA is trying to enforce a restrictive covenant, a homeowner facing enforcement actions could claim that a restriction has become abandoned in order to avoid penalties. It is important to review factors that courts go over with respect to allegations of abandoned restrictions. How courts decide if restrictions have become abandoned According to the Texas State Law Library, there are different factors that courts go over when deciding if a restrictive covenant has become abandoned. For example, the court could look at how many unenforced violations have taken place with respect to the overall quantity of lots. The court could also look at how severe unenforced violations were in the past, as well as how much someone attempting to move forward with the enforcement of a restrictive covenant counted on the restriction when they bought property. If the court comes to the conclusion that a restriction has become abandoned because an association was lax with respect to enforcement, enforcement could become impossible. Handling allegations of abandonment If your HOA currently faces allegations of the abandonment of restrictions while trying to pursue enforcement, it is imperative to carefully review the unique details of the case. Do everything in your power to safeguard the best interests of your homeowner association and secure a favorable end result in the courtroom.The post Looking at the abandonment of HOA restrictions first appeared on Gregg &#038; Gregg, P.C.. Shared from Gregg &#038; Gregg, P.C.]]></description>
		
		
		
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		<title>HOA Disciplinary Hearing: What Is It And How To Prepare For It</title>
		<link>https://www.hoaalliance.org/hoa-disciplinary-hearing-what-is-it-and-how-to-prepare-for-it/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Thu, 06 Oct 2022 13:33:36 +0000</pubDate>
				<category><![CDATA[Trending Topics]]></category>
		<category><![CDATA[Legal Knowledge]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=321761</guid>

					<description><![CDATA[Written by Denise Holding an HOA disciplinary hearing is common practice among many homeowners associations when a violation has occurred. Both the HOA board and homeowners must know what to do when faced with this hearing. What Is an HOA Disciplinary Hearing? A disciplinary hearing is a formal meeting between the HOA board and the homeowner accused of a violation. The goal of an HOA disciplinary hearing is to provide the homeowner a chance to explain their side of the story before the board decides to impose discipline. Anyone who has ever lived in a community managed by an HOA knows that there are certain rules to follow within the association. These rules exist to maintain order in the neighborhood and protect the property values of the community. Every now and then, though, a homeowner will break a rule either intentionally or unintentionally. When that happens, the association has the authority to impose discipline , which usually takes the form of monetary fines. Of course, other forms of enforcement also exist. Prior to imposing discipline, associations will normally hold a disciplinary hearing for the homeowner. During the hearing, the homeowner can address the violation. After listening to the homeowner, the HOA board will then make a decision. The Requirements of HOA Disciplinary Hearings There are some states that require associations to hold disciplinary hearings by law. One such example is California . However, for a vast majority of associations, the requirement to hold disciplinary hearings can be found within their governing documents. These documents also typically contain other provisions concerning the hearing. If your HOA doesn’t currently require hearings, it’s a good idea to start doing so. Disciplinary hearings give homeowners a chance to be heard, so it plays a critical role in fostering a healthy relationship between owners and the board. While the exact requirements of an HOA disciplinary hearing can vary, they generally include the following: Provide Notice The first thing associations should do is send an HOA notice of disciplinary hearing to the homeowner who violated a rule. The length of notice can change from one association to another. For example, in California, the law requires that written notice must be sent to the homeowner at least 10 days prior to the hearing. If the disciplinary action involves a suspension of the owner’s privileges, the length of notice goes up to at least 15 days prior to the meeting. At the very least, the notice must consist of the following information: The date, time, and venue of the disciplinary hearing; A description of the alleged violation that the homeowner has committed; and, A statement that the homeowner has a right to attend the disciplinary hearing and talk to the board at said hearing. Holding the Hearing Most associations hold disciplinary hearings in private or executive sessions. This means that no other homeowners, apart from the owner being disciplined, can attend the meeting with the board. The requirement to hold hearings in an executive session will depend on state laws and the governing documents. In California, though, boards must conduct the hearing in executive session if the homeowner requests to do so. Making a Decision The board must make a decision to impose discipline based on the findings at the hearing. Board members must remember to always act in good faith, making decisions in a consistent and fair manner. No decision must be made based on arbitrary interpretations or biased judgments. Notice of Decision If the board decides to impose discipline or fine the homeowner, the board must usually provide written notice after the hearing. The length of notice again depends on state laws or the governing documents of the association. In California, the board must provide notice in writing within 15 days. How Homeowners Can Prepare for HOA Hearings Receiving a notice of an HOA disciplinary hearing is probably the last thing homeowners want. But, when it happens, it is best to face it head-on instead of ignoring it. Here is how homeowners can prepare for their disciplinary hearing:  Understand the Governing Documents After reading the notice of the hearing, homeowners should immediately refer to the governing documents . This will allow them to understand what rule they broke and what the possible consequences are. It is not uncommon for boards to make a mistake or to capriciously enforce the rules. Knowledge of the community’s covenants will allow homeowners to know whether they actually committed a violation. If they did, knowing the rules also gives them a chance to correct the violation at the soonest.  Plan Your Presentation Next, homeowners should let the board or HOA manager know that they will attend the hearing. To prepare, it is a good idea to plan a presentation well in advance. The presentation should include the owner’s side of the story, any relevant arguments, and any supporting documents. It is best to keep the presentation short and concise. Sometimes, homeowners can’t attend the hearing due to a conflict in schedule or illness. In that case, homeowners should immediately let the board or HOA manager know. They can postpone the hearing to a later date, though they are not usually required to oblige with this request.  Attend the Hearing Alone While it may be tempting to bring an attorney alone, homeowners best not do so. Disciplinary hearings are usually meetings between neighbors — fellow homeowners. And the association’s attorney won’t normally attend the meeting anyway. Plus, hiring an attorney will probably cost homeowners more money than the actual fine itself. D-Day Actions On the day of the meeting, homeowners should notify the board or manager that they have arrived. There may be other hearings on the same day, so owners can expect some waiting time. During the hearing itself, homeowners should refrain from arguing too much. Instead of criticizing the rule itself, address the violation that took place. Boards don’t tend to like owners who lash out. Homeowners who have committed the violation for the first time may be able to]]></description>
		
		
		
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		<title>Can the ban on section 21 evictions help cut costs?</title>
		<link>https://www.hoaalliance.org/can-the-ban-on-section-21-evictions-help-cut-costs/</link>
		
		<dc:creator><![CDATA[HOA Alliance]]></dc:creator>
		<pubDate>Tue, 20 Sep 2022 19:35:43 +0000</pubDate>
				<category><![CDATA[Trending Topics]]></category>
		<category><![CDATA[Legal Knowledge]]></category>
		<guid isPermaLink="false">https://www.hoaalliance.org/?p=321527</guid>

					<description><![CDATA[Written by Lawyer Monthly With energy bills expected to soar, plus the ongoing food price hikes and mounting childcare costs, it seems like there’s no end in sight. One sector that’s seen a huge amount of change lately is lettings. The property market is feeling the effects of the recent rise in inflation, which  is predicted to reach 13% – way ahead of the 2%  that it’s meant to be. This is the main reason why rent is likely to go up. Landlords are trying to get a handle on the cost-of-living crisis, and this is reflected in the amount that they’re charging tenants. But is this fair? And where does the ban on section 21 fit in? Why is rent going up? There’s no denying that the cost-of-living crisis is impacting everyone right now. Rising inflation is the driving factor behind a lot of the price rises that we’re seeing. But while the rapid rate of inflation is one of the main reasons why rest prices are going up, it’s not the only factor. During the pandemic, many of us – not just those renting – reassessed how we were living and decided to make some major changes. As a result, tenants living in major cities like London decided they wanted to embrace remote working and move to rural and coastal areas. As a result, these leafy suburbs and seaside towns have seen rent rises. The mass exodus has meant that landlords outside of London have been able to charge more. Not everyone’s left the cities, however. Many have used the events of the last two years to relocate their jobs and lives so, as some have moved away from urban areas, others have moved in. Again, landlords are seeing this influx of newcomers and charging accordingly. What is section 21? A section 21 notice begins the legal process to end a tenancy. This must be for a short-hold tenancy and can be issued during a rolling periodic tenancy or in a fixed-term contract where there’s a break clause. There is usually a date on the notice that informs the tenant of the point by which they need to leave. Landlords have had this power since the 1980s. This, plus things like  dedicated cover such as commercial landlord insurance , all help landlords protect their assets in case of unforeseen events. How banning section 21 evictions can help According to a government white paper issued in June,  there are plans to ban section-21 evictions . This is designed to address the imbalance between tenants and landlords. This ban has the potential to help thousands of renters in the UK. It means that tenants can’t be given short deadlines to find another property – something that’s increasingly difficult in the current market when lots of people are trying to rent and the cost of moving is high. Additionally, it means that tenants won’t have the added pressure of trying to find somewhere new to live at a time when the cost of living, in general, is going up. Ultimately, it can only help tenants in the coming months. Shared from Lawyer-Monthly.com]]></description>
		
		
		
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