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Cooperative (co-op) and condominium associations are established to improve community life for all residents. But like any governing authority, there can be disagreements between those in charge and those who are subject to the rules and decisions. Conflicts may erupt over co-op and condo association policies, enforcement, and spending. Sometimes these disputes turn into lawsuits, but a healthy understanding of how they arise in the first place could help avoid them. The real estate litigation team of LaFountain & Wollman P.C. explain what you need to know.

Understanding Co-op and Condo Conflicts

Neighborhoods create cooperative and condominium associations to maintain order, aesthetics, and safety in residential communities. Ideally, each member resident will follow the rules and policies set forth and the association will wisely manage the funds it receives through dues and assessments. When this doesn’t happen, problems can emerge that in some cases lead to expensive lawsuits, threats to property values, and diminished community cohesion. These are a few examples:

Policies

Policies, rules, restrictions, and the like exist to promote order and maintain property values. However, residential associations must work to strike a balance between the objectives of their rules, on the one hand, and the privacy and liberty of each member resident on the other. Association policies may touch on various matters including:

  • The exterior appearance of the residences, including decor, paint color, acceptable shrubs and vegetation, and much more
  • Renovations and the process to approve them
  • Pet ownership and control (e.g., picking up after one’s dog)
  • Parking in driveways and on streets
  • Noise control
  • Hazardous substances, odors, garbage, and other nuisances
  • Renting and the use of the residence for commercial purposes
  • Occupancy limits

Some residents simply do not like the rules and refuse to follow them, while others do not agree on how they should be interpreted. The latter issue leads to the next problem.

Policy enforcement

Rules can be their own source of drama within a community, but the actual enforcement of those rules is where many co-op and condo associations run into problems. Many member residents simply want to be left alone and have to be reminded that the rules apply to them. But when they balk at enforcement or push back against the association, disputes can quickly spiral out of control.

Two main issues with enforcement are how the rules are to be interpreted and questions of whether they are being applied fairly. It’s a good idea to have as much detail in your community rules as possible to avoid ambiguity and loopholes. And it’s never wise to have sporadic or random enforcement of rules, a practice that can lead to allegations of discrimination.

Fees, dues, and spending

Member residents agree to the fees and dues levied by associations when they move in. Some of these are ongoing assessments that must be paid monthly, quarterly, or at some other interval. Others are special assessments for specific projects that require large amounts of capital. In other cases, residents are fined for violating rules. All of these can create tension, even if the association follows its protocols and guidelines in levying them.

How the association spends the money it raises is another source of contention. Most residents may agree that the roads need repaving or the common area needs to be improved upon; others may vehemently object to how their money is being spent. Associations should solicit member input as much as practical and make sure they follow their own rules in making spending decisions. Transparency, diligent record-keeping, and open meetings also help minimize trouble.

Resolving Conflict in Your Association

Association members are generally volunteers who are simply trying to make life better for their neighborhoods and communities. The last thing they want to contend with is a lawsuit. Our law firm can help your co-op or condo association avoid problems in the first place by reviewing and revising your policies and procedures. But if there is a dispute, we can defend your association and possibly use alternative dispute resolution (ADR) methods like mediation to reach a solution. To learn more, talk to LaFountain & Wollman P.C. today.

About the Author
Attorney Nicholas J. LaFountain has extensive experience litigating and negotiating civil disputes of many types. He has been successfully representing clients in the courtroom since 2004.