SURVEYS

Results of Assessments Survey

Fri, 30 Mar 2012 11:24:57 -0400

Survey Questions:

1. How many lots are in your community?

2. Is there a general assessment that all lots pay either annually, bi-annually, or monthly?
a) If so, how much?
b) Is there a different assessment for a lot with a home versus an unimproved lot?

3. If your association has a marina used by lots not on a lake, how much are their dock assessments?

4. Please identify any other specific assessment(s) and amounts that all or some of your lots pay (i.e. restaurant, athletic facilities, amenities, private roads, community wells, etc). Please be specific.

Reporting Neighborhoods:
Number of neighborhoods returning surveys: 30 (list at end of report)
Number of Lots within the returned surveys: 6378

Survey Results:
See spreadsheet below for details on each neighborhood’s responses.

Results of Vandalism/Theft Survey

Sun, 19 Feb 2012 10:49:25 -0500

Survey Questions:

1. Has your community experienced theft and/or vandalism? If yes, please continue with the survey. If no, please jump to question 9.

2. Did this occur on private property, community property, or both? Please give specifics on what happened.

3. When did the instance(s) occur and in particular when was the most recent?

4. How was access obtained -- via roads, water, or other?

5. If multiple incidents, is there a pattern (i.e. time of the year, type of damage)?

6. Were incidents reported to law enforcement and, if so, what branch (city, county, etc)? Was law enforcement of any assistance?

7. Has your problem been identified as being drug related?

8. Have culprits been identified and do they have links to your community (i.e. friends, relatives of residents)?

9. Do you have any preventive measures (automated gates, manned gate houses, security patrols, security lighting, security cameras, neighborhood watch, etc.) in place?

10. Has your community involved homeowners in taking pre-emptive steps to prevent vandalism? If so, what actions were taken?

11. What actions would you recommend to other neighborhoods?

Reporting Neighborhoods:
Number of neighborhoods returning surveys: 22 (list at end of report on web site)
Number of Lots within the returned surveys: 3976

Survey Results:
Number of associations reporting vandalism and/or theft: 14
Location of incidents: Private property (15) Community property (6)
Most often time of vandalism/theft: Warm weather nights
Reported to law enforcement: 11
Effectiveness of reporting to law enforcement: Minimal help. Useful if insurance claim is filed.
Drug related: No (8) Probably (2)
Culprits identified: Rarely
Preventative measures in place: 17
Pre-emptive steps involving homeowners taken: No (10) Yes (4)
Actions recommended: Security lighting, security cameras, Neighborhood Watch signs, Alarm systems

Comments of Interest- Solutions:

From Keowee Shores: Probably most effective is the smallness - with 20 homes, most people know the vehicles that "belong" and when a strange one is present. When they will be away, neighbors let neighbors know, and don't let papers, mail, packages, etc. accumulate. Sheriff Department's Neighborhood Watch signs may help.

From Teakwood Plantation: We have cameras at the entrance of the subdivision which photograph all vehicles entering/exiting, as well as license plates.

From Cherokee Bay: I suggest a meeting of property owners with the sheriff's dept who will bring flyers and other information on what to do.

From Shelter Cove: The POA has kept everyone well informed, strongly encouraged the neighborhood watch concept, and encouraged dock/boat owners to lock their boats to the dock and to install motion-activated security lights. I believe some homeowners have installed additional security lighting around their houses as well.

From Stoneledge: Do not underestimate the power of security monitoring devices, along with signs announcing that “You are being watched.” Even fake devices are a deterrent as long as accompanied by a sign.

From Keowee Key: We sent out email alerts to our community and by notice in our monthly newspaper advising people to not leave items on their boats to avoid the possibility of theft. If your residents are experiencing the same losses as ours, advise them to be proactive in removing lose and valuable items from their boats.

From Cross Creek: Either having manned or automated gates. Homeowners frequently get significant reductions on homeowners insurance, which more than covers the cost of such services.

From The Summit: Security lighting is important, especially in those areas that are very remote. Neighborhood patrolling by the neighborhood residents is another action that's effective.

From Edgewater: Our neighborhood roads are private and owned by the POA. As such, anyone entering should be either a property owner or guest. Those if us that live here full-time make a habit of asking everyone we encounter in the development that is not a property owner, what their purpose for being there is. We believe that our vigilance adds to the overall security of the neighborhood, and discourages entry by those that have no business being there.

From Port Santorini: Report to Oconee sheriff’s office any unusual activity. We appointed a resident to be point person with the sheriff’s office. Involve law enforcement and encourage all residents to become involved in the safety of their neighborhood.

Conclusions: Normally, MLCA does not offer conclusions on survey results. However, in this case virtually all reporting associations said the same thing. The more money spent on prevention, the less theft and vandalism you’ll have. The hitch is that it might be worth doing little as the money spent can easily exceed the cost of repairing or replacing that which was vandalized or stolen. The most effective preventative measures mentioned were manned gate houses and security cameras. The problem with manned or unmanned gates is that they are prohibited on county roads. Therefore, an association must own and maintain its own road system in order to have a gate.

Survey Participants
Cherokee Bay (Lake Hartwell)
Cliffabee Leas (Seneca)
Crestview (Lake Keowee)
Cross Creek (Seneca)
Emerald Pointe (Lake Keowee)
Edgewater (Lake Hartwell)
Hidden Harbor (Lake Keowee)
Keowee Key (Lake Keowee)
Keowee Shores (Lake Keowee))
Moonlight Bay (Lake Hartwell)
North Harbour (Lake Keowee)
Oak Stone Shores (Lake Keowee)
Pineridge Pointe (Lake Keowee)
Port Santorini (Lake Keowee)
Shelter Cove (Lake Keowee)
South Oak Pointe (Lake Keowee)
Southwind Bay (Lake Keowee)
Stoneledge (Lake Keowee)
Teakwood Plantation (Lake Hartwell)
The Summit (Lake Keowee)
Wellington Pointe (Lake Keowee)
Wynward Pointe (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law

Results of Defendant in Foreclosure Action Survey

Sun, 19 Feb 2012 10:43:45 -0500

Survey Questions: There were no questions, just the statement above. Initially, MLCA was just going to send the request to local associations and forward any answers to the requesting association with no intent of publishing the results. However, the responses were detailed, informative, and showed great expertise with the issue. We feel all associations could benefit from the replies.

Reporting Neighborhoods:
Number of neighborhoods returning surveys: 18 (list at end of report)
Number of Lots within the returned surveys: 3512

Survey Results:
Number of associations with experience in this matter: 8

Comments of Interest:

From Keowee Subdivision: This is usually done when the Association has filed a lien against the property. The association should have a copy of the pleadings served on them by personal service or mail. In the pleadings it will state why the association has been named. It should be clear. If the association fails to respond, the lien could be dissolved, but not necessarily. A short letter may be sufficient as a response. If his association has an attorney, he should carry the papers to the attorney pronto. Maybe there is an attorney in the subdivision who could advise.

From Cherokee Bay: We have been a named defendant in two foreclosures with different banks. Since we collect annual POA fees, we have an inchoate lien on all properties in the subdivision. Once the annual fees are in arrears the lien is perfected and we file a property lien on the land records. The same thing happens when a property owner is in arrears with their county property taxes, and the subdivision will be a named defendant when the county has a foreclose sale to collect taxes.

Basically, since our lien is usually the last one on the list after taxes and the mortgage, we never recoup the unpaid fees while the owner held the property. However, once the bank forecloses, it is obligated to pay fees from the date of judgment (when it became the new owner) until it is sold to a new buyer. Our first experience with a foreclosure went exactly that way. The second foreclosure has been back and forth with the property owner making a deal with the bank and making payments; then payments stopped and we got another foreclosure notice, and now it has again been put on hold. Unfortunately, our property owner is in arrears for three years, and no payments have been made. If the foreclosure does go through, I believe we will lose all the back dues. Nothing we can do.

From Keowee Key: Assuming it is a bank that is foreclosing, as an association, you are going to be subordinate to their mortgage. You might consider directing your attorney to contact the attorney handling the foreclosure and request that language be included in the foreclosure decree that basically says the property is subject to the restrictions of your association and that the property is subject to a lien for assessments that may accrue after the date of sale. Such language might help you in the future should whomever purchases the property at foreclosure decides not to pay assessments.

From Moonlight Bay on Keowee: Yes, our Association was named as a Co-Defendant in an action brought by a Bank in connection with a Foreclosure Decree. Three comments:
1. We were named because I had filed a lien against the property. Therefore, we were named because of the rights our Association had in an interest in the property.
2. The association’s registered agent was most likely the person to have received the notice and related Affidavit.
3. I attended the hearing in Walhalla. The matter was a formal proceeding but very informal in its approach. If I were to attend again I would have made it much clearer both who I was and what my interest was in the property and to better disclose that I represented the Association in their interest as a creditor pursuant to the filing of a lien on the property.

From Oak Stone Shores: Oak Stone Shores has also been named as a co-defendant in several foreclosure actions. Additionally I have attended the legal hearing when the judge rules on the foreclosure.
I agree it seems wrong to name the HOA as a co-defendant, but in fact that technique is used to notify all additional parties who have a financial interest in the property being foreclosed. The affected association probably has filed a lien on the delinquent property, so the POA has a financial interest in the foreclosure.

Somewhere within the legal document it should say that said association is named due to its financial interest, and that they are not being sued too.

When our first foreclosure hit, we sought legal assistance, and were told that we should file a letter with the court identifying and protecting your interest. Our experience with several foreclosures is that the property will sell at auction at much less than is owed. Encumbrances, mortgages, or liens are ordered by the date that they are filed with the County Registrar of Deeds. The bank usually holds the first encumbrance and is paid off from the proceeds from the sale or auction. If there is any money left, it will be applied to the next encumbrance on down the line, until all the money is exhausted or all the encumbrances are satisfied. Oak Stone Shores has never gotten a cent from any of the foreclosure hearings. Also, as a result of the foreclosure, all remaining (unpaid) liens are cancelled.

From Wellington Pointe: The Association is named whenever they have filed a lien on the property, most often for non-payment of assessments. If the property is sold, the purchaser is obligated to pay the association for the amount of the lien. In our one foreclosure experience, we did not have to pursue the buyers for collection as they voluntarily paid off the lien. Usually, if the lending organization retains the property for any period of time, the bank will pay current assessments and prior, if a lien was filed. If no lien was filed, the association is likely out of luck in ever recovering the unpaid amount.

Survey Participants
Cane Creek (Lake Keowee)
Cherokee Bay (Lake Hartwell)
Emerald Pointe (Lake Keowee)
Keowee Key (Lake Keowee)
Keowee Subdivision (Lake Keowee)
Shores of Lake Keowee (Lake Keowee)
Marina Pointe (Lake Keowee)
Moonlight Bay (Lake Keowee)
Moonlight Bay (Lake Hartwell)
Normandy Shores (Lake Keowee)
Oak Stone Shores (Lake Keowee)
Riverlake (Lake Hartwell)
Shelter Cove (Lake Keowee)
South Oak Pointe (Lake Keowee)
Teakwood Plantation (Lake Hartwell)
Waterford (Lake Keowee)
Waterstone (Lake Keowee)
Wellington Pointe (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law.

June 2011 Survey on Covenant Enforcement

Mon, 6 Jun 2011 10:21:49 -0400

Survey Questions

1. Has your association ever gone to court over your covenants?

2. If yes, what was the outcome of the court action and what type covenants seemed to be (or not to be) legally enforceable?

3. How do you enforce your covenants? If you have any written procedures for this, please send them with this survey or tell us where online we can see them.

4. Have you ever put a lien on property for a covenant violation? If yes, have you encountered any legal problems with enforcing the lien?

Reporting Neighborhoods
Number of neighborhoods returning surveys: 22 (list at end of report)
Number of Lots within the returned surveys: 3746

Survey Results
Court Cases
Number going to court: 4
Number winning in court: 2
Number losing in court: 1
Number settled by a court ordered Special Referee basically resulting in a tie: 1
Written Procedures to Enforce Covenants
Number with written procedures: 9
Number with no written procedures: 5
Number not specifically answering this question: 8
Liens Filed for Covenant Violations
Number placing liens: 5

Comments on Going to Court
From Beacon Shores: The case involved the HOA suing a homeowner because he was building an unattached garage with a guest quarters above. Due to heavy case loads, the Judge assigned an “impartial” attorney as a Special Referee to hear the case on behalf of the court. The case was conducted as if it were a court case with depositions, testimony in two court hearings, and ultimately a ruling by the Special Referee approved by the Judge. The outcome of the case was a compromise solution which allowed the garage to be attached to the house by an open breezeway with a gazebo in the middle, such that the structure could be considered a part of the primary residence.

From Keowee Key: We won [the court case] and were awarded $100,000 in legal expenses. The courts are going to hold you to a standard of reasonableness when it comes to the enforceability of covenants. They will also look for consistency in enforcement. Overall, the courts are friendly to associations who consistently enforce their covenants.

From South Oak Pointe: Our fence covenant (as written by Crescent) started out with "Fences and Walls. No wooden fence, or brick or stone wall may be erected... " While the covenant is obviously intended to cover all fences or walls in its entirety, the offending fence was metal (architectural aluminum) in construction. The judge hung his hat on this inconsistency, even though state law specifically says the entirety of the covenant should be considered in a decision, not just one particular excerpt. Our attorney said we stood a very good chance to win on appeal, but . . . we decided to cut our losses and move on.

From Teakwood Plantation: A lot owner submitted house and landscaping plans to the architectural review committee (ARC) which rejected them because the house was placed at the extreme rear of the lot where it would be looking into the rear of the existing house next door. . . The Assn. brought suit, and we were required to enter binding arbitration. The decision of the arbitrator was in our favor, and supported enforcement of our covenants. There are still bad feelings . . . in the neighborhood about this whole affair.

Comments on not Going to Court
From Beacon Shores: After the garage case, we modified our by-laws to require a Member Vote before initiating Legal Action to enforce the Covenants. Since Legal action proved to be quite expensive and divisive to the community, the intent was to make sure that all other measures to enforce the covenants were exhausted and that the majority of the community was in favor of taking the legal step.

From Cherokee Bay: Our attorney advised that if even if we got a judgment against the property owner for a blatant violation, there was nothing we could do. The property owner would just ignore it. The cost for legal fees and court costs would probably be somewhere in the vicinity of $3,000-$4,000. Our problem is that some property owners ignore the covenants with regard to new additions or work on their property and keeping boats, trailers, etc. in places where they are not allowed.

From Wellington Pointe: Wellington Pointe has not gone to court for covenant enforcement. We have met with lawyers on the issue and were told that judges would support enforcement of the covenants, within reason. It was emphasized that it was important to enforce all of the covenants and to be sure they were enforced equally with all property owners. The most significant problem we have encountered has been with the wording of the covenants. As an example, the covenants require trailers be kept behind the house but say nothing about prohibiting trailer storage on a vacant lot.

Comments on Procedures
From Crestview: We require written permission for EVERY activity. No more he said this or he said that. Equally important- we revised our Covenants to require arbitration/mediation or the use of the Master in Equity. No more of this court action which drags on and on. All of this information is available on our web site at http://crestviewoa.org. There is a link to our Guidelines and another to our Covenants. The revised section requiring arbitration is 12.1(a).

From Emerald Pointe: We have a Covenants Committee that is charged with initial adjudication of complaints. Any complaint submitted to the committee must conform to two specific regulations: 1) The complainant must first speak with the accused violator to try and resolve the matter; 2) If no resolution is reached, a written complaint including the date when the two parties met and the specific Article and Section numbers of the covenant allegedly violated must be submitted to the Covenants Committee.

From Riverlake: The Board of Directors created an ongoing “Rules and Regulations” document that serves to uphold the covenants and by-laws. These rules and regulations work in conjunction with the covenants and by-laws, and do not require the services of an attorney or the rigors of the filing process, to be enacted.

From Southwind Bay: We use our Management Company to inform Covenant violators. This puts a "third party" between neighbors.

From Waterford Pointe: We hire [a person] to approve plans and to follow new builds although we don’t have any going at this time. He also works in the same capacity at Keowee Key and I think Waterside. We use also use him as our enforcer and it has worked very well except for one situation.

Comments on Attorneys
From Beacon Shores: Our experience with difficult enforcement issues is that a negotiated settlement is a better solution for all parties (except the lawyers) than litigation. In the garage case we found that once litigation is started, the lawyers tend to want to speak for the parties and may actually interfere with the two parties reaching a negotiated settlement.

From Moonlight Bay on Lake Keowee: While I am not an attorney, due to the nature of my prior employment, I have had a lot of experience preparing documents for attorneys to present in court. I have clearly found that a well prepared attorney has a good chance of winning the case – no matter what side he represents. The cases that I have seen have most frequently resulted in a win for the best prepared attorney. That may be the homeowner because the HOA or POA just does not have the money to pay for good legal assistance. At least our POA has limited resources to fight for what is right. Wouldn’t it be nice if only the people who were right won cases?

Comments on Liens
From Beacon Shores: The Board has levied substantial fines for three incidents involving setback violations. In one case, the fine was partially paid by the builder, and a lien was filed to collect the remaining part of the fine. It is interesting to note that the house was sold and conveyed at a closing and the closing attorney did not discover the presence of the lien. The builder voluntarily paid the remainder of the fine after the closing. We released the lien upon receipt of the amount owed.

From Crestview: Yes, we currently have a lien on a person’s property for about $8,000 to replace some trees that he cut down without written permission. We used a lawyer to write him about the lien and to place it on his property. The important item is to have the procedures in place to enforce an action and to document everything in writing.

From Keowee Key: No, [we have never filed a lien for a covenant violation]. Be careful. There are plenty of embarrassing stories out there that reinforce a negative stereotype of community associations. The media just loves the story about the evil association that cracks down on an 8-year old's lemonade stand because it violates the "no business" covenant.

Written Procedures
The following Associations either submitted detailed written procedures for dealing with Covenant Complaints or stated that they have them. If you would like to see their document(s), please let us know and we will put you in touch with the proper person: Beacon Shores , Crestview (http://crestviewoa.org), Emerald Pointe (http://emerald-pointe.com/links.htm Click on EPOA Policy Book), Keowee Harbours, Keowee Key (www.keowee-key.com. Click on "Resource Center" tab), Port Santorini, Riverlake, South Oak Pointe, Teakwood Plantation (http://www.teakwoodplantation.org/cgi-bin/documents.pl)

Survey Participants
Beacon Shores (Lake Keowee)
Cherokee Bay (Lake Hartwell)
Crestview (Lake Keowee)
Emerald Pointe (Lake Keowee)
Edgewater (Lake Hartwell)
Keowee Harbours (Lake Keowee)
Keowee Inlet (Lake Keowee)
Keowee Key (Lake Keowee)
Keowee Shores (Lake Keowee)
Marina Point (Lake Keowee)
Moonlight Bay (Lake Hartwell)
Moonlight Bay (Lake Keowee)
North Harbour (Lake Keowee)
Oak Stone (Lake Keowee)
Port Santorini (Lake Keowee)
Riverlake (Lake Hartwell)
Shelter Cove (Lake Keowee)
South Oak Pointe (Lake Keowee)
Southwind Bay (Lake Keowee)
Teakwood Plantation (Lake Hartwell)
Waterford Pointe (Lake Keowee)
Wellington Pointe (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law.

April 2011 Survey on Outbuildings

Wed, 27 Apr 2011 10:27:55 -0400

I. Survey Questions:

1. Has your association defined what an ‘outbuilding’ is?
2. What construction and lot placement restrictions do you have?
3. Is there a minimum/maximum square footage, max number of stories and/or height?
4. Do you use an architectural firm for review? If so, please give name.

II. Reporting Neighborhoods:
Number of neighborhoods returning surveys: 14 (list at end of report)
Number of Lots within the returned surveys: 3164

III. Survey Results:
Number defining the word outbuilding: 4
Number with construction and lot placement restrictions: 9 (3 do not allow outbuildings)
Number with minimum/maximum square footage, max number of stories and/or height: 9
Number using an architectural firm for review: 0 (1 uses an engineer)

IV. Comments of Interest:

Definitions of Outbuilding:
From Moonlight Bay on Lake Keowee: We have an indirect definition of an outbuilding as it is defined as “All buildings and outbuildings” and requires that an outbuilding comply with all construction requirements as would a “building.”

From Moonlight Bay on Hartwell: It is any unattached storage type building.

From Emerald Pointe: As the word outbuilding is used in our covenants but not specifically defined word for word, we would default to a plain and ordinary meaning of the term such as “a building separated from and subordinate to the main house.”

Architectural Review:
From Waterford: The construction and location of outbuildings (gazebo, potting shed, storage shed, statues, gates, playhouses, etc.) shall be subject to the review and approval of the ACC [Architectural Control Committee]. We use Richard Hartford for both review of the Blueprints and enforcement. He is an engineer and does a great job.

From Edgewater: The guidelines as written allow us to review the details of any proposed structure and prevent those that we feel are not appropriate or consistent with our requirement that lots are to be used exclusively for residential purposes.

From Riverlake: We have an Architecture Chair and a committee that reviews new construction and construction to existing homes.

V. Survey Participants
Berwick Court (Lake Keowee)
Crestview (Lake Keowee)
Emerald Pointe (Lake Keowee)
Edgewater (Lake Hartwell)
Keowee Key (Lake Keowee)
Marina Point (Lake Keowee)
Moonlight Bay (Lake Hartwell)
Moonlight Bay (Lake Keowee)
Port Santorini (Lake Keowee)
Riverlake (Lake Hartwell)
Shelter Cove (Lake Keowee)
South Oak Pointe (Lake Keowee)
Teakwood Plantation (Lake Hartwell)
Waterford (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law.

April 2011 Survey on Derelict Boat Procedures

Mon, 4 Apr 2011 21:16:51 -0400

I. Survey Questions:
1. Has your association encountered this problem before? If so, would you describe steps you took to resolve the problem.
2. Have you ever given a boat slip owner a special assessment for repair of his/her individual slip?
3. Have you removed a boat and stored it at another location? If yes, what location? How were fees recovered?
4. Have you fined, or threatened to fine the boat slip owner if the boat were not removed after a reasonable timeframe? If yes, what was the amount of the fine?
5. Have you placed liens against the boat slip owners’ property if they fail to pay for repairs or fines?
6. Have you had an attorney provide guidance to you in a related matter? If yes, please advise what was recommended, the name of the attorney, and how the problem was ultimately resolved.

II. Reporting Neighborhoods:
Number of neighborhoods returning surveys: 22 (list at end of report)
Number of Lots within the returned surveys: 3453

III. Survey Results:
Number that have encountered this problem: 3
Number engaging an attorney and/or physically removing a derelict boat: 2
Number offering specific suggestions: 5

IV. Specific actions taken by two associations
From Stoneledge: We ended up sending a letter to our delinquent owner. This letter was drafted by our HOA attorney and the unit in question was being rented. Our HOA attorney is Darryl Moss of Weissman, Nowack, Curry & Wilco, P.C in Atlanta, GA. We never had to proceed beyond the letter as the owner paid up.

From Wynward Pointe: We have encountered this issue. Our covenants did not directly address this issue. The boat was initially in a boat dock and obviously deteriorating. We contacted DHEC, Duke Energy, FOLKS and others as we were concerned about pollution of the lake if it continued to deteriorate. Ultimately, the home went into foreclosure and the dock was removed. However, the boat was just tied to the deck ramp and left. Still, DHEC, Duke and all other responsible agencies would not respond. In fact, we were told that there was nothing they could do until it posed a threat.

One day, it began to sink and one of the neighbors called Wayne McCall who declared it as salvage as it was sinking. He removed it before it was completely submerged and hauled it away. We are still not sure of the legality but were not extremely concerned as the owners had abandoned both the property and the boat. We did not seek legal advice and this is not a legal determination but just our experience.
It was obviously a frustrating issue for us as the homeowner had not paid dues or performed covenant required property maintenance. As such, a lien with fees & interest had already been placed on the property. We exercised the maximum penalty assessment allowed by our covenants on the property so really had no other financial recourse for the derelict boat situation.

V. Comments of Interest:
From Moonlight Bay on Lake Keowee: Regarding boat removal, I would be careful to comply with “SC eviction laws and notices.” It would be good if we had an attorney who could work for the common good of all our associations. I for one would like an introduction to a good attorney that other HOA’s may use. If someone is pleased with their HOA attorney, I would like an introduction.

From Keowee Shores: If the Association is in South Carolina and checks with the DNR, the State has regulations regarding abandoned boats which are quite helpful. At least a few years ago, if a boat were reported abandoned, the State would make an effort to contact the owner, and if they cannot after a time, ownership of the boat is transferred to the person reporting. Solves all the liability problems, but doesn't repair the dock, etc.

From Chickasaw Point: The Chickasaw POA does not get involved in the docks, and a separate dock owners’ association handles the maintenance and other problems. The Lake Hartwell Association tracks down derelict boat owners on Hartwell and gives the information to the Corps of Engineers.

VI. Survey Participants
Beacon Shores (Lake Keowee)
Berwick Court (Lake Keowee)
Chickasaw Point (Lake Hartwell)
Crestview (Lake Keowee)
Cross Creek (Seneca)
Emerald Pointe (Lake Keowee)
Keowee Harbours (Lake Keowee)
Keowee Inlet (Lake Keowee)
Keowee Shores (Lake Keowee)
Marina Point (Lake Keowee)
Moonlight Bay (Lake Keowee)
North Harbour (Lake Keowee)
Oak Stone Shores (Lake Keowee)
Riverlake (Lake Hartwell)
Shelter Cove (Lake Keowee)
South Oak Pointe (Lake Keowee)
Stoneledge (Lake Keowee)
Teakwood Plantation (Lake Hartwell)
Waterford (Lake Keowee)
Waterford Pointe (Lake Keowee)
Wellington Point (Lake Keowee)
Wynward Pointe (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law.

November 2010 Survey on Confidentiality and Dues

Thu, 18 Nov 2010 16:49:10 -0500

I. Survey Questions:
1. Regarding dues, does your board of directors disclose to its association’s lot owners the following:
Amount of dues outstanding in total? Yes or No
Lot numbers with past due amounts? Yes or No

2. Is there any other information regarding dues that your board views as confidential and therefore does not disclose to the general lot owners?

3. Any other comments regarding confidentiality would be appreciated.

II. Reporting Neighborhoods:
Number of neighborhoods returning surveys: 21 (list at end of report)
Number of Lots within the returned surveys: 5326

III. Survey Results:
Number disclosing amount of dues outstanding in total: 15
Number disclosing specific lot numbers and/or names of delinquent owners: 7
Note: Two communities indicated they have no delinquencies and therefore have nothing to disclose. A third community said it had no delinquencies but would disclose all information should any owner become delinquent.

IV. Comments of Interest

Full or partial disclosure:
From Wellington Pointe: We include the amount of unpaid dues in our financial report, but disclose lot information only when requested, such as at an annual meeting. We have not considered that information confidential, but have not included same in our newsletter. In general, we have 33 equal partners with all entitled to whatever information is known to its officers and directors.

From Oak Stone Shores: We feel that all owners in Oak Stone Shores are partners in the association and therefore should be aware of all things regarding finances. Full disclosure is our general rule.

From Moonlight Bay on Lake Keowee: The Association does not provide any information with regard to specific lots except to the specific lot owner, except any information that is obtained via public records. We are considering filing liens when dues are more than 6 months past due. At that point the “Lien” will become “public knowledge” and therefore, we believe, should be able to be communicated to all lot owners without the risk of divulging confidential information, since it becomes public information at the time the lien is recorded.

From Keowee Shores: Our view is that the financial status of the Association is information that all Owners are entitled to, and therefore the information is shared. Financial status is published only once a year at the annual meeting. If there is controversy regarding publication of dues status, addressing it at a membership meeting with a formal motion and vote is the best solution. It seems highly unlikely that members would not support publication by a wide margin.

From Edgewater: Yes, including property owner’s name of record. This information should be available to all property owners since it directly affects them.

From Beacon Shores: We have no confidentially regarding dues or finances.

Limited or no disclosure:
From Teakwood Plantation: We have not provided this info (dues delinquency) to members outside the Association Board. On one or two occasions, we have allowed members experiencing "hardship" to pay dues on an installment plan, but have not informed the general membership.

From Pineridge Pointe: So far, all of the issues in Pineridge Pointe regarding past-due dues have been handled privately between the Board and the individual. No notice of amounts outstanding or lots in arrears have been disclosed, but we have managed to collect in all delinquencies so far without much fuss. If someone were stubborn in refusing to pay their share, I believe the Board would consider making that decision public as one of the tools at our disposal to encourage cooperation.

From Keowee Key: We do not advise members concerning delinquent assessments or foreclosures. The General Manager, working with the knowledge of the Finance committee and controller, takes appropriate action when needed and obtains legal advice as it is needed.

From Chickasaw Point: The list is available at the office but we don’t publish anything for distribution. Everything is available to Lot Owners.

IV. Survey Participants
Beacon Shores (Lake Keowee)
Berwick Court (Lake Keowee)
Chickasaw Point (Lake Hartwell)
Crestview (Lake Keowee)
Edgewater (Lake Hartwell)
Emerald Pointe (Lake Keowee)
Keowee Key (Lake Keowee)
Keowee Shores (Lake Keowee)
Keowee Subdivision (Lake Keowee)
Moonlight Bay (Lake Hartwell)
Moonlight Bay (Lake Keowee)
North Harbour (Lake Keowee)
Oak Stone Shores (Lake Keowee)
Pine Ridge Pointe (Lake Keowee)
Port Santorini (Lake Keowee)
Riverstone (Lake Keowee)
Shelter Cove (Lake Keowee)
South Oak Pointe (Lake Keowee)
Teakwood Plantation (Lake Hartwell)
The Summit (Lake Keowee)
Wellington Point (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law.

October 2010 Survey on Foreclosures and Bankruptcies

Thu, 21 Oct 2010 16:56:18 -0400

I. Survey Questions:
1. Has your association placed liens on properties for unpaid dues/fees? Yes or No
If yes, do you file new liens every year if the dues remain unpaid?

2. Were you able to collect when foreclosed properties were sold, and the sellers did NOT declare bankruptcy? Yes or No
If yes, what steps did you take? Did you seek a legal opinion/assistance?

3. Were you able to collect when foreclosed properties were sold and your HOA was notified by the Court that the sellers DID declare Chapter 7 or Chapter 11 bankruptcy? Yes or No If yes, what steps did you take? Did you seek a legal opinion/assistance? Are there steps HOAs can take without an attorney? Are they time critical?

4. Does your HOA annual budget include a line item or provision for uncollected dues?

II. Reporting Neighborhoods:
Number of neighborhoods returning surveys: 27 (list at end of report)
Number of Lots within the returned surveys: 3560

III. Survey Results:
Number placing liens on properties for unpaid dues/fees: 17
Number with no unpaid dues and therefore no needed liens: 9
Number filing new liens every year if dues remain unpaid: 11 (Note: Four associations reported that re-filing was not needed because dues were paid after liens were filed.)
Number able to collect on foreclosed properties (no bankruptcy): 6
Number able to collect on foreclosed properties (with bankruptcy): 2
Number including a budget line item for uncollected dues: 7

IV. Comments of Interest

Regarding collections:

From Oak Stone Shores: So far we have not been able to collect on foreclosed properties when they have been sold at auction. Steps: 1) Filed a lien. 2) Responded to the foreclosure court to assert our claim. 3) Attended the court foreclosure hearing. We consulted with several real estate agents for their experience and also consulted with a real estate attorney concerning our response to the foreclosure court.

From The Summit: We were able to collect when bankruptcy was involved if a bank was the final owner.

From Riverlake: We collected the amount due through the closing attorney when he was notified of the liens. No additional legal advice was necessary.

From Teakwood Plantation: We had two lots in short sale then foreclosure. Both homes had liens put on them. When a home goes into foreclosure, as I understand it, the foreclosure is kind of like bankruptcy, and the lien is voided. However, when in foreclosure the bank owns the house and the bank is responsible for the dues. In our case the same bank owns both houses and the bank has paid the dues.

From South Oak Pointe: We were able to collect when foreclosed properties were sold, and the sellers did not declare bankruptcy, by speaking with the attorneys handling the transaction.

From Port Santorini: We did collect on a foreclosed property by contacting the bank and working closely with the realtor with whom it was listed. Did not use legal assistance.

From Keowee Harbours: If the attorneys conducting the title searches do not discover the outstanding liens, it may be difficult to recoup funds that were in arrears at the time of closing. In most instances, the monies in arrears are less than the legal costs involved in trying to recover them.

Regarding Budget Procedures:

From Riverstone: We will seriously anticipate that 5 to 10% of 2011 dues will not be collected as income when preparing our 2011 budget.

From Moonlight Bay on Lake Keowee: Currently we reserve 100% for lots owned by the Developer and 20% for other lots.

IV. Survey Participants
Beacon Shores (Lake Keowee)
Cane Creek Harbor (Lake Keowee)
Chickasaw Point (Lake Hartwell)
Emerald Pointe (Lake Keowee)
Keowee Harbour (Lake Keowee)
Keowee Shores (Lake Keowee)
Keowee Subdivision (Lake Keowee)
Marina Pointe (Lake Keowee)
Moonlight Bay (Lake Hartwell)
Moonlight Bay (Lake Keowee)
Mountain View Pointe (Lake Keowee)
North Harbour (Lake Keowee)
Oak Stone Shores (Lake Keowee)
Pine Ridge Pointe (Lake Keowee)
Port Santorini (Lake Keowee)
Riverlake (Lake Hartwell)
Riverstone (Lake Keowee)
Shelter Cove (Lake Keowee)
South Oak Pointe (Lake Keowee)
Teakwood Plantation (Lake Hartwell)
The Summit (Lake Keowee)
The Woods (Lake Keowee)
Waterford Pointe (Lake Keowee)
Waterford (Lake Keowee)
Waterstone (Lake Keowee)
Wellington Point (Lake Keowee)
Wynward Pointe (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law.

September 2010 Survey on Community Street Signs

Mon, 13 Sep 2010 08:23:10 -0400

I. Survey Questions:
1. Has your community replaced the original street signs with more decorative signs and if so what process did you go through?
2. Has your community tried to replace its signs but were not allowed to do so by the county?
3. Are your streets owned and maintained by the county or are they private (owned by developer, association, or individual lot owners)?

II. Reporting Neighborhoods:
Number of neighborhoods returning surveys: 25
Number of Lots within the returned surveys: 6061

III. Survey Results:
Number with county owned streets: 19
(Note: One neighborhood is included here because all but three of its streets are county owned.)
Number with privately owned streets: 6
Number with county owned streets that have replaced original signs: 2
(Note: One association received county approval for the new signs while the other did not. The county is forcing the removal of the non-approved street signs.)
Number with county owned streets denied requested new signs: 1

IV. Comments of Interest

From Keowee Harbour: Our streets are owned by the community and we have replaced our street signs without going to the county. We paid for them through our assessments.

From Riverlake: Our association did put decorative wooden signs in our neighborhood to designate speed limits, slow for golf carts, children playing, hidden drives, etc. We had them up from 2006-2010 . . . Oconee County informed us this spring that they were illegal and that we had to remove them or the county would. Too bad because they did add a nice touch to the roadside. Obviously, gated communities and perhaps other types of neighborhoods can have them, but not those maintained by Oconee County. We did not replace county signs but we added decorative signs to what existed. We did not apply for or request permission to do so. They lasted 4 years. County rules required their removal.

From Teakwood Plantation (in Anderson County): We discussed this at a Home Owners meeting. Our cursory investigation indicated that it could be done (with county approval), but the cost (around $3,000) was beyond what the members thought reasonable.

From The Summit: Looked into replacing the signs but cost was too much. Also, we had to figure out how to meet the county fire requirements for the signs. Not worth the effort.

From Waterford Pointe: We replaced our county signs a couple years ago after getting county approval and agreeing to maintain the signs.

IV. Survey Participants
Beacon Shores (Lake Keowee)
Berwick Court (Lake Keowee)
Chickasaw Point (Lake Hartwell)
Crestview (Lake Keowee)
Cross Creek (Seneca)
Edgewater (Lake Hartwell)
Emerald Pointe (Lake Keowee)
Keowee Harbour (Lake Keowee)
Keowee Inlet (Lake Keowee)
Keowee Key (Lake Keowee)
Keowee Shores (Lake Keowee)
Keowee Subdivision (Lake Keowee)
Lakeside/White Harbor (Lake Keowee)
Moonlight Bay (Lake Hartwell)
Moonlight Bay (Lake Keowee)
Oak Stone Shores (Lake Keowee)
Pine Ridge Pointe (Lake Keowee)
Riverlake (Lake Hartwell)
Riverstone (Lake Keowee)
South Oak Pointe (Lake Keowee)
Southwind Bay (Lake Keowee)
Teakwood Plantation (Lake Hartwell)
The Summit (Lake Keowee)
Waterford Pointe (Lake Keowee)
Waterstone (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law.

June 2010 Survey on Board of Directors’ Liability Insurance

Fri, 18 Jun 2010 14:29:05 -0400

I. Questions asked in the survey:
1. Does your association carry this kind of insurance coverage?
2. Have your rates increased significantly this year?
3. Are you satisfied with your current insurance agent and insurance company?
4. If you are satisfied, who is your agent/company?

II. Survey Results from Reporting Associations:
Number of participating associations: 21 (list at end of report)
Number of Lots within the returned surveys: 1550
Number with Board Liability Insurance: 14
Number without Board Liability Insurance: 6
Note: Cross Creek does not have an Owners Association and reports that its books, including insurance matters, are open only to the developer.
Number with significant rate increase: 2
Number with no significant rate increase: 12 One association did not answer this question.
Number satisfied with insurance carrier/agent: 12
Number dissatisfied with insurance carrier/agent: 2

III. Suggested agents/insurance carriers

Please note: MLCA does not operate, control in any way, or endorse any information, products, or services on the following list of insurance agents/carriers. MLCA cannot and does not guarantee or warrant the fitness for any purpose the accuracy, timeliness, or usefulness of any opinions or other information provided through the list. In no event will MLCA be liable for any decision made or action taken by anyone or any association in reliance upon information provided through the list. A USER'S SOLE AND EXCLUSIVE REMEDY FOR DISSATISFACTION WITH A PARTICULAR SERVICE IS TO STOP USING THE SERVICE. MLCA is providing this alphabetized list along with the name of the recommending association(s).

Anne McAllister's State Farm agency in Seneca: Used by Crestview, Emerald Pointe, North Harbor, South Oak Pointe, and Southwind Bay

Byrd-McLellan Agency in Seneca (864-882-2302), Insurance Company is Auto-Owners: Used by Port Santorini and Pine Ridge Pointe

Lewis Patterson’s State Farm agency (654-2420): Used by Keowee Shores

Terence V. Roberts’ State Farm Agency in Anderson, SC: used by Edgewater

Upstate Insurance Agency/ Agent is Chris Lawrence/ Insurance Company is Auto-Owners: Used by Oak Stone Shores

IV. Comments of Interest
From Port Santorini: We have 99 lots and pay just under $800. That includes liability, our docks and 5 acres of common area.

From Pine Ridge Pointe: For a $1,000,000 Errors and Omissions liability / Personal Injury / Advertising Injury policy (that includes other misc coverage) our annual premium this year rose to $675 from $659 in 2009 -- still exceptionally reasonable compared to what I could find when I went shopping prior to renewing our policy this year -- in fact, I was told by more than one company to hold on to that policy because we wouldn't find anything else even close to that low a price anywhere else.

From North Harbour: Our insurance agency is quick to respond to any query; in fact they were very responsive with regard to a recent personal (BS) property claim, paying everything but our $500 deductible on the loss. They also provide me a break-down of our insurance costs each year so that charges may be appropriately assigned to HO and BS accounts.

From Keowee Shores: Most insurers don't want to fool with a small association like ours (19 lots). We found this out when rates were high and we were seeking alternate insurers.

From Crestview: We have 57 lots and no amenities. We have a 1 million dollar umbrella policy. There is a $500 deductable. The monument is insured for about $7,000. Our rates have stayed the same for several years. We pay about $720 per year.

IV. Survey Participants
Beacon Shores (Lake Keowee)
Berwick Court (Lake Keowee)
Cane Creek (Lake Keowee)
Crestview (Lake Keowee)
Cross Creek (Seneca)
Edgewater (Lake Hartwell)
Emerald Pointe (Lake Keowee)
Keowee Inlet (Lake Keowee)
Keowee Shores (Lake Keowee)
Keowee Subdivision (Lake Keowee)
Moonlight Bay (Lake Hartwell)
Normandy Shores (Lake Keowee)
North Harbour (Lake Keowee)
Oak Stone Shores (Lake Keowee)
Pine Ridge Pointe (Lake Keowee)
Port Santorini (Lake Keowee)
Riverlake (Lake Hartwell)
Shelter Cove (Lake Keowee)
South Oak Pointe (Lake Keowee)
Southwind Bay (Lake Keowee)
Wellington Pointe (Lake Keowee)

Disclaimer: MLCA is not able to offer legal advice and cannot respond to any requests for legal advice or the application of any law to specific facts. To understand and protect your legal rights, you should consult the lawyer of your choice regarding legal questions. There are attorneys who specialize in community association law.