Q: WHY BOTHER? C


Aging documents do not take into account current obstacles that associations encounter. By amending documents to meet current situations,


the association’s liabilities will be lowered by shifting responsibilities to owners for things such as the master insurance policy deductible, maintenance responsibilities, and clarification of verbiage, thus ultimately saving owners money by reducing increased assessments to accommodate these items.


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Money is the motivation that most frequently drives change. Revisions to how the association insurance deductible is handled, or changing


(clarifying) the allocation of responsibility for repairs, shift costs between owners and the association. Often the cost savings to the association for a single event far exceeds the cost to draft the new language.


Bringing the document to conform to association practices is the second most frequent change. Often following some internal dispute about the documents.


Updating the documents to be consistent with current statutes and case law would be another valuable reason. It helps avoid arguments with owners over whether statutes or their documents control.


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Your declaration and bylaws are your operating system. A well-designed operating system enables you to effectively care for the property,


to earn the trust of your stakeholders, and to promote respect between neighbors. Plus, it spares you a fortune in legal fees by anticipating and averting problems that you currently have to call in a lawyer to help solve.


Q: WHAT SHOULD WE BE CHANGING? C


In reviewing governing documents, one of the biggest challenges is making decisions based on dated governance. As the world becomes


more technologically advanced and laws change, it is beneficial to the association to review everything, but notably communication requirements (electronic vs. snail mail) and maintenance responsibilities. These two things will help the association run smoothly with little room for any misinterpretation.


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Clarity on responsibility is important. Clarity on process is important. Anything where you find arguments about the meaning or intent in


your documents is worth attempting to change. Adoption of sections of WUCIOA within your documents may be worthwhile even if you do not adopt WUCIOA as your governing statute.


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For many communities, their documents, or the association’s failure to follow them, can become “a ticking time-bomb.” We are just waiting for the inevitable confrontation.


Change what needs changing, which varies from one association to the next. Some examples: if facing a major repair, make


changes that simplify decision making and borrowing; if facing skyrocketing insurance premiums, bolster inspection rights to prevent water related claims and to obligate owners’ insurers to pay the association’s large deductible on a water claim; if you are constantly called upon to referee fights between neighbors, add a requirement that they settle their differences in mediation; and if your operating system dates back to the 1980’s, it is time to replace it.


Q: HOW DO WE GET OWNERS TO APPROVE CHANGES? C


Transparency and communication are key. Many owners are not familiar with the verbiage in governing documents and are not aware of the


impact that these documents play in their lives. By holding townhall meetings and designating committees to spread information via word of mouth and to answer questions, owners will understand how their vote will affect not only the community, but the processes that the association is legally obligated to uphold. Also remember that many


people do not have the time nor the patience to read lengthy amendments, especially without understanding their meaning. Having a bullet pointed overview of the proposed amendments and real situations when they come into play will help people understand why the process is taking place. When people see how they are benefitted, they are more likely to participate.


Continued On Page 14  wscai.org 13


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