Striking the Right Balance

When May Gayle and I founded AMG back in 1985, we did so to help clients preserve, protect and enhance their communities.

Over the last 35 years, we have been extremely blessed to build a team of professionals who have joined us in helping community Associations across North and South Carolina administer their responsibilities. Much of our work has centered around balancing of members’ rights.

This month, we find ourselves facing unprecedented challenges with the COVID-19 outbreak, trying to help our clients balance member rights. On the one hand, we want to be sympathetic and helpful to individuals in the community. On the other, we have a duty to help our clients fulfill their fiduciary duties of looking out for the rights and interests of all members.

This is most evident in enforcing covenant provisions and violations. There is a natural reaction under the current crisis to delay taking any enforcement actions. However, doing so may interfere with the rights of other members who are perhaps being damaged or inconvenienced by a violation. 

Similarly, delaying fee collection from those who are experiencing financial hardship sounds like a reasonable thing to do. However, many Associations need essentially all member payments to meet the obligations of the community. If some members don’t pay, it is likely that other members may be forced to pay more. Again, this is a balancing of rights. 

So, what have we learned over the last 35 years? 

1.     Be kind - Even when we disagree, don’t be angry.

2.     Follow Governing Documents - Do what the documents state and avoid making decisions that are already made in the governing documents or by law. 

3.     Avoid delays - As strange as it sounds, not acting promptly seems to make things worse.  Yet, if a member needs additional time to address a covenant violation, our recommendation is and always has been to be reasonable and try to work things out.  Typically, an extra couple of weeks is not a big problem in the overall scheme of things, and as long as an agreement is in place to resolve the situation then the HOA has fulfilled its’ responsibility. 

During this crisis, similar to past challenges we have faced (such as hurricanes and 9/11), AMG recommends being nice, following the governing documents and laws and acting promptly. It is easier to address problems sooner rather than later. 

Please feel free to call on any member of the AMG team for assistance and know that our prayers for everyone are strong.

Paul K. Mengert, Chairman and CEO

Association Management Group, Inc.