Emerging Trends in Community Association Law

by Stephen M. Marcus, Esq.
As we head towards the twenty-first century, the biggest challenge facing attorneys, managers and board members is to adapt to the changing face of community associations in the United States. Trends outside of community associations will change how associations handle issues which were somewhat simple to deal with in the 1970's and 1980's. As Wayne Hyatt and others have stated, the challenge we face is to start thinking outside of the box since we must come up with creative solutions to new issues. This article will highlight just two issues, technology and aging, that changed the landscape for community associations.

Technology
As most readers are aware, the Telecommunications Act of 1996 could mandate that community associations permit satellite dishes and television antennas despite restrictions in the governing documents to the contrary. It would be far better to have community associations be proactive in terms of dealing with changing technologies versus having the government dictate how community associations should be run.

Although some community associations reacted to the introduction of the 18" satellite dish, many associations continued to enforce old restrictions prohibiting any kind of antenna or dish for fear of creating a bad precedent. Some associations, however, took a position of reasonableness and consented to the smaller or concealed dishes if certain conditions were met relating to aesthetics, insurance, installation and other issues. I would contend that the satellite dish issue should serve as a warning to the community association industry that we must anticipate and resolve issues with current and future technology.

As an example, in 1990 probably very few people knew what the Internet was and even less had access to it. Currently, there are approximately 40 million persons using the Internet and the numbers are expected to skyrocket. The interconnection of computers will lead to millions of people telecommuting by working out of their homes. Will community associations restrict these types of unobtrusive business use of units for fear of setting a bad precedent or will they adapt to the change? I would suggest that community associations start reviewing their governing documents with the purpose of updating them so that they make sense in the twenty-first century. If such use of units does not impact other owners, wouldn't it make more sense to allow such use under certain conditions?

In addition, if the explosion of the use of computers to work from home requires new technologies to connect to computers, community associations presumably would have to rethink old ideas about allowing the use of telephonic and other connections to computers to be put on association property in order to allow one to effectively connect their computers to their offices.

Aging
Buildings are aging as are the occupants of units in community associations and we must adapt to those changes as well.

Although some community association have developed long term plans for maintenance, repair and replacement and for funding same, many others have not. Deferring maintenance and necessary repairs makes little sense as associations age. Developing short term and long term plans, having an engineer review the physical plant to prioritize needed maintenance, repairs and replacements and to suggest preventative maintenance measures, and planning for funding of such repairs, maintenance and replacements has become essential. Although community association loans for specific projects have been around for quite some time, the concept of lines of credit for community associations is relatively new and is unknown in some parts of the country. However, the idea of having a line of credit available for a future repair or replacement will become essential and community associations must start selling this concept to lenders. Developing healthy reserves together with the ability to borrow should provide community associations with the ability to deal with problems unique to older communities. In addition, as prospective buyers become more astute, having a short term and long term maintenance plan, together with reasonable reserves and availability of funding from lenders, will become an asset in terms of preserving and increasing the value of that particular community association.

The aging of the occupants in community associations, together with the desirability of aging in place versus going to a nursing home, will also bring new challenges to community associations. We must attempt to deal with compassion and sensitivity with those who become senile or develop Alzheimer's disease to both protect the other occupants of the community as well as effectively dealing with the particular owner. Unfortunately, these are extraordinarily difficult issues for community associations to deal with which can involve bringing in the family, governmental social service people, guardians and sometimes the court system. In addition, amendments to governing documents to allow for certain types of assisted living arrangements and medical care may be required in certain communities. Although dispossessing an owner of their unit may be required in extraordinary circumstances, creative solutions to these issues must be adapted.

Conclusion
Community associations must start looking at the outside world to see what impact the rest of the world will have on their particular community. Far sighted communities will begin to review and amend their governing documents to make them make sense going into the twenty-first century. Unfortunately, we cannot anticipate what changes to the outside world will effect community associations and therefore drafting must be done with the greatest of flexibility and with the greatest ease to amend the governing documents as the anticipated changes effect community associations. Our greatest challenge as attorneys is to work with the managers and board members who are working in the trenches in order to be proactive to needed changes and to introduce board members and owners to the concept that they must start getting away from the concept of setting a bad precedent and must begin to adapt to changes in society by thinking outside of the box.

Marcus, Errico, Emmer & Brooks, P.C.

45 Braintree Hill Office Park, Braintree, MA  02184
Telephone: (781) 843-5000    Fax:  (781) 843-1529
E-mail:  law@meeb.com