From the President
Board of Directors
By Michael Klemm | CAI-MN President
President Michael Klemm, Esq. Phone 952.953.8832 klemmm@dmshb.com
Know Where You’re Going? “You’ve got to be very careful if you don’t know where you are going, because you might not get there.” — Lawrence P. “Yogi” Berra Yogi Berra is considered one of the greatest catchers in baseball history. Playing for the New York Yankees, he was named to the American League All-Star team every year from 1948 to 1962, and he was recognized as the American League’s Most Valuable Player three times. To excel as a major league catcher, Yogi had to know the rules, recognize important situations and make timely and correct decisions. The same principles apply to community association volunteer leaders. The foundation for success is familiarity with the documents and statutes that govern the association. For many associations, the primary statute is Minnesota Statutes Chapter 515B, the Minnesota Common Interest Ownership Act (MCIOA). It is risky to use the Declaration, Bylaws and MCIOA merely as reference tools, searching for answers to questions that arise from time to time. Imagine Yogi Berra behind the plate with a copy of the Official Rules of Major League Baseball, searching playby-play to figure out what to do next. Obviously, the timeline for making decisions and taking action is much longer in common interest communities than in baseball stadiums. However, lack of familiarity with the framework for association governance may eventually lead to trouble. The governing documents and MCIOA establish many requirements regarding assessments, reserves, financial controls, disclosures, meetings, enforcement and other matters. Compliance generally depends on knowing the requirements and planning ahead. Being proactive may yield opportunities to use the flexibility provided by MCIOA and the governing documents to achieve the association’s long-term goals and to find solutions that fit the association’s needs and circumstances. For example, MCIOA provides flexibility for an association to fund replace-
ment expenses by future special assessments, rather than reserves, but only if the association follows the requirements for adopting an alternative funding plan. Familiarity with the association’s governing documents and MCIOA is necessary for community association volunteer leaders to enforce the association’s rights before the deadline. One example is the association’s right to cancel a variety of contracts within two years after expiration of the period of declarant control. Another example is warranties that are subject to a statute of limitation under MCIOA. It is important to note that the governing documents may conflict with MCIOA or other state or federal laws. In that case, carefully following the requirements in the Declaration or Bylaws may, ironically, result in violation of the law. MCIOA provides that in the case of a conflict with the Declaration or Bylaws, MCIOA controls, unless it permits variation in the governing documents on a particular subject. Ideally, the governing documents should be revised to be consistent with the statutes that govern the association, except where an appropriate variation is allowed. Articles by attorneys generally conclude with a disclaimer that the information in the article is general information, not legal advice, and the action to be taken in a particular situation depends on the association’s governing documents and applicable statutes. I hope this article will nudge community association volunteer leaders to review those documents and, if applicable, MCIOA. If assistance is needed, find an experienced association attorney to explain the documents and applicable laws. As Yogi Berra put it, “You’ve got to be very careful if you don’t know where you are going, because you might not get there.”
Vice President Gene Sullivan Phone 952.922.2500 gene@ncmgi.com Treasurer Halo Stafford, CMCA, AMS, PCAM Phone 952.944.2237 edenplacemgr@pinnaclefamily.com Secretary Nancy Polomis, Esq. Phone 952.941.4005 npolomis@hjlawfirm.com Directors Tom Engblom, AMS, ARM, CMCA, CPM, PCAM Phone 866.800.4656 tengblom@cabanc.com Joseph Fadell Phone 952.392.9208 fadell.joseph@gmail.com Russ Lis, CMCA, AMS Phone 612.805.6111 rlis@reconstructionsolutionsgroup.com Jim Rezek Phone 763-424-9984 jimrezek@comcast.net Michelle Stephans, RS Phone 763.754.5500 michelle@reserveadvisors.com Crystal Pingel, CMCA, AMS, PCAM Phone 612.381.8626 crystalp@citiesmanagement.com Joel Starks, CMCA Phone 952.698.2053 joel@sharpermanagement.com
Committee Chairs CAVL
Lynn Boergerhoff Phone 651.308.1461 lynnab7@gmail.com
Communications Chair Janice Pyka Phone 612.801.1229 janicepyka@gmail.com
Charitable Outreach Committee Chair
Golf Tournament Chair
Membership Chair
Trade Show Committee Chair
Education Committee Chair
Legislative Action Chair
Social Committee
Vision Awards Chair
Cliff Kurth Phone 763.248.1047 cliff@aemn.co
Nigel Mendez Phone 651.287.8640 nmendez@carlsonassoc.com
Kris Birch Phone 651.481.9180 krisbirch@birchlawn.net
Greg Pettersen, RS Phone 612.616.4817 gregp@RDAmidwest.com
Jared Lawrence Phone 763.449.9100 jlawrence@omega-mgt.com
Tracey Bernier Phone 952.277.2780 Tracey.Bernier@fsresidential.com
Jon Edin Phone 651.222.2155 jedin@mncondodefects.com
Jane Bristow, CMCA, AMS Phone 952.277.2722 jane.bristow@fsresidential.com
May | June 2014
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