Signed into law on May 26^th, SB 89 requires associations to adopt a written procedure by January 1, 2007, concerning how disputes between owners and the association are addressed. To assist you in complying with this requirement, we have posted three different ADR policies for your use.

These policies range from a very basic to a very detailed policy.  The first policy sets forth an optional procedure. This procedure invites and encourages owners to meet with the board to discuss any disputes owners may have with the association. This policy is designed for those associations that want to comply with the requirement to have a policy in place, but do not want to be bound to any sort of formal mediation or arbitration.  Click here to access this policy.

The second policy also sets forth an optional procedure. This simple policy provides for the use of mediation, non-binding arbitration, or binding arbitration in the event of certain disputes between the association and owners.  This policy is for those associations that would like to encourage the use of some sort of alternative dispute resolution with minimal guidelines or structure in place.  Click here to access this policy.

The last policy is a very detailed policy that provides a mandatory procedure to follow in the event of an owner and association dispute. This policy moves the dispute resolution process from informal negotiation, to mediation, to arbitration.  This policy is for associations that desire a very detailed and formal dispute resolution process in lieu of litigation.  Click here to access this policy.

Associations using these policies should be aware that these are general policies and may not be perfect for every association.  The policies may need modification by individual associations to meet the specific needs of the association and views of the board.  Also, some association governing documents contain provisions regarding alternative dispute resolution.  In that case, any policy adopted by the board to comply with SB 89’s requirements cannot contradict any existing provisions in the association’s governing documents.

As an alternative to the use of these policies, HindmanSanchez can draft a customized ADR policy for an association for a flat fee of $225.  If an association chooses to use one of the posted policies or to draft a policy independently, we will review any such policy at our regular hourly rates.If you have any questions regarding the options available, please contact our office.