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Owner's commercial use of HOA property creates huge liability


Question:

I live in a townhome condo association in Georgia. In my building there is a person/tenant who owns a bounce house business. While he does not have his office in the unit nor receives any business traffic he has decided to blow up bounce houses at the back of the building and cleans them. He uses chemicals, small amounts of water ,has wires all over the grass and has been observed sometimes letting his kids get into the them in the past. He parks around the building on spots that are assigned to others and has blatantly refused to stop. He claims he has insurance.  I have complained to the board about this and others have as well verbally and in writing and management is VERY aware.  At first the entire board was against this incl. management a. declared it was against the bylaws and fined him which met extremely strong  resistance by him and his unit owner.Members of the association who are against this are portrait by him as persons who mean him and his family harm when in fact the convert is liability issues and protection of the asset which is the true reason for the objections. I do not know what happened in the meantime all of a sudden the majority of the BoD changed their minds, may it be due to laziness in enforcement, fear of retaliation or just plain stupidity or maybe even some type of other reason.  Therefore, the board in it's infinite wisdom decided to officially allow this activity despite the fact that the common areas are not to be used for  business purposes which was also pointed out by association's counsel! Even though he just cleans the bounce houses the cleaning of itself is part of a business activity that creates him income.  He claims not to use the common water spigot yet that is contrary to some observance. He claims no children enter the houses yet this too is contrary to prior observances . These houses need to be cleaned off property and most importantly there is the huge liability.. There are other children living here and there could easily  be a situation where a child will enter the bounce house in the event he just leaves the area to go around the building to the truck or into his unit!  It is also "absolutely certain" that the property's insurance carrier WILL not cover any damages caused by him  including any injuries or even death if someone's child got hurt or in case of any other damages.  The board members themselves in an official board meeting determined A) that this activity was NOT a business activity and B) "because we all have to get along in the community" the basis for their decision. In my opinion they seem to have forgotten to whom their loyalty is and what fiduciary duty means.  I believe this to be a breach of this duty and borderline negligent due to the fact that I think it may expose the board members who did not agree  with the decision as well as possibly even the association members to liability should his policy lack or be unwilling to pay in case of injury or death.
We the homeowners and few board members who are concerned would appreciate any advise on what a homeowner can do to get this decision reversed before something happens.
thank you.

Atlanta Georgia


Answers (5)

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