1. Copyright 2007, Matthew L. Winton Legal Issues for Oklahoma Community Associations March 2007 Matthew L. Winton, Esq. Vaughn & Winton pllc 3233 East Memorial Rd., Suite 103 Edmond, Oklahoma 73013 405.478.4818 www.vaughnandwinton.com www.okhoa.blogs.com Legal Service for Community

2. Copyright 2007, Matthew L. Winton Speaker Profile Matthew L. Winton is a founding partner of the Vaughn & Winton law firm. Matthew is a member of the American, Texas, and Oklahoma Bar Associations. Contact. Matthew may be contacted at his Oklahoma office at 405.478.4818, or via email at mlw@vaughnandwinton.com. He published the Oklahoma Community Association Handbook, Second Edition, and hosts a blog on community association issues at www.okhoa.blogs.com. Statement of Practice. Matthew represents real estate developers, both newly formed and firmly established condominium and homeowner associations, and real property owners in all matters of community association governance and law. Throughout his practice, Matthew has advised and represented over one hundred community associations and currently acts as general counsel to dozens of community associations.

3. Copyright 2007, Matthew L. Winton Disclaimer Proper application of the law depends on facts. Because the speaker has not taken into consideration the specific facts of any situation, it would be unwise to rely on any statement in these materials or provided by the speaker as legal advice. The law firm of Vaughn & Winton pllc only engages clients through a written engagement contract. Until you or your organization enters into such an agreement, you and your organization are not clients of the firm. No attorney-client privilege is created between you and the firm; the speaker does not represent you; and you cannot rely on these materials as legal advice. If you have legal questions, you should consult a competent attorney practicing community association law.

4. Copyright 2007, Matthew L. Winton Selected Issues: 1.Community Association Law Update 2.Terminology: the language of community associations 3.Association Operation 4.Board function and operation 5.Governing Document amendments 6.Time for group discussion

5. Copyright 2007, Matthew L. Winton Community Association Law Update Federal Flag Display Act –Community Association cannot restrict displays of the American Flag except as provided within the Flag Act. Oklahoma sex offender act –57 O.S. 590: unlawful for a registered sex offender to reside, either temporarily or permanently, within 2000 feet of a playground or park. –57 O.S. 590.1: unlawful for more than one registered sex offender to reside in one dwelling.

6. Copyright 2007, Matthew L. Winton Freedom to Display the Flag Act of 2005 (H.R.42) Act protects an individual’s right to display the American Flag on their private property. Display must comport with 4 U.S.C.A., Ch.1, Sec.1-10. Community Association may limit display by a restriction based on a substantial community interest.

7. Copyright 2007, Matthew L. Winton SEC. 3. RIGHT TO DISPLAY THE FLAG OF THE UNITED STATES. A condominium association, cooperative association, or residential real estate management association may not adopt or enforce any policy, or enter into any agreement, that would restrict or prevent a member of the association from displaying the flag of the United States on residential property within the association with respect to which such member has a separate ownership interest or a right to exclusive possession or use.

8. Copyright 2007, Matthew L. Winton SEC. 4. LIMITATIONS. Nothing in this Act shall be considered to permit any display or use that is inconsistent with— (1) any provision of chapter 1 of title 4, United States Code, or any rule or custom pertaining to the proper display or use of the flag of the United States (as established pursuant to such chapter or any otherwise applicable provision of law); or (2) any reasonable restriction pertaining to the time, place, or manner of displaying the flag of the United States necessary to protect a substantial interest of the condominium association, cooperative association, or residential real estate management association.

9. Copyright 2007, Matthew L. Winton Oklahoma Sex Offender Act Update 57 O.S. 590: unlawful for a registered sex offender to reside, either temporarily or permanently, within 2000 feet of a playground or park. 57 O.S. 590.1: unlawful for more than one registered sex offender to reside in one dwelling.

10. Copyright 2007, Matthew L. Winton Issue: Terminology. The language of community associations Community Association, HOA, POA Plat Real property covenant, restriction, Owner’s Certificate Negative/Positive Easement Right of Way Articles of Incorporation Bylaws Financials: Budget, P&L

11. Copyright 2007, Matthew L. Winton Issue: HOA function and operation Function of a Community Association – Isn’t just to collect dues –Governance - ARC –Business - Collections –Services – Social and economic Operation of a Community Association –Should operate like a modern business – not a “good old boy” system and not a “mom and pop” –Collection rate indicates customer satisfaction and “buy-in” –Written annual goals and plans – budget –Ask the questions: what service do we provide? To what goals do we aspire?

12. Copyright 2007, Matthew L. Winton Issue: Board function and operation Board members are the elected hands and feet of the community association Board members should model the behavior the Association expects from members – this is the HOA Golden Rule Most Boards will meet monthly, at least quarterly. Communication Limiting liability

13. Copyright 2007, Matthew L. Winton Issue: Governing Document Amendments In general, all governing documents can be amended and should be periodically reviewed. Follow amendment provision within document. 11 O.S. 42-106.1 Absent special amendment provision, each Lot owner must execute a notarized ballot to be filed with the amendment Covenants – Regular and intentional oversight –Special amendments – 11 O.S. 42-106.1(D) Bylaws – Board and member amendments – 18 O.S. 1013

14. Copyright 2007, Matthew L. Winton Declarant to Resident- Owner Transition No specific Oklahoma law governs Governing document language Common Transition issues: –Common Area transfer –Document transfer –Election of directors –Completion of improvements –Special Declarant rights “Best Practices Report”

15. Copyright 2007, Matthew L. Winton Oklahoma Community Association Handbook, 2 nd Ed. The Oklahoma Community Association Handbook, Second Edition is a unique resource available for those living in, working for, or thinking about Oklahoma community associations. Written by Matthew L. Winton, an attorney who devotes his practice to community association law and issues, the Handbook provides an excellent guide to associations for residents, board members, attorneys, realtors, and others. You may order yours today by calling 405.478.4818 or emailing mlw@vaughnandwinton.com. The Second Edition of the Handbook contains over four hundred pages of useful commentary, Oklahoma law, and forms. The soft-back book may be purchased for $64.95. Handbook Table of Contents CH. 1 – Forms of Community Associations CH.2 – Condominiums CH.3 – Homeowners Associations CH.4 – Declaration of CCRs CH.5 – Associations and Incorporation CH.6 – By-laws of the Community Association CH.7 – Association Boards; Operation & Management CH.8 – Committees within the Association CH.9 – Association Meetings CH.10 – The Architectural Review Committee CH.11. – Reserves and Capital Improvements CH. 12 – Association Taxation CH.13 – Developer Transition CH.14 – Conflict Resolution CH.15 – Special Issues: Leasing; Sex Offenders; Grants CH.16 – Association Insurance App.1 – Glossary App.2 – County Clerk Information App.3 – Statutes and Case Law App.4 – Forms App.5 - Checklists

16. Copyright 2007, Matthew L. Winton Matthew L. Winton, Esq. 3233 East Memorial Rd., Suite 110 Edmond, Oklahoma 73013 405.478.4818 office www.vaughnandwinton.com www.okhoa.blogs.com mlw@vwlaw.net