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Reviewing HOA Architectural Change applications 1

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LOTE

LOTE

Structural
Sep 9, 2018
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I got a request from an HOA to review Architectural Changes to Property applications. It's mostly reviewing when a homeowner wants to install a fence to make sure it is not in an easement or if it is that they also get proper permits. Or if they are installing a retaining wall, confirming it won't affect the HOA's drainage system.

This is something I am competent in, but I am not licensed in the state where this HOA is located. I run a solo practice. My question is, since I would not be performing any engineering per se, just approving or rejecting on behalf of the HOA, is there any legal/ethical reason I could not take on this project? This is something the elected HOA officials could do, but they do not feel competitent nor have the time to do so.

I would obviously disclose that I am not licensed in that state.
 
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I agree with IRstuff. They are hiring you because you are competent, i.e. an engineer. The fact that you're here asking the question says that others will to, and if they're on the state licensing board then tough luck for you. Remember, disciplinary action in another state will usually come back to bite you in all of the states where your licensed come renewal time.

How much work are you expecting to get from them? Most states a sole proprietor can set up shop for a few hundred bucks. If you have an LLC or PLLC it may be an extra few hundred for your CoA and corporate license. If there's a chance you could attract additional work by having this - maybe members of the HOA hire you for their additions - then it could be money well spent.
 
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I don't know your state rules, or if there are other requirements. but if the HOA approval does not require a review or approval by a licensed professional, you don't need to be one.

I assume the HOA knows you are not licensed and just approached you because they know you are a professional (just in a different state).

if you are confirming the drainage system is not impacted, I would find out if such review is regulated and requires a stamped design.

There also is the question if the home owner provides stamped plans, or how they obtain the design and you just review to make sure it was designed by an appropriate person (you basically just doing a check if papers are complete. I would find out if the municipality or local storms sewer utility or DNR needs to approve.
 
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i am on an HOA board. The board members and I review and approve ARC requests all the time. One other member is also an engineer. the others are a retired teacher and a flooring contractor. I have never thought that any of it should be considered engineering. and a stamped review is not required. if grading, drainage or wall permits are required from the city, that is on the homeowner to comply with all city requirements
 
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Ok, so let's say hypothetically taking this on doesn't violate any state ethics or professional practice laws (I'm not convinced on that - even if it isn't engineering, you're being hired to evaluate projects to determine whether or not the engineering and administrative requirements are met, and they're picking you because you're an engineer).

What if you make a mistake? You determine that a project won't impact the drainage and doesn't need to go through a storm water permitting process, but suddenly the ditch won't drain and there's a mosquito problem. Who pays for the mosquito company that now has to come out every month and spray? Bad example - you decide the fence is in the right spot and they build it. Neighbor disagrees, and gets a surveyor to verify it and, sure enough, you told them they were okay to put it in the wrong spot. Who pays to rip out and rebuild the fence? Probably you. Will your insurance cover it? Well, it's "not engineering," and you're an engineer, so it's not really your business and so the answer is probably no.

Keep in mind that there's more to the business side of what you're doing than just engineering. Even if you don't have a license in that state, you'll probably be required to register with the Sec of State to conduct business in that state.
 
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if our board was to review a fence plan from a homeowner, we would put the responsibility on him (and his neighbor) to agree on which side of the line the fence is placed. if that requires a survey to verify, than so be it. in fact, all fencing requests must involve sign off of the adjacent homeowners.
 
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Thank you for all you responses so far. The HOA approving a project would not alleviate the homeowner from filing proper permits with the county. The HOA could reject a submittal if they suspect it would affect drainage and stipulate the homeowner hire an engineer to evaluate drainage before the submittal is accepted. The HOA could also reject the submittal if the HOA suspects a permit is required but the permit was not included in the submittal.

I would be doing this on behalf of the HOA, which does not require an engineering background as cvg mentioned. I don't see a scenario where a homeowner could take any legal action against me unless a submittal got rejected that was clearly allowed by the HOA bylaws, but please point out if I am wrong in that.

Long term, I plan to establish an LLC in this state and apply for reciprocal licensure and COA, but for now I would be operating under my own name. This state does not require a business license if you operate under your own name.
 
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I don't understand the why.

LOTE gets to collect a small fee for the service.

Beyond that, who gains any value from LOTE's participation? I don't see any.

The project must be "properly permitted".

HOA simply says "approved, subject to receipt of proper permits".

As other's have pointed out, LOTE's potential liability seems greater than the value.
 
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LOTE,

Why is this HOA calling somebody from out of state? Is there a reason they cannot find a local person to do the job?

--
JHG
 
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drawoh, it's a friend of a friend. I grew up in the state, but moved out of state by the time I got licensed.
 
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our rules have the following clause which limits liability to zero. this board appears to be going above and beyond common practice

ARC Rules said:
"Neither the ARC, nor the Board shall have any liability in connection with or related to approved or disapproved plans, specifications or improvements. The approval of the plans does not mean that judgement is passed on the structural soundness of the addition nor its effect upon existing or future drainage. The review of the plans is for aesthetic purposes only."
Click to expand...
 
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I'd say it's sufficiently murky that it warrants an inquiry to the state you're referring to. Here in Virginia, there are staffers in Richmond who field questions relating to engineering regulations. Get a decision from them, and then at least you have a leg to stand on if somebody questions you.
 
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It sounds like it would be considered engineering work, and that requires being licensed if you get paid to do it.

cvg - was your board work volunteering?
 
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I would say the volunteer aspect, plus that fact that your volunteering was something you did to help take care of where you lived would both contribute to arguments against needing a license.
 
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