The Contractual Community

Articles in this and other publications devoted to the science of community association operations and management often discuss the concept of "community association" as if it were just another subdivision of local government. It is a common perception because so much discussion about this unique housing type is devoted to questions of governance. We have boards of directors that, in some respects, appear to be like city councils. There are property managers who carry out many of the same functions as city staff. The property so governed has many of the same physical accoutrements as a town or city-streets, utilities, parking and recreation facilities.   Read more

Condo Trends: Florida Law May Set Trend on Past-Due Fees

Over the past two years in the foreclosure run-up, one of the points of contention in foreclosure contracts has been past-due condo owner association fees left unpaid by the defaulting borrower. Banks, bent on getting out of the property for as little money out of pocket as possible, have paid or not paid delinquent condo fees, depending on their bottom line.  At least two jurisdictions are putting the onus back on the mortgage holder for paying those delinquent fees.   Read more

Continued Belt Tightening In Associations May Lead To Increase In Volunteerism

The continuing economic struggles across the nation has required associations to perform in depth reviews of their annual budgets.  Associations are forced to either increase assessments or cut back on services provided, or in many cases both.  In addition to cutting services, many associations are also looking for opportunities to save money by using volunteers within the community                Read more

Raising Assessments: The Best Way to Handle the Situation

Raising homeowner dues can be a difficult decision for a board to make. Unfortunately, as the cost of everyday living continue to go up, it is sometimes necessary to raise fees to help cover those increases. If fees are not increased to keep up with the cost of living, the communities that chose not to raise assessments will usually find themselves in worse financial shape than expected.    Read more

The latest edition of the "APRA Advisor", published by the Association of Professional Reserve Analysts, is now available as a PDF document.  Articles include:  "Minimizing Financial Liability"; "Ask the Professional Reserve Analyst"; "Maintenance Screening"/  Read more

Going Green Conserve, Recycle & Save

Across the nation and around the world, concern is rising about the environment. Energy prices may have recently dropped due to the economic slowdown, but most of us haven’t forgotten the high prices paid at the pump just last summer, and we’re wary about when they might start climbing again. “Going green” has become a popular catch-phrase for dealing with these and other issues and is often taken to mean everything from buying hybrid cars to recycling plastic bottles and newspapers. For condo owners, the concept of going green may be easy to embrace in theory but hard to accomplish in practice.    Read more

Want to be a better Board member?

In this country we treat being a board member much like many other fields of endeavor such as parenting and leadership. We assume that if you have the desire to be one and we know how to become one, then we will know how to be a good one! Unfortunately, all around us we see examples of how this theory fails. Seldom have I ever met or worked with a board member who didn't really care about the organization and want to be a good board member. Often I have met board members who wanted to be a good board member but didn't know how or went about it in the wrong way. In this article we will review an understanding of board governance, some board basics and some board training subjects to pursue.   Read more

Know When to Fold and When to Hold

Just as it sounds, “breach of contract” means that someone has not done what he contractually promised to do.  But a breach of contract does not automatically mean the contract is dead or unenforceable.   Read more

Co-op & Condo Communication: Getting Linked with Building Web Apps

We're doing our laundry in the world of tomorrow. This isn't a matter of using smart cards instead of pumping quarters into washing machines — smart cards are old news. This is about the fact that now, to fill up that smart card, we needn't even schlep to the laundry room and insert it into a clunky box that we hand-feed money or a credit card. No, now we can just go online to do that — and, while we're there, check onscreen to see if a dryer is available, or if our wash cycle is almost finished or if a particular machine is out of order. We have seen the future of laundry, package pickup, filing work orders and more, and it's all on our laptops and BlackBerrys.   Read more

Fire Safety Begins with Behavior

The chance of experiencing a fire in your residential property is almost as unlikely as experiencing a plane crash—it’s a miniscule number of incidents that affect a tiny percentage of the population [see sidebar on page 14]. But fire-related tragedies are almost all preventable, and just like airline officials, fire fighting professionals are committed to bringing that statistic down to zero. And with high-tech detection systems and increasing use of sprinklers, industry experts report that property damage and human injury and fatalities from fire have decreased steadily in recent decades. Building and fire codes cannot save anyone from careless behavior, however. In condominiums and multi-family residences, the most common causes of accidental fires are candles, cigarettes and gas grills on decks or balconies.   Read more

How Management Companies Can Stay Competitive

In a competitive industry, management companies must continuously find ways to retain current clients while honing an edge that makes them appealing to new customers. This is especially true in these tough economic times, as many individuals and communities face financial hardship and must make tough choices about the services they purchase. While economic turmoil and the housing slump have affected many areas of the real estate industry, management has not been hit as hard as some other areas—at least not yet. Companies are rolling with the punches and offering their new and existing clients the same high level of service, plus a few extras as well.   Read more

HOA "Snipers & Terrorists"

Out of the blue, an irate homeowner launches a smear campaign aimed directly at the board. It's relentless and focused. The motivation may be some personal grievance, hatred of a board policy, disagreement on how the board does business in general or loathing for the whole HOA concept. Rather than seeking redress in an orderly and open way, however, often it takes the form of poison pen letters, back alley rumor mills or a terrorist-like assault at a board meeting.   Read more

Management and Board Relations - My Job or Yours?

Building boards and their managing agents function best when they work together as a team. Ideally, the two parties collaborate to implement policy, carry out administrative duties, and make decisions about the efficient operation of the building or association. Management contracts usually spell out the duties of the manager, but confusion sometimes arises among board members regarding the extent of their manager’s duties versus the limits of the board’s duties. Sometimes, such confusion is the result of misconceptions about the manager’s role, or of preconceived notions on the part of one or more board members about what the manager’s role should be. At best, a board at odds with its manager is ineffective; at worst, it risks doing serious harm to its community. So it is essential that the board and manager work in harmony—but smooth relations can only happen when each party understands their role and obligations.   Read more

Effective Communication with Homeowners

Someone once asked me what I did to get good association readership of the newsletter and website. My response . . give readers what they want and need. Associations are always struggling for funds but your newsletter and website communication tools do not have to be expensive. There are companies out there who publish newsletters at a minimal expense or at no charge. They offset printing and mailing costs with business advertising. However, how do you get homeowner readership once you have a newsletter or website established? Include items of resident interest. Make sure you know the community demographics. For example, families are interested in events centered on children and families. An association of senior citizens may want to know about senior activities in the area. In addition, business people want to know the facts that may impact their company’s success. Currently, time is the most important commodity. Everyone has a full schedule and only the most important items are worth their time to read.   Read more

Stand-Out Board President

In the fall issue, Condo Owner readers were asked to recognize board presidents who have done an exemplary job representing their association. After reviewing many exceptional recommendations, Condo Owner has selected Tom McFadden as this issue’s “Stand-Out Board President.” Tom McFadden has taken leadership to an entirely new level at Summerchase, which is located in Orange Beach, Ala. McFadden has been the board president for the Summerchase Homeowner Association (HOA) for more than three years.   Read more

Conducting Surveys to Gauge Residents' Thinking and Placate Critics

The board at Laurie Pollock's Upper East Side co-op was planning a lobby renovation. The word around the building was that a half-million dollars had been set aside for tapestries to decorate the halls. "It was nuts," recalls Pollock. "People were calling up board members and yelling at them." Pollock herself called the president to learn what was going on. The president responded by asking whether Pollock might run for the board. Pollock agreed, and even before she was elected she proposed a solution to the lobby controversy. Why not send out a survey?    Read more

VA: Plaintiffs Begin Case In Day One Of Water Rate Trial  The lawsuit came about through action by seven individuals and three homeowner's associations outside the town's corporate limits. It is in response to a Town Council action in December 2005 that doubled the surcharge imposed on out-of-town utility customers, ...

TX: Resident butts head with homeowners association   Jon Kruger's roof from afar looks like any other roof in the neighborhood. But according to letters he has received from the Atascocita South homeowners association, his roof does not meet the deed restriction contract....

FL: Anonymous donation pays woman's past-due condo fees  The 75-year-old woman who was in danger of losing her home had just learned an anonymous donor paid her past-due condominium fees, staving off eviction for now....

New Battle Affects Home Values: No-Rental Rules
In growing numbers of American towns and subdivisions, that question has become anything but academic, as homeowners associations abruptly ban rentals. Blame it on the huge slump in the housing market. For owners who have to move or who own houses as investmen...

A Dangerous Gap in Pool Safety
The bulk of the country's public swimming pools are in violation of a new federal safety rule aimed at keeping people from becoming trapped in underwater drains, and some pools have begun closing down temporarily while they scramble to comply with the law....

Fannie Mae's added fee to crunch condo buyers
With many lenders already casting a wary eye on condo loans because of their default rate, Fannie Mae has upped the ante by adding a fee of .75 percent of the loan amount of a 30-year fixed mortgage, for borrowers who put down 25 percent of the purchase price ...