Articles About Community Associations and the Economy 

Hard Times Require Association Boards to Make Tough Choices

You probably don’t need me to tell you that these are difficult times.  And community associations are not immune from the financial storms that are rattling the windows of consumers, businesses and government offices from one end of the economy to the other.

Managing association finances -- never an easy task in the best of times – becomes even more challenging and possibly overwhelming as homeowners, struggling with financial problems of their own, fall behind on their common area fees and, in increasing numbers, lose their homes to foreclosure.

Association boards responsible for governing their communities must find ways to keep budgets balanced, maintain essential services and protect property values, even as the normal revenue stream from common area fees is disrupted.  When budgets are already tight, even a small decline in anticipated revues can have a large impact.

The financial pressures boards are confronting may be more severe than most board members have seen in their tenures, and possibly in their lifetimes.  But the strategies for dealing with them are no different than the strategies used by any household facing hard times:  Find ways to reduce expenditures, increase revenues, or both.  Read entire article

Money, Money, Money (or the lack thereof)

2009 promises to be a year that will likely be remembered in the history books for its many trials and tribulations. The financial markets remain in turmoil and the impact of job-losses has made itself felt, even in areas which had been relatively insulated from the worst impact of the financial crisis to date. During these times, board members and residents alike have a renewed focus on ensuring sound fiscal management of their communities. In plain language – everyone is looking for ways to save money.  Our goal has always been to assist associations and board members in controlling assessment increases while still ensuring that the standard of the community is maintained and long-range planning and provisions are realistic and adequate. During recessionary times this focus becomes sharper. Here are some Cost Saving Tips here that may benefit your association:   Read entire article

Use Reserves to Stay Fiscally Fit

As we all try to navigate through the national economic crisis, community associations are not only structured to stay fiscally strong but also are in a position to help lead our country out of this troubled time. In most sectors of our economy, individuals or organizations must either dip into their own pockets or borrow money from banks to install or repair roofs, air conditioning systems, roads and parking lots. However, community associations are in a unique position, having planned for this work through years of ongoing investments into their reserve funds for these expenditures.   Read entire article

Is An Impound Fund the Solution to Your Association’s Delinquency Problems?

Recently an association inquired whether it would be a good idea to require an impound fund for all new owners in an effort to curb the community's delinquency problems.  The idea behind the proposed impound fund, also called a reserve or escrow account, is that each new owner would be required to put an additional sum of money on deposit with the association to secure the payment of assessments.  In the event of delinquency or failure to pay, the association would have the discretion to access the impound fund to pay the owner's assessment(s).  Then, presumably, when the fund becomes depleted, the association would demand replenishment of the fund.   Read entire article

Guerrilla Guide Tactics for All Meetings

In my over thirty years of experience in meetings (both meetings using parliamentary procedure and not using parliamentary procedure, such as meetings in businesses) I have learned many tactics that can make the meeting more effective and efficient! Many of these tactics are explained in greater detail in my book The Guerrilla Guide to Robert’s Rule.  This article is a summary of the tactics that can be useful in all of the meetings you attend.  This is the first part of a multi-part article. 

Read Part 1       Read Part 2       Read Part 3

Providing Excellent, Basic Core Services and why it's important NOW more than ever

No, it's not right to call us property managers any more, we're community managers and should be known as such. Today's managers - those who started in the past 10 years or so, only know themselves as community managers, but I often wonder if they know why we stopped calling ourselves property managers? Originally, it was because we were often confused with real property managers (residential apartment managers) or maintenance managers. So, as a way to differentiate ourselves, we came to call ourselves "community managers." For awhile we floated along doing what we always did, our core competencies. But somewhere along the way, some of us in the industry who tended towards grandiosity, job security or sheer boredom began to over-think the role of the (now) community manager, and place the role of community builder, social engineer and general psychiatric counsel on top of the role of community (property) manager.  Read more

Welcome Packets – Benefits vs. Cost

 With today’s era of computer technology and “Going Green” many boards question if the benefits of sending out a Welcome Packet outweigh the cost. There are several reasons that negate sending out welcome packets:

1. Cost to the association for copies, envelopes, labels and postage
2. Possibility of outdated information going out
3. Too time consuming to do every month
4. Additional trees killed to produce paper produces
5. More waste products for the landfills

 Read entire article

HOA Renter Rights

One of the issues that many HOAs grapple with is renters. Some ban them outright, others limit their number. Most live and let live. Interestingly, the HOA has no direct legal authority over renters, only its members. This disconnect creates some practical problems for the board or manager in communicating with tenants since there is always a middle person to deal with. So how does this all play out?   Read entire article

Getting the Most Out of Your Vendors

There are four critical steps to consider before you request bids from vendors. 1. Set your Internal Goals 2. Decide on “Best of Breed” vendors versus a generic vendor 3. Review Proposals and Contracts 4. Work with your vendor Set your Internal Goals The first step is to learn what homeowner expectations are, because expectations of a vendor/CIC relationship will be the hardest to change. Education is key.   Read entire article

Common Areas and "Incidental Use": When Boards Go Overboard  

May condominium unit-owners stop their board from permitting a cell tower to be installed on the roof of their building? The answer was yes in a recent decision in White Plains, N.Y., where the court found that a condo's bylaws did not permit the board to enter into a cell tower lease because the tower was not "incidental" to the residential use and occupancy of the building, as required by the bylaws. It's an instructive study in how the concept of "incidental use" helps balance issues between unit-owners and the board. Read entire article

Green Landscaping Best Practices

Today’s grounds care managers have more opportunities than ever to save energy, decrease water use and maximize resources, while creating eco-friendly and aesthetically pleasing environments. But achieving these goals will require managers to look at both the products and practices their grounds care department use. Achieving healthy soil and following green landscaping practices often means reducing the amount of chemical applications.          Read entire article

Flood Insurance 

Because of frequent flooding of the Mississippi River during the 1960s and the rising cost of taxpayer funded disaster relief for flood victims, in 1968 Congress created the National Flood Insurance Program (NFIP). It has three mandates: to provide residential and commercial insurance coverage for flood damage, to improve floodplain management and to develop maps of flood hazard zones.  While the comprehensive section of an auto insurance policy covers flood damage to vehicles, there is no coverage for flooding in standard homeowners, renters or commercial property insurance policies. It is available in a separate policy from the NFIP and from a few private insurers. Despite efforts to publicize this, many people exposed to the risk of floods still fail to purchase flood insurance.  It was the widespread flooding associated with Hurricane Katrina in 2005 that drew attention to the NFIP and set in motion debate about how to improve it. Funding was due to expire in September 2008 but because lawmakers in the House and the Senate have not been able to agree on proposals for change, the expiration date has been extended until September 2009, without any modifications.
Read entire article 

Good Question - Bypassing the Professionals

Q – In this stressful financial climate, my association Board is trying to cut expenses wherever they can. In doing so, they are “cutting out the middle man” and turning to me, their association manager, for advice regarding matters that would otherwise have been solicited from their attorney, engineer, or other professional. While I am flattered that they consider me knowledgeable enough to advise them, I am growing increasingly uncomfortable about providing information that is more appropriately given by others. Help!    Read entire article

More News Stories

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FL: Neighborhoods hire cops to deter crime
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AZ: "I'll see you in court:' Homeowners lose venue for fighting HOAs  Last October, Maricopa County Superior Court Judge Margaret Downie had already struck down the law allowing HOA cases to go before an administrative law judge. It was a narrow ruling, affecting only the case before her. On Jan. 29, however, Superior Court Judg...

TN: Gated-community residents snarl over pit bulls  Behind the fences of a gated, golf course community in Brentwood there's a play for power that has homeowners growling....

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FL: Get green lawns, or get sued
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FL: Foreclosure moratorium has unintended consequences  We see headlines about the largess of financial institutions putting a moratorium on foreclosures of the first mortgage....

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FL: Hurricane damage lingers, causes H.O.A fight
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MD: Local Couple Fights to Keep Siding
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