Questions Raised by Unusual Condominium Insurance Decision Resonate Beyond Maryland

Condominium insurance coverage questions are notoriously complicated and often confusing for industry professionals as well as condominium owners and their governing boards.  But for owners and insurers in Maryland, this admittedly confusing issue has become bewildering and more than a little unsettling following a state appeals court ruling that homeowner associations are not required to cover casualty losses for individual units under the association’s master policy.   As the headline in one newspaper report noted, the decision, which contradicted industry practice nationwide, “turned Maryland condominium insurance upside down.”   It got quite a bit of attention nationally in the on-line “chat rooms” of condominium attorneys, as well.    Read more

The Dumb Things Boards Do

Recently I asked a few dozen community management professionals across the country – managers, company owners, principals, on site managers and a few vendors - to answer this simple question: “What are some of the dumb things Boards do to mess up their associations, the managers’ lives, their own lives or their ability to function effectively?” Apart from some general venting and ranting (many answers ended with “I could go on and on…!”), our collective experience points to the same issues over and over, year after year. (And may I say some of you seriously need some therapy….). After struggling a few days trying to put all the information in to a cogent article, it dawned on me that the thread tying all of those “Dumb Things Boards Do” together was a general lack of vision and leadership. This lack of vision and leadership leads to decisions based more on the short-term satisfaction of the parties involved rather than the long-term good of the communities. This month, let’s talk about the issues – next month we’ll talk about managing those issues.   Read more

Discriminatory Hiring

We all know employers may not discriminate based on race, color, religion, national origin, ancestry, medical condition, disability, martial status, gender, pregnancy, or age.  But, if your association has employees it is prudent to understand what type of questions can be asked so as to not run afoul of a discrimination claim.  Below is a list of proper and improper questions.    Read more

Creating A Fire Defensible Space

Wildfires are among the nation’s growing natural hazards. Though wildfires are natural and often beneficial in less populated areas, more and more homes and lives are being threatened. Many states are implementing and enforcing regulations for reducing wildfire fuel sources. Be sure to check with your state or county for regulations related to your property. All regulations for owners within or near canyons, brush-covered or grass-covered land, forest-covered or mountainous areas will include creating a defensible space. Regulations tend to be more stringent in areas with steeper terrain and denser vegetation. Creating a defensible space refers to reducing the fuel around a structure by separating, reshaping, trimming or removing the fuel sources. In California a defensible space clearing must be maintained around structures no less than 100 feet. A defensible perimeter allows firefighters an area to work in to protect structures. It also reduces the chance of spreading flames or burning ambers to nearby structures.       Read more

Minutes of the Board Meeting:  Board Needs to Control Them

The minutes of board meetings are important legal documents, yet many associations do not pay enough attention to them. Some associations put far too much detail in them, while other boards keep minutes that do not accurately or completely reflect the board's decisions.  The purpose of this article is to explain the purpose of the minutes, to provide some guidelines for keeping the minutes, and to answer common questions posed to us about board minutes.   The purpose of the minutes is to provide a permanent legal record of the actions of the board.   Read more

The Americans For Disability Act: “A Horror Story”

Many homeowners associations are not aware that the California and Federal fair housing legislation applies to them and often those homeowners associations that are aware of this are not aware of the seriousness of complaints of violations by their members or those members’ renters. The recent published opinion of the Ninth Circuit of the United States Court of Appeals in the case of Dubois v. Association of Apartment Owners of 2987 Kalahana (filed July 13, 2006) brought to the fore a virtual horror story and the commendable conduct of a condominium association in keeping its head (and avoiding liability) in the midst of such a nightmare.   Read more

HOA Board Directors: Lone Ranger or Tonto?

Being a person that wants to serve and protect your own interests, you get yourself elected to the board. At the first board meeting, the president gives you a pep talk about not giving instructions to contractors or discussing board issues with other members unless you preface comments with "the board policy/decision is...". You bristle at this. Who does this guy think he is? This is America, Home of the Free and Land of the Lone Ranger. Why shouldn't you be able to say what you want, when you want and to whoever you want?    Read more

Professional Malcontents

Men, like wolves, end up in a pack, generally for a group purpose,  Unfortunately, in the grouping of every 100 wolves, there will be at least one crackpot, a professional malcontent, and a lone wolf personality that spawns chaos and pesters associations.  The malcontent is distinctly different from the owner that has a furtive mind and wants to explore all possibilities.  Boards and managers should be receptive to an owner's good faith involvement and spirited exploration of any subject, even if the ideas expressed come across as a little odd or atypical.   Read more   (PDF)

Green Communities

As energy rates increase for both natural gas and electricity, management of energy consumption is becoming an even more critical issue at condominium associations, particularly those with their own central heating and/or cooling equipment. The operating expense structure related to electricity and natural gas consumption in such buildings will vary based on the following key factors, among others:   Read more

Ownership of Minutes

Although members have the right to inspect and copy minutes, they don't own the minutes nor do they have the right to remove them from the association's office. Following is the recent experience of one association. The Theft. An owner entered the management office to inspect minutes. When the receptionist left the room to make arrangements, the owner grabbed a binder of original, signed minutes and fled the building. The manager pursued the owner into the parking lot, calling his name. She caught up with him as he opened his car door. She demanded that he return the association's property; otherwise, she would call the police. The owner threw the binder into his car and then turned on the manager and began screaming at her. He came within inches of her face, raised his hands and put his finger in her face. Fearful of being struck, the manager backed away. At that point, the owner jumped into his car and sped away.   Read more

25 Common Mistakes Boards Make.....and How Managers Can Steer Them in the Right Direction

Board members are subject to many demands and expectations.  Serving on the board of an association can be a rewarding experience.  However, most problems in associations are the result of miscommunication or non-communication, especially between a board of directors and their manager.  Boards and managers need to seek on-going education and establish a team approach.  Unfortunately, most boards do not have a formal orientation program.  Boards need to educate themselves to ensure they know everything they need to know in order to govern the community and avoid mistakes.   Read more   (PDF)

What Really Impacts Maintenance Fees?

Every year we hear from owners concerned about their current maintenance fees increase. Often, owners are just wondering why it is that fees go up every year or why the board doesn’t seem to care about the hike in fees. Others blame the community manager and the board of directors for the increase.                                     The Game:
One of the first things we remind owners of is that the board of directors is composed of owners, people who were elected by them and their neighbors to carry out the business of the association. So, like them, the board members are very cognizant of maintenance fees because an increase affects them, too! Next, we explain that the board and the community manager have hashed through the details, studied the costs related to running the community line by line, measured the cost against the services the owners want and need, solicited competitive proposals to provide those services and done their best to put controls in place to ensure that the community operates within the budget. We hope that the following explanation of the ongoing list of expenses that are required by a typical community association helps you to understand what goes into your community’s budget and where your maintenance fees go.   Read more

Consensus Building for Community Associations

Community association board members and managers are responsible for carrying out business that protects literally millions of dollars worth of real estate. Daily problems arise that range in magnitude and importance, but all require sound business judgment to resolve. Many times what is also required is the cooperation or consensus of association residents comprised of different interests, values and personalities! Their cooperation can mean the difference between solving a problem on paper and actually solving it.  It is virtually impossible to solve big or complex problems without having adverse effects on at least some interests. Consequently, almost any big or complex problem will not get unanimous support from your public. Community involvement includes a certain amount of conflict between you and your members.  A good community participation process may not make you popular, but can earn you respect.  Read more  (PDF)

How — and When — to Find a New Managing Agent

Many people with experience in the world of New York co-ops and condos will tell you that hiring a management company is a bit like getting married — and advise that it's always wise to learn as much as possible about your spouse-to-be. What are the steps you need to take to ensure that you find the right partner and that your management marriage doesn't end in divorce? First, look for warning signs that it's time to switch agents. Greg Carlson, executive director of the Federation of New York Housing Cooperatives & Condominiums, says the three most common complaints about managers are that phone calls go unreturned, to-do lists keep growing instead of shrinking, the board and the manager have incompatible personalities. As for the big red flags, get concerned if:   Read more

How to Interview for a Managing Agent

You seat the agent on a bare stool beneath a hot spotlight, a glass of water just beyond reach. Peppering the agent with questions, playing "good cop-bad cop," insinuating you already know everything you're being told, you keep the agent off-balance, smiling inwardly when you see those first beads of sweat…. That's no way to interview a prospective managing agent    Read more