Bank Failures Highlight Need for Due Diligence on Deposit Insurance

When Indy-Mac, the California bank giant, failed in July, an estimated $600 million of its $19 billion in deposits were not insured.  Based on historical patterns, the consumers, businesses (and homeowner associations, if any) holding those uninsured deposits could expect to recover about 72 cents of every dollar. Think about that.  Would you want to be a member of an HOA board that had to inform owners that the association’s reserves or operating funds had been reduced by almost 25 percent?  The news would not be well-received and the board members responsible might well face legal liability for failing to make sure the association’s funds were protected. The federal government, through the Federal Deposit Insurance Corporation (FDIC), automatically insures up to $250,000 in deposits held in commercial banks and savings institutions.  (The National Credit Union Share Insurance Fund provides the same coverage for credit union deposits.)   The $250,000 limit is new and temporary.  Congress increased the coverage from $100,000 as part of the massive financial industry bail-out bill enacted a few weeks ago, subject to a sunset provision under which the cap will revert to the lower limit at the end of next year.  Read more

Special Assessment: A Case Study

For most community association/condo residents, these words are almost guaranteed to bring out some anger and set off a barrage of phone calls to the board and community manager. However, there are two words that will truly raise the blood pressure of residents and incite irate owners to take action: “special assessment”! A community manager needs to understand the reasons for such an assessment, the different ways of handling special assessments, the relevant requirements in an association’s governing documents, and be ready to work with and hopefully calm the homeowners to help them understand why the assessment is needed.   Read more

Guerilla 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.   Part 1    Part 2

Understanding the Mixed-Use Community

As an increasing number of new community associations are becoming part of the American landscape, a large number of these communities are mixed-use.  These mixed-use association have a different structure than the traditional condominium or homeowner association and having clarity on the unique dynamics involved is one of the keys to having a pleasant - and expected - experience when moving into this type of community.   Read more  (PDF)

The 2009 Budget: A New Level of Agony

I remember growing up hearing the tales of children being given spoonfuls of cod liver oil for all of the healthful benefits it could provide. It was reputed to be a horrifically distasteful experience. But, the product truly offered healthful benefits against some pervasive health problems of the day. The popular phrase is: No pain, No gain. We are well aware of the economic challenges the entire country faces. Some regions have faced a more dramatic impact than others. Foreclosures, food price increases and the massive, broad-based impact of the high cost of energy, both directly and indirectly. The 2009 budget is likely to be one of the most difficult challenges a great number of associations are going to deal with.   Read more

A New Generation of Paints

The goal of the green movement is to protect the environment, in part, by minimizing harmful materials and products entering facilities. That goal is laudable, and the movement is picking up steam nationwide.  Because of resulting changes in products, though, the process of specifying paints and coatings has never been more complex. Maintenance managers selecting these products for interior and exterior applications now have a growing pile of information to sift through in making a decision.

Part 1: Paints and Coatings: Determining the Environmental Impact
Part 2: VOCs Can Affect Paint Performance
Part 3: Paints and Coatings: Washability, Durability Play Key Role
Part 4: Managers Must Consider Regulations and Standards for Paints

The Idyllic New Community

What if you just moved into a new community or homeowners association? And when I say new, I mean really new. Picture a dirt patch out in an otherwise undeveloped area with some roads carved into it and a little sales trailer with some attention flags. Maybe there have been a few sales and some construction has begun. As a new resident, this may sound refreshingly pioneer-ish, but before you know it, you have a small town all around you.. Whether you have lived in and/or been active in a community association before, you probably know there are issues that can surface because your community is a new target for outsiders to take advantage of. The following are some examples that I have encountered as a manager, most of which center around undesirable and even unlawful activities. But you can play an active role early in the life of your community and, with your manager, try to conquer those threats to your idyllic life from the outset and prevent recurrences.   Read more

Authoritarian Boards, Public Rancor and One Board's Wise Compromise

Most boards keep an eye out for red flags. The board at Brooklyn's Willoughby Walk Cooperative Apartments, however, kept an eye out for a red, white, and blue flag — and in the process invested hours of time and attorney fees, got a black eye in the media and went up against the spirit of a federal law so patriotic it's got both "Freedom" and "American Flag" in its name. Here's a case study of both how authoritarianism can create unnecessary problems reaching far beyond the walls of a co-op, and how compromise and creativity can lead to Solomonic solutions   Read more

New Amendments to ADA Broaden the Concept of "Disability"

President Bush recently signed important legislation that, when it takes effect on January 1, 2009, will expand the scope of the Americans with Disabilities Act of 1990 ("ADA"). The new law, entitled the "ADA Amendments Act of 2008" ("ADAAA"), overturns certain United States Supreme Court holdings and broadens the ADA's current definition of "disability," meaning that more employees will qualify for reasonable accommodations and more people will be able to assert claims for disability discrimination. The ADAAA Rejects the U.S. Supreme Court's Narrow Interpretation of "Disability" As initially enacted in 1990, the ADA defined "disability" as a "physical or mental impairment that substantially limits one or more ... major life activities," "a record of such impairment," or "being regarded as having such an impairment." According to Congress, both the Equal Employment Opportunity Commission ("EEOC") and the Supreme Court interpreted this statutory definition too narrowly. Thus, the stated aim of the ADAAA is to reject those interpretations and "reinstate a broad scope of protection."   Read more

Qualifying Your HOA Reserve

A reserve study is one of the most indispensable planning tools an HOA can have. And like a roof, getting the best bang for your buck is the way to go. The best reserve studies are put together by trained industry professionals. But unlike roofing companies, there are only a handful of qualified reserve study providers in the world. How could this be true?    Read more

More News

NH: Wells condo associations say hit with unfair water district rate hikes  Arthur Laro of Wells got an unpleasant surprise when he learned that a proposed rate restructuring by the Kennebunk Kennebunkport and Wells Water District would mean a $6,000 annual increase to his condo association in charges for its water irrigation system....

FL: Learning the proper way to fight the board
Survival in condominiums can be challenging. We have the expectation that we will enjoy individual property rights. This concept may be at odds with the rules....

MO: Irked over yard signs  Butting heads with his homeowners association is not new territory for Jim Gwinner....

Denmark: Danish HOA mandates neighborly greetings  A homeowner's association in Denmark says its new rule requiring neighbors to say hello to one another only applies to pedestrians....

AZ: HOA saving thousands going green
With an unusual landscape and water waste draining her HOA's budget, drastic changes were made. Their landscaping is now filled by plants and shrubs that are native to Arizona...

WI: Brookfield condos lose fight with city over street upkeep  A federal judge has ruled in favor of the City of Brookfield, dismissing a lawsuit by four condominium associations that challenged the city's requirement that the complexes be built on private roads maintained at the cost of the associations....

FL: Condo board powers in storm emergency raise questions   Should a hurricane again strike Florida, condo boards now possess an unprecedented ability to quickly act....