In our continuing education class “Financial Best Practices for Homeowner Associations and Condo Communities” we recommend managers and board members close old bank accounts. In this post we are going to discuss why you should close your old HOA and condo bank accounts. Read the article……………………..
Taking out an Association Loan: Don’t be penny wise and pound foolish! (CT)
Many older associations are finding they need to borrow money for major upgrade or replacement projects, such as for roofs, windows, and paving. The Board of Directors will usually start this by speaking with a banker, which is the logical first step. However, problems may occur if a unit owner vote is taken on a […]
It’s all about the Planning! – Tips to getting an Association Loan
The key to obtaining an association loan is to be prepared and follow best practices. The planning that is done two, and even three years before the association actually needs the loan, is critical to getting a loan approved by a bank. This is not to say that there will be unexpected maintenance and repairs […]
When It Comes To The HOA/COA Lien Process, Misconceptions Abound
Working with homeowners associations (HOAs) and condo owners associations (COAs) often leads to confusion among servicers – and that confusion may lead to problems during the lien process. uring a recent interview with MortgageOrb, Damon Paxson, vice president of HOA solutions at LRES, a national residential and commercial real estate services company providing valuations, real […]
Wait…We Need Lender Approval On Our Amendments?
So you’ve gone through months, if not years, of hard work with board members, committee members, and the owners to finally amend the declaration for your community, and owners have finally approved those amendments. Celebration time, right? Well maybe, or maybe not so fast. Unfortunately, many communities (particularly condominiums) have declarations that require a percentage […]
Condos Must Reserve To Preserve — And Get Loans
The recent front page Washington Post article on the financial problems condominiums are facing prompted me to write this column about the absolute necessity of maintaining adequate reserves. And it is especially timely since associations are starting to prepare next year’s budget. Every community association should have money set aside “in reserve” to cover the […]
Be Prepared: How to Avoid the Super-Priority Trap
Benjamin Franklin once said, “By failing to prepare, you prepare to fail.” Servicers can face significant obstacles in preservation of their rights vis a vis assessments by homeowners’ associations and condo associations (a “property association”). The most important action servicers can take in addressing this issue, not surprisingly, is foresight and preparation by putting procedures […]
Now Might be a Good Time for an Association Loan
Interest rates have never been better. As a result, many owners have jumped at the chance to refinance their homes or condos at seriously low rates. Yet, individual owners are not the only ones who can benefit from these low rates. Community association loan rates are probably lower than you think. Some of our associations […]
Should Your HOA Take Out a Loan?
What do you do if your homeowners association board is planning a big project but doesn’t have information saved in the reserves or operating budget for the entire cost? There are a few different options. You can collect special assessments, break up the project to span several years, or get a loan. Read the […]
Why a Loan is (Sometimes) a Good Idea for Your Homeowners Association
Your association board is planning for the big project on the horizon, and is currently reviewing how to finance it. For several reasons, you don’t believe you’ll have enough funds in the association’s operating budget or reserves to cover the project’s entire bill. What should you do? Split the project up over several years, levy […]
Receiving a Lender Project Questionnaire
There is nothing quite as daunting for a community association board member or manager as a Lender Project Questionnaire, sometimes also referred to as a condo questionnaire or a PUD questionnaire, finding its way to your desk. As your trusted association attorneys, we want you to understand your rights in regards to filling out these […]
How To Bulletproof Your Association’s Biggest Asset: The Money (Pts. 1-4)
If you are elected treasurer of your community association and accept the challenge, there are many policies and procedures you will need to learn before you start planning budgets, collecting assessments, and signing checks. Board members and officers of all community associations in America should read the 35-point list of financial procedures detailed in “Escaping Condo […]
Choosing the Right Bank – do you know their Safe and Sound rating?
When you are responsible for managing the money of other people, you are entrusted with more than just the earning potential of that money. The word “management” by definition encompasses handling, direction, and control. Choosing the right institution to aid you in this undertaking is crucial. When selecting a bank to deposit your association’s funds […]
Now is The Time – Check Today’s Financing Options for Projects
If you’re on a board in a New England condo or HOA, now is the time that you should be talking about making any of the major improvements that you’ve discussed or considered over the past few years. Even if you have a plan in place to do a roofing project or paving job in […]