In early June, 2019 at an apartment in uptown Charlotte, gunfire erupted at a graduation party. One person was killed and three more were injured, one of them critically. Residents of the entire complex were forced out of their units into the street in the middle of the night while the police conducted their investigation. […]
How Does Transitioning HOA or Condo Community Accounting Work?
Some Boards are hesitant to change accounting mid fiscal year. The fear may be that the accounting for the fiscal year end will be convoluted or inaccurate and can interfere with a year-end audit or tax filing. Or the fear may be that it is a lot of work. You don’t have to fear the […]
Is the Cannabis Act Unleashing Reefer Madness on your Association? (IL)
With the Senate’s recent passage of HB 1438, the Cannabis Regulation and Tax Act (“Cannabis Act”), Illinois is poised to become one of the 11 states that permit both recreational and medical marijuana use. HB 1438 will likely be passed by the Illinois House and subsequently signed into law by Governor Pritzker (feel free to […]
Brace Yourself: Drones Are Coming to a Community Near You (MI)
Aerial photography, weather tracking, search and rescues – these are just a few things drones are being used for as they slowly integrate into our daily lives. Drones for recreational use can be purchased for as little as $30, and in June 2019, Amazon announced that within a matter of months it will begin using […]
The Case for Adequate Reserve Contributions | But… That’s all we can afford!
What’s better – $50/mo Reserve contributions (as part of your condo’s total monthly assessment) or $100/mo? All other things being equal, I’d rather pay the $50 monthly bill. Why would any board, able to set the budget at their association, choose the higher amount for the owners? Read the article…………………..
Who is Responsible for Pet Waste Pickup in HOAs?
Would it be reasonable to charge just dog homeowners a monthly fee for the wear and tear dogs have on common areas and for a pet poop pickup service? Read the article…………………………..
Association Construction Contracts Require Deft Negotiation by Legal Counsel (FL)
Construction contracts often represent some of the costliest expenses that condominium associations will ever approve, yet many associations fail to utilize the necessary legal resources and expertise to craft and execute the most effective terms and agreements. Instead, they focus merely on obtaining competitive bids, as most associations are required to do for projects exceeding […]
How Can Your HOA Enforce Proper Swim Attire?
Can our community adopt rules concerning appropriate attire at the pool? How would we enforce it? We have a lot of families and young children using the pool during the summer, and we’d like to head off a potential problem if possible. Read the article………………………..
How to Keep a Condo Association Tax-Free (NY)
Some condominiums with a mix of residential and commercial space do not qualify as a homeowners association under the tax code. This means that any budget surpluses may be taxed just as they are for a Fortune 500 company, even though your intent was not to generate a profit. In effect, you can wind up […]
Don’t Jump Without a Parachute! Understanding Community Association Insurance Needs (NC)
In the aftermath of Hurricane Florence, many Community Associations located in the Eastern part of the state had a rude awakening when they discovered they didn’t have the right amount and/or proper type of insurance coverage. Read the article……………………..
Creating an HOA Board Member Code of Ethics (Refresh)
As you create your HOA board, your goal is to create a solid platform for providing the best possible living experience for all of the members of your community. Unfortunately, there will be times when there is conflict within the HOA–or worse, times when members have a conflict of interest. Creating a solid HOA board […]
How to Win Over a Mega Super-Majority (NY)
The Northgate homeowners’ association in Melville, Long Island, was built in the late 1980s, and the wooden facades on the 20 residential buildings were showing their age. The board knew it had to do something, but it felt paralyzed. Read the article……………………….
Top Risk Management Issues for Florida Condo Developers: Part II
The liability assumed by condominium developers in Florida is both significant in breadth and in duration. Under Florida’s Condominium Act Warranty Law, developers are as equally liable as the contractor to unit owners, successor owners and the association for “fitness and merchantability for the purposes or uses intended.” Fla. Stat. 718.203. Read the article………………………
Facing the press: Strategies to manage media coverage of community associations
Frequent headline-grabbing coverage of community associations can cast a bad light on communities that are well-run and consist of hard-working volunteers and professional managers. With social media, it doesn’t take long for a negative message to get out, or a crisis to happen. Read the article………………………
When Do Deed Restrictions Expire? (TX)
Deed restrictions are legal requirements that dictate what a homeowner can and cannot do with his property. For example, mandating which colors a homeowner can paint their house, which building styles must be adhered to, how landscaping should look, etc. The HOA imposes deed restrictions in order to maintain the neighborhood’s look and feel, and […]
What is Smart Irrigation & Why Your HOA Should Invest in This Latest Technology
Advances in smart home technology provide convenience while at the same time saving you money and helping the environment. This technology is especially useful when it comes to landscaping and green spaces. Part of the growing Internet of Things (IoT) that connect devices to the internet, systems such as Smart Irrigation Controllers can help the […]
HOA and Condo Online Banking Tools for Board Members
A key part of financial transparency is access to banking information. We selected one of the few national banks that specializes in HOAs and Condo banking. We use this bank to provide operating accounts since as they interface with our accounting systems to provide online payments and checks mailed directly to the bank’s lockbox (a […]
Are Our HOA Rules Reasonable?
Rules and regulations help community associations maintain property values and protect a quality of life. These standards are typically described in detail in an association’s governing documents, which all homeowners should have an opportunity to review before purchasing a home in a common-interest community. Read the article……………………….
Protecting Your Home from Floods (NC)
The concept of flood zones has been changing as more areas which historically haven’t flooded have begun seeing more instances of water intrusion whether it be from rain, nearby bodies of water or a combination of both. There are more than 20,000 communities in the United States which have been placed into a category of […]
Woman says she was harassed, assaulted, and then put on trial, sparking 15-year court battle (NC)
Nearly twenty years ago, Virginia Radcliffe moved into Avenel, a neighborhood just north of Wilmington with tree-shaded houses, a pier onto a floating dock onto the intracoastal, and a homeowners association………A year later, that HOA informed Radcliffe her property was in “non-conformance” with the association’s guidelines, a violation that came with the potential of daily […]
No Annual Meeting or Board Election in Forever? (NY)
If a co-op board is actively preventing annual meetings or hasn’t called one in more than 13 months, shareholders with 10 percent of the shares can band together and demand that the board convene an annual meeting. If the board ignores the demand, disgruntled shareholders can call a special meeting of all shareholders for the […]
Spoliation and Records Retention Best Practices: When Parties Have A Legal Duty to Preserve Relevant Documents/Evidence (VA)
Even the most careful community association is bound to have the occasional dispute with an owner, a municipality, or vendor. Typically, documents are created, records are made, and emails and letters are exchanged. What records, if any, should a community association retain? Read the article……………………….
The Unseen Complexities of Going Self Managed
They say communication is key to all relationships, but some communications are guaranteed to bring about strife or even a little mayhem. For example, the annual budget mailing in our HOA was always guaranteed to make it impossible for any board member to walk their dogs without being stopped and berated for “ridiculous” expenses. Read […]
How to Build a Social Committee for Social Events and Social Clubs in Your HOA
Building a social committee for your HOA is a great way to increase interaction among members. From garage sales to book clubs, such a committee can plan and promote a variety of social events. Establishing the committee is serious work, however, and before the fun comes committee structure and assignments. If you’re planning a social […]
Helping Seniors Survive The Hazards Of High-Rise Living In Honolulu (HI)
When a fire erupted in his high-rise condominium building, Roy Mogi, 83, evacuated down six flights of stairs and crossed safely to the other side of the street. Then he collapsed, and his head slammed against the pavement. He died of blunt force trauma. Honolulu Fire Capt. Scott Seguirant said it’s not known whether exhaustion […]
All Co-ops and Condos Need Workers’ Comp Insurance
There is a reason they should have a workers’ compensation policy. An “if any” workers’ compensation policy would provide coverage if the contractor hired by the association does not have workers’ compensation coverage and their employee is injured at the building, or if a volunteer/board member is injured during the course of their duties. Example: […]
Last Minute Fourth of July Safety Checklist
Your Community Association may be planning an event for the fourth of July but even if not, its important residents know how to safely celebrate. Every year more than 50,000 fires are caused by fireworks in the US and most of those occur on Independence Day. Making patterns in the dark with a sparkler and […]
Speed Zones and Mitigating Traffic in Community Associations (FL)
We are often asked to provide our opinion and guidance regarding the rights and duties of Associations to install speed/traffic control devices and/or otherwise manage traffic on Association Property. Many Associations experience problems with drivers exceeding acceptable speed limits along Association roadways. Some Associations have gone to great lengths to address this problem, by installing […]
Things You Need to Know About Fireworks in Your Association (IL)
While Fourth of July fireworks are often a big part of American celebrations, they can pose damage to both people and property. As the Independence Day holiday approaches, Associations should remind their residents of the fireworks rules and regulations that are in place in order to keep the community safe. Below are three levels of […]
The Complete Guide to HOA Financial Statements
Managing the finances of a community association is one of the most difficult, and most important, responsibilities of an HOA board of directors. Preparing detailed HOA Financial Statements on a regular basis serves a multitude of purposes from providing insight for financial planning, promoting transparency between the board and residents, as well as being a […]
Understanding HOA Bank Statements
HOA bank statements are just as they sound: a statement from the bank showing all deposits and withdraws from each association account over a certain period of time. The most effective way to prevent fraud within your community association is to keep a close eye on bank statements. Most associations have at least two accounts: […]
Understanding an HOA General Ledger
The foundation to all HOA accounting is the general ledger. Much like your checkbook at home, the HOA general ledger keeps an ongoing record of all transactions made by the community association. All other financial statements such as the balance sheet, income statement, and statement of receivables are created based on the ledger. Read […]
What is an HOA Income Statement?
Unlike a balance sheet which shows a quick snapshot of HOA finances at a certain point, the income statement shows financial information over a period of time. Usually, the period of time is the rate at which you prepare your financial documents whether it be monthly, quarterly, or annually. The income statement is considered the […]
How To Understand Your HOA Balance Sheet
The balance sheet in your HOA financial statement is the quickest and easiest way to get a feel for the financial strength of your community association. There are three parts to a balance sheet: assets, liabilities, and equity. Read the article……………………..
Maintenance Charge Increases When, Why, and How to Raise Monthly Fees
There are few things upon which most people agree, but a general dislike for paying more today for something that cost less yesterday is pretty universal. This goes for taxes, consumer goods, healthcare, and of course for monthly maintenance or carrying charges to a co-op, condo or HOA. But like it or not, the reality […]
Facing Financial Mismanagement: When Boards or Managers Are at Fault (NY)
The board of a building or community association has a fiduciary duty to uphold its community’s governing documents, act in good faith, and advance the interests of the community at large. Occasionally, boards fail to carry out this duty – sometimes through mismanagement and poor decision making, and sometimes through willful disregard for the association’s […]
Documenting Accidents – It’s All In The Details
A manager’s responsibility includes risk management. There are many components to risk management, most of which are on the anticipatory or preventative side. But there are post-incident techniques and practices that should be followed. This article addresses post-incident practices involving a slip and fall or trip and fall accident. The basic goal is to gather […]
Meeting Minutes – Are You Getting It All, But Not Too Much?
Taking meeting minutes is an art. It is the art of creating a formal record of a meeting and official actions and decisions that were taken and made during the meeting, without getting down in the weeds and writing a novel. The term “minutes” implies brevity, but at the same time minutes are not “seconds” […]
Give Your Community the Gift of Emergency Preparedness
Creating an emergency preparedness plan that helps your condo or homeowners association prepare for the worst could be the most valuable 40 hours you spend volunteering — if a disaster strikes your area. Learn how to combine your organizational and analytical skills with online resources to protect your neighbors during an emergency. Read the article……………………
How Does the Fair Housing Act Affect Your HOA
The U.S. Justice Department states that the Fair Housing Act applies to “individuals, corporations, associations, and others involved in the provision of housing and residential lending, including property owners, housing managers, homeowners and condominium associations, lenders, real estate agents, and brokerage services.” HOAs fall under the umbrella of the Fair Housing Act and should take […]
Eco-Friendly Solutions for Maintaining Your Community Association Waterbody
A pond or lake in your community is not only an attractive feature but can also have environmental benefits when cared for properly. Quick and easy solutions that may involve chemicals often do more damage than good. In order to have a thriving pond or lake with a healthy ecosystem, associations should implement the best […]
Sign up here: 12 ways to recruit and retain volunteers
Volunteers play a critical role in making community associations vibrant and attractive places to live. Finding, motivating, directing, and maintaining volunteers’ interest, however, are challenging tasks. Read the article……………………….
Top Amendments for an HOA or Condo in North Carolina & South Carolina – Part Three
In Part Three we look at amendments that restrict leasing of property. Part Three: Rental Restriction Amendments for Your HOA or Condominium Read the article……………………..
Financial Management of Community Associations | Assessments and Bankruptcy
A community association should have procedures in place to protect its interests in the event a delinquent owner declares bankruptcy. When an owner files a petition for relief from bankruptcy, this action affects: Read the article…………………….
Things You Need to Know About Fireworks in Your Association (IL)
While Fourth of July fireworks are often a big part of American celebrations, they can pose damage to both people and property. As the Independence Day holiday approaches, Associations should remind their residents of the fireworks rules and regulations that are in place in order to keep the community safe. Below are three levels of […]
The HOA Has Foreclosed on a Home for Delinquent Dues, Now What? (NC)
What happens when an HOA completes a foreclosure sale of its claim of lien for unpaid dues? There are several common outcomes which are listed below in order of frequency in our experience: (1) The owner/occupants are evicted and the house is left empty. The Association should include this property on its general liability policy […]
Why are HOA Volunteer Board Members Sued?
Volunteer board members are often baffled and incredulous when someone challenges or complains about a decision they made, a rule they changed, or a special assessment that was issued. The underlying problem here is unit owners not reading the governing documents they have agreed to comply with prior to purchasing their home in a homeowners […]
3-alarm condo fire breaks out in Little River complex (SC)
Fire and rescue crews responded to a 3-alarm fire in Little River on Monday morning. According to officials, the fire happened at the Cyprus Bay Condos at 4254 Pinehurst Circle shortly before 8 a.m. One person was transported to the hospital with minor injuries. Read the article……………………….