Effects of Reverse Mortgages on Condos and HOAs

Many condominiums and HOAs are filled with units and homes that are financed with bank-held mortgages. Reverse Mortgages are available to home and condo unit owners over the age of 62 who would prefer to draw money from the equity in their home or condo unit. These mortgage owners can either take a lump sum or periodic payments from the equity in their home. The mortgage holder gets paid back when the home is sold or liquidated upon the death of the mortgage owner. The Federal Housing Administration, better known as FHA, is the leading insurer of these mortgages. Banks prefer to offer mortgages to borrowers and real estate that… Read More

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Telling the Story of Community Association Insurance

Most condominium association residents are likely to have little or no understanding of the insurance that protects the association in which they reside. Let’s face it; there just isn’t a lot of glamour in discussing deductibles, coinsurance, liabilities and such that make up the community association insurance story. Telling the story of your community’s insurance coverage is going to be a challenge but if done properly, can yield a wealth of rewards. Start with the basics. Every resident needs to know that the community has insurance and that the insurance covers certain elements which the entire community owns in common. Every resident also needs to know that community association insurance… Read More

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Commit to Unit Owner Education. Reward Yourself with a Better Community!

For years, I have been writing about the importance of communication as it relates to community association living. I have stressed how important it is that you tell your story well and that you tell it often. Condominium newsletters, HOA newsletters, letters, websites and any other tools used to communicate need to educate readers about what is happening within their associations and why. There has never been a time when communication and education efforts between Board Members, Property Managers, and unit owners have been more important. Community Association Volunteer Leaders at many events that I attend often indicate that there seems to be a vacuum of education between Board Members… Read More

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Dear HOA: There is No Fun in Dysfunction

Several years ago I authored an article, When Worlds Collide, which outlined how Board members are often out of touch when it comes to the compensation and replacement value of an onsite manager.  In short, Board members use what I call “The Association Metric” in determining remuneration, as opposed to the “Executive Replacement Metric,” which is what the market uses. The Association’s Metric is almost solely based on the Association’s current and past experiences with onsite managers; it is colloquial and subjective and usually is based on: a) What we now remunerate our manager; b) What ‘type’ of manager we currently have; c) Other factors that affect the thought processes… Read More

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Deck / Lanai Refurbishment, Replacement, Maintenance – A Common Budgeting Mistake

  Decks / Lanais systems are typically one of the larger project expenses a community will face. Budgeting for their short and long term care is not always as straightforward as it appears to be as the degree of deterioration of this component is heavily reliant on historical maintenance trends in the community. I will touch on one of the more common budgeting mistakes we see on a regular basis. Maintenance and proper care will actually save a community a significant amount of money in the long run; deciding who (and how) this component is maintained can have a significant impact on the budgeting recommendations in the reserve study as… Read More

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