HOA Loan Structures & Long Term Budget Shortfalls

HOALendingXchange.comhas made financing for community association capital maintenance needs easily accessible.  Financial institutions that are truly skilled in serving this unique industry can be particularly flexible to the differing needs of each community. Not only does each association have a unique culture but the projects all need to be approached in a tailor-made fashion to suit what they desire to have accomplished.  The financing available is typically low cost because the transactions are acknowledged to be of low risk and the associations often provide the institutions with deposits that allow for buying down the interest rate or loan fees. The one aspect that permeates the vast majority of all communities… Read More

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Tell Everyone How You Maintain, Protect, and Enhance!

Maintain – Protect – Enhance. This is the prime directive for Boards of Directors of Homeowner Associations across the country. By maintaining, protecting, and enhancing the assets of the association, the Board ensures that property values are maximized and owners’ interests are served. The majority of your association’s common fund will be spent on maintaining common elements of your association. The many details of this story are seldom told to homeowners yet they need to hear it. Take a look at your association’s budget for the current fiscal year. Where is your money being spent? I am willing to bet you have several line items for large ticket items that… Read More

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A Bright Future for Solar Energy in HOAs

According to the Institute for Energy Research, slightly less than 1% of U.S. electricity production comes from solar energy. However, as the industry gets more efficient at producing high quality, affordable solar panels, many HOAs are taking note at how this technology can save money, and in some cases, actually create an income stream. Not surprisingly, Florida (the Sunshine State) has enacted laws that allow for homeowners to install solar collectors. Even if the HOA has rules to the contrary, the state law trumps those rules and sets the stage for HOA members to jump on the solar band wagon. While the initial cost of installation can be high, solar… Read More

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Are Your Communications Secure?

Fences, security cameras, guards, and gates can go a long way towards bringing condominium owners peace of mind when it comes to their physical safety. But there is another type of security that should be pondered by community association leaders. Theft of data can be just as damaging to unsuspecting condo owners. Do you practice good security measures with your data? Would you know what to do if your email, website, or database of sensitive information were breached? In this age of technology-driven communications, digital identity crimes have increased dramatically. While the numbers vary widely, the Better Business Bureau reported an estimated 11.1 million people reported their identity stolen in… Read More

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Condo & HOA Collections For Condo & HOA Budget Time

By Mitchell Drimmer, CAM Once a year in every community association the most significant event occurs and that is the formulation of the association’s annual budget. It’s even more important than the annual election because this budget is the road map for how the association is to be run for the next year. The board can decide to on many issues including capital improvements, added amenities, reduced services, and everything in between. However, the one item that always leaves the board and management confused is the disposition of delinquent fees and questionable debt. What can be done to predict the unknown because the more accurate you’re are the more realistic… Read More

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Storm & Catastrophic Preparation – An Emergency Line of Credit

We are in an age of dramatically more devastating natural events: frequent and expansive wild fires, intense hurricanes, stronger tornadoes and historic rains/snowfall resulting in record flooding. As never before, establishing catastrophe planning strategies supported by adequate insurance coverage is a critical element to restoring the facilities impacted. There is a banking program specific to community associations that is particularly valuable for the environmental changes being experienced. The program has traditionally been referred to as a “Standby Line of Credit for Named Storm Damage”. The reason such a bank facility becomes valuable has largely to do with expediency and unforeseen dilemmas with insurance coverage. The general description of such a… Read More

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Keeping It Legal – The Story of Your Community Association’s Attorney

Comedian Milton Berle is quoted as saying “Attorneys practice law because it gives them a grand and glorious feeling. You give them a grand and they feel glorious”. While attorneys may be on the receiving end of many jokes, the contribution they make to your community is no laughing matter. Depending on the size of your association and the challenges you are facing, chances are you have one or more attorneys performing crucial work on behalf of your association. Telling the story of the important work these professionals perform on behalf of your association is crucial to helping your community cope and thrive in the face of legal challenges. Attorneys… Read More

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Our Community Treasurer is Leaving… What Do We Do?

All the accounting tasks at your community are running smoothly.  The collections, bill payment and financial reporting is happening on time and with good accuracy and explanation.  You are a self-managed community and life is good – the important job of Treasurer is handled by an Ace volunteer.  Your board sort of takes this position and person for granted.  That is until you receive notice that your Treasurer is stepping down. They may not run for another term, they are “retiring” – burned out or worse a dealing with their own or a spouse’s health issue.  Alternatively the Treasurer may be selling their unit and moving away.  What do you… Read More

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How to Transition Your Condo or HOA Community Away from your Current Manager

Moving away from your current property manager is not as difficult as community boards think.  This article discusses the pathway forward to help you change from whatever you are suffering with now to a brighter future. Just like breaking up with someone you dated you can procrastinate and not do it because you don’t want to deal with it, sometimes it is comfortable staying with someone you know rather than finding someone new or you talk yourself into staying saying it’s not that bad – until you are disappointed again. But when you make the move you are usually rewarded and say for heaven’s sakes what took me so long?… Read More

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Governing Those Who Don’t Care

In May of 1966, comedian Jack Parr said on his television show, “I don’t vote for politicians. It only encourages them.” By 1976, the sentiment was so popular it was regularly seen on bumper stickers all across America. While undoubtedly humorous, that same sentiment can have dire consequences in your community association. Lack of involvement and indifference towards association leadership are not signs of a healthy community. In fact, I would suggest to you that the fewer association members that vote, either in person or by proxy, the more concerned you should be as a community leader. Voting rights are inherent to condominium ownership. When condominium owners decide not to… Read More

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