A Loan for Your Community Association – Some Real World Mechanics

As we head into budget season it is time to think about where all the money for all of the maintenance and capital improvements is going to come from. A primary activity of operating a community association is planning for the repair and maintenance of the property and budgeting for those large cost capital improvements that will be demanded. I am a major proponent of having a Reserve Study performed and updated at least every 3 years. I further believe that community associations should be required by regulation to properly fund themselves based on that Reserve Study. Of course, that is a utopian concept that rarely exists in the real… Read More

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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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The Future of HOA Lending

The advance of technology and social media have allowed technology-based entities such as Lending Tree, Prosper, Lending Club and other so-called “Fin-Tech” companies to all but destroy the traditional bank lending model. These high-tech bank alternatives often give borrowers more affordable, desirable, and easy to obtain methods to borrow money, pay off debt, and more. They further add the element of convenience by putting their resources at the fingertips of anyone with access to a smartphone, tablet, or computer. Meanwhile, condominium associations, cooperatives, timeshares, and other HOAs seeking loans have had to rely on the “old-fashioned” bank lending model to obtain HOA loans. It no longer makes sense to simply rely on the bank where you deposit… 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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Building Components: Technological Advancements Make Upgrades Worthwhile

With technology advancements, replacing worn elements may be less effective than upgrading to new materials. For instance, wooden decks may look fantastic at a shore side condominium complex. It’s too bad they need to be replaced every 10 years. They just don’t hold up to the elements. Until recently, using wood to replace wood may have been the only option. Now, it is not uncommon for modern materials like plastics, amalgamations, and even recycled products like rubber from tires to be used to offer beautiful options with the benefit of longer life and lower cost of ownership. There was a time when most condominiums were referred to as “brick and… 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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