Elected to the Board… Now, What?

You’ve been an active community member for a few years. You served on a Committee or two and shown you have the right stuff to be a community leader. A neighbor who already serves on the Board suggested that you should run for a vacant seat. You finally decided to raise your hand at the Annual Meeting and volunteer to serve on the Board of your condominium or HOA. Enough of your fellow unit owners voted for you and you are now on the Board. Congratulations! Now, what? If you think it is simply enough to “do your best” while serving on the Board, you may be in for a… Read More

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Surefire Ways to Drive Your Association to Financial Ruin

Common interest communities are non-profit businesses and just like any business budgeting and financial planning are essential to the success and longevity of the business. What is everyday common sense with respects to businesses is often ignored for common interest communities. While this may seem like a harsh assessment of many Boards out there it is an unfortunate reality as is evident by the high number of special assessments and loans being taken out by Associations to cover expenses that are usually expected and have years or decades to properly fund for. The reasons for the lack of adequate funds can most often be attributed to the following scenarios.  … 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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KEEP CALM AND CALL THE MEDIATOR!!

KEEP CALM AND CALL THE MEDIATOR!! As a Community Association Member, have you ever had trials and tribulations like…… My neighbor lets his iguana swim in the community pool- What, your neighbor has an iguana? Well, the Treasurer and Vice-President of our Board are at war with each other- Is that all? We have widespread parking disputes. That’s nothing! We have one unit owner that keeps storing his belongings in the Common Area. Well, at least he doesn’t hang superman sheets from the window. No, but the lady next door uses her garage as a disco-tech. The list goes on and on. When troubles like these arise: What to do??… Read More

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Communications and Community Governance

“That government is best which governs least” – Thomas Paine Thomas Paine was one of the Founding Fathers of the United States and dubbed “Father of the American Revolution” by historians. He was born in 1737 and lived a remarkable life that spanned the American Revolution, the French Revolution, and life in France under Napoleon’s rule. His communication skills were legendary and he largely influenced many Americans to take up the cause that became the American Revolution. So important were his writings, we still talk about him today. Community Association Volunteer Leaders (CAVLs as they are designated by CAI) would do well to heed the words of Thomas Paine. In… Read More

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Condo’s Underfunded Reserve Creates Many Problems

C.R. from outside of Connecticut writes: Dear Mister Condo, I live in a condo building with 58 units. There are zero adornments except for a very nice meeting room. We have two elevators which travel eleven floors up and down. I am currently serving on the board. Our Reserve fund is at 18K which in my eyes is very low. We will need a major elevator repair in a few years and increasing insurance as well as a rooftop service plan. We have decided to increase HOA dues 15% = $3000. more each month or 20% increase equaling an extra $4000. per month. We want to propose this to our… Read More

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What’s the difference between a bank loan and an HOA loan?

I was recently presented with the following question from one of my clients. I am publishing it here, along with my answer, in hopes of sharing the knowledge. It is a common question that all of us within the HOA lending field should be able to answer. Question: What are some differences between a construction loan or line of credit from a “normal” bank and an HOA loan or line of credit as a specialized lending option? I’m having trouble understanding the pros and cons between them. Answer: The differences are very stark. A construction loan handled by a traditional bank reflects that there is real estate involved. The financing provided might be to construct… Read More

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Should I Rent or Purchase a Second Condo Parking Space?

S.K. from outside of Connecticut writes: Dear Mister Condo, My husband and I want to buy a new condo. We would need 2 cars. The condo comes with one parking spot. The second parking spot is $23,000. Or, hopefully there will be a spot to rent, but that wouldn’t allow us to park next to each other. We don’t know if we will live there for 6 years or it could be as little as 1 or 2 years. This is the only time that we can decide to get adjacent parking spots. Is it worth the risk? Mister Condo replies: S.K., I am not sure I understand what the… Read More

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Former Condo Board President Feeling Threatened by New President

W.R. from New Haven County writes: Dear Mister Condo, I been having serious issues with the new president and other board members since I stepped down a year ago. This position went to the new president’s head to the point where she put all my neighbor’s business out in the community and when my neighbor addressed her via email she then called the management company to tell them she felt threatened by her. Then we were going back and forth via email about some of the bylaws & rules and as well as rumors that she was talking trash about me, she turned around and falsely accused me of threatening… Read More

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