Fall is a Good Time of Year to Plan and Shop for New Management or Financial Reporting Services

  Summer is over, kids are settled in school and the board is at full strength to tackle the community’s issues.  One of those issues may be 1) finding a new management solution if you are dissatisfied with your current manager or 2) finding a resource to help the self-managed community board or Treasurer with all the monthly accounting tasks. Fall is a good time of year to plan and shop for management or financial reporting services. Construction Projects Winding Down Summer is usually the time when the main capital projects get done.  In many states the contractors plan to wrap up the projects well before winter.  Also for associations… 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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HOAs & Condos…Beautiful Dreams or Horrific Nightmares

The property is beautiful, and the apartment or house is just what you have been dreaming about. This place is shouting “welcome to your new home” as loud as possible. It’s what you have always wanted but the question remains; is this a good place to buy? When you buy a house that is not part of an Association the relationships are between you, the house, and the neighbors. When you buy a property in a Condo or HOA another component is added – you are not just purchasing a house or apartment, but you are essentially entering into a business partnership with a bunch of people that you don’t… Read More

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Delinquency and the HOA

The timely collection of fees and assessments is the lifeblood of any HOA, condominium association, co-operative, or timeshare. However, unit owners are not always able to pay their fees and assessments on time. Depending on the state you live in and the penalties for late payments ascribed in the governing documents, delinquency is handled in one a few different methods. This article describes some of the best practices common interest community associations can use to keep their delinquencies to a minimum and their collection efforts on track to keep the revenue flowing while the delinquency is remedied. Most HOAs have rules about when payments are late and what steps the… Read More

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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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