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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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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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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Tips on keeping the board meetings in control…

We often receive questions from board members seeking advice on how to handle board meeting conflicts. We are here to help. Board member vs. board member Board Member to board member conflict will bring the association board meeting productivity to a halt. It is important that all board members work together to prevent conflicts, and, when they do arise, the members should work together to properly address the conflicts. Limit potential board member conflict by focusing on these points set forth below: Give all board members an opportunity to contribute with equal time; Consider enacting regulations, such as discussion time limits; Allow follow up discussion on a topic after all… Read More

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Are Community Leaders Politicians?

According to Merriam-Webster, the word “politician” is defined as follows: 1: a person experienced in the art or science of government ; especially: one actively engaged in conducting the business of a government 2 a: a person engaged in party politics as a profession 2 b: a person primarily interested in political office for selfish or other narrow, usually short-sighted reasons I had the pleasure of attending a recent CAI Condo/HOA Conference and Expo event in Connecticut where I met many fellow Board members from local community associations. In jest, one commented to me that he felt as though many of the residents in his community treat the board like… 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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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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