HOAleader.com - Tip of the Week - March 5, 2010
Published: Fri, 03/05/10
=================================================================
Could Your Association Be Heading Toward Bankruptcy?
=================================================================
This week's tip is for boards that seem to always be struggling
to make ends meet with little hope of regaining their financial
footing.
Bankruptcy is available for businesses, including nonprofits
like homeowners and condo associations. When associations file
for bankruptcy, they can seek a liquidation of all their assets,
which is called a Chapter 7 bankruptcy. Or they can seek legal
protection that halts collection activities while they attempt
to reorganize their business and create a plan for repaying
creditors, which is called a Chapter 11 bankruptcy.
There are benefits to a Chapter 11 bankruptcy. For instance, if
your association is bound to onerous contracts or leases that
are strangling its ability to function, you may be able to use
the bankruptcy process to reject or renegotiate the terms of
those agreements. Chapter 11 bankruptcy may also be helpful if
your association has been slammed with a devastating legal
judgment. Bankruptcy may allow your association to delay
enforcement of the judgment while your attorneys attempt to
negotiate a less damaging settlement.
If your association is in dire financial straits, Bill Worrall,
vice president of The Continental Group, which is based in
Hollywood, Fla., and manages 1,300 condominium and homeowner
associations totaling 310,000 residential units, recommends you
think carefully about the consequences before moving forward
with bankruptcy. "Associations, in partnership with management
and legal counsel, need to review the ramifications
specifically," he says. "If you're going to file for bankruptcy,
how will that affect your relationship with your current
suppliers, contractors, maintenance personnel--all those people
you need to work with to maintain and hopefully increase your
property values?"
That's just one factor to evaluate if your association is
teetering on the edge of bankruptcy. To learn more, see our new
article: http://www.hoaleader.com/members/401.cfm
Best regards,
Matt Humphrey
President
=================================================================
Free Group Membership Upgrade
HOAleader.com members can now get a free upgrade to group
membership.
With a group membership, the rest of your HOA or condo board--up
to 9 additional members--will get their own member accounts.
It's a fantastic value.
Make your job easier. Help the rest of your board get up to
speed on HOA management best practices by adding them to your
HOAleader.com membership today for no cost.
Already a member? Create complimentary accounts for the other
members of your HOA board now:
http://www.hoaleader.com/members/main.cfm
Not a member yet? Sign up now with our low individual rates and
then add your fellow board members for no additional cost:
http://www.hoaleader.com/details.cfm
=================================================================
Recent articles posted at HOAleader.com:
================================================================
HOA Finances: Can--and Should--Your Association Consider
Bankruptcy?
If your homeowner association has been beaten up by the economic
downturn and there seems to be little hope of ever getting back
onto solid financial footing, bankruptcy is something your board
can consider. Here's what you need to know about how bankruptcy
might affect your HOA.
Click here to read full article:
< http://www.hoaleader.com/members/401.cfm >
================================================================
HOA Finances: Tips for Handling Your Reserve Account
Are you putting enough money aside to pay to replace or repair
your HOA's buildings and amenities? Is it possible your condo or
homeowner association is putting too much aside? Does the HOA
board know how reserves are supposed to be used? This article
provides tips on how much to save and how to properly use
association reserve accounts.
Click here to read full article:
< http://www.hoaleader.com/members/400.cfm >
================================================================
HOA Security: Low-Cost Ways to Improve Security in Your Homeowner
Association
Here are a few tips for improving security in your HOA without
digging deep into your condo or homeowner association's wallet
for expensive security devices.
Click here to read full article:
< http://www.hoaleader.com/members/399.cfm >
================================================================
HOA Rules: Using Webcams and Video to Enforce Rules in Your
Homeowners Association
Webcams may be the simple and low-cost solution to some common
but annoying problems with enforcing HOA rules. But can your
condo or homeowners association install cameras and use the
evidence you capture on video to impose fines on your residents?
Click here to read full article:
< http://www.hoaleader.com/members/398.cfm >
================================================================
Help Homeowners in Your HOA with a Model Code of Conduct
In a new article, we've posted a model code of conduct for
homeowners in a community association. Based on input from
experts from across the country, it's a great tool for new owner
orientation, or as a reminder to longtime owners. In this week's
tip, we offer two points to include in any model code of conduct
for owners.
Click here to read full article:
< http://www.hoaleader.com/public/397.cfm >
=================================================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
http://www.hoaleader.com/public/department49.cfm
=================================================================
Please feel free to forward the *entire text* of this email to
others.
Copyright 2010, Plain-English Media, LLC
909 Marina Village Parkway #183
Alameda, CA 94501
(866) 641-4548
http://www.hoaleader.com