HOAleader.com - Tips of the Week - July 24, 2020
Published: Fri, 07/24/20
=================================================================
Owner Tries to Save HOA Money and Perhaps Does the Opposite
=================================================================
We answer an HOAleader.com reader's question, which in a nutshell is: An owner arranged for work on our common area, and we don't know if the outcome is safe. What to do?
This scenario is common but frustrating for one of our experts who worries his clients' efforts to save money put them at great risk. "This community needs to get its act together," states Todd J. Billy, an attorney at The Community Association Lawyers in St. Louis, who is licensed in Missouri and Illinois and has more than 1,000 active condo and HOA clients. "The lack of funds isn't a legal defense to not doing what you need to do when it comes to maintenance and repairs.
"Let's say an association knows it has building envelope issues but doesn't have the money to make those repairs," he explains. "The board has to step up and timely repair those things. This board needs to be educated that, just because associations may be smaller or short on funds, it doesn't mean they can skip out on these things."
Another of our experts wonders how the association got to this point. "The bigger issue to me is why this HOA is allowing an owner to do something like this," asks Christopher M. Tingey, a partner at Vial Fotheringham in Lake Oswego, Ore., who specializes in condo and HOA law and represents about 200 clients throughout the state; he's also licensed to practice law in Idaho, Utah, and Washington. "Even if that owner started doing work without HOA approval, once the board got wind of the work, why didn't they step in and tell the owner to stop?"
With those points in mind, the board should move on to fulfill another responsibility in this case, starting with determining whether the work was done safely. "The board has an obligation to investigate what was done, who did it, and whether it was performed properly," asserts Billy. "They need to learn the lesson and to fix the problem, and then everybody moves on. Sitting around waiting on this issue to sort itself out isn't viable."
Let's assume the board's investigation finds that the work this owner had performed isn't up to code or isn't safe. Then what? Read our experts' advice in our new article:
https://www.hoaleader.com/members/4158.cfm
=================================================================
Condo/HOA Management Contracts Don't Have To Be So Expensive
=================================================================
We hope we can help you save a few dollars, an especially important function given the number of unemployed homeowners nationwide.
Many readers find their management company invaluable. And we at HOAleader.com have many community association managers we think are invaluable, too. That doesn't mean, however, that condos and HOAs shouldn't try to save money on their management services. Here are two tips on how to trim costs in a management contract.
1. Seek referrals, and get several bids. We know, the getting bids part of this suggestion sounds obvious. But too many boards just don't do it because it takes time, and when you get the bids, it can be hard to compare bids that aren't set up similarly. "Our clients solicit the bids and may ask us for referrals, which we're happy to provide," states Steven R. Braten, a shareholder and head of the firm's community association practice at Rosenbaum PLLC in West Palm Beach, Fla.; he has nearly 25 years' experience representing community associations. "Then they interview between three and five management companies. That and the bidding process usually is what will get the best price for the community."
2. Set expectations. "I don't negotiate the price when I review management contracts for my clients—I leave that to the boards," states Todd J. Billy, an attorney at The Community Association Lawyers in St. Louis, who is licensed in Missouri and Illinois and has more than 1,000 active condo and HOA clients.
"What they should do—the management company and the board—is sit down and talk through their expectations," he adds. "By setting clear expectations, you can begin to drill down to where you can save. You must have the management company do the books. You can't mess with that function. But many management companies will customize their services and price to what the board is looking for."
Find more ways to reduce your management costs in our new article:
https://www.hoaleader.com/members/4160.cfm
Best regards,
Matt Humphrey
President
=================================================================
Upcoming Event
Anger & Your HOA: How to Prevent Today's Climate of Tension and Anger from Taking Hold at Your Condo or HOA
An Exclusive HOAleader.com Webinar
With Practical Tips for Condo and HOA Boards
Thursday, July 30, 2020 -- next week!
2:00 p.m. Eastern
Learn more or register now:
https://www.hoaleader.com/products/preventing-anger-tension-hoa-a.cfm
Members save $30!
=================================================================
Recent articles posted at HOAleader.com:
=================================================================
When a Condo/HOA Owner Goes Rogue to Save the Association Money
An HOAleader.com reader asks, "Our office recently acquired an HOA with six units. Fund limitations have prevented the HOA from doing major repairs without special assessments. One of the homeowners decided to take matters into his own hands and has had work performed in the common areas without approval from the board. The owner has also paid for the 'Band-Aid' repairs.
Click here to read full article:
https://www.hoaleader.com/members/When-CondoHOA-Owner-Goes-Rogue-Save-Association-Money.cfm
=================================================================
What Can Be Redacted (And Who Pays for the Work) In Condo/HOA Records Requests?
Here we discuss a situation in Canada, but the questions it raises are universal. An owner makes a valid records request, but the condo/HOA board or attorney believes blacking out information before responding is necessary. Who decides what gets redacted? And then who pays for the cost of the person (typically a lawyer, paralegal, or legal clerk) taking the time to do the redactions?
Click here to read full article:
https://www.hoaleader.com/members/What-Can-Be-Redacted-And-Who-Pays-for-Work-In-CondoHOA-Records-Requests.cfm
=================================================================
You Can Stop Condo/HOA Owners Seeking Forgiveness, Not Permission, for Alterations
We answer a reader's question about what a board can do that very second they see a violation that's nearly impossible to undo after the fact. Think removing a massive tree. Painting a home the wrong color. What's the right course of action?
Click here to read full article:
https://www.hoaleader.com/members/What-Do-That-Moment-You-See-Work-That-Violates-Your-CondoHOA-Covenants.cfm
=================================================================
COVID-19: How Condos/HOAs Are Opening Pools During the Pandemic
Pool openings have been particularly confusing during the pandemic. You wouldn't believe the number of questions we've gotten from readers and webinar participants that have touched on every aspect imaginable about how and when to open pools!
Click here to read full article:
https://www.hoaleader.com/members/COVID19-How-CondosHOAs-Are-Opening-Pools-During-Pandemic.cfm
=================================================================
COVID-19: Are You or Your Condo/HOA Board Colleagues Contemplating Resigning?
We're hearing from readers and our experts that board members are, at the very least, grumbling about wanting to resign because they don't want to handle the challenges that have come with COVID-19. Here, we investigate the scope of the problem and offer tips on going forward if some of your board members feel the same.
Click here to read full article:
https://www.hoaleader.com/members/COVID19-Are-You-or-Your-CondoHOA-Board-Colleagues-Contemplating-Resigning.cfm
=================================================================
Get your own copy!
Subscribe to the HOAleader.com Tip of the Week at:
https://www.hoaleader.com/public/department49.cfm
=================================================================
Please feel free to forward the *entire text* of this email to others.
Copyright 2020, Plain-English Media, LLC
(866) 641-4548
https://www.hoaleader.com