HOAleader.com - Tip of the Week - February 10, 2023
Published: Fri, 02/10/23
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HOAleader.com - Tip of the Week - February 10, 2023
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In this week's tip, we ask our experts if your association can invest funds in series I savings bonds and ask if they believe a reader's investments are wise.
I bonds are government backed bonds currently offering a return of nearly 7 percent—an interest rate pretty hard to find anywhere else today.
And that's actually down from 9 percent interest last fall.
Also, an HOAleader.com reader recently emailed us to explain how he'd invested some association funds into high yield, Federal Deposit Insurance Corp-insured bank certificates of deposit as well as U.S. Treasury T-bills in various maturities under a year. Our reader says his association will now have more than $55,000 in interest income for the year.
Are these investments safe considering your fiduciary duties? If so, should you jump in?
Before you invest in anything, you need to know the rules under which you're operating. You may not think to look at your governing documents, but the rare set of documents specifically address this issue, and sometimes in eyebrow-raising ways.
"You first need see what your governing documents provide," advises Alessandra Stivelman, who is board-certified in condo and planned development law and a partner at Eisinger Law in Hollywood, Fla. "Do they include any restrictions on where you can keep the funds, such as whether they have to be in a specific financial institution? I've seen some weird restrictions in governing documents."
If your documents don't prohibit this type of investment, your next question should be one you ask with every potential investment: What do our fiduciary duties dictate we do here? Find out what our experts say about that in our new article: https://www.hoaleader.com/members/4653.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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eBikes: Is It Safe for Them to be Stored in Your Condo or HOA's Common Areas?
This was disturbing news to us—and to many of our experts: The batteries in electronic bikes can spontaneously combust. "I didn't know that," states Scott D. Weiss, CCAL, a community association lawyer at Ortale Kelley in Nashville, Tenn., who represents more than 650 condos/HOA communities throughout the state. "This is apparently a new thing."
Click here for more:
https://www.hoaleader.com/members/eBikes-It-Safe-for-Them-be-Stored-in-Your-Condo-or-HOAs-Common-Areas.cfm
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Living Up to Your Fiduciary Duty as an HOA Board Member
"Fiduciary" is not just a big word. It carries legal consequences if you--even unknowingly--breach that duty. Here's what you need to know about fulfilling your fiduciary duty as a homeowners association board member...
Click here for more:
https://www.hoaleader.com/members/LivingUpYourFiduciaryDutyasHOABoardMember.cfm
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OK or Not? Condo/HOA Grants Accommodation As Long As It's Later Removed
An HOAleader.com reader asks: "We're a small, 34-unit townhome HOA. We have a veteran who has an organization that for free will build him an aluminum ramp from his deck to the common area. While aluminum construction isn't allowed in our visual guidelines, only brown painted wood, the architectural committee would approve this ADA request for the resident...
Click here for more:
https://www.hoaleader.com/members/OK-or-Not-Condo-HOA-Grants-Accommodation-As-Long-As-Its-Later-Removed.cfm
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Do Your Board Members Need to be State Certified? What About Your Community?
An HOAleader.com reader asks: "I just joined my neighborhood's HOA and just found out I need to be certified by the state. None of the other HOA board members are certified (they don't think it's necessary!) so they don't know how I go about doing that. I want to be well-versed on the position, so how do I get started?"
Click here for more:
https://www.hoaleader.com/members/Do-Your-Board-Members-Need-be-State-Certified-What-About-Your-Community.cfm
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Tips for Breaking a Two-Unit, Two Board Member Condo Stalemate
An HOAleader.com readers asks, "I'm the president of a tiny HOA—two units and two members. Years and years have gone by with only one or two requests, which have been handled easily. Unfortunately, my new co-member likes to play lawyer, and she's constantly making threats and demands. Ideas on how to manage this?"
Click here for more:
https://www.hoaleader.com/members/Tips-for-Breaking-Two-Unit-Two-Board-Member-Condo-Stalemate.cfm
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