HOAleader.com - Tip of the Week - March 22, 2013
Published: Fri, 03/22/13
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How to Get Your Nonfunctioning HOA Operating Again
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In this week's tip, we throw a lifeline to
board members at associations that have
never operated much as an association and
want to get back on track.
"It's fairly common," agrees Robert Galvin,
a partner at Davis, Malm&D'Agostine PC in
Boston who specializes in representing
condos and co-ops. "Usually what happens
is that owners never hold meetings, don't
have minutes, and don't have budgets, and
whenever they need money, owners simply pay."
How do HOAs get to that point? There are
all kinds of paths that lead to a failure
to run an association as an association.
o "Maybe the owners have been self-managed
and doing what they think is right, or
they've perhaps been poorly managed,"
says Jenny Key, the Austin, Texas-based
vice president of RealManage, a San
Rafael, Calif., association management
firm that oversees properties in Arizona,
California, Colorado, Florida, Louisiana,
Nevada, and Texas.
o "I see this when associations are very
new and the developer has either abandoned
them or handed the owners control in theory
but hasn't gone through the necessary steps
to set up a functioning managing structure,"
says Kevin Britt of The Law Office of Kevin
L. Britt, who specializes in representing
associations in the Seattle area.
o "This also happens when an association
has had a functioning board for a time,
and then for whatever reason, maybe they're
not able to get people to serve, they say,
'What do we need a board for? We're getting
along just fine,'" explains Britt. "They go
for years and nothing much happens, and then
they have an issue. They have to enforce
some provision or raise funds, and they
realize they do need this functioning
organization."
What's the big deal if oversight at your
HOA's has fallen by the wayside? You're
taking a big risk with what's likely your
biggest financial investment. "At some
point, something bad will happen," predicts
Galvin. "There will either be no insurance
or the common areas won't be maintained,
which eventually will lead to expensive
losses or repairs. It's not really all
that difficult to manage an association,
especially if you're in a very small building.
But somebody's got to step up and do it."
Where to begin? Find out how to get started,
and how to fix errors you've committed while
your HOA was adrift,in our new article,
Restarting Your HOA? Where to Begin.
http://www.hoaleader.com/members/831.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Are HOAs Taking Security Too Far?
In this week's tip, we discuss whether your HOA should build a police force to
begin raiding owners' homes for rules violations.
Click here to read full article:
http://www.hoaleader.com/public/Are-HOAs-Taking-Security-Too-Far.cfm
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Smart HOAs Get Tenants on Their Side
In this week's tip, we provide insight on why and how to get tenants involved
in your community.Not sold on the idea of getting tenants involved in your
community? It's more important than you think.
Click here to read full article:
http://www.hoaleader.com/public/Smart-HOAs-Get-Tenants-on-Their-Side.cfm
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Getting Tenants Invested in Your HOA
Experts are advising that HOAs work to get tenants more invested in their
community. Why is that wise, and how can you achieve that goal?We answer both
questions below.
Click here to read full article:
http://www.hoaleader.com/members/Getting-Tenants-Invested-in-Your-HOA.cfm
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Understanding HOA Insurance: What's Subrogation?
An HOAleader.com reader asks, "I was about to sign a contract with a new
security vendor when I discovered in the fine print that we would be waiving
subrogation against the security vendor in the event of an insured loss. The
association would be required to obtain an insurance certificate naming
the security vendor as an additional insured party on our policy.
Click here to read full article:
http://www.hoaleader.com/members/Understanding-HOA-Insurance-Whats-Subrogation.cfm
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How Many HOA Units Can Owners Own?
With investors emerging as major players in the recovering real estate
market, some boards have wondered whether it's wise to let someone own more
than one unit in their association.
Click here to read full article:
http://www.hoaleader.com/public/How-Many-HOA-Units-Can-Owners-Own.cfm
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