HOAleader.com - Tip of the Week - August 28, 2015
Published: Fri, 08/28/15
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The Flaws You’ll Find in Fundraising for Your HOA
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In this week’s tip, we weigh whether you should consider fundraisers to cover HOA expenses. Short answer: Our experts have concerns. But it’s not out of the question.
The idea comes from a blogger who advocates holding fundraising events like holiday display tours; knitting, gardening, or car maintenance seminars with owners who have a particular expertise serving as instructors; neighborhood sales; and hosted dinners after which guests can leave donations.
Though he can’t quite place his finger on why fundraisers like these make him wary, Patrick Clark, president of Excel Association Management in Plano, Texas, which manages more than 100 condos and HOAs, is hesitant to promote the idea.
“I’ve had associations that have said, ‘We’ve got this project if you’d like to donate,’ and homeowners have donated,” he says. “That’s out of the goodness of their heart. But I always get concerned when I hear HOAs discussing this. It kind of brings up the hackles on the back of my neck, and I’m not sure why. I don’t know if it affects the nonprofit status of the association or has tax implications. But I suggest they talk to their lawyer to find out if there are legal ramifications.”
A lawyer’s not much happier with the idea. “I don’t think it’s really wise for a number of reasons,” says Christopher J. Shields, a partner at Pavese Law Firm in Ft. Myers, Fla., who’s represented associations for decades. “If you’re going to be holding fundraisers, are you inviting people from outside the community into the community? You’ve got security issues there. You also have the potential for slip and falls. Are you serving alcohol? There are all sorts of liability issues.
That’s not the only reason Shields is uncomfortable. Find out his other concerns, and read why another of our experts says fundraising can have its place, in our new article: http://www.hoaleader.com/members/1224.cfm
Best regards,
Matt Humphrey
President
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NEW SPECIAL REPORT DOWNLOAD - JUST RELEASED!
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HOA Elections:
A Guide to Managing the Election Process at Condo and Homeowner Associations
In this report you'll discover tips from our editorial team and experts on HOA governance and management from across the country on how to plan, properly notice, and execute an HOA election. These are tips you can begin implementing immediately to make your elections run more smoothly and withstand challenges from disgruntled homeowners.
Members (and trial members) can download this report now:
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Recent articles posted at HOAleader.com:
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HOA Need Repairs? Have a Fundraiser! Or Not.
Trying to avoid spending money or raising assessments? One blogger advocates hosting fundraising events to help pay for HOA expenses. Examples: Holiday display tours; knitting, gardening, or car maintenance seminars with owners who have a particular expertise serving as instructors; neighborhood sales; and hosted dinners after which guests can leave donations.
Click here to read full article:
http://www.hoaleader.com/members/HOA-Need-Repairs-Have-Fundraiser-Or-Not.cfm
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This HOA May Cut Its Water Bill in Half. Could Your HOA Do the Same?
In this week's tip, we reveal how an Arizona HOA has racked up tens of thousands in savings on its water bill.
Crystal Gardens is an Avondale, Ariz., association with more than 900 homes on 72 acres. Its board and manager declined to comment for this article, referring questions to its vendor, Chris Husband, the owner of Phoenix-based Liquid Technologies LLC, which focuses on water conservation for commercial properties, HOAs, and other clients.
Click here to read full article:
http://www.hoaleader.com/public/This-HOA-May-Cut-Its-Water-Bill-in-Half-Could-Your-HOA-Do-Same.cfm
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How One Arizona HOA Cut Its Water Bills Big Time
To lend our California readers a hand and give readers throughout the country a jump on how to shave their water costs, here we dig into the details of how an Arizona HOA is dramatically cutting its $120,000 annual water budget.
Click here to read full article:
http://www.hoaleader.com/members/How-One-Arizona-HOA-Cut-Its-Water-Bills-Big-Time.cfm
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Is This HOA Board's Insurance Policy Fair to Owners?
A Colorado lawyer recently blogged about a condo association that has a $50,000 per-unit deductible on its insurance for water-related incidents, and its policy is to require owners to cover those deductibles. Here we weigh many questions, including whether this is smart in the first place and whether it actually saves the condo much on its insurance premiums.
Click here to read full article:
http://www.hoaleader.com/members/This-HOA-Boards-Insurance-Policy-Fair-Owners.cfm
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California Court Hands HOAs a Big Win on Rule Enforcement
In this week's tip, we discuss a California court case that our experts are universally calling really, really good news for HOAs.
In The Villas in Whispering Palms v. Tempkin, an appellate court OK'd a board's "resetting" of its enforcement of a pet rule.
Click here to read full article:
http://www.hoaleader.com/public/California-Court-Hands-HOAs-Big-Win-on-Rule-Enforcement.cfm
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