HOAleader.com - Tip of the Week - December 30, 2016
Published: Fri, 12/30/16
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How’d Your HOA Do This Year? It’s Worth Asking
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Lots of corporations conduct year-end reviews to evaluate the performance of the entity and those who operate it. They also do it as a way to set priorities for the next year.
In this week’s tip, we discuss if that’s translatable to HOAs.
“I’ve never heard of any association doing this,” says Steve Cheifetz, a partner at Cheifetz Iannitelli Marcolini in Phoenix. “I’ve heard of associations that do a yearly budget and have to do some considerations when preparing a budget. But as far as a regular annual discussion of the state of affairs and where we’re going, it’s a good idea. But I don’t think it’s typical.”
It’s actually a variation of what Sally Balson does for her clients. “Well, in a way, I think I do that for them,” says the owner of Condominium Business Management in Madison, Wis., who specializes in representing small community associations; most of Balson’s 17 clients are 20 units or less.
“One thing I have insisted upon from my clients,” she explains, “is that I send every owner a year-end accounting—the actual accounting and how it compares to budget—making notes on where receivables are and summarizing it in a cover letter that highlights all that.
“In addition to financials, my cover letter is a report,” continues Balson. “Some clients have requested this on a quarterly basis. I’m giving every single owner a report of where the association is and the decisions of the board. It’s one of the critical things every HOA should do. Here in Wisconsin it’s required by law that owners get financial reports on an annual basis.”
Do any of Balson’s clients insist that the letter come from the board rather than her? “One board did, but there was an election, and the people on the board changed,” she says. “Before then, the board wrote the cover letters, and they provided the data. That’s fine with me. That way, the owners are reminded of things the board is accomplishing on their behalf.”
Balson also makes sure to address the future in her annual report to owners. “If the board has approved a rate increase, I’ll also explain why,” she says. “I’ll say it’s for this project, these cost increases, or to put more money into reserves. Even if there isn’t a rate increase, but a project has come due, I’ll talk about that as well.”
Another expert, however, suggests caution on the year-end review front. Find out why in our new article: http://www.hoaleader.com/members/2481.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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How'd Your HOA Do This Year? It's Worth Asking
Lots of corporations conduct year-end reviews to evaluate the performance of the entity and those who operate it. They also do it as a way to set priorities for the next year.
Click here to read full article:
http://www.hoaleader.com/public/Howd-Your-HOA-Do-This-Year-Its-Worth-Asking.cfm
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Should Your HOA Conduct a Year-End Review?
Lots of corporations conduct year-end reviews to evaluate the performance of the entity and those who operate it. They also do it as a way to set priorities for the next year.
Click here to read full article:
http://www.hoaleader.com/members/Should-Your-HOA-Conduct-YearEnd-Review.cfm
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HOA Security Cameras Tied to Owner's Server and Wifi: Nothing to Worry About!
In this week's tip, we answer a reader's question about whether it's OK to lean on an owner to provide HOA equipment or services. An HOAleader.com reader writes, "We have a member in our community who feels he's saving the community money by creating a wireless bridge for the camera system to his house. So in essence we're using his server and his wifi to operate the cameras.
Click here to read full article:
http://www.hoaleader.com/public/HOA-Security-Cameras-Tied-Owners-Server-Wifi-Nothing-Worry-About.cfm
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OK or No Way: Owner Provides Tech Support or Equipment to HOA
An HOAleader.com reader writes, "We have a member in our community who feels he's saving the community money by creating a wireless bridge for the camera system to his house. So in essence we're using his server and his wifi to operate the cameras.
Click here to read full article:
http://www.hoaleader.com/members/OK-or-No-Way-Owner-Provides-Tech-Support-or-Equipment-HOA.cfm
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Two Associations Were Sued, But Only One Made Mistakes
In this week's tip, we share the secrets of a lawyer who's defended more association boards than he can probably count. Terrance Bostic is senior counsel at Marshall Dennehey Warner Coleman & Goggin in Tampa, Fla. Over his career, he's handled all kinds of cases for condos and HOAs, and he says some board members just think they can do what they want.
Click here to read full article:
http://www.hoaleader.com/public/Two-Associations-Were-Sued-But-Only-One-Made-Mistakes.cfm
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