HOAleader.com - Tip of the Week - November 2, 2018
Published: Fri, 11/02/18
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Here’s Why You Might Want to Adopt California’s New Condo/HOA Law -- Even If You're Not in California
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In this week’s tip, we give you highlights of California Assembly Bill 2912, which was just passed in September and takes effect Jan. 1, 2019, that’s designed to prevent fraud and embezzlement in community associations. Its provisions might be wise for you to adopt even if you’re not required to do that under your own state’s laws.
It’s not like California law was lax in its provisions that might prevent financial impropriety at condos and HOAs. Still, this new law toughens up the existing regime. Here are the biggest changes:
* Boards must now provide written consent before the association can transfer by electronic means amounts higher than $10,000 or 5 percent of the association’s total combined reserve and operating account deposits, whichever is lower.
* Individual board members or a board subcommittee that includes the treasurer must now review their association’s financial information monthly instead of quarterly. Specifically added to the review (the original law included the balance sheet, income and expense statement, budget comparison report, bank statements, and a reconciliation of the operating and reserve accounts) are the association’s check register, monthly general ledger, and delinquent assessment receivable reports.
* Associations must maintain a fidelity bond—generally, that’s insurance that covers losses caused by fraudulent or dishonest acts—covering three months of assessments plus reserves and include coverage for the HOA manager’s dishonest acts and computer and funds transfer fraud.
Should you implement these changes at your association even if you’re not required to? Our experts give their opinions in our new article:
https://www.hoaleader.com/members/3813.cfm
Best regards,
Matt Humphrey
President
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Upcoming Event
Easier Enforcement of Your HOA's Rules:
How to Create Enforceable Rules, Effective Fines, and a Fair Violation Process
Thursday, November 15, 2018
2:00 p.m. Eastern
An Exclusive HOAleader.com Webinar
With Practical Tips for Condo and HOA Boards
Learn more or register now:
https://www.hoaleader.com/products/easier-enforcement-of-hoa-rules-a.cfm
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Recent articles posted at HOAleader.com:
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New California Law Seeks to Prevent Condo, HOA Fraud; How You Can Benefit, Too
California Assembly Bill 2912, just passed in September and taking effect Jan. 1, 2019, is designed to prevent fraud and embezzlement in community associations.
Click here to read full article:
https://www.hoaleader.com/public/New-California-Law-Seeks-Prevent-Condo-HOA-Fraud-How-You-Can-Benefit-Too.cfm
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Have You Heard of a Source-of-Income Discrimination Claim--By a Condo or HOA Owner?
Well, this is a new one on us. A Chicago condo owner who was banned from doing short-term rentals of the unit filed a discrimination complaint alleging that the condo association was discriminating against the owner on the basis of the owner's "source of income."
Click here to read full article:
https://www.hoaleader.com/members/Have-You-Heard-SourceofIncome-Discrimination-ClaimBy-Condo-or-HOA-Owner.cfm
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How to Make Voluntary HOA Dues Mandatory
At HOAleader.com's August webinar on debt collection, a listener from Missouri had a question: We're a fairly large HOA with 2,000+ properties and 700+ property owners with approximately 150 structures. Originally the developer maintained the roads, but when he died, it was left to the homeowners to maintain 16 miles of gravel roads. Dues were always voluntary. Is there a way to start mandatory dues for roads, or how are special assessments created? Our HOA is 60+ years old, and our voluntary dues have always only been $50 per year.
Click here to read full article:
https://www.hoaleader.com/public/How-Make-Voluntary-HOA-Dues-Mandatory.cfm
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HOA Finance Committee? Gone! Social Committee? Gone! How to Evaluate Your Committees' Work
In this week's tip, we weigh the wisdom of a Florida board's decision to, without notice to members, disbanded all its committees, returning their responsibilities back to the board.
Click here to read full article:
https://www.hoaleader.com/public/HOA-Finance-Committee-Gone-Social-Committee-Gone-How-Evaluate-Your-Committees-Work.cfm
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Condo and HOA Violation Hearings: 4 Experts Explain Who Can Attend
You've noticed up a violation against a member, and you show up to find the member has brought a lawyer. Is that OK? What about a spouse? A fellow member for moral support?
Click here to read full article:
https://www.hoaleader.com/members/Condo-HOA-Violation-Hearings-4-Experts-Explain-Who-Can-Attend.cfm
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Easier Enforcement of Your HOA's Rules: Steps to Create Enforceable Rules, Effective Fines, and a Fair Violation Process
Enforcing rules doesn't have to be a pitched, tense, and unpleasant battle between your homeowner association board and your homeowners. With some smart planning, you can make enforcing your HOA's rules fairer, quicker, easier, and less stressful. Join us for an in-depth webinar on November 15 led by two community association experts: a lawyer with more than a decade of hands-on experience in advising associations on how to create and enforce rules, along with a veteran association manager and recognized educator with insights on the day-to-day operations of rules enforcement. You'll get practical ideas, systems, and processes you can begin to take advantage of at your association the minute the webinar ends.... keep reading
Click here to read full article:
https://www.hoaleader.com/products/easier-enforcement-hoa-rules-a.cfm
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