HOAleader.com - Tip of the Week - February 8, 2019
Published: Fri, 02/08/19
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Does Your Condo/HOA Need to Begin Preparing for an Economic Slowdown?
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In this week's tip, we ask you to think back to what could be a painful time for many of you. What was the state of your condo or HOA about 10 years ago, when the U.S. economy imploded, sending foreclosures skyrocketing?
Odds are, your association wrote off a lot of bad debt then, meaning your leaders decided they had no shot at recovering fees the condo or HOA was due.
What's that got to do with today? A growing number of economic gurus are now saying the U.S. economy won't be as strong this year as it was in 2018—with some even predicting a recession at some point.
Should you begin preparing for the worst?
Let's all admit that none of us knows where the economy is heading. "It's far too early to be speculating which way the economy is going to go," asserts Bob Kmiecik, a partner at Kaman & Cusimano LLC, which represents associations throughout Ohio. "I'm not an economist, and I'm not an accountant, but I don't see signs that we're going to have a recession."
However, this is something James R. McCormick Jr., CCAL, a partner at Delphi Law Group in Carlsbad, Calif., who represents associations, has seen. "I have heard there should be a correction relatively soon as well, but I don't know how big it will be," he says. "I've heard it's not going to be huge, but there will be something along that line."
McCormick says as a lawyer, he typically doesn't work too much with boards when they're doing their budgeting. "But most associations that have a fairly health budget have a line item for bad debt," he says. "Generally speaking, I think it's a really good idea to have one."
For California boards, this question is even more challenging because they're already facing increased costs. "Associations are getting hit pretty hard with costs for things like water and the minimum wage going up," notes McCormick. "I was at a meeting just last night where a board raised assessments $30 a month, and most of the people at the meeting said the board should have raised the fees more or that it should even have imposed a special assessment. It was a small group of people, but that's something you don't often hear from members."
So what to do considering all the financial pressures you're already facing? Read our experts' advice in our new article:
https://www.hoaleader.com/members/3860.cfm
Best regards,
Matt Humphrey
President
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How to Handle the Growing Challenges of Service and Emotional Support Animals
What HOA and Condo Association Boards Can Do — without Triggering Costly Legal Trouble
An Exclusive HOAleader.com Webinar
With Practical Tips for Condo and HOA Boards
Thursday, February 28, 2019
2:00 p.m. Eastern
Learn more or register now:
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Members save $30!
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Recent articles posted at HOAleader.com:
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Does Your Condo/HOA Need to Begin Preparing for an Economic Slowdown?
In this week's tip, we ask you to think back to what could be a painful time for many of you. What was the state of your condo or HOA about 10 years ago, when the U.S. economy imploded, sending foreclosures skyrocketing? Odds are, your association wrote off a lot of bad debt then, meaning your leaders decided they had no shot at recovering fees the condo or HOA was due.
Click here to read full article:
https://www.hoaleader.com/public/Does-Your-CondoHOA-Need-Begin-Preparing-for-Economic-Slowdown.cfm
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The Economy Is Quirky: Should You Adjust Your Condo/HOA Budget's Bad Debt Line Item?
A growing number of economic gurus are now saying the U.S. economy won't be as strong this year as it was in 2018--with some even predicting a recession this year or next.
Click here to read full article:
https://www.hoaleader.com/members/Economy-Quirky-Should-You-Adjust-Your-CondoHOA-Budgets-Bad-Debt-Line-Item.cfm
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This Is Why It's Smart for Condo/HOA Boards to Use Cloud Storage
An HOAleader.com reader asks, "How do you get a previous board member to return documents that belong to the association when they will not respond to oral or written requests from the board? Is there a legal precedent or process to follow?"
Click here to read full article:
https://www.hoaleader.com/members/This-Why-Its-Smart-for-CondoHOA-Boards-Use-Cloud-Storage.cfm
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How to Handle the Growing Challenges of Service and Emotional Support Animals
Join us for an in-depth webinar on February 28, where two experts with extensive experience in fair housing issues and law will tell you how you should (and probably shouldn't) respond to owners' requests for accommodation for any animal -- and much more!
Click here to read full article:
https://www.hoaleader.com/products/challenges-service-emotional-support-animals-a.cfm
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When It's Proper for a Condo/HOA Board President to Decline to Act
An HOAleader.com reader asks, During a recent monthly meeting for our HOA in California, the president was absent when the board voted to approve a contract. When the management company sent out the meeting minutes, a board member noted that the minutes reflected that the wrong company was awarded the contract.
Click here to read full article:
https://www.hoaleader.com/members/When-Its-Proper-for-CondoHOA-Board-President-Decline-Act.cfm
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Is This the Right Interpretation of the Rule That Condo/HOA Owners Have Only One Vote?
An HOAleader.com reader asks, "We're a small association with nine units and eight board members. One owner owns two units. As I understand it in California, an owner can have only one vote on the board of directors. The owner with two units is irate that he doesn't have an extra board vote. I understand that as a general member, he has two votes but only one vote on the board...."
Click here to read full article:
https://www.hoaleader.com/members/This-Right-Interpretation-Rule-That-CondoHOA-Owners-Have-Only-One-Vote.cfm
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Special Report Download
What HOA and Condo Boards Need to Know About Regulating Rentals
Rental restrictions are unlike most other policies HOA boards create because they necessarily curb owners' real property rights. The law jealously protects property owners' rights, which means any HOA board that seeks to restrict rentals in their community needs to act wisely and deliberately.
This report provides you with the information you need achieve that goal.
It's filled with tips from our editorial team and experts on HOA governance and management from across the country. With the information in this report, you can begin investigating and working toward implementation of legal and enforceable rental restrictions immediately.
Members can download the report now:
https://www.hoaleader.com/public/What-HOA-Condo-Boards-Need-Know-About-Regulating-Rentals.cfm
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