Reserves are a crucial aspect of all HOAs. 1 – The Internal Revenue Service considers general maintenance items not appropriate use of Reserve funds. For example painting may not qualify as a Reserve item. 2 – Reserves have to be allocated for a specific purpose. Contingency Reserves, General Reserves, Rainy Day Reserves could…
DO NOT mow detention pond too close to the surface; height should be 4 to 6 inches to maintain healthy grasses. DO NOT apply landscaping chemicals in pond area, or in areas where the residue could make it into the pond during a storm event. William Douglas Management, providing excellent management services…
Most HOA rules and regulations address members not restraining their dog. And boards use the enforcement provisions in the declarations or state statutes to hold members who violate the rules and regulations accountable. Another compliance strategy could be informing members that according to the American Humane Society, an unleashed dog has an average life span…
HOA boards are routinely faced with drainage issues and seek effective solutions. One of the most common and effective solutions is the French drain. A French drain is basically a ditch lined with rocks or gravel that helps drain water away from an area. It is used to protect the foundation of a house or…
What to distributed at an annual meeting can vary from HOA to HOA. This is due to prior practices of what was distribute at prior annual meetings. Also, what may be required per the HOA’s governing documents. The first place to check are the HOA’s governing documents. The bylaws, the covenants, and possibly the…
1 – Statutory Federal Laws 2 – Statutory State Laws 3 – County Ordinances 4 – Municipality Ordinances 5 – HOA Declaration 6 – HOA Articles of Incorporation 7 – HOA Bylaws 8 – HOA Rules and Regulations 9 – HOA Procedural Resolutions & Guidelines 10 – Other HOA board Resolutions 11 – Actions and…
This time of year, William Douglas’ Accounting Department is in high gear preparing for our clients’ financial year-end along with getting dues payment coupons out for the coming fiscal year. A great deal of focus is on closing the year-end books. One aspect that makes HOA’s financials different is that corporation tax returns, in…
Winterizing is the process that every HOA member should undertake to make their home ready for winter. Freezing temperatures, ice, snow and wind can cause severe damage to a home. Frozen Pipes Plumbing may be located in the outer walls of a home so it may be exposed to colder air than what is…
“CC&Rs (Covenants, Conditions and Restrictions), also known as the declaration or declaration of covenants, conditions, and restrictions, is a governing document used primarily for planned communities. More than any other single document, the CC&Rs establishes the planned community because it spells out the essential elements of ownership. The HOA or planned community comes into existence…
Each year William Douglas Management’s Accounting Department seeks quotes from outside CPA firms to perform audits and reviews for our client’s financial records. A quote for performing the HOA’s tax returns is also obtained at the same time. Combining either an audit or a review with the tax preparation, typically offers a cost savings to…
There has been a great deal of media coverage of the ADA pool accessibility mandates that have affected public pools and hotel swimming pools recently, including a significant amount of miscommunication as to how these new mandates relate to HOA and condominium association swimming pools. Section 242 of the new ADA Standards for Accessible…
It seems like a week does not go by without a negative newspaper article or negative broadcast news story about a homeowner association somewhere. The story usually has an emotional narrative and most of the time appears decidedly one sided against the homeowner association or the HOA’s board. The most common theme of these stories…
It is easy to forget what some in the membership and the general public perceive about homeowner associations. For example, many disputes over architectural changes may seem petty, but they have larger ramifications if not addressed at this original level. Another example: Some believe that the homeowner association boards of directors have unbridled power in…
It seems like hardly a day passes when there is not a homeowner association in the news for a myriad of reasons. Some good reasons and unfortunately, some not so good reasons. So it is always best to be prepared and deal with whatever the issue is in the most productive way possible. If…
A HOA’s insurance policy maybe more involved than a normal homeowner policy, but it is fundamentally the same when it involves claims. As with any type of insurance claim, if not filed properly, the claim can be difficult to collect, if not uncollectable altogether. Following the basic claim steps can help insure the insurance company…
The pool management company is responsible for winterizing the homeowner association swimming pool. They will also winterize the pool bathrooms and other associated pool facilities if needed. In areas that will reach freezing temperature, it is important to close a pool properly. The closing methods and times may vary between regions of the country but,…
The importance of adhering to the homeowner association’s governing documents and state statutes regarding notification requirements cannot be stressed enough. Not following the proper procedures and legal requirements, at worst, can have severe legal consequences and at a minimum, cost the homeowner association additional expense in correcting the matter. All homeowner association notices in…
“People’s personalities, like buildings, have various facades, some pleasant to view, some not.” – Francois de la Rochefoucauld Every association membership is different, but there seems to be one constant: there are always members who seem to take a non-positive view on issues that the board addresses within the association. Board members often cite…
When disaster strikes a homeowners association such as fire, flood, hail damage etc., and a claim needs to be filed, a public insurance adjuster is the association’s advocate and can usually save an association thousands of dollars and in some instances hundreds of thousands of dollars. A public insurance adjuster is an insurance claims adjuster…
An annual meeting is a meeting of the HOA membership required by state statutes and the association’s governing documents. The annual meeting is held every year to elect the Board of Directors and inform their members of previous and future activities. It is also an opportunity for the membership to ask questions regarding the decisions…
As with all associations, expenses go up each year as reflected in the annual budget. First and foremost, these expense increases should always be offset by matching assessment increases. The reasoning being, that these gradual yearly assessment increases are viewed much more favorably by the membership, than an extreme increase down the road. When these…
Without a doubt, a small book could be written just on the utilization of proxies for a homeowner association annual meeting. On Amazon, there is a book on the use of proxies for annual meetings of businesses, or more precisely, profit corporations. However, there are no specific books for the use of proxies and homeowner…
Job Description Location Greenville, SC 29662 Job Number SCG-1001 Job Summary Growing Association Management Company, in our fast-paced Greenville location, needs a Community Manager to join our team! You will serve as one of the most visible members of our team and the ideal candidate must enjoy talking to people and proactively solving issues. As…
Job Description Location Myrtle Beach, SC 29577 Job Number SCM-1001 Job Introduction/Summary Growing Association Management Company, in our fast-paced Myrtle Beach location, needs a Community Manager to join our team! You will serve as one of the most visible members of our team and the ideal candidate must enjoy talking to people and proactively solving…
Transcribing Minutes should be transcribed as soon as possible after the board of directors’ meeting. This improves accuracy and makes compiling the minutes much more efficient. Review the notes and agenda. Make concise adjustments where needed. It is acceptable to clarify points by adding additional information. Once transcribed, double-check notes about decisions made, the motions,…
The board meeting minutes are a written record of the board meeting of the homeowner association board of directors. Meeting minutes are essentially the formal summary of what transpired during a board of directors meeting. Meeting minutes are typically recorded and maintained by the board secretary. The board secretary is the designated custodian of the…
Overview Fortunately, the vast majority of HOA legal matters do not result in full-blown litigation. There is a great deal of truth to the adage: the only person who wins a lawsuit is the lawyer. Because of covenant enforcement issues and collection issues, legal proceedings are a way of life with homeowner associations. With all…
Issues can sometimes arise when homeowner association boards of directors implement resolutions, procedures, and rules and regulations that are in addition to what is mandated by their declaration of covenants, bylaws, or articles of incorporation. These implementations, or subsidiary documents, can also be in addition to established state statutes. These subsidiary documents typically originate due…
Continued from Part One Request for admissions Or a request to admit, are written statements sent from one litigating party to another litigating party to seek either an admission or denial on a specific claim of the lawsuit. A request for admissions, while similar to interrogatories, is different in purpose. This difference is that each…
Most homeowner associations (HOAs) seldom become involved in litigation other than collection-related litigation involving delinquent members. However, it is beneficial for the board of directors to have an understanding of certain aspects of this legal process. The discovery phase or simply discovery is one major aspect of civil litigation. Discovery can be one of the…
Minutes must be taken in executive session if actions are taken. It is preferable for the board secretary to keep a completely different set of minutes for the executive session. Executive session minutes should be approved in the executive session of the next board of directors meeting. If one set of meeting minutes are compiled…
A common misconception with a few homeowner association (HOA) members is that there is something improper or something is being done improperly when the board of directors enters into executive session. A common question is why would anything have to be secret and kept from the homeowners? This misconception is not just held by some…
There are typically four categories of resolutions for a homeowner association (HOA): Policy: Policy resolutions address member’s rights and duties. For example, rules for the use of common areas and amenities. Architectural guidelines and enforcement procedures would be another example. However, issues such as these in the majority of cases are best addressed with amendments…
A resolution is simply a written motion, many times a very detailed motion. Resolutions are used by legislative bodies, nonprofit corporations, and large and small for-profit corporations. The terms corporate resolution and board resolution are synonymous. In some cases, and areas, the term “resolve” is used instead of, or in addition to, “resolution.” For-profit corporation’s…
One of the challenges of serving on an HOA board of directors is dealing with issues and possibly not having a great deal of experience with the issue. Certain maintenance issues can arise that sometimes are beyond the experience level of a board member. However, a good basic understanding of a dwelling’s major systems can…
Sill Plate & Bank Joist A termite infestation and the related damage caused is a persistent problem for HOAs. Termite damage can occur from the bottom of a structure to the attic. Any part of a structure that is composed of untreated wood is susceptible to termite infestation. A common location, and an expensive area to…
One aspect of serving on any HOA board of directors is the HOA board member’s prior scope of knowledge regarding issues that commonly arise while serving. Many times a new board member could be an expert in a particular specialty that is of huge benefit to their service on the board. A good example of…
The ideal time to locate the emergency water shutoff is not during an actual emergency. Unfortunately, until they must, most people never think about locating the emergency water shutoff. Quickly finding the shutoff in a home, especially in a multifamily homeowner association (HOA), can be the difference between hundreds of dollars or thousands of dollars…
This article is presented in six parts: Part One – Covenant Violations Part Two – “I want to opt out of the HOA” Part Three – How are violations determined? Part Four – How are managers trained to find violations? Part Five – Hearing Letters Part Six – “Nothing like that would happen in our…
This article is presented in six parts: Part One – Covenant Violations Part Two – “I want to opt out of the HOA” Part Three – How are violations determined? Part Four – How are managers trained to find violations? Part Five – Hearing Letters Part Six – “Nothing like that would happen in our…
This article is presented in six parts: Part One – Covenant Violations Part Two – “I want to opt out of the HOA” Part Three – How are violations determined? Part Four – How are managers trained to find violations? Part Five – Hearing Letters Part Six – “Nothing like that would happen in our…
This article is presented in six parts: Part One – Covenant Violations Part Two – “I want to opt out of the HOA” Part Three – How are violations determined? Part Four – How are managers trained to find violations? Part Five – Hearing Letters Part Six – “Nothing like that would happen in our…
This article is presented in six parts: Part One – Covenant Violations Part Two – “I want to opt out of the HOA” Part Three – How are violations determined? Part Four – How are managers trained to find violations? Part Five – Hearing Letters Part Six – “Nothing like that would happen in our…
This article is presented in six parts: Part One – Covenant Violations Part Two – “I want to opt out of the HOA” Part Three – How are violations determined? Part Four – How are managers trained to find violations? Part Five – Hearing Letters Part Six – “Nothing like that would happen in our…
These voting rights sections in CC&Rs will also typically address when these voting rights expire. And define exactly who has these voting rights. The example of a voting rights section below is from a single-family HOA in North Carolina. This language will vary from state to state and HOA to HOA. “ARTICLE ELEVEN: MEMBERSHIP…
For homeowner associations that have already transitioned from the developer of the community to membership control, voting classes, rarely come up. It typically only comes up when boards of directors are thinking of making amendments to their declaration of covenants, conditions, and restrictions (CC&Rs). Voting rights and amending the CC&Rs will be covered later in…
One thing is for sure serving on a homeowner association (HOA) board of directors is all about working with others. Which can be a struggle in patience and understanding because of the many personalities that are encountered. Fortunately, most HOA membership interactions are positive. However, within every HOA, interpersonal friction is inevitable. Making these situations…
Robert’s Rules: 10 Common Mistakes This brief overview of Robert’s Rules of Order can be beneficial to new board members for understanding the basic process of how a meeting is to be performed. One person may speak or have the floor at a time. The Chair of the meeting decides who that person will be.…
The Agenda – Composition of Rights & Abuses It is imperative that issues of a pertinent and important nature are the only items that should be placed on a meeting’s agenda. If it does not require board consideration, an email notification to the board of directors is probably a better method. For time efficiently and…
Born in Robertville, South Carolina, Brigadier General Henry Martyn Robert (5/2/1837 – 5/11/1923) was the son of a Baptist preacher. Because of his father’s opposition to slavery, his father moved the family to Ohio, and this is where Henry was raised. Robert received an appointment to the United States Military Academy, West Point, and graduated…
Generally speaking, a HOA property management company will tell you that homeowner association (HOA) governing documents are straightforward on the workings and responsibilities of the HOA and the individual HOA members. Of course, this point can be argued with all the thousands of attorneys drafting HOA governing documents with varying levels of competence. With this…
The number of questions homeowners association (HOA) property management companies receive about how the HOA has the ability to enforce covenants, conditions, and restrictions (CC&Rs), and even perform any type of maintenance on elements that the association does not physically own is growing. Such as, how in a townhome HOA can the board of directors…
A competent homeowners association (HOA) property management company can advise on how to handle sensitive issues detailed in an HOA’s covenants, conditions, and restrictions (CC&Rs). These CC&Rs give the HOA authority to go onto a homeowner’s property and to perform maintenance on elements that the association does not physically own. Questions such as, how in…
On occasion you will hear a homeowner association (HOA) member stating they do not have to pay the HOA’s assessment. This proclamation typically stems from the “unrealized member” stating they had ‘never agreed to join the HOA’ when they bought their home. This “not a member” belief possibly could originate from the “unrealized member” claiming…
A homeowner association’s covenants, conditions, and restrictions (CC&R) have many provisions that address a myriad of issues. It is typical to see CC&Rs with over 50 pages and some with well over 100 pages. With all these pages of legalese, some might believe CC&Rs would adequately deal with any potential issue that could arise within…
Irrigation systems should be inspected every season for problems and reviewed for water usage efficiencies. When irrigation systems are initially installed, they are setup to cover plants, trees, etc. and these planting situations can change over time, especially with large shrubs or trees which may no longer need an irrigation system or need as much…
Most HOA have limited authority on what individual HOA members do within their homes with regard to their own wellbeing. However, it is every member’s best interest that care is exercised by all individual HOA members. Emphasizing the following items in the HOA’s newsletters and on the HOA’s website could be advantageous to the HOA…
Planning for disaster is one of those tasks that unfortunately seems to be put on a backburner. Out of sight, out of mind, is human nature with non-pressing issues. As with any emergency or potentially stressful situation, preparation may be more difficult when the situation is upon the HOA member. That is why planning well…
Every HOA budget season expenses go under the microscope. Water usage is one expense that can be difficult to figure because of all the variables. Variables include age and modernization of toilets, faucets, pipes, and the pool facilities. The average running toilet wastes over 6,000 gallons of water per month. The average dripping faucet wastes…
Neighbor disputes are a common occurrence within HOAs as in all other communities. Fortunately, the majority of these disputes never rise to a level of seriousness that leads to physical confrontation or other malicious acts that exacerbate the dispute. Most HOA boards of directors take a hands-off approach to neighbor conflicts. This is typically due…
In an HOA, unless the same homebuilder constructed all the homes, the main water shutoff could be in various locations throughout the home. Even if the same builder constructed all the homes, water shutoff locations might still vary from home to home. The HOA membership being aware of shutoff valves and their importance is in…
HOA boards are routinely faced with roofing issues. While the above illustration is of a single-family dwelling, all roofing configurations have more similarities than differences. Similarities are found with the problems that afflict roof configuration as well. William Douglas represents homeowner associations with almost every type of roofing configuration found in North America. The roof…
Members failing to pick up after their dogs is a common rules and regulations violation within homeowner associations. For many HOAs, this is the most common violation. What some members may not realize is the health concerns that are a consequence of this failing. HOA members may not realize that failing to pick up after…
One of the most common maintenance issues that HOA and COA boards encounter is fascia boards and soffit boards that have slowly rotted over time. This maintenance issue, with many HOA and COA, will have long term budget implications. As the diagram illustrates, the fascia is the board where the gutter is attached. An easy…
As homeowner association annual budget items go, those related to the association’s swimming pool, when totaled, are typically the largest expense category. Individual budget categories, such as pool chemicals, pool furniture and lifeguards can add up substantially. While the pool management contractor expense is often thought off, obscure other expenditures may not be so evident.…
Board members resign from HOA boards of directors for a myriad of reasons. The predominant reason usually revolves around the member’s other pressing personal commitments. Another common cause is the board member selling their home and moving out of the HOA. Whatever the reason, the first step is to review the HOA’s bylaws for…
We learned, one hopes and expects, from the 2008 Subprime Mortgage Crisis and the resulting deep recession known as the Great Recession. The ramifications of this crisis were so dramatic to the overall economy that one would believe this would resonate for generations to come. This crisis impacted all homeowner associations. If the overall home…
Water rates between 2010 and 2015 increased by 41% according to circleofblue.org. Reasons for this increase vary from the replacement costs of the aging water infrastructure to that raising water rates is less controversial than raising property taxes. Another reason for increases is reportedly the reduction in water consumption by the government-mandated water reduction regulations.…
Reserves for homeowner associations are funds set aside for future capital improvements or repairs. The purpose of reserve funding is to ensure that the future expenses are paid by those who enjoyed the benefit of the capital item. A reserve study is a formal review of the capital items and related infrastructure of the HOA.…
There is no typical homeowner association irrigation system. Some homeowner associations will have systems at their front entrance. Others will have irrigation systems at their clubhouse and other common areas. Some homeowner associations even have their entire property covered by an irrigation system. Compounding this, there are different system configurations with different types of sprinkler…
A loss run report may be one of the least known components of an HOA’s insurance policy. However, this report can be the costliest of almost all other factors affecting the expenses of an HOA. Being that a loss run report can cost your HOA many thousands, if not hundreds of thousands, of dollars if…
The topic of HOA message boards comes up from time to time. Usually this arises at a board meeting or during the HOA’s annual membership meeting. What precipitates this topic is the concern about communication within the HOA. A message board (also known as a discussion group, discussion forum, discussion board, and online forum)…
Bank loans may be a consideration when HOAs look to secure funding for a capital improvement or an emergency repair. While many times loans are viewed in a negative light as taking on debt, loans can grant breathing room to an HOA with budgetary constraints. Sound reason and judgment should be exercised in taking on…
We have HOA clients with ponds that were in place before the HOA was formed and ponds that were created by the developer for fishing, irrigation, wildlife, and water runoff. What all ponds have in common is they almost all require regular maintenance, even if the pond is doing no more than enhancing the appearance…
The roof expense being a major budget item for many HOAs, preventive maintenance can help reduce these HOA expenses. The following five roof preventive maintenance tips and practices can be beneficial to your HOA: 1-Properly functioning eave vents and ridge vents can help extend the life of a roof by reducing the buildup of…
We have compiled a database of general HOA topic articles that can be used in membership newsletters. These articles are not copyrighted and are free to our clients. All articles are in MS Word and are downloadable. We do ask that people utilizing the new database contribute general topic articles from their HOA’s newsletter…
11 Points Regarding The HOA’s Insurance Agent Insurance agents, like doctors, have a broad range of specialties and areas of expertise. Fortunately, community association insurance is one of them. HOAs have unique needs and exposures. The insurance agent serves the HOA by: Reviewing the HOA’s documents, recommending the legal minimum insurance requirement, and recommending…
Members of HOA boards of directors have a fiduciary duty and, with this responsibility, directors must act in the best interests of all HOA members and not their own interests. A fiduciary relationship encompasses the idea of faith and confidence and is generally established only when the confidence given by one party is actually…
In most HOA governing documents there is probably no more unclear topic than the section addressing commercial vehicles. Usually, the language is sparse and broad at best. In many instances the language will be similar to: “No commercial vehicles are to be parked on the street or in a member’s driveway.” First and foremost,…
Below are six common insurance terms that routinely come up while serving on a HOA board of directors. Indemnity – the insurance company indemnifies, or compensates, the policyholder in the event of certain losses only up to the policyholder’s interest. Insurable interest – the policyholder generally must directly suffer a loss. This legal…
Unfinished Business, Yes; Old Business, Never! “Old Business” means that you are reconsidering issues already disposed of. “Unfinished Business” means that you are continuing with issues which are currently not completed (RONR (10th ed.), p.346). Before the current agenda is put together, the secretary advises the chair of the issues which were not disposed of…
Why do we need a HOA anyway? Why does the have so many rules? What are we getting for our dues? These are common mantras with a select few in almost all HOAs. For this article, we will refer to these members as anti-HOA members. This “anti” label is not meant to define these HOA…
The HOA’s collection process has been reviewed and structured by attorneys who specialize in HOA collections. Because of the harsh consequences for violating one of the vast and complicated collection statutes, this approved collection process is necessary to protect all parties. One of the many challenges of being on a HOA board of directors…
Eliminating or taking on additional HOA responsibilities may appear to be a straightforward undertaking, but there are a number of considerations. The primary considerations are the requirements of the HOA’s governing documents and the ramifications on the HOA’s budget. A third consideration is the unintended consequences of whatever decision is made. Boards of directors…
In recent years HOA boards have been faced with a “new” type of collection issue, the reverse mortgage. Even though reverse mortgages have been around since 1961, how they actually work is not well understood as a traditional mortgage. A reverse mortgage is a loan available to homeowners who are at least 62 years…
The HOA’s collection process has been reviewed and structured by attorneys who specialize in HOA collections. Because of the harsh consequences for violating one of the vast and complicated collection statutes, this approved collection process is necessary to protect all parties. One of the many challenges of being on a HOA board of directors…
When HOAs are affected by natural disasters, the Federal Emergency Management Agency (FEMA) is a resource. – State or local government are responsible for removal of debris and FEMA may reimburse for these expenditures. FEMA may cover costs to remove fallen trees, large branches, silt, sand, mud and building materials from private roadways to create…
There are many factors when selecting the type and color of a replacement roof for structures within a HOA. It is important to realize that weight, warranty, and cost are not necessarily effective measures of a roofing product. The three primary issues for the HOA’s board of directors to consider when selecting a new roof:…
What is Percentage of Ownership? Percentage of ownership is the basis of a member’s ownership, typically in a condominium, COA. This percentage determines dues amounts and voting rights. How the initial property developer determines percentage of ownership for each unit can vary from condominium project to condominium project. This percentage ownership is typically established in…
Why Must the HOA Approve My??? Some in the membership may believe the HOA is similar to Big Brother when they wish to alter the exterior of their home or do anything that requires approval of the Board of Directors or Architectural Review Committee. The architectural review program is actually a benefit to everyone—not a…
HOA message boards The topic of HOA message boards comes up from time to time. Usually this arises at a board meeting or during the HOA’s annual membership meeting. What precipitates this topic is the concern about communication within the HOA. A message board (also known as a discussion group, discussion forum, discussion board, and…
5 Items that should not be included in HOA meeting minutes HOA boards commonly ask what should be placed into meeting minutes. The answer to this is simply note actions taken and just the facts. The following are five items that are better left out of HOA meeting minutes. 1. Personal observations 2. Opinions 3.…
Nationally, HOA Members Are Generally Satisfied with Their HOA The Foundation for Community Association Research, an affiliate of Community Associations Institute (CAI), sponsored a national public opinion survey of HOA members to gauge their views towards their HOA. The Findings A representative sample of the 62 million Americans who live within homeowner associations and condominium…
Robert’s Rules The use of Robert’s Rules is not only the best practices for all HOA meetings, it may be a requirement per some state statutes. Even if it is not mandated, HOA Boards should utilize Robert’s Rules for all meetings to make their meeting efficient and the meeting actions legitimate. Utilizing Robert’s Rules correctly…
What is a Retaining Wall? When HOA’s have retaining walls, many times it is a HOA capital item that is given little thought of for long term planning. However, as with any HOA capital item, retaining walls no matter their construction, need to be considered for replacement. As we always recommend to our boards a…
Five Signs of a Deteriorating Roof – Missing, broken, cracked or curling shingles. – Deteriorating or damaged flashing around chimneys, vents, or roof valleys. – Deterioration of roof valleys. – Extreme granular loss found in gutters and splash blocks. Asphalt shingles are covered with granules to block ultraviolet sun rays. Over time granules will erode…
What Are the Different Types of Lawn Drainage? With all the common areas that many HOAs have, drainage issues can arise. Addressing drainage issues within a HOA can be challenging because of the unpredictable nature of water flow. When homes are located in low-lying or flat areas, a drainage system may need to be installed…
What are Weep Holes? HOA structures are faced with water intrusion from time to time. Water intrusion is categorized as roof, wall, and foundation. Weep holes can be found in foundations and walls. Wall weep holes are were the majority of issues arise with HOA structures. Weep holes are holes placed in exterior walls of…
Why Do We Need a HOA Anyway? Why do we need a HOA anyway? Why does the HOA have so many rules? What are we getting for our dues? These are common mantras with a select few in almost all HOAs. For this article, we will refer to these members as anti-HOA members. This “anti”…
Preventing Water Damage Water damage causes HOAs and individual homeowners many thousands of dollars each year in the United States. Not only are HOA boards faced with limited budgets, they are also faced with higher insurance deductibles that make addressing water claims more difficult. HOA boards must face the ramifications of filing insurance claims and…
The HOA’s Insurance Agent Insurance agents, like doctors, have a broad range of specialties and areas of expertise. Fortunately, community association insurance is one of them. HOAs have unique needs and exposures. The insurance agent serves the HOA by: Reviewing the HOA’s documents, recommending the legal minimum insurance requirement, and recommending additional coverage that might…
Commercial Activities Within the HOA In William Douglas Management’s 37 year history we have encountered an array of businesses operated within HOAs we manage. Be it single family home HOAs or multifamily HOAs, it seems like every HOA has had to deal with members operating businesses from their home at one time or another. We…
10 Conflict Resolution Strategies for HOA Board Members Serving on a HOA board of directors can be challenging at times. Resolving conflicts, big and small, can be a part of the board member’s responsibilities. When emotions run high, the parties should separate and take time to cool off. Attack the problem, not the person. Move…
Guest Speakers at the HOA Annual Meeting Guest speakers at annual meetings are common, and possibly much too common. The right guest speaker can add a great deal to the meeting while the wrong guest speaker can take much away. The first and most obliviously question, is there a very strong reason to have a…
Common Foundation Problems & the HOA Foundation problems for HOA boards are normally a result of drainage or other water related issues. Because of the potential ramifications to the HOA’s annual budget, boards that have a basic understanding of foundations problems can be very beneficial. Beneficial in that a knowledge of foundations can many times…
– Wet detention pond: a pond designed to have a remaining permanent pool of water after a storm event. – Dry detention pond: a pond designed to NOT have a significant pool of water remaining after a storm event. – Water Quality Pond: a detention pond with an orifice sized to allow time…
Legal expenses for many HOAs are a significant dollar amount on the annual budget. In most all instances these legal expenses are for attorney opinions or in connection with collection related activities. While collections related matters are fortunately reimbursable by the member in collections, other legal expenses are generally not reimbursable. Board members or…
Swimming pool maintenance can, many times, be one of the largest items on an HOA’s budget. It is beneficial for a board to have an understanding of the pool and the related expenses. One of those possible expenses can come from a malfunctioning hydrostatic valve. A hydrostatic valve is one of those things that…
While HOA boards should rely on professional reserve studies for long term planning, having a general idea of product life cycles can possibly assist with annual budgeting. Even with a professional reserve study there are no guarantees on life cycles. This is because of extenuating circumstances such as environment, use, installation, and a myriad of…
“Why are our dues higher than the HOA next door?” Or perhaps: “My sister’s HOA dues are less than our dues.” No matter what the one-dimensional analysis of another HOA’s dues are, a great deal of further research is needed. As with many situations, the answer to this may appear to be straightforward, but the…
Questions arise from HOA boards about Net Income/Loss and Retained Earnings as found on their monthly financials. Net Income is the total of excess income over expenses, while Net Loss is the excess expenses over income. Retained Earnings, by definition, is the balance of net income less losses over the years the association has…
William Douglas Management has a collections process that was reviewed and structured by attorneys who specialize in HOA collections. Because of the harsh consequences for violating one of the vast and complicated collection statutes, this approved collection process is necessary to protect our client associations and our company. One of the many challenges of…
This brief overview of Robert’s Rules of Order can be beneficial to new HOA board members for understanding the basic process of how a meeting is to be performed. One person may speak or have the floor at a time. The Chair of the meeting decides who that person will be. The speaker may discuss…
I think that I shall never see. A poem lovely as a tree. The first part of the wonderful poem “Trees” by Joyce Kilmer, praising the virtues of all trees. One must realize that Joyce Kilmer did not reside within a HOA and, therefore, probably did not deal with the issues that arise with…
Questions arise from members, usually delinquent members, regarding “what authority does the HOA have” in collecting dues. Basically HOA’s are established in two forms, volunteer HOAs and mandatory HOAs. As both preceding adjectives indicate the nature of the HOA, mandatory HOAs need declaration and in some cases state statute authority to collect assessments. While…
There are more than 60 million Americans who live in HOAs and condominium communities. How do these 60 million residents feel about their own HOA? Are they happy with their boards? How do they feel about the rules? The Foundation for Community Association Research, an affiliate of Community Associations Institute (CAI), sponsored a national…
Most homes and many HOA clubhouses have clothes dryers. Many people do not realize that clothes dryers are a major cause of fires each year. There is a clothes dryer fire every 35 minutes in the United States. The U.S. Consumer Product Safety Commission estimates that there are over 17,000 dryer fires causing over $75…
A retention pond is a man-made pond or reservoir that is constructed to catch runoff water from higher elevations or improved surfaces. Retention ponds can be either temporary or permanent depending on the circumstances and the volume of water to be contained. Most are built to be sloped basins that capitalize on gravity and the…
To “redact,” a verb defined by Merriam Webster as: 1) to put in writing: frame, 2) to select or adapt (as by obscuring or removing sensitive information) for publication or release; broadly: edit, 3) to obscure or remove (text) from a document prior to publication or release. Redaction in the context of a HOA…
Water being such a large part of most HOA annual budgets watching for pool leaks is always prudent. However, it is very common for normal every day water evaporation to be mistaken for a pool leak. Determining the evaporation rate is the first step in determining if the water disappearance is due to evaporation or…
Properly making motions is crucial to the operation of a HOA board meeting. The motion process has to be followed to take action on board decisions. STEP 1: A member is recognized by Chair, and makes a motion; Common Mistake: Does not wait to be recognized and starts to discuss the motion before…
Squatters’ rights or adverse possession is an antiquated legal situation that occurs, with regard to HOAs, when someone moves into a vacant home and makes it their residence without the owner’s permission. With adverse possession, a squatter can acquire another person’s home without compensation, by living in the home for a specific period of time.…
Water being such a large part of a HOA’s annual budget watching for pool leaks is always prudent. However, it is very common for normal every day water evaporation to be mistaken for a pool leak. Determining the evaporation rate is the first step in determining if the water disappearance is due to evaporation or…
Hearings may or may not be required to levy fines for covenant violations. The HOA’s governing documents may require hearings for this purpose. Or state statutes may require a hearing to levy fines, for example, North Carolina statutes require hearings. In South Carolina which has no specific state statutes, the HOA’s governing documents may require…
Irrigation system maintenance is many times buried in a HOA’s annual budget in general landscaping and the master water category. But nonetheless an irrigation system is a crucial aspect of an HOA’s systems. So the HOA board needs to have an overview of the system. Irrigation systems should be inspected every year for problems and…
The definition of insurance is to provide financial coverage by contract whereby one party undertakes to guarantee another against loss by a specified contingency or peril. Insurance in all forms is primarily dealing with risk, therefore an insurance policy is just a way of sharing risks with other parties with similar risks. While certain risks…
Individuals may serve on a HOA board of directors for many years and not realize there is a difference between a director and an officer. In short, an individual is elected as a director to serve on the HOA board of directors and then the directors convene amongst themselves to select the officers. The…
A home being most people’s biggest investment, a basic preventive maintenance schedule for this home is analogous to routinely checking a retirement plan to make sure the plan is working properly. This basic preventive maintenance schedule has monthly, quarterly, semiannual, and annual tasks to complete. One of the best methods to accomplish these preventive…
William Douglas Management recommends to their client Boards of Directors that they review their HOA’s insurance policies each year. There are basically three different policies that can be in place, a master hazard insurance policy, a general liability policy, and a directors and officer’s insurance policy. The HOA’s insurance agent should be contacted for guidance…
Annual Meeting Date In many instances the date or possibly the time of year of the annual meeting is prescribed in the HOA’s governing documents. These dates may also just coincide with the time the declarant transitioned the association to membership control. The months that can be worse for annual meeting attendance are December,…
Frequently the term Sunshine Law wrongly comes up with regard to the operation of an HOA. Sunshine laws are federal statutes and some states have similarly named statutes that require governmental meetings to be open to the public whenever possible. The federal sunshine laws are part of the Freedom of Information Act, which has the…
When an HOA member fails to pay their assessment or violates the CC&Rs, how does the board respond? For past due assessments the HOA has the standard collection processes, and for CC&R violations the board has standard enforcement processes. What if these standard processes are not enough to force the member to bring their account…
HOAs are a microcosm of society and are subject to the trends or fads that affect the rest of society. Some trends or fads are harmless, such as bellbottoms. A trend that has been popping up in some communities, ding dong ditch. The prank known as ding dong ditch has probably been around ever since…
The answer is “Yes,” according to the well-known Bruskin-Goldring Survey. However, successfully speaking at an HOA annual meeting, or any HOA meeting, is achievable with preparation. With this article we are going to hit some of the key points to aid in the task of public speaking. Make brief notes or an outline of…
HOAs are faced with various insect infestation, none cause more damage than termites. Termites are tough and resistant insects with a voracious appetite for wood. Unfortunately, this can lead to severe home and property damage as the hungry insects feast their way through structural materials. A thorough inspection can give clues as to whether termites…
The chair presides over the HOA annual meeting or any deliberative assembly. The chair conducts the meeting and is responsible for the orderly opening, progression and completion of the meeting. In short the chair is in charge of the meeting. The chair can also be referred to chairperson, chairman, chairwoman, presiding officer, president, and moderator.…
A quorum is the number of members required to be present before a meeting can legally be conducted. Quorums are necessary for annual membership meetings and board of directors meetings. If HOA business is to be conducted, special membership meetings would require a quorum as well. For board of directors meetings, unless the bylaws…
Eliminating or taking on additional HOA responsibilities may appear to be a straightforward undertaking, but there are a number of considerations. The primary considerations are the requirements of the HOA’s governing documents and the ramifications on the HOA’s budget. A third consideration is the unintended consequences of whatever decision is made. Boards of directors…
Planning for disaster is one of those tasks that unfortunately seems to be put on a backburner. Out of sight, out of mind, is human nature with non-pressing issues. As with any emergency or potentially stressful situation, preparation maybe more difficult when the situation is upon the HOA member. That is why planning well beforehand…
Pool maintenance costs being one of the largest budget items for an HOA, a saltwater pool may help to lower expenses. A salt water or saltwater pool is a swimming pool, which is filled with a mild salt solution. Many companies that install pools can construct salt water pools and outfit them with the necessary…
Each year William Douglas Management’s Accounting Department seeks quotes from outside CPA firms to perform audits and reviews for our client’s financial records. A quote for performing the HOA’s tax returns is also obtained at the same time. Combining either an audit or a review with the tax preparation, typically offers a cost savings to…
– When a topic is first introduced or a main motion is made, allow all questions for informational purposes to be asked before opening to debate. – Discourage the repetition of arguments. Discourage dialogues that start up between two individuals in debate. – If debate carries on too long, impose time limits on…
Reserves are a crucial aspect of all HOAs. 1 – The Internal Revenue Service considers general maintenance items not appropriate use of Reserve funds. For example painting may not qualify as a Reserve item. 2 – Reserves have to be allocated for a specific purpose. Contingency Reserves, General Reserves, Rainy Day Reserves could…
DO NOT mow detention pond too close to the surface; height should be 4 to 6 inches to maintain healthy grasses. DO NOT apply landscaping chemicals in pond area, or in areas where the residue could make it into the pond during a storm event. William Douglas Management, providing excellent management services…
Most HOA rules and regulations address members not restraining their dog. And boards use the enforcement provisions in the declarations or state statutes to hold members who violate the rules and regulations accountable. Another compliance strategy could be informing members that according to the American Humane Society, an unleashed dog has an average life span…
HOA boards are routinely faced with drainage issues and seek effective solutions. One of the most common and effective solutions is the French drain. A French drain is basically a ditch lined with rocks or gravel that helps drain water away from an area. It is used to protect the foundation of a house or…
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What to distributed at an annual meeting can vary from HOA to HOA. This is due to prior practices of what was distribute at prior annual meetings. Also, what may be required per the HOA’s governing documents. The first place to check are the HOA’s governing documents. The bylaws, the covenants, and possibly the…
1 – Statutory Federal Laws 2 – Statutory State Laws 3 – County Ordinances 4 – Municipality Ordinances 5 – HOA Declaration 6 – HOA Articles of Incorporation 7 – HOA Bylaws 8 – HOA Rules and Regulations 9 – HOA Procedural Resolutions & Guidelines 10 – Other HOA board Resolutions 11 – Actions and…
This time of year, William Douglas’ Accounting Department is in high gear preparing for our clients’ financial year-end along with getting dues payment coupons out for the coming fiscal year. A great deal of focus is on closing the year-end books. One aspect that makes HOA’s financials different is that corporation tax returns, in…
Winterizing is the process that every HOA member should undertake to make their home ready for winter. Freezing temperatures, ice, snow and wind can cause severe damage to a home. Frozen Pipes Plumbing may be located in the outer walls of a home so it may be exposed to colder air than what is…
“CC&Rs (Covenants, Conditions and Restrictions), also known as the declaration or declaration of covenants, conditions, and restrictions, is a governing document used primarily for planned communities. More than any other single document, the CC&Rs establishes the planned community because it spells out the essential elements of ownership. The HOA or planned community comes into existence…
Each year William Douglas Management’s Accounting Department seeks quotes from outside CPA firms to perform audits and reviews for our client’s financial records. A quote for performing the HOA’s tax returns is also obtained at the same time. Combining either an audit or a review with the tax preparation, typically offers a cost savings to…
There has been a great deal of media coverage of the ADA pool accessibility mandates that have affected public pools and hotel swimming pools recently, including a significant amount of miscommunication as to how these new mandates relate to HOA and condominium association swimming pools. Section 242 of the new ADA Standards for Accessible…
It seems like a week does not go by without a negative newspaper article or negative broadcast news story about a homeowner association somewhere. The story usually has an emotional narrative and most of the time appears decidedly one sided against the homeowner association or the HOA’s board. The most common theme of these stories…
It is easy to forget what some in the membership and the general public perceive about homeowner associations. For example, many disputes over architectural changes may seem petty, but they have larger ramifications if not addressed at this original level. Another example: Some believe that the homeowner association boards of directors have unbridled power in…
It seems like hardly a day passes when there is not a homeowner association in the news for a myriad of reasons. Some good reasons and unfortunately, some not so good reasons. So it is always best to be prepared and deal with whatever the issue is in the most productive way possible. If…
A HOA’s insurance policy maybe more involved than a normal homeowner policy, but it is fundamentally the same when it involves claims. As with any type of insurance claim, if not filed properly, the claim can be difficult to collect, if not uncollectable altogether. Following the basic claim steps can help insure the insurance company…
The pool management company is responsible for winterizing the homeowner association swimming pool. They will also winterize the pool bathrooms and other associated pool facilities if needed. In areas that will reach freezing temperature, it is important to close a pool properly. The closing methods and times may vary between regions of the country but,…
The importance of adhering to the homeowner association’s governing documents and state statutes regarding notification requirements cannot be stressed enough. Not following the proper procedures and legal requirements, at worst, can have severe legal consequences and at a minimum, cost the homeowner association additional expense in correcting the matter. All homeowner association notices in…
“People’s personalities, like buildings, have various facades, some pleasant to view, some not.” – Francois de la Rochefoucauld Every association membership is different, but there seems to be one constant: there are always members who seem to take a non-positive view on issues that the board addresses within the association. Board members often cite…
When disaster strikes a homeowners association such as fire, flood, hail damage etc., and a claim needs to be filed, a public insurance adjuster is the association’s advocate and can usually save an association thousands of dollars and in some instances hundreds of thousands of dollars. A public insurance adjuster is an insurance claims adjuster…
An annual meeting is a meeting of the HOA membership required by state statutes and the association’s governing documents. The annual meeting is held every year to elect the Board of Directors and inform their members of previous and future activities. It is also an opportunity for the membership to ask questions regarding the decisions…
Association managers are often asked, “What should we fine for this violation of the rules and regulations?” Or, “what do other HOA boards fine for this violation?” Notwithstanding state statutes that may limit fines and regulate a fine process, this is not always a cut and dry issue. This is where a board embraces the…
Directors and Officers liability insurance (D&O) provides coverage in the event of a lawsuit claiming an association board or individual director’s act or omission. D&O insurance does not protect the association when a claim is made for personal injury or property damage as a result of negligent actions of the Board or Director. Personal injury…
With an aging population and the recent Pool Accessibility Standards, it has become increasingly necessary for homeowner associations and condominium associations to be aware of the Americans with Disabilities Act’s (ADA) requirements with regard to how they affect their association. While all Boards of Directors wish to meet the special needs of the association…
Most homeowner associations utilize 1099 contractors instead of hiring full or part-time employees. The primary benefits are the flexibility and cost savings. A 1099 contractor is a legal and tax-related term used to refer to the type of worker who contracts his services out to an association or any other type of business. The “1099”…
Exercising proxies is not permitted in Board of Director meetings. Deliberative assemblies such as a Board meeting are not conducive to the use of a proxy; primarily because proxies are incompatible with the essential characteristics, discussion and debate of a deliberative assembly. [RONR (11th ed.), p. 414-15.] WDPM
Homeowner association boards of directors establish rules and regulations that the entire membership are asked to observe so that the association can maintain property values and the quality of life. To determine reasonability some general guidelines: Enforce rules uniformly, taking into account the consequences. Developing rules for the sake of having rules…
William Douglas Management has always recommended reserve studies to our clients as a long term financial planning for our clients. A reserve study is a process performed by engineering firms or companies that specifically perform reserve studies as their core business. A reserve study is a report that projects when numerous major components such as…
Questions often arise from board members on how insurance companies operate as it relates to claims against the homeowner association’s insurance policy. Especially when large claims are paid out by insurance companies as compared to the relatively low premiums paid by the homeowners association. Considering the objective of an insurance company is to collect more…
Some homeowner associations have open board meetings (open to the membership) and, in certain instances, the governing documents may mandate certain portions of a board meeting to be open. However, allowing non-board members to participate in board discussions is without exception improper. Calling down members during a board meeting may seem to be rude…
Because of the impact on homeowner associations and condominium association’s collection efforts, and the unpleasant nature of bankruptcy, there are many questions surrounding the topic. Below are some of the questions we consistently receive from boards of directors on the topic of bankruptcy. What is bankruptcy? Bankruptcy is a federal system of statutes…
The Community Associations Institute (CAI), our national trade group organization, each year publishes a report about homeowner associations and condominium associations statistics. The report includes information about the number of community associations in the United States, along with particular association data. For example, estimated combined budgets of these associations and other interesting data can be…
It is generally safe to say differences of opinion or conflicts are a normal part of being on a board of directors and all homeowner associations. It is unrealistic to expect board members to be in agreement on all matters that confront a board, or that the membership would agree with every board action taken.…
You will be receiving your association’s Budget Worksheets from our Accounting Department in the coming weeks. Because of the many issues that revolve around budgets and year end reporting requirements, it greatly helps our Accounting Department to have approved budgets in as soon as possible. Your Association Manager will be assisting your Board with this…
Board of Director’s Meetings can be a very powerful way to communicate and resolve issues. A homeowner association’s Board of Directors is confronted with an array of issues that must be resolved in a timely manner. Thus a Board is charged with what can be the problematical task of obtaining a majority consensus from the…
As a board member, and sometimes in our role as the managing agent, we may get the impression that a disproportionate number of the membership are unhappy with a multitude of homeowner association issues. In response, we may have a tendency to get tunnel vision because it is sometimes human nature for people to complain…
We want to remind everyone of one of the most underutilized features of the free association website we offer our clients. The ARC or ACC online process on the association website fully automates the submission and approval process online. We have received very positive feedback from our clients who are utilizing this feature. If you…
The bank lockbox allows William Douglas to streamline the homeowner dues payment process. With the bank lockbox, when an homeowner association member writes a check and mails their payment in, their check goes directly to the bank and bypasses our offices. The lockbox receives and deposits those payments at least one day earlier, and makes…
High winds and rain many times trigger tree limbs and entire trees to fall. Who is responsible for a fallen tree that causes damage may surprise some people and laws can vary from state to state. But, generally speaking, if the tree is a healthy tree and was damaged by an “act of God” then…
When a homeowner association is either in danger of losing their insurance coverage or their insurance coverage is canceled, Lloyds of London is always a point of discussion. Lloyds is often referred to as the insurance company of last resort when you cannot obtain coverage in the primary insurance market. So what is Lloyds of…
Easements, being very common in many real estate matters, come up from time to time with homeowner associations. A recorded land easement is a legally binding instrument which permits or restricts land use by the land owner and other parties who do not own the land in question. Easements that are restrictive can limit particular…
Community associations are Big Business, consider the following: More than 1.7 million volunteers serve as members of their community association board and another 400,000 participate as committee members. There are 230,000 annual association meetings with democratically conducted elections and another nearly 2.5 million board meetings during the year in which owners debate and shape…
Eminent domain is the power of the state over all property within the state, expressly the power to involuntarily or voluntarily purchase property for a public use and, in certain cases, private use. The owner of appropriated land is entitled to compensation per the Fifth Amendment to the Constitution. This compensation is generally defined as…
The troubling real estate market has left many HOA members with delinquent mortgages as well as delinquent association dues. The topic and procedures for foreclosures could fill volumes. Here we are going to discuss two options that owners are utilizing other than allowing their property to go into bank mortgage foreclosure, short sales and deed…
Committees are an essential part of a homeowners association. Committees are a way to bring association members together with similar objectives and relevant expertise who may otherwise not have a method to gather information and coordinate actions. Two of the main advantages of a committee are the broad prospectives that are brought to the…
Much too often we focus on the members who have gone outside the governing documents with regard to architectural or landscaping issues. Recognizing members who go beyond the requirements in an overall positive way can be a powerful tool in how a community looks and how members act. If it be recognizing entire yards in…
Many look forward to, and some even dread, their association’s annual meeting. To quote a long term Association Board President: “It gives everyone in the membership the opportunity to praise or condemn the board’s performance over the prior year.” The best definition of an annual meeting is a meeting of the association’s membership to discuss…
The process of decision making generally analyzes a problem in stages until a viable solution develops. It involves choosing the best alternative after defining the issue and identifying the desirable outcome. The process of decision making includes choosing an action to reach a goal after weighing the attributes of each alternative. Decisions might be…
Hoarding seems to be more prevalent today, possibly because it may be better understood with media attention and the disorder having its own TV series. This may seem like just something that happens on TV, but it can happen anywhere and in any homeowner association with varying degrees of severity. Many of the associations who…
We have created an example of the free website that that is available to all our clients if they so choose. The website has an option were the members can setup an account and view specific information regarding their account. To view go to: www.wmdouglas.com In the middle of the page you will…
Associations having to allow seventy foot high HAM radio towers maybe a federal law if certain members of the United States House of Representatives are successful with their proposed legislation. Most alarming from this proposed legislation is that association members would be allowed to erect this tower no matter what the association’s governing documents state.…
Questions often arise when boards of directors revise or initially draft and implement their association’s rules and regulations. There are points to consider while going through this process. The board of directors generally has the authority to establish reasonable rules and regulations. While this authority is typically found in the restrictive covenants, in rare instances…
This time of year with coupons arriving in the mail, the membership always has questions about what they are paying for with their dues. At William Douglas Management we have always stressed open communication with the membership when it comes to most matters, and especially when it comes to annual budgets and dues. Communication is…
Insurance is one of those funny things in life, as in funny strange. Premiums are faithfully paid to have insurance coverage but, what is strange is, even though premiums are paid, filing an insurance claim can result in premiums rising or, in the worst case scenario, the insurance policy being canceled. The insurance that a…
For most board members, meetings are a fact of life and over time board members obtain valuable experience on dealing with issues that arise. Part of this valuable experience is being adept at participating effectively and managing meetings. This experience is not only a useful skill in an association meeting, but in unrelated matters that…
Almost all associations have had pet issues at one time or another. Per the American Pet Products Manufactures Association, there are an estimated 74.8 million dogs and 88.3 million cats in the United States. Additionally there is an estimated 50 million nontraditional or exotic pets in American homes. When drafting Rules & Regulations pertaining to…
Usually when the term “Going Above and Beyond” is used, it is being used in a positive and complementary way to apply to someone who has exceeded themselves in helping someone else. Unfortunately, “Going Above and Beyond” within the framework of an association’s governing documents is rarely a positive affirmation. From exceeding maintenance responsibilities to…
From time to time you may hear that the board of the association operates in a fiduciary capacity for the homeowners. Or you may read about the board’s fiduciary responsibility in the governing documents. Just exactly what does this mean? Fiduciary duty simply means the board has an ethical and legal obligation to make decisions…
As many are aware, amending a condominium association or a homeowner association’s governing documents, be it declarations/master deed or bylaws, can be a trying experience that should not be undertaken lightly. Step 1: Spell out what needs to be changed, added or removed. This may seem obvious, but there may be varying thoughts on this…
Maybe you’ve been to the meetings where the person who failed to show up for the meeting is “volunteered” to serve on a committee. Well there are better and more effective methods of finding volunteers. Besides sitting on association boards, volunteers are the same people sitting on church committees, coaching little league, serving as Cub…
Memorial Day 2012 in Bend, Oregon at the Sunriver Owners Association was a festive event celebrated by 350 residents of the 4,200 home association in their brand new 1,250 seat amphitheater. The homeowners association did not charge admission or provide the entertainment for the Memorial Day celebration. Other local non-association related groups sponsored the musicians…
A board resolution is a motion that follows a set format and is formally adopted by the board. Resolutions may enact rules and regulations or formalize other types of board decisions. There are generally four types of resolutions for a community association: Policy Resolutions affect owners’ rights and obligations such as rules for the…
All association boards of directors at one time or another must meet with the association’s attorney. These meetings assist the board through the legal maze that every association encounters. To reduce legal expenses there are some simple steps that should reduce legal fees and improve the efficiency of everyone involved. Preparation before the meeting is…
Follow the agenda and do not deviate. Any items that come up can be discussed at the end of the meeting or put on the agenda for the next board meeting. Put time limits on all items. Putting time limits on discussion items prevents indecision and improves effectiveness of the overall meeting. Topics…
Covenants, Conditions & Restrictions Also known as CC & Rs, Declarations, Master Deed, to name just a few. By whatever name or abbreviation they go by, these are written rules, limitations and restrictions on use, mutually agreed to (by virtue of purchasing in such a community) by all owners of homes in a planned community…
Questions arise about association meetings such as the differences, legal requirements and procedures. While association meetings may not have all the same legal requirements and procedures, whatever the requirements, they must be followed. Generally speaking, meeting requirements are found in the association’s bylaws, however, there may be meeting requirements in the association’s declarations. So what…
Directors and Officers liability insurance (D&O) provides coverage in the event of a lawsuit claiming some Board or individual Directors’ act or omission. D&O insurance does not protect the association when a claim is made for personal injury or property damage as a result of negligent actions of the Board of Directors. Personal injury and…
How an Association is Formed A homeowner association or condominium association is a nonprofit corporation formed, usually, by a real estate developer for the purpose of marketing, managing, and selling homes/lots or units in a development. The governing documents of the association grants the developer special voting rights in the operation of the association, while…
The Financial Statements have one primary function: Provide the Board with the financial information to make decisions relating to the Association’s financial situation The association’s financial statements are the summary of the financial activity of the association during a given period of time. Financial statements are the final product of the accounting function. There are…
It seems these days everyone’s schedules are more hectic than ever, and board members schedules are no different. Because of scheduling difficulty and, in some cases, convenience, we have boards of directors that hold their board meetings via online services such as Skype, GoToMeeting, and Google Plus Hangouts. With these online services, board members have…
Certain terms are used incorrectly or generically when discussing association issues. For example, the CC&Rs are often incorrectly referred to as the bylaws or the membership believes they are voting for the officers of the board of directors during an annual meeting. Articles of Incorporation: Are the basic charter of an association corporation which spells…
Short term rentals, be it overnight stays or weeklong rentals, seem to be becoming more prevalent in homeowner and condominium associations as of late. Some blame the advent of online services that help facilitate these activities, or it could seem more prevalent because of the ease of finding out a neighbor is advertising their home…
Swimming pools can be a disproportionate expense to an association and in many instances the single largest budget expenditure to an association. The membership usually does not realize the enormous impact a swimming pool has on the association’s annual budget and many times, ironically, the swimming pool is the least utilized of all the common…
Some in the membership may believe the association is similar to Big Brother when they wish to alter the exterior of their home or do anything that requires approval of the Board of Directors or Architectural Review Committee. The architectural review or design review program is actually a benefit to everyone—not a burden. The association’s…
Association Boards and Managers must strive to meet the needs of the entire membership. Unfortunately, within this process, the Board and the Manager rarely please everyone. However, engaging in a proactive and collaborative decision making process can reduce or even eliminate conflicts within the association. At the very least, the membership will understand and be…
Committee Guidelines Purpose: Defines expected results of a committees work (not what’s to be done to fulfill goal) Responsibilities: Activities/actions that must be performed to fulfill assigned purpose Organization: Number of members, method to select chair, members’ terms of office, roles of officers and board liaison, desired characteristics Operations: Time, place and frequency of…
Recent research conducted in Northern Virginia by a professor and student at George Mason University indicates that community associations can add a 5-6 percent increase in property values over similar homes in nearby non-association communities. Writing in Regulation magazine, the authors say that the increase in home value attributed to community associations is “especially remarkable…
The Double Edged Sword Association master hazard insurance premiums are going up and in some cases rising at double digit percentages. Even worse, many insurance companies are dropping coverage for high risk associations. Causes: Recent catastrophic weather events have devastated insurance company profits. The lackluster stock market has negatively effected many insurance company stock investments. …
The governing documents of many homeowner associations peg annual dues increases to the Consumer Price Index or CPI. For example, a typical CPI provision may read: “the annual dues may be increased no more than the average CPI index for the prior 12 months.” Board members and our company are often asked by members of…
Landlord and resident issues can be challenging to associations. One common issue that arises is that the lease used is either too generic or does not reference the association’s governing documents. At a minimum, a lease should be drawn up with language stating: “Lessee is a party to the Association’s Governing Documents and will comply…
Because of our growth in the Atlanta Metro area we have purchased an office in Marietta. We were up and operational at our new office on October 26. Our new office is centrally located and will allow us to better serve all our clients. We have consolidated our other two Atlanta Metro offices into this…
It is that time of year again, no not the holidays, but billing season. For the convenience of our William Douglas Management homeowners we offer many different payment options. Each option is described briefly below. With the exception of the printed coupon booklets, registration for all of the options listed below can be found on…
We are entering the time of year when termite activity comes to the forefront because of blatant termite activity in the form of swarms. Termites swarming from wood or the soil often are the first signs of a termite colony. Subterranean termites are the most common, and thus the most destructive, wood-destroying insects in the…
Board of Director’s Meetings can be a very powerful way to communicate and resolve issues. An association’s Board of Directors is confronted with an array of issues that must be resolved in a timely manner. Thus a Board is charged with what can be the problematical task of obtaining a majority consensus from the Board…
Whether you have spoken at one or one hundred annual meetings, speaking in front of your association is never an easy task. However, there are steps you can take to help overcome the trepidation. If your message is coherent, informative and interesting that is 99% of the battle. Here are some key points to capture…
I think that I shall never see. A poem lovely as a tree. The first part of the wonderful poem “Trees” by Joyce Kilmer, praising the virtues of all trees. One must realize that Joyce Kilmer did not reside within an association and, therefore, probably did not deal with the issues that arise with certain…
Committees are an essential part of an association. Committees are a way to bring association members together with similar objectives and relevant expertise who may otherwise not have a method to gather information and coordinate actions. Two of the main advantages of a committee are the broad perspectives that are brought to the group by…
Questions often arise when boards of directors revise or initially draft and implement their association’s rules and regulations. There are points to consider while going through this process. The board of directors generally has the authority to establish reasonable rules and regulations. While this authority is typically found in the restrictive covenants, in rare instances…
Meeting agendas make a great outline. To improve accuracy minutes should be written as soon as possible after the meeting Written committee reports can be attached to the minutes and referred to within. Distribute minutes to board or committee members before the meeting in which they will be approved so they can be reviewed, and…
Directors and Officers liability insurance (D&O) provides coverage in the event of a lawsuit claiming some Board or individual Directors’ act or omission. D&O insurance does not protect the association when a claim is made for personal injury or property damage as a result of negligent actions of the Board of Directors. Personal injury and…
The objective of any homeowner association board of directors meeting should be to accomplish association business in a proper and efficient manner. Scope of Meeting: Issues that only fall within the authority of the association should be addressed. Agenda topics should not be too broad to prevent fruitful discussion and decision making. Agenda: The meeting…
William Douglas Management, as a service to our clients, offers free Auto-Drafting of monthly dues. Auto-Drafting not only helps our company keep costs down, but it saves our associations money as well. Associations that have strongly promoted Auto-Drafts have reduced delinquencies and have eliminated the necessity of printing coupons, thus saving money and improving cash…
If you have been on a Board of Directors for any length of time, you will hear members complain about the “unreasonable” restrictions of an association, or “why do we even need a homeowner’s association?” Certainly some members do not see the need for any restrictions, but they may not understand the ramifications of loose…
The treasurer is the financial voice of the board of directors and the association. The roll of the association treasurer can be narrow in focus and is crucial to the smooth operation of any association. Whereas the association president is charged with leading the association, the treasurer is charged with ensuring the financial wellbeing of…
It goes without saying that the role of the association President is wide in scope and can be difficult to pigeonhole. The ultimate goal of any Board of Directors is to increase the overall standard of living of the membership and to increase the value of the property within the association. The President is charged…
The roll of the association secretary may be a little easier to define than that of the association president, but it is no less varied. Whereas the president is charged with leading the association, the secretary is charged with maintaining the records and protecting the association from liability. An Overview of the Secretary’s Role: The…
The role of the association vice president can be wide in scope, but can also be narrow in scope depending on the particular vice president or the board of directors. The vice–president may assume additional duties as defined by the board of directors and the association’s governing documents. An Overview of the Vice President’s Role…
Capital Reserve Funds Capital Improvement Reserves are funds set aside separately to fund future capital repairs or improvements of a homeowners association or condominium association’s common elements. Capital items can be roofs, streets, sidewalks, pools, tennis courts, elevators, and other common elements. Some Membership FAQ: Why does an HOA need Reserves? Why should I take…