Governing Board Duties Increasing

As many cities, including Detroit, experience financial difficulties, some homeowner associations have assumed control of various duties for the associations they serve.  The nature of HOA communities has shifted to include property maintenance, trash collection, and other duties that were once performed by local governments.  As a result, it is becoming increasingly difficult for board members of HOA communities to take care of the day-to-day operational tasks of managing the communities they represent.  According to USA Today, 75%-85% of HOA communities perform their day-to-day activities with the assistance of an experienced property management company, while the other 15%-25% are still self managed.  

As the residual effects of the housing crises continue, governing board members of HOAs are required to take on more and more responsibilities.  This ranges from daily operations like dealing with contractors, bookkeeping duties like paying invoices, and collecting delinquent association fees from fellow members  These tasks can prove to be daunting without the assistance of a professional management company, such as LandArc.

Click on the following link to read more:

http://www.usatoday.com/story/money/business/2013/03/03/hoas-pick-up-duties-left-by-struggling-cities/1960671/

Snow Removal FYI

In light of the snow storm which will hit Southeast Michigan today, LandArc would like to inform our customers that we will do everything possible to ensure efficient snow removal.  Our strong working relationship with our vendors ensures that the job is done.  As you are most likely aware, we are expecting to get 5-7 inches this afternoon and evening, although it seems like we may receive less. 

As stated in our contract, “in the event the continuing snowfall exceeds 4”, the contractor shall immediately plow out driveways and roads to facilitate ingress and egress from the site, and then complete the remaining areas as designated in this contract.”  We would also like board members to be aware that snow removal will commence no later than four hours after snow fall has reached the level stated in the contract between your association and your snow vendor.  If snow accumulation continues, the vendor has within four additional hours to clear and within 24 hours to clear areas that were inaccessible initially or where snow has drifted.  We ask for patience while our vendors strive to keep up with the needs of our communities. 

2013 Winter Board Review

HOA Self Management?

As we begin 2013, many can only hope that his year will bring better economical conditions than previous years.  In the recent recession, many businesses have survived only by drastically cutting costs.  However, where homeowner associations are concerned, self management is not the answer.

In an article titled “The Myth of HOA Self Management,” the author states that the myth of HOA self management was started in the 1960s by developers which stood to profit from the decreased costs of self management.  As many HOA boards went forward with self management, they found the path of self management full of pitfalls and dead ends.

An unhappy truth of HOA Management is the need to collect delinquent payments.  This requires a high amount of diplomacy and very thick skin.  How many board members want to walk next door, knock on their neighbor’s door, and tell their neighbor that they are behind on their association payments?  What kind of community environment does that create?  Is it worth the money that might be saved?

The article went on to say that “…the two most emotional reasons that even the smallest HOAs should be professionally managed: Money and Rules. No neighbor should have to collect money from or enforce rules on another neighbor since the actions are predictably confrontational.”

LandArc has more than 25 years of experience in the property management industry.  This experience simply cannot be matched by volunteer boards of HOA communities.  Within the last year, LandArc has proven our excellence in crisis management when one of our communities was damaged in a tornado last year.  Our response to that situation gained us the business of a neighboring HOA community.  What board member would be able to handle managing the cleanup and reconstruction of not only their own home but their neighbor’s homes as well?

Self management is not the answer to reduced costs and will lead to more headaches.  To read more about the myth of HOA self management, click on the following link:

http://realtytimes.com/rtpages/20020123_selfmanage.htm

Man Charge with Embezzling from Condo Associations

The Chief Financial Officer of Total Realty Services has been accused of embezzling more than $560,000 from a number of condominium associations in Florida.  Roberto Velez had taken the funds from 10 associations over a period of three and a half years.  Velez deceitfully breached the duty owed to those communities as the individual in charge of money intended to benefit the residents living in those associations.  

The Pinellas County Sheriff office has charged Velez with grand theft. 

This unfortunate incident underscores the importance of community associations getting actual copies of their bank statements each month. LandArc has made it a practice to include bank statements and detailed reconciliations for each account of its customers, even multiple reserve accounts or checking accounts in some cases. 

Click here for more information about this unfortunate situation.

Conflict of Interest

In the link below, two different HOA board situations in the state of California are discussed. Both scenarios display evidence that the HOA board is not acting in the best interest of the communities represented. In the first scenario, a board president had gone through five management companies in four years and was now considering the prospect of paying himself to manage the HOA. This situation has conflict of interest written all over it. While the details of this situation are not disclosed (see source below), it is clear that the president of this HOA is prepared to step outside of the bounds of his authority. The second scenario is much shorter, but also displays a conflict of interest. In a bid proposal, a board member passed over lower priced proposals in order to secure a proposal with a company the board member was associated with. This is clearly not in the best interest of the community this board member serves. It is an outrageous display of the abuse of one’s position.
Click here to view the source used in this post: http://communityassociations.net/cacondoguru/?p=509

Community Receives Recognition

The city of Cary has spoken. Residents in the North Carolina town who read the Cary News determined that Del Webb Carolina Preserves is one of the best new communities in Cary. Carolina Preserves receives its property management services from LandArc, which certainly contributed to the award decision based on our unique property management system. LandArc manages Del Webb active lifestyle communities in both Michigan and North Carolina. Click here to see Carolina Preserves and the other winners of the Best Of Cary awards:



http://shopping.newsobserver.com/SS/Page.aspx?sstarg=&facing=false&secid=122143&pagenum=1&artid=1823996#1823996

To view this image in greater detail, click here: http://shopping.newsobserver.com/SS/Page.aspx?secid=122143&adid=2731259#2731259

Grand Opening of Del Webb Amenity Complex

In recent weeks, Del Webb Sweetgrass celebrated the grand opening of their 27,000 square foot Lakehouse amenity complex. This active lifestyle community was the first to be constructed in the Houston Metro area. The grand opening event will take place Saturday, September 8th from 5pm-8pm. Some of the flavorful amenities offered at the Lakehouse are: a recreation and fitness center; outdoor and indoor swimming pools; small arenas for sports such as tennis; and many more.

Del Webb Sweetgrass opened 18th months ago to support the large number of baby boomers who are becoming senior citizens. There is surely a great future for Sweetgrass and all the other communities that promote active lifestyles for the aging American majority.

To read more about this event, click on the following link:

http://phx.corporate-ir.net/phoenix.zhtml?c=147717&p=irol-newsArticle&ID=1727364&highlight=

Could This Happen in Your Community?

The regulation differences between states can often be difficult to follow, especially if you live in an HOA community that receives services from a different state. Issues can also arise from conflicts of interest between public organizations and HOA communities.
Here is a recent instance of a legal dispute between a public organization and an HOA community: a property in Virginia has a gravel road winding right through the center of their land. Three years ago the owners barred public access to this road. An action that caused a non-profit public organization to file a lawsuit against the property owners. The dispute here was whether the road running through HOA community was public property by right. For information about the particulars to the dispute, click here: http://newsmanager.commpartners.com/cailaw/issues/2012-08-15.html
At first, the property owners were ordered by a trial court to remove the gates barring public access to the road. However, the HOA community appealed to the State of Virginia Supreme Court, which found fault the trial court’s decision and reversed the previous ruling. This barred public access to the road running through the property of the HOA community once again. Is this something that could happen in your community?

Survey Shows High Satisfaction in HOA Communities

As indicated by a recent survey, the majority of homeowners in homeowners associations are satisfied with their communities. Since the times are tough and many homeowners’ have found themselves in hot water, it is impossible to please everyone who lives in home owners associations. However, the number of dissatisfied HOA members reflected in this survey are very low, less than ten percent, while more than seventy percent have claimed they are satisfied with their HOA communities, and approximately twenty percent are neither satisfied nor unsatisfied. Through all indications, it would seem that HOA boards are doing a sufficient job at managing the communities they are responsible for. Click here for more information about this survey.

Would you say that the results to this survey are accurate? Leave any comments you might have in the space available below.

Del Webb Cooks for the Cure

For more than fifty years, Del Webb has been America’s leading builder in active lifestyle communities. July through October, Del Webb residents will be putting their cooking skills to the test in order to raise money for the Susan G. Koman foundation to fight for the cure. There are a number of culinary activities at the events to raise money, as well as many KitchenAid prizes that are featured. Events will take place at more than 30 Del Webb communities across the nation. Look for a Del Webb community near you and help to fight for the cure.  For more information, click here.

What's Your Favorite Amenity?

A big question for those searching for a home in an HOA community is what kind of amenities are available.  Whether you have lived in your community for a long time or are considering a move in the near future, amenities are probably on your mind.  What would you say is your favorite amenity at your HOA community or what amenities are you looking for while selecting a community?  Post your favorite amenity in the comment box below.

The Club at Cresswind

We are privileged to be a part of active lifestyle communities like Cresswind where beautiful amenities and excellence abounds.  Here are some photos of the new clubhouse and our Georgia management team.

Tornado Hits Us Hard In Dexter

LandArc developed a Severe Storm Action Plan for our communities years ago.  Unfortunately, we had to use it last week.  The Tornado that ripped through Dexter, Michigan found its way through the heart of Huron Farms, destroying a number of homes and leaving a wake of debris that spread throughout the surrounding area.  Our team immediately jumped into action, assisting with the cleanup effort, guiding owners through the insurance claim process, and working with local officials to help manage the restoration process.

Few management companies have the capacity to deal with issues of this magnitude.  Fortunately, our maintenance operation and expertise allowed LandArc to be a valuable resource to a community in its time of need.  We never wanted this kind of catastrophe to test our capabilities, but we didn’t hesitate when it became necessary.  We were even asked to provide input to Dexter about their recovery plan.  In the words of a local official, “You manage communities larger than our entire village.” 

Although the work of property management can be mundane, the opportunity to make a difference exists in the unforeseen and our ability to deal with it.  Our heartfelt sympathies and prayers are with all of those affected by this disaster.  We are so sorry for their loss and working hard to make it a distant memory.  The motto that appears on our literature says it best: “Serving Your Community – Protecting Your Investment”   Today we did more than just say it, we proved it. 

Builders: How to Hit a Moving Target

Controlling expenses for the condo or HOA is tough during the sales and construction period.  The disclosure or “at full” budget is of little value during the sales and construction period, yet many managers rely on this budget for their financial reports.  Using this budget in your income statement prior to the community reaching completion gives a false sense of security.  Of course you’re under budget on everything… the common elements are only partially complete! 

LandArc has a practice of creating annual operating budgets in partnership with our builder/developer customers.  These budgets forecast anticipated additions to the common elements, projected sales, and expected deficit funding requirements.  This is an essential tool for managing the developer’s funding obligations throughout the sales and construction process.

After an annual operating budget is adopted, LandArc’s systems produce a monthly update that contrasts cash against the forecast.  This system tracks revenue and expense projections against reality and recasts the expected deficit for the year.  This is a sophisticated piece of software, not a manually updated spreadsheet, but it is invaluable in creating accountability for association expenses throughout the sales and construction period.

LandArc Newsletter to Community Board Members

Success Stories

Whenever we have a victory at LandArc, we call it a Success Story.  Celebrating our accomplishments and the success of our customers helps encourage our staff by seeing the fruit of their labor.  The attached letter is a nice one that deserves special recognition.  This community came to us just over one year ago with a number of challenges.  We recently held their annual meeting and celebrated a number of accomplishments, such as getting a quorum for the first time (ever!), increasing their reserve fund by $100k, and reducing delinquencies by over $65k. 

Much can be accomplished in a short time with the right priorities and a committed team!

LandArc HOA & Condo Management Systems

Auto-Approval Forms - Fast, Easy & Efficient!

Auto-Approval forms at LandArc.com have grown in popularity since we introduced the concept in 2005. This service offers immediate approval for standardized architectural requests, such as installing a satellite dish, while insuring that the request complies with your governing documents.  You can see an example at www.landarc.com/unique.

Our experience shows that Auto-Approval forms increase customer satisfaction and dramatically improve efficiency for basic community operations. So be sure to encourage your association members to check the auto-approval forms before they submit their requests.