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. 

HOA Conspiracy Busted

In an unfolding fraud scheme involving Las Vegas Valley homeowner associations, a former construction manager has pleaded guilty to fraud.  Dax Louderman is one of  28 defendants in this case who were involved with this HOA conspiracy.  More than $8 million dollars was funneled through secret bank accounts to contracts with various HOA communities.  These contracts ranged from construction to landscaping to community management contracts.   The conspirators are also accused of using election rigging and various other tactics to get people into HOA boards who then awarded them with contracts.   There were a total of eleven HOA communities that were targeted in this conspiracy.

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

http://www.lvrj.com/news/construction-manager-pleads-guilty-to-conspiracy-in-hoa-probe-183527641.html

A New Way to Connect

Sometimes, the best way to learn about a community is to talk to the people living there.  Del Webb is now offering that option on their website.  Prospective home buyers can now see reviews living in Del Webb communities to get a first hand explanation of what it is like to live in that community.  Through the power of the internet, shoppers have access to a vast wealth of knowledge which they can view before making a purchase decision.   Del Webb’s new feature on their website makes this easier than ever.

For more information, click on the following link:

http://www.cnbc.com/id/100384156

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

Delinquency Tips

Delinquencies.   This one single word causes every homeowner association board member to shudder.  And for good reason.  In the current economical environment, money is tight for everyone, but when homeowners fall behind on their payments, the entire community suffers.  Even those who stay on top of their payments are forced to make sacrifices to fill deficit gaps caused by delinquencies. 

According to the source listed below, the best way to keep an HOA community running smoothly is to have clear, decisive delinquency policies.  By applying a concrete, uniform policy situations caused by delinquencies are kept fair for everyone.  It also helps to have an experienced property manager to help collect delinquencies.  LandArc has long experience in taking appropriate measures to handle homeowner delinquencies. Collection agencies have proven very effective partners in this process, and attorneys are also needed in select cases. 

For more information about this topic, click on the following link: http://realtytimes.com/rtpages/20120919_hoadelinquencies.htm

Tips for Snowbirds

Every winter LandArc deals with emergencies where the owners have left for the winter but have not properly winterized their units. If you plan to head south for the winter, please review and follow these guidelines:

• Set your thermostat no less than 50 degrees. Any lower setting could cause frozen pipes and devastating damage.
• Draining the water heater and shutting off the water will serve as an extra measure against burst pipes.
• Winterize all exterior spigots by removing hoses, turning off the water, and draining the spigot from the outside.
• Leave a key with a neighbor and let LandArc know who to contact in an emergency.
• Keep doors open throughout the house to ensure heat gets to all areas of the house
• Keep cupboards doors open below sinks where plumbing lines are located

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.

Holiday Tidbits

Just a couple more things to keep in mind with Christmas just around the corner: if you are holding a Christmas party, it is important to be considerate of your neighbors.  Keeping party noise under control makes the holidays fun for everyone.  Also, when it comes to family gatherings, educate your guests on parking rules in your community.  As always, have a fun and safe Christmas season.

A Message to Homeowners

Here are some things that homeowners should keep in mind with snow and cold weather rapidly approaching.  HOA residents should be aware of your associations' stance when it comes to snow removal, as well as holiday decorations.  By researching what is permitted ahead of time, homeowners would be able to avoid fees associated with misconduct and everyone will be able to enjoy this wonderful time of year.

LandArc would like to wish everyone a joyous holiday season!

HOA Considers Lawsuit

Homeowners in Fairies Farms, a North Carolina HOA, are considering a lawsuit against their former HOA management company, Carolinas Association Management, for mishandling money paid by homeowners.  According to the source listed below, Joe Patterson, president of Carolinas already has a shady history as a property management professional.  

Patterson’s license as a real estate broker was revoked in 2001 by the North Carolina Real Estate Commission.  Three years later, he was able to get that license back.  Patterson claimed that he only charged the fees to homeowners because the association board told him to.  The board denies this.   Residents in Fairies Farms simply want to know what happened to their money.

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

http://www.wsoctv.com/news/news/local/charlotte-homeowners-ask-hoa-management-company-be/nTLxJ/

HOA Couple Files Lawsuit

One of the biggest concerns for property management companies is keeping up with delinquent payments from homeowners who live within the associations they manage. However, despite the pressure to obtain payments, ethical practices should always be followed. A young couple who are homeowners in an Arizona HOA recently filed a class action lawsuit against their property management company, alleging that they had been charged illegal fees in addition to the amount they owed to their HOA.

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

http://www.azfamily.com/news/consumer/Class-action-lawsuit-filed-against-some-Arizona-HOAs-179719631.html

Del Webb Residents Making a Difference

Following the trend of active lifestyle living, many Del Webb residents have become the “new seniors on campus” by devoting much of their time to volunteering in schools. According to the source listed below, nearly 70% of Del Webb communities have reported an increase of volunteers within their communities in the past three years. Many residents have stated that they find a sense of “increased fulfillment” when asked about their volunteer efforts in educational facilities. As the leading builder of active lifestyle communities, Del Webb has seen many examples of their residents getting involved with causes to make the world around them a better place.

Click on the following link to read more about this topic:

http://www.wdrb.com/story/20096676/the-newest-seniors-at-schools-around-the-country-are-volunteers-not-students?clienttype=printable

HOA Chain of Command?

Here is a useful link that explains a bit about the chain of command in a typical HOA community. The writer of this article refers to the chain of command as a network. This network has the HOA’s community manager in the center because it is the manager that keeps most of the records in the association. Not because the community manager makes all of the decisions for the association. Also included in this web is the Board Of Directors and whatever vendors might perform services within the community. The article also offers great advice for homeowners who live in HOA communities. For example, an home issues should be reported to the property management company rather than the vendor or the board of directors.

Also, the writer of the article advises homeowners to not allow a violation to reach a boiling point which could negatively impact all homeowner’s within an HOA. Finally, the writer of the article encourages homeowners, once again, to communicate with the community manager rather than with the board of directors or the community vendors. While the latter approach might seem easier, communicating to a community manager, such as LandArc, is the best way to ensure that problems are handled in an efficient manner with proper record keeping.

For more information, click on the following link:

http://www.mesquitecitizen.com/viewnews.php?newsid=3309&id=77

LandArc Fall Newsletter 2012

LandArc Fall 2012 Board Review

National HOA Bank Acquired

First Associations Bank (FAB) serves the financial needs of HOA communities. The Texas company has served communities across the United States since 2007. FAB announced a few days ago that they had entered into an agreement with Pacific Premier, which will acquire FAB. Following the acquisition, FAB will operate as a division of Pacific Premier. For more information, click on the following link:


http://www.heraldonline.com/2012/10/15/4338456/pacific-premier-bancorp-inc-announces.html

Disruptive Homowners at Community Meetings

Meetings at homeowner associations are the driving force behind progress in an HOA community. This is where decisions are made. An HOA with disruptive meetings is a community that is not achieving the full growth they would otherwise. While homeowners might not always follow rules in an HOA, often homeowners can attend governing board meetings. If these homeowners disrupt the forward progress in a meeting, what can be done? One way includes wording the bylaws in a way that prohibits disruptive homeowners from attending meetings.

For more information on this intriguing subject, click here:

http://www.marketwatch.com/story/kane-property-management-in-hoa-meetings-order-is-key-2012-10-10

HOA Woes

Often HOA communities are situated very near to other homes. These homes are not part of the HOA, so they do not fall under the jurisdiction of the community board and the governing documents. What happens if a member of the HOA has a problem with the adjacent household that is not a part of their community organization? Can the board do anything if the non-member homeowner is too loud or disturbs HOA homeowners in other ways? The stark reality is that the governing board often can’t do anything about that. If it is another HOA community, then a homeowner should contact management of that organization. If not, then call police, or if necessary, animal control.

For more information, click here:
http://www.lvrj.com/real_estate/neighbor-over-the-wall-is-not-in-the-community-172950011.html?ref=011

Work and Travel: A Retirement Balance

Baby boomers who are making the transition from working to retirement life have no desire to stop doing the activities they love most. Many are continuing to work past retirement age for various reasons. At the same time, this work continuation is balanced by travel. Now that many baby boomers have spent more than thirty years generating income, they have decided that the time has come to start ticking items off of that bucket list by traveling. To read more, click on the following link:

http://www.delwebb.com/newsfeed/Boomers-balance-working-retirement-with-travel/800864010.aspx

HOA Parking Concerns

The link included at the end of this post introduces an interesting question. Homeowner associations are communities with set rules that ensure an equal and tranquil life for all homeowners who live within those communities. What can a governing board do if there are regulations in place that cannot be enforced? In this case, the issue of parking illegally was brought up. A board member wrote a letter to a newspaper and stated that their current management company cannot enforce the parking rules because it is “private property.” The answer to this letter stated that registering vehicles of residents who live in this community is a possible option. To read more, click on the following link:


http://www.lvrj.com/real_estate/some-hoas-require-owners-to-register-cars-171916351.html?ref=351