Hot and Cold

This has been a strange year so far in terms of temperature.  On Tuesday, it was 50 degrees, fairly comfortable.  Yesterday, it dropped down to the mid twenties with snow added into the mix.  Today, it’s cold as well.   This is because the jet stream.  The flow of air that dictates weather patterns in the United States is taking an odd path, pushing cold air to the south and pulling warmer air to the north.

Based on this, it is important to keep an eye on your pipes with all the freezing and refreezing going on.  Did you know that when water freezes, it also expands?  Which is why routine preventive maintenance is necessary for your community.  This way, you can be sure that you do not experience any problems in your community that could have been prevented through routine measures.

Presentation Dinner

Now that winter is underway, it is time to think about preventive maintenance.  We can help.  LandArc is holding a presentation on Tuesday, February 26 at 6:30 pm. Among the topics that will be discussed are: routine preventive maintenance, handling delinquencies, and saving money. This event will take place at the Station 885 at 885 Starkweather, Plymouth, MI, 48170. Dinner will be included. 

Call (888) 646-9888 or email rcomins@landarc.com to register.

A drawing and giveaway will be held at the conclusion of the evening.

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

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

Community Manager vs. Outspoken Board Members

Homeowner associations can benefit greatly from the experience of a good community manager. However, many board members choose not to act on the advice of their hired community managers. This has become a big issue in some areas, such as Nevada, where there is a great amount of legislation trying to induce good behavior within communities. The legislation itself has proven to be inadequate for that task, according to the source listed below. The article also states that it is often the more outspoken members of the community who become board members, regardless of any experience in managing a community.

There is a great cost associated with ignoring the advice of community managers that is leading many to wonder what can be done about this problem. Nevada is considering more legislation to educate board members in proper procedures, but not all HOA management companies think this is the right answer. The source article states that managers often have enough trouble getting community members interested in serving their community without the added education requirement. As board members representing your community, what do you think should be done?

To view the source used in this blog post, click on the following link:

http://www.lvrj.com/real_estate/hoa-directors-should-listen-to-community-managers-177086761.html?ref=761

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

Change of Season

Fall is here!  Leaves are scattering in the wind.  With that in mind, it is a good idea to be aware of your association’s bylaws when it comes to fall cleanup.  Looking ahead to the near future, Halloween is just around the corner.  The kids are anxious to get into their carefully selected costumes to enjoy the night of autumn frolic.  While the candy is certainly good, it is also worth checking what your association permits in terms of Halloween decorations and the coveted time of tricks and treats.

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

Fall Board Review 2012

Budget Seminar Update

FYI: the date for the budget seminar has been changed to Wednesday, October 24. The time and place are still the same: 6-8 pm at the Royal Park Hotel: 600 East University Drive, Rochester, MI 48307. Dinner will be included with the budget seminar. Invitations will be mailed out by next week at the latest. If you are a governing board member at a homeowner association and do not receive an invitation by October 10 but would still like to attend, please email rcomins@landarc.com to register. We will accept registration for the budget seminar until October 15. LandArc strongly recommends that association board members attend this event in preparation for the upcoming budget season.

The Inactive Governing Board...

Individuals who live in homeowners’ associations are dependent on their governing board to enforce the law of the land as well as making decisions that affect everyone in the community. But what happens if your board doesn’t do those things? In my source (see link below) a homeowner wrote a letter stating that their HOA governing board has not held a meeting in years and does not respond to letters or inquiries. The reply to this letter stated that it is the responsibility of homeowners to prompt their board into action, because there are “no state agencies to help homeowner associations.” The response also stated that the writer of the letter refer to the governing documents for procedures and any available meeting minutes. This is the kind of situation that no homeowner should be involved with. LandArc remains in regular contact with governing boards of the communities we manage.


Click here to view my source for this post:

http://www2.tbo.com/lifestyles/life/2012/sep/16/banewso3-take-action-to-get-hoa-board-back-on-trac-ar-501116/

Free Budget Seminar

Budget time for HOA communities is upon us once again. Did you know that there are two independent budgets that are vital to the continued growth of home associations? These are the operations budget and the reserve budget. Both are the driving force behind all HOA communities. LandArc is committed to providing the associations we manage with the tools necessary to succeed. That is why we are offering a free budget seminar for association board members in about a month. This event will take place on Tuesday, October 23rd from 6-8 pm at the Royal Park Hotel: 600 East University Drive, Rochester, MI, 48307. Allow us to have a positive impact on your community.


Source: http://www.mesquitecitizen.com/viewnews.php?newsid=2848&id=77

HOA Meeting Turns Violent

An HOA meeting goes violently wrong earlier this month. Following a dispute over a fence and driveway, a homeowner comes to the meeting armed and takes the lives of two board members. Although tempers can often run high at these meetings, there is nothing that can justify taking one life let alone two. Mahmoud Yousef Hindi faces two murder charges for his actions that place on September 6th which cost the lives of 73-year-old David Merritt and 69-year-old Marvin Fisher. The dispute over the home, which has escalated over the past year, is further complicated by a court statement made by Hindi where he stated the home was not his but his children’s.

Click the following link to read more about this terrible tragedy:

http://www.google.com/hostednews/ap/article/ALeqM5gl3xZnZbxddE2ByUunQKQaYwtiLA?docId=0a59767acec441e692d6bb85bf0e8ddb

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 Woes

Residents who live in an HOA really have a high stake in the effectiveness of both their governing board and their property management company. If either one does not perform their job properly then it is the homeowners that reap the consequences. In the link below, a homeowner living in an HOA sends a letter asking what is the proper way to remove an ineffective president from their governing board. The president here arrived to a board meeting drunk and belligerent, which is no way to represent a community. The response to that letter (also included in the link below) states that a board member position should be one of little power where the board devotes their time and actions in service of the community they represent.


A second letter is included that asks about the proper conduct of a property management company. This letter and the response discusses how property managers should always act professionally by not discussing community related business in a public restaurant or excluding other members of the board in favor of one member. The writer of the response to this letter stated that property management companies lose their “objectivity,” in cases such as that.

To view both letters and their responses, click here: http://www.pe.com/local-news/local-news-headlines/20120910-hoa-homefront-presidential-problems-and-communication-with-management.ece.

Board President Steals $500,000 from HOA

The president of a Florida Homeowners Association is charged with stealing more than $500,000 from the community he was supposed to serve. While David Meadows claims that the charges are beyond his comprehension(see source below), his actions during the past four years leave a lot of questions. Money intended for the HOA community Meadows' administered went, instead, to a number of other places, ranging from Meadows’ own mortgage to businesses he used to run. And if that wasn’t enough, there’s the structure of the board itself. Instead of the traditional officers, the only board members in charge of this community were Meadows and his wife. Allegations show that Meadows did not manage this HOA, he ruled it. Due to his ownership of multiple units in the community, he controlled the votes performed. The property management company performing services to the association also belonged to Meadows. Many community owners also complained about receiving outrageous fines from the association ranging from possessing satellite dishes to having bent screens on their homes. These violations would cause Meadows to charge these homeowners $100 a day. Meadows allegedly used these fees to pay back money he owed through the companies he managed. The homeowners in this HOA can only hope that justice will be served.

Click here to view the source used in this post: http://www.newschief.com/article/20120912/NEWS/209125007/1021/NEWS01?p=1&tc=pg

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.