LandArc Winter 2013 Newsletter

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

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

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/

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

Some Facts about Labor Day

Did everyone have a great Labor Day weekend? This is often viewed as the last opportunity to have a little fun before the end of summer. However, Labor Day has a much deeper history than that. It was first celebrated in the late 19th century in recognition of the triumph of labor unions over the unfair working conditions of that time. This was during the industrial revolution, when sweatshops were common and benefits nonexistent. There were also floods of immigrants surging in from Europe and Asia, all searching for new opportunities to support their families in the New World. The triumphs of unions over the corporate empires of the late 1800s, paved the foundation for the future of America.


The future we enjoy today, in the present, is the result of Labor Day. It is because of Labor Day that we are able to set a lawn chair out in the sun, fire up the grill, and enjoy the unofficial end of summer. Instead of being forced to work long hours for very little, as they did during that time. You can’t take advantage of the amenities at your homeowners association under those kinds of conditions. You can’t spend time with your family, pursue a hobby, or do anything enjoyable if you have to work eighteen hour days and are still be unable to make ends meet. Times are difficult now, but they were even more difficult then. We owe a lot to Labor Day.


To read more about Labor Day, click on this link: http://www.dol.gov/opa/aboutdol/laborday.htm#pagecontent

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.

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. 

LandArc Newsletter to Community Board Members

LandArc HOA & Condo Management Systems

Predict Your Savings

Predict Your Savings

The Board was taking a calculated risk: Forego roof inspections and gutter cleaning for a season in order to shore up the budget. Sadly, what they did not predict was what hurt them. Those inspections and maintenance steps were mitigating potential losses such as ice dams and roof leaks, so when the claims occurred – and they did – the carrier dropped them. A new carrier will charge substantially more, and they will require that the association perform and document roof inspections and gutter cleaning.  If only the Board could turn back time…

You may be looking for ways to reduce expenses while maintaining service levels that are acceptable to the members of your Association. What if you could find a way to reduce expenses while increasing service levels? That’s the premise behind Predictive Maintenance Inspections (PMI). Insurance companies have become very stringent regarding claim approvals. In an alarming number of cases, Association policies have even been cancelled. A denied claim can be financially devastating to an Association; a cancelled policy can be catastrophic. Developed with the input of multiple insurance carriers, PMI can be used to make sure your Association has stable, reliable coverage and a greater chance of approval in the case of a claim. This premise is often backed up by an agreement to pay the insurance deductible of a customer if there is a claim on any item which is a part of the inspections.

What is the difference between Predictive Maintenance and Preventive Maintenance?

There are two main differences: First, Predictive Maintenance gives you access to savings that Preventive Maintenance programs cannot: Discounts on maintenance and contracted services, credits on insurance deductibles, and in some cases, reduced insurance premiums. Second, it’s the difference between prediction and prevention. Insurance cost is based on prediction: how likely is it that an accident will occur? The PMI program helps to answer that question by focusing on the areas covered by your insurance policy and providing data to your insurance carrier to make their predictions more accurate. We’re saying, in effect, “not as likely.” For example, ice damming causes roof leaks, interior unit damage, icicle formation and slippery walkways — it’s a common reason for an insurance claim. If we determine that blocked gutters and incorrect roof pitch are likely to result in future ice damming, these items are included in the inspection along with recommendations for corrective action. Since your insurance carrier will have access to these reports, they can remain “in the know” about the predictability of a future claim.

How it works

We assign a Quality Assurance Supervisor (QAS) to walk the site with a rep­resentative of the Board, review the items that are sources of risk to the community, and establish inspection frequencies with appropriate maintenance actions. Once the plan has been approved, a technician visits the site to per­form the inspection and maintenance activities and enter the results electronically. These reports are then posted online and available both to the Board and to the insurance carrier. Items which require special action (e.g., repair, replacement, etc.) result in electronic proposals to the Board. These inspections and reporting functions can sometimes be performed with on-site staff or a handyman, provided they have the right experience to see potential risks and a real-time reporting system to document conditions in a format that is acceptable to the insurance carrier.   

Which insurance companies are offering discounts on premiums?

A number of carriers have made official recommendations to their underwriters to provide discounts to participating communities. Other carriers, while not explicitly providing discounts at this time, have expressed their confidence that the PMI program will have a positive impact on both claims mitigation and renewal pricing.

How much versus when?

Our observation has been that maintenance and repair costs are relatively consistent, whether they are spent in a proactive manner or in response to problems. The significant difference is the impact on customer satisfaction and property values. Some communities may be willing to gamble with these factors in the hope of shaving a few dollars in maintenance expense, but that is a dangerous proposition for non-profit to engage in. Astute managers and Boards will take steps to work with their insurance carrier and a maintenance professional that can help them predict their risks, limit their exposure, and control their maintenance expenses.

  

www.landarc.com