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

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

Too Much Water Used in HOA Communities?

With drought striking so many areas in the United States, many communities, particularly those located in the south, are hard pressed to meet their landscaping needs. An article in a Florida newspaper raises the issue that HOA communities are using too much water. It further discusses Florida’s stance of water usage and over usage. An HOA resident brought up the difficult question of civil penalties for excessive water use versus landscape document requirements. For more information about this subject, click here.

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.

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!