Association Insurance — Ensuring You’re Protected Insurance is a complex subject in any context, and in the realm of community associations — condominiums and homeowners associations (HOAs) — there are many bases to cover when it comes to ensuring the association, its board, manager and residents are all appropriately protected. We spoke with Robert A. …
Association Insurance: Ensuring You’re Protected Read More »
When it comes to the association’s finances, how can boards be assured they’re handling things properly? Familiarize themselves with accounting rules applicable to Common Interest Realty Associations (CIRA’s); regularly review financial statements and compare actual results to budget expectations, and obtain explanations for significant variances; engage an independent CPA firm annually to perform an audit …
How are the elements of a community defined? What determines the components of the common areas versus homeowner-owned areas? Where is it written that certain elements are the responsibility of the homeowner and others are the responsibility of the association? These issues and more are established in what’s commonly called an association’s declaration, although it …
Delinquent homeowners can affect a community in a variety of negative ways. Obviously, the association needs homeowner dues to be paid, preferably on time, in order to operate. However, there are many residual, undesirable consequences of having too many delinquent accounts. A community with an abundance of homeowners in arrears could be declined for a …
The Association’s Records Knowing which association records should be kept, where to keep them, and how to store them can help an association maintain access to important historical data. Association records should contain information that the board can use as a reference for future projects or possible evidence in a lawsuit or audit. Records are …
Board Member Elections Cultivating, nominating and electing board members is something that should always be on the minds of current board members. Politics in any arena can be tricky, but in associations it can also sometimes be difficult to find people willing to serve. Many people feel unqualified or even afraid to volunteer due to …
Violations of the United States Fair Housing Act Violations of the United States Fair Housing Act (FHA) can result in severe penalties for associations. Knowing how to govern your community responsibly in this regard is highly important. What is a common sense approach to staying in compliance with the FHA? There are generally two subsets …
What is a construction defect and what should an association do if one is discovered? A construction defect is a constructed item with a condition that deviates from the accepted architectural plans, building codes, and/or industry standards. One example would be walls that are missing vapor barriers. The first thing an association should do if …
When it comes to the association’s finances, how can boards be assured they’re handling things properly? When it comes to the association’s finances, how can boards be assured they’re handling things properly? Where should the board begin when creating budgets? What are the reporting requirements and rules for handling association funds? What are the proper …
What are reserves, and why do associations need to have them? In order to answer these questions, and provide other important details on this topic, we spoke with Todd M. Walter, P.E., PRA, RS, Vice President of Engineering at Reserve Advisors, Inc., a company specializing in reserve studies, serving clients in all 50 states and …