Insurance is a complex subject in any context 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 Scott …
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What are the steps and options for contacting and collecting on delinquent assessments? Community associations have significant weapons to collect delinquent assessments, including filing liens, obtaining money judgments, and initiating foreclosure. How does a board determine if an account is likely to be collectible? All owners are assumed collectable unless they have declared Chapter …
Should associations keep records? If so, what records should they keep? Ohio requires that association records be available for inspection, and so associations must retain their records. These include their governing documents, insurance documents, legal documents, tax records, financial and accounting records, meeting minutes, employee benefit records, contracts, and warranties. What records are associations required …
What is a common-sense approach to staying in compliance with the Fair Housing Act? Association boards must always be careful to not discriminate based on the protected classes. In addition, compliance with the Fair Housing Act in most instances requires a careful examination of a given set of facts and circumstances. A common sense approach …
Importance of Reserve Studies 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, LLC, a company specializing in reserve studies, serving clients in …
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. …
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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 …