The bills still have to be paid, recession be damned! Yet too often condo associations straddle the line between collection and having their late fee charges deemed unreasonable in an attempt to collect late association fees or other property-related bills.
Associations are allowed to charge reasonable late fees. But the definition of reasonable, and the frequency and application of reasonable, could land your association in hot water should you not lay out your terms from the start. Late fees should not outpace the amount due, nor should they be so high that collection becomes impossible. Many associations assess a $25 late fee, which meets the reasonable criteria.
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When does your association make an exception to the restricted building or property access regulations? When the government is doing the asking.
Once again, the government is ramping up efforts to tally the country’s population. With the 2010 census about to get underway, the US Census Bureau is asking apartment and condo associations to help them reach as many residents as possible. Since participation in the census is a federal requirement, associations need to determine how census workers will gain access, especially in secured facilities. Read more…
As an apartment or condo association, your board has to make some tough decisions. One of the toughest – what property management option to choose. And anyone who’s been put through the paces by an incompetent or untrustworthy manager understands the risk the wrong choice can be.
Take the example of Ohio-based condo association Lakewood Condominium Association, which is suing their property management group on allegations of stealing over $830,000 and allowing overdue association bills to go unpaid. The property management group is charged with, among other things, lying about the association having over $217,000 in CDs in the bank. The CDs, according to court documents, were withdrawn in January 2006, and over $378,000 in reserve funds remain missing.
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The idea for the Federal Housing Administration’s new rules and enforcement was to allow for more buyers to qualify for FHA loans, thus increasing business for condo and apartment associations. But how good is it?
In fact, realtor associations and builders groups are opposed to the new rules, stating that the FHA has just made it that much harder for new building projects to be delivered and for existing apartment and condo complexes to qualify for the federal lending program. Apartment and condo associations agree. One section of the new FHA rules limits how many buyers of condo and apartment units can get an FHA loan. And the rules limit the number of FHA-backed loans to half of the existing units in a building.
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Recovering from Embezzlement Nothing’s worse for business than when a board member or staff member of your homeowner’s association absconds with funds. While your association insurance policy may cover the loss (if you were wise enough to carry employee theft or directors and officers coverage), how do you recover from the publicity and loss of confidence of your residents?
The larger issue may be a depletion of funds available, but a sound insurance policy can help your association recover more quickly. The underlying issue, however, could be more harmful in the long run. In order for an embezzlement to occur, at least in the minds of your residents, someone had to be ignoring something. True? No. But getting beyond that perception can be difficult, if not impossible. Read more…
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