Tough economic times often force tough economic decisions for apartment and homeowner associations. Board members, eager to trim expenses, will often look to insurance policies for ways to decrease coverage and lower premiums.
Too often associations have claims denied because the coverage they once had was dropped due to budget concerns. Also, many association boards failed to understand critical elements of their policies, leaving them with unnecessary or unknown gaps in coverage. The most common areas that cause trouble for associations include: Read more…
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.
Read more…
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…
It’s the economy, stupid – that decade-old statement could have been written about what apartment and condo associations are facing today. With too many associations trying to deal with record numbers of owner foreclosures, association boards are desperate for a solution. That may mean relaxing standards that in the past were meant to protect property values.
Most apartment associations have rules that prohibit or limit greatly the ability of owners to rent their units. The strong argument has always been that the unknown variable – the tenant – could be a detriment to the value of the property as many unit owners in the past have been reluctant to live in a mixed-use community. However, with so many empty units and so much financial strain on both apartment associations and homeowners, flexibility is the new buzz word of the industry.
Read more…
Community association boards often waver between doing what’s expected of the community per the bylaws and what’s right to do. Case in point – pets. Many communities prohibit pets for obvious reasons: the noise, the smell, the additional stress on the lawns and property, etc. But holding a strict line could land your association in legal hot water.
That’s because some homeowners require the use of service animals. Seeing-eye dogs are the obvious exception to your board’s rules. And the exception should be made, because to deny a disabled person the right to animal assistance is in direct violation of federal and state disability legislation. But some pet owners are going to great lengths to claim disabilities in order to keep pets that wouldn’t otherwise fall under the definition of a service animal. What about a service monkey to assist the disabled, or a guide horse for the blind? It’s an area of the law that lacks clear definition, and while the Department of Justice has a proposal pending that would exclude exotic animals (such as snakes or other wild animals, there’s no clear legal precedent to follow.
Read more…
Recent Comments