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 The CDs, according to court documents, were withdrawn in January 2006, and over $378,000 in reserve funds remain missing.
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…
It’s not fair, is it? Your homeowner’s association is holding a stack of overdue association dues notices, yet there your residents are, still watching their cable and using their phones. You as an association want to make a statement – send a clear message to your residents that you’re on to them and that until their dues are paid, life is not all rosy. So you decide to shut off cable service or phone service to your past-due residents. A good idea, right?
Wrong. See, most states do not allow for associations to restrict or deny its residents any amenities as a means to force payment. Oh, you want to, but oh no, you can’t. It’s about protection for the consumer, not the association. Your homeowner’s association is limited to taking only the corrective action it has set forth in writing as a means of collection. Read more…
Recent Comments