It’s a disturbing trend and one that isn’t tracked by any government agency. But according to at least one nonprofit research group, association boards are initiating more foreclosures than previously. According to a Houston-based nonprofit research study, association-initiated foreclosures jumped from 500 in 1995 to 2,200 in 2007.
Association boards have found themselves unwilling enforcers of properties and unpaid bills. That’s in part due to the fact that of the 300,000 homeowner’s associations in the country, over 50 percent of them face serious financial problems. So says a September 2010 survey by the Community Association Institute.
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If you manage an older apartment or condominium complex, you’ve either had to or will have to deal with lead. Many buildings from pre-1978 have had to undergo removal of lead-based paint products in order to comply with federal guidelines protecting residents and their children from unnecessary lead exposure. If your building hasn’t had all lead-based paint removed, this posting is for you.
October 1, 2010 came quietly enough, but many associations and their maintenance staff may now be facing increased scrutiny from the Environmental Protection Agency. That’s because the EPA is now enforcing its lead-based paint Renovation, Repair and Painting rule. Lead paint is relatively harmless until it is disturbed. Through cutting, sanding, demolition, and other common maintenance procedures, the paint is turned to dust which is easily inhaled by adults, children, and pets. Ultimately, you are responsible for hiring a contractor that performs their duties in a way which will keep your unit owners/tenants safe during this work. By closing off the work area and completing the work carefully, contracts can minimize the danger posed. In addition to hired contractors, if you employ any maintenance workers who complete work on older buildings where lead based paint may be found, you should send your employee to a training class to stay in agreement with the law. Read more…
Donald is a board member who owns a snow removal and landscaping business. Jan is a board member as well as the owner of an insurance agency. Every year for the past ten years the board has voted unanimously to hire Donald’s company for their landscaping and snow removal. They buy their apartment association insurance policy from Jan. And both instances could be violating the terms of the association bylaws or worse, state laws.
That’s because associations are often required if not expected to keep an arm’s-length distance between their personal businesses and that of the association. If the bylaws state that the association will entertain bids for the various services, it is in their best interests to prohibit board members from submitting bids themselves. It smacks of nepotism and can set your board up for an unsightly lawsuit, one that could be waged against the association board as a whole, as well as individual members. If you’re not insured for directors and officers risks, a lawsuit could drain both association coffers and your own bank account. Read more…
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