The more common areas of concern are those pools, tennis courts, walkways, and parking areas. But associations should look deeper into the property and locate maintenance issues before they become large setbacks. 

Five areas to consider:

Foliage. It’s not just the trimming and care of your property landscape that should concern you, but also the types of plants and trees. Some species are prone to disease. That can create epidemics of insects and infestations that can kill off much of your expensive landscape plants. Check for white fly infestations, which can spread to all plants and destroy pricey shrubs. Also, learn what types of trees are on the property and what diseases are currently attacking them. For example, ash trees are experiencing an emerald wood borer outbreak that’s deadly to the tree. A dead tree is a hazard to buildings and people. Remove any trees for which you cannot take preventative measures.

Energy use. It doesn’t hurt to get an energy audit to understand where your association and resident units are losing precious energy. Call in your local utility companies to inspect the property and make recommendations that could save thousands.

Foreclosures. Sure, it’s not up to the association to take care of units not belonging to them. But to protect the overall value of the property, consider doing basic maintenance and lawn care in and around vacant units.

Periodic maintenance. Most associations create a schedule of regular maintenance, but if you see something broken or rotted now, replace it. It could halt further, more costly damage or injury.

Animal damage. Nooks and holes in building facades are great hiding and nesting places for birds and animals. Make sure to eliminate any unwanted residents by repairing holes and closing off areas where squirrels and birds could nest.

Photo credit: j-ster

 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.

 So how do you as a board, decide who in your community is in need of a service animal and who isn’t; what type of animal is considered a service animal and what isn’t. And more importantly, can you legally make those decisions? While your community association may not be comfortable defining what constitutes a service animal, you may be able to put parameters on that animal’s interaction with the rest of your community. For example, if a resident claims that he needs his pet raccoon to reduce his stress levels, your board could require that the animal not come within say 500 feet of another resident.

 Community associations should consult with a legal expert to address the issue of service animals. Find out if your state allows for your board to require proof of disability, as well. Check also with your insurance broker to understand what policy requirements you must meet in order to maintain proper coverage.

Has this been an issue for your association?  How did your board handle it?  Do you agree or disagree with their decision?

 Photo credit: The Guide Horse Foundation

Flickr Photo Credit: MeijerGardens

It takes just a cursory glance at the news to realize that many organizations have been victims of crime perpetrated by their employees or board members. Tales of treasurers absconding with funds, board members accused of bid rigging, or groundskeepers pilfering equipment abound. There are also numerous incidents of residents, property visitors, or neighbors causing damage or stealing property. There’s no excuse – condo and homeowner associations need crime coverage.

While typically associations purchase fidelity bonds – coverage that responds to employee embezzlement, forgery, or theft – this coverage does not respond to the acts of outsiders not covered specifically under the bond. Also not covered is theft of a client’s property while in the association’s “care, custody, or control.” So if association fees paid are stolen by an outsider from the company vault, fidelity bonds will not respond.

However, most insurers offer optional insurance to cover crimes not covered on fidelity policies. They include:

• Computer fraud
• Extortion
• Forgery/alteration
• Client property liability
• Robbery/burglary
• Theft, disappearance, and destruction

Even with such coverage, policies often limit the amount of loss covered. For example, if a visitor to the property is stealing cars over a 2-year period, some policies will cover the acts, but possibly only to the limits on the current policy. In other words, if the theft amounts to a total of $2,000,000 and the policy limit for the current year is $1,000,000, the insurer may only pay up to the $1,000,000 limit. The previous year’s losses may have to be absorbed by the association. The same holds true for acts committed under a fidelity bond.

Do you know if your association is covered?  Let’s talk and find out what limits exist on your current coverage.