A portion of your association fees are applied towards our community’s insurance requirements. Have you ever pondered the sort of insurance our community association requires? The following is an outline of the various sorts of insurance ordinarily on offer to associations.
Our association doesn’t use all these kinds of coverage; but they’re obtainable should we need them. The board and manager operate in close concert with the association’s insurance professional who knows our particular requirements.
Property insurance. The majority of coverage types are founded upon property insurance. It protects every building, structure, and personal asset held by the association, encompassing common property, parks, woods, open spaces, and recreational facilities, and occasionally incorporates parts of residential areas.
General liability. Besides safeguarding physical property, our association holds commercial liability insurance. Contrasted with property damage, which can frequently be measured in dollar amounts, liability claims have no constraints beyond those ordered by courts.
Auto (owned, non-owned, and hired). Associations with workers who operate cars, trucks, or maintenance vehicles on association property or at other locations while taking care of association matters require auto insurance.
Directors' and officers' liability. Boards are volunteers making and effort to assist their communities, but as the old saying goes, “No good deed goes unpunished.” So, even at those time boards behave properly and apply good judgment someone may still lodge a lawsuit asserting wrongful firing, sexual harassment, prejudice, or mishandling of funds, to list a few frequently-encountered suits.
Umbrella liability. This sort of coverage fills some of the holes left by other kinds of insurance policies. No basic umbrella policy can be had, so the association works jointly with our insurance specialist to customize a policy suited to our particular requirements.
Workers’ compensation. This insurance—which most states demand—offers compensation for workers who get hurt while doing work for the association.
Terrorism. Insurance providers are currently compelled by law to provide coverage for confirmed acts of terrorism. An “act of terrorism” is generally given to mean any violent deed that is injurious to life or property with the goal of altering a population's behavior, with compensation adding up to at least $5 million.
Mold. Destruction caused by mold is omitted from the majority of standard property insurance policies, which lean towards giving coverage for destruction that is immediate and unintentional but don’t usually provide for the price of home cleaning and maintenance.
Summer is coming, but prior to taking pleasure in the sunshine, you need to ensure you’re ready for rainy days. Begin by reinforcing your homes and buildings against drainage problems.
Roofing. Biannually, ask a licensed service provider to clear away all leaves and refuse from your roofs and gutters. Certify that the water clears out correctly, not just at flat roof drains and scupper drains, but additionally on sloped roofs, surrounding flashings, and any spots where water is guided when it is raining heavily.
Windows and doors. Make a point to vacuum your window and sliding-door tracks on a regular basis. Leaking frequently happens at the bottom corner seams of windows and sliding doors when debris gets stuck.
Stucco/siding. Waterproof gaps around every wall opening — hose bibs, light fixtures, windows, and doors, while taking care to leave the release flashing untouched.
Decking. Clear your deck of leaves and other matter. Patio-deck drains are usually tiny, which makes it easy for just one big leaf to clog the drain.
Notify the manager if you want suggestions for trustworthy providers or more info on drain upkeep.
Invariably, at various times, community guidelines are broken. When this occurs, the association notifies residents about the matter and pursues what is called due process procedure. In simplest terms, this means that the association always informs residents of supposed infractions before at all acting. We give printed notice elaborating on the possible guideline infraction and request that residents resolve the issue on their own by a precise date. These notices also describe any action the association may pursue if the infraction isn't resolved. The association appreciates that circumstances are sometimes other than they appear. So, whenever we issue notices to residents, the board wishes to hear the resident’s side of the story. We can schedule board meetings with residents before enacting any type of discipline. In fact, enacting discipline isn’t our aim at all! It’s more vital that residents adhere to association guidelines for the benefit of all community members. These meetings afford residents and the board a chance to converse about guideline infractions in a non-formal manner and achieve resolution. When they’ve had the opportunity to converse with a resident about a guideline infraction, board members will debate the matter among themselves and make a determination. Residents usually get the board’s determination in print within the space of 10 business days. For those who might take issue with the decision, the association provides a means to file appeals.
Specific costly usual components must be replaced at intervals of 10, 15 or 20 years. One aspect of budget preparation is to calculate the amount of money the association needs to put aside this year to ensure we have the required funds when new concrete or hot water heaters need to be installed. To ensure that we evaluate as precisely as we can, we collaborate with a reserve specialist.
The reserve specialist will do a review that will give the board direction on how to prevent our association’s physical holdings from declining more swiftly than our financial assets grow.
The reserve specialist will go around the community to look it over and write up reserve study for the association. That report will contain an account of all common area elements, suggestions on what needs to be renewed and at what time, what the renewals will cost, and a scheme for defraying costs.
The reserve specialist picked by the board has the proficiency and background to correctly assess the life spans of our basic elements and will help the board evaluate the price of repairing or replacing them.
The reserve specialist is also skilled at examining the financial capital required to keep up the basic elements over time and will give the board recommendations on how to balance the total reserve fund against the decline of the basic elements.
Since the community’s physical holdings are in a constant state of decay, the steering of a reserve specialist will aid the board in defending those holdings and maximize the appearance of the community constantly — and that aids in maintaining our property values!
Dogs left by themselves for the whole day experience boredom and listlessness, and quite a few ease their frustration by barking. A number of them react loudly to every disturbance. Indeed, there is no irritant as bad as constant barking, even for those who love dogs. If your dog exhibits yapping or yowling behavior, please give regard to a few of these bark-reducing options for reducing noise in your area. Your neighbors will appreciate it!
- Training. Consistently the top suggestion for all behavioral issues! Aid is as near as the Yellow Pages. Training, in addition to benefitting your dog, will surprise you in how greatly it benefits you as well. You may learn a bit as to what is causing your dog to bark excessively, or what it is trying to tell you.
- Citronella collars. A kinder substitute for electric-shock, anti-barking collars for a comparable price. These can be bought online or in pet supply shops.
- Confinement. At times, merely taking a vocal dog inside or restricting it to a crate can diminish the ruckus for neighbors.
- Reduce stimulus. Draw curtains to aid in quieting street noise, or play a radio on to hide it. Unplug/mute phones and doorbells before departing your home if they unsettle your dog or trigger barking.
- Companionship. Being that they are pack animals, dogs require company ó a cat, bird, or another dog. Mull over a mid-day visit by a pet sitter, or leave your pet at a friendÃs home or a day-care compound one or two times a week.
The association has a set of guidelines and restrictions that we urge you to follow so all of us can keep up the worth of our property and quality of our lives. We constantly attempt to be fair with our guidelines by following the protocol below. If you consider a guideline to fall short of being reasonable, inform the board at the next meeting. We’ll judge how we can make it better.
- We make every attempt to apply guidelines evenly and to consider the repercussions.
- We believe setting guidelines only for their own sake is pointless. The association sets guidelines only on an as-needed basis.
- All our guidelines are founded on appropriate sources — either our ruling documents or state or local code.
- We don’t set guidelines to restrict your actions. We’re making an effort to make certain that all residents can take pleasure in the community free from the troublesome or hurtful actions of others.
- It is not our desire to discipline anyone. We make an effort to set rules that foster awareness and observance.
Community associations provide one of the finest avenues for home ownership to Americans. They are the 21st century equivalent of 19th century land assignments, and what the New Deal and GI Bill represented in the 20th. How so? Collective Management Protects Value Americans have largely embraced the group management framework of community association living. Agreements and guidelines have ceased to be a novel idea to most of us: renters are accustomed to rental agreements with limitations; single-family, detached-home owners are well acquainted with zoning laws and building regulations. What sets these apart from traditional single-family housing is that limitations are overseen by public committees instead of private boards.
Most Americans have embraced private administration since they appreciate that collective management and architectural controls shield and improve their homes' worth. Privatizing Public Service Allows Growth Any time a new community is set up, local infrastructures are strained. Student populations, snow clearing, storm water oversight, road maintenance, utilities, traffic, and other factors grow, making the local jurisdiction powerless to sustain new community improvement. Still, housing is desperately needed. Thus, local jurisdictions frequently demand that community associations take on much of the obligation that was historically the domain of local and state government.
This process of turning public services to private has enabled local jurisdictions to go on establishing necessary housing without growing local taxes. Alternatively, the developer has to construct the community framework and set up an association to do upkeep on it after it’s built. Community Associations Make Owning a Home Affordable Nearly from their birth in the 1960s, condominiums have made housing accessible to low-to-moderate income Americans. Indeed, in certain regions, builders are compelled to incorporate a specific quantity of low-cost homes in new developments.
Also, changing rental apartments and commercial buildings over to condominiums doesn't just renew many deteriorating communities. but in addition makes ownership more budget-friendly for those wishing to dwell in city centers.
Community associations have opened the chance of home ownership to millions of Americans in part due to 21st century families being smaller, the sum total of single-parent homes has grown, and a greater number of retirees are remaining in their homes after they retire. Community Associations Minimize Social Costs Community associations also reduce costs to society. As they are required by covenants to meet particular obligations to homeowners and the association, associations guarantee that all who profit render their part and everyone has the same measure of responsibility. Community associations have adequate enforcement jurisdiction so that local government seldom, if ever, has to come in to settle fee disagreements. A great number of associations use alternative dispute resolution since it's a quicker and more economical means of solving disputes than legal action. Community Associations Make the Market Efficient Lots community associations - particularly condominiums - have largely cut back urban sprawl. Due to their group management and safeguarding pacts, they are exactly what the Housing Act of 1949 aimed for when it demanded “decent home(s) and suitable living environments.” Community associations, as alternate options to traditional single-family homes, are glowing cases of free-market efficacy.
The elements that go into making community associations great places to dwell are easy to overlook or misunderstand. Scoffers fixate on a few scandalous subjects rather than the big picture. But for lots of people community associations are economical, pleasant, convenient places to reside.
Upkeep of common areas is one of the board’s most fundamental obligations. To meet that obligation, the board has made a contract with a licensed landscaping business. Prior to signing the contract, the board invited bids from many possible businesses, cautiously evaluated the qualifications and skillfulness of each business, inquired into references, and compared fees.
These fees might appear to be additional, if not wasted, cost; but, long-term, the extra payout will be lower than the deficits we'd incur without expert aid. Judge the benefits:
Professional Expertise: A green thumb isn't the only tool needed to keep landscapes beautiful and useful. Our contractor provides an expert team and trained work groups. This know-how results in an economical and fruitful landscape upkeep plan for our community.
Bulk Purchase Savings: Our landscape contractor buys gardening materials in large amounts at lowered prices and gives the savings to us.
No Equipment to Buy or Maintain: The association has no need to buy, stockpile, underwrite, do upkeep on, or purchase gasoline for equipment.
Improved Plant Survival: Trees, turf, shrubs, and other plantings are expensive. Lacking diligent care, they will wither away, particularly right after placement. The landscaper certifies freshly planted shrubbery and trees, freeing us from having to pay for the replacement of plants that have died.
Reduced Liability: The association’s landscape contractor has the right sort of coverage and knows a lot about —and adheres to — all local and federal environmental constraints and safety statutes. Our contract places obligations on the contractor and diminishes the association’s liability.
Landscaping is vital to the community’s quality of life, its worth, and how it is perceived. Its upkeep can be quite costly. Is it as valuable as the association's outlay for the service? Absolutely! To the point, neglecting to buy expert landscape upkeep is a fictitious thrift because curb appeal results in a charming neighborhood and adds to the worth of each of our homes.
Are you considering doing a kitchen remodel, constructing an addition, or engaging in another building idea that will need the assistance of a contractor? If it’s anything that requires association sanction, be sure to go by the guidance of the steps of our design appraisal procedure.
When that's done and you’re set to start digging, anchor your plan to these five basic rules:
1. Match your contractors' goals to your own. You desire to have your project done in a timely and cost-effective fashion. Contractors want to boost their earnings. Design a repayment plan that, at every point in the project, enlarges your contractors’ earnings when they meet your goals.
2. Nothing reduces costs like competition. Any charge you get minus competition will be greater than the charge you gain with it.
3. Record all of your expectations. Productive competition demands a total, definite, and ultimate delineation of the materials and labor comprising the project.
4. Use commonly-accepted forms when making contracts. The American Institute of Architects provides a mix of example forms at www.aia.org/docs_default. Just understand that a "standard project" doesn't exist and adapt your contracts as needed.
5. There is no replacing competence. An architect, contractor, or other individual involved in your project who has a history of reliability, competence and respectability will usually exhibit those characteristics when doing your project. A participant with the reverse history will generally repeat the same behavior.
If you lease a home that belongs to our community, you've joined our community association, and we're happy to have you. We want to make your acquaintance at community happenings, assemblies, and social get-togethers.
Occasionally we're unable to contact you about party or meeting announcements, particularly if you’re renting from a person or organization based in another state. If this describes you, please give your name, address and phone number to our manager or a board member so we can add you to all our mailing lists.
In the event that your landlord didn't give you this information, here are some suggestions on how to increase the joy and avoid stress in being part of our community: - Every resident — owners and renters — must adhere to association guidelines and dictates. They’re fair guidelines that preserve property worth, maintain the quality of our community, and make life more pleasurable for all. If you wish to have a copy of our guidelines, please get in touch with the manager or a board member. The association is given legal power to administer all guidelines, which we do — fairly and habitually. We prefer not to have to act against those who have not gotten this vital information, but we are required to do so. - Renters have a right to all the benefits of being an association member except voting. We can’t give those benefits to you if we're ignorant of your identity. Get in touch with our manager or a board member and tell us how to contact you. That affords you the benefit of being aware of community happenings. - You needn't be the owner of your home to have concern for your community. If you wish to do volunteer work as part of a committee, or provide some other service to the association, we are eager to connect with you. Reliable, service-oriented residents are the backbone of our association no matter their ownership situation. - If your lease is set to run out, and you’re leaving us, we’re sad at your departure; but, please let the manager or a board member know. It's our pleasure to have you join our community. It is our desire that you love your experience here — perhaps so much that you will take ownership of your home someday.
Our HOA retains the services of an attorney whose area of expertise is community association law. Attorneys assist community association boards in many significant ways that safeguard and benefit each member’s assets. - Provide legal opinions: Counsels the HOA board about all issues relevant to the association. - Review documents: Examines governing documents, potential rules suggested by the HOA board, and service provider contracts. - Educate: Participates in meetings to respond to questions, clarify concepts and documents, and give information to homeowners or HOA board members. - Collect delinquent assessments: Compose and issue routine demand letters, file claims, process foreclosures, prosecute if needed. - Enforce deed restrictions: Compose and issue routine demand letters, file lawsuits, prosecute if needed. - Litigate: to make collections, impose deed restrictions, and protect the board.
One of the greatest responsibilities of the board is to handle the association’s cash resources — your money. We take this charge seriously; these are the processes we demand to safeguard your money: - Association financial records are reviewed every year by a CPA. - Bank statements are reconciled without delay every month. - Balance sheets and profit/loss statements are analyzed every month, and expenses are examined against the budget every month. - Association reserve accounts are broken down annually to confirm that they will meet future demands. - The association has an investment policy that protects invested capital funds, a trademark policy that protects operating funds, and an assessments policy that secures cash flow. - Every association volunteers and personnel who can access association assets are certified. - Kickbacks are forbidden and any potential conflict of interest must be divulged. - Checks and balances are implemented to secure the safety of association assets — for instance, all checks must have two signatures.
Community associations equal Big Business. Reflect on the statements below: - In excess of 1.7 million volunteers act as community association board members, and another 400,000 act as committee members. There are 230,000 yearly association meetings with freely-held elections and another nearly 2.5 million board meetings during the year where owners argue and guide their community’s future. To aid boards, more than 1.4 million committee meetings are held every fiscal year. The monetary worth, in the year 2000, of this volunteer participation approached $275 million. The dollar equivalent for volunteer time, based on data from the 1998 Economic Report to the President, comes out to $15.39 per hour volunteered. - Community association boards oversee the assessment of over $34 billion in annual levies and hold investment accounts of another $35 billion in reserve. - Associations provide dwelling space for almost 60 million people in homes that have an approximate resale value of nearly $2.5 trillion. - These owners lay out an additional $25 billion for improvements to home interiors and an estimated $85 billion for interest on mortgages and real estate taxes.
As an association homeowner, you possess particular rights, as well as responsibilities. You have the right to . . . - A receptive and capable community association. - Truthful, reasonable, and conduct towards you by community leaders and managers. - Be present at meetings, participate in committees, and run for association office. - Have rightful access to association records. - Careful financial administration of fees and other levies. - Reside in a community where the property is maintained in keeping with set standards. - Balanced treatment relating to financial and other association responsibilities, including the chance to comment on payment plans and options before the association takes any legal action, and the right to challenge judgements. - Obtain all rules and regulations ruling the community association — if not before purchase and settlement, then upon entry into the community. You also have the responsibility to . . . - Keep up your property in a manner fitting established standards. - Engage with association leaders in a truthful and respectful way. - Learn and adhere to the rules and regulations of the community and make sure that your tenants and guest do as well. - Vote in community elections and on additional matters. - Pay association levies and fees in a timely manner. - Communicate with association leaders or managers, as needed, to converse about financial requirements and payment option choices. - Request reevaluation of material judgements that impact you directly. - Give your up-to-date contact information to the association so you get all information provided by the community.
Roughly 4 out of 10 homes in US suburbs have renters as residents. If your unit is among those homes — or soon will be — here are some tips to aid you, your renters, and the association. - Talk to the Manager The association manager can provide vital information about what the association expects of owners and renters and tips regarding the rental process that will be greatly useful, particularly if you’re a first time lessor. The manager has sample leases you can refer to, and copies of the association rules to provide your tenants. - Check the Documents Ensure you comply with the association’s ruling documents—the bylaws and CC&Rs. They might include special demands for nonresident owners who lease their units. - Educate Prospective Tenants Make sure you inform would-be renters about the special particulars of living in a community association before they sign a lease. The association will be glad to provide you a copy of the rules to give to them. - Use a Lease Addendum Doubtless you’ll have your renters sign a lease. Please affix an addendum to your lease that goes over the particulars of the community association and insists that renters stick to association rules. This is crucial because it affords you and the association a method of enforcement. A proper lease or lease addendum should reinforce the community by: -- Obligating the tenant to follow the bylaws, rules, and regulations of the association. (Affix copies!) -- Obligating the tenant to pay fines for broken association rules. -- Obligating the tenant to leave if community association rules are broken repeatedly - Keep the Association Informed When the lease is signed, provide a copy to the association manager or a member of the board. The more information you can give about your renters, the greater success they will have fitting into our community. Please give the association the information listed below: -- Renter’s name (as well as those of children and/or roommates) and phone number. -- Renter’s email address, employer, and any other relevant details. -- Renter’s vehicle description & license plate numbers. This will permit us to give parking information. -- How many/what sort of pets, if any. -- Your forwarding address and phone numbers. - Encourage Tenants to Participate in the Association Be the voice of your tenants with the association. Ensure they have use of the recreational and parking areas and that they hold the keys and passes they require. Please provide them with the name and phone number of our association manager. Although tenants have no direct say in association matters, they are a valuable component of our community. Make them feel accepted, give them information that will help them get to know the association, and inspire them to join in community activities at every opportunity. Today’s renters might become tomorrow’s owners, perhaps even board members. The more effort we all make to bolster a sense of fitting in for renters, the more constructive and fruitful the leasing experience will be for all.
When you get around to paying your bills every month, do you think of your association assessment as of lesser importance? If you do, reconsider it. As stated in the National Consumer Law Center’s (NCLC) publication, 'Guide to Surviving Debt', “Condo fees…should be considered a high priority.” Indeed, NCLC holds community association assessments to be in the same class as mortgage payments and real estate taxes — a grouping rated second in importance only to a family's food requirements — per the “Sixteen Rules about Which Debts to Pay First” found in the guide. Assessments purchase services such as building maintenance, snow removal, and cleaning that you would buy regardless of where you dwelled — whether coming directly out of pocket or added into a larger rent payment. In contrast, the association has group buying power, so when collective community services and utilities come to you as a monthly fee, you’re actually getting a much better deal. So, the next time you grab your checkbook, be sure to place your assessment near the top of the bill pile. You’ll be happy you did.
The budget committee is made up of members of our community association, which allows residents to provide input as to how their money is used. How does the budget committee operate and who works on it? The Treasurer’s and Accountant’s Roles It's clear why the board treasurer should be the budget committee chair. As chair, it’s the treasurer’s role to keep everyone on target as the budget is planned out. The treasurer also puts the budget forward for endorsement by the board and members. If the association uses an accountant, he or she may provide consultation, but the accountant truly has no direct role in the action of putting the budget together. Who Should Be on the Committee? The owners who work on the budget committee should comprise a representative sample of the community. Naturally, if there are members disposed to serving who have special knowledge in matters such as insurance, that’s a plus. As far as size goes, a useful overall guideline is that the committee shouldn’t be so great that it becomes unmanageable. What the Committee Does The treasurer ensures that every committee members comprehends the three core elements of the budget: 1. Money required for day-to-day running of the community, such as shared electricity and water, grounds keeping, insurance, and general maintenance. These costs are either contract-based or can be fairly approximated based on experience. A vital matter when examining items in the operating budget is community members' expectations — for instance, do members prefer the landscaper of the “blow, mow, and go” sort, or will they instead opt for a landscaper who provides a superior quality of service? 2. Money required to sustain our reserves at adequate levels. Reserve funds make money available for the fixing and restoration of the community’s holdings - examples include the pool, roofs, pavement, etc. 3. Money for extensions or upgrades to the current property. This is a result of what members of the community desire and will commit to paying for. The community ought to give input and consent for this element. Equipped with this knowledge, the committee will assess total costs for the next year and weigh that sum against the association’s possible income (assessments, interest on investments, concession income, etc.). If costs exceed income, the committee will seek ways to reduce costs without negatively impacting service. If that doesn’t produce a balanced budget, the committee might be compelled to make a hard choice — whether to increase levies or impose a one-time special assessment.
A new study done in Northern Virginia by a George Mason University professor and student shows that community associations may increase the value of property by 5-6% over comparable homes in adjacent communities without associations. Publishing their findings in Regulation magazine, the authors note that the home value added by community associations is “especially remarkable when one considers that (HOA) residents pay twice for many local services—once in taxes and then again in HOA fees.” In addition, the authors put forth legitimate questions, including: Do community associations add to home values by offering higher-quality services than local government or by providing benefits that governments can't (for example, greater zoning restrictions)? To find out more: http://www.cato.org/pubs/regulation/regv28n3/v28n3-2.pdf
A new study done in Northern Virginia by a George Mason University professor and student shows that community associations may increase the value of property by 5-6% over comparable homes in adjacent communities without associations. Publishing their findings in Regulation magazine, the authors note that the home value added by community associations is “especially remarkable when one considers that (HOA) residents pay twice for many local services—once in taxes and then again in HOA fees.” In addition, the authors put forth legitimate questions, including: Do community associations add to home values by offering higher-quality services than local government or by providing benefits that governments can't (for example, greater zoning restrictions)? To find out more: http://www.cato.org/pubs/regulation/regv28n3/v28n3-2.pdf
U.S. citizens residing in community associations are largely pleased with their communities, stating that they are firmly satisfied with the board members running their associations, as well as their supporting community managers. Over 7 out of 10 people who live in community associations state that they are content with their experience, as shown in a survey done by Zogby International, a major public polling company. Nearly 40% of those living in community associations state they are "very pleased", and just 10% convey any degree of dissatisfaction. Another 20% took neither position. Roughly 54 million Americans reside in about 274 thousand homeowner associations, condo communities, co-ops and other planned communities. A breakdown of what community association residents report: 88% think their governing boards make a strong effort to fulfill community members' interests. 90% state that they are on pleasant terms with board members, and only 4% suggest relations issues. 86% state that they are on very good terms with immediate neighbors, only 5% indicating that they have problems. Among the negative responses, the most frequently-stated issues had to do with pets, overall lifestyle, noise and parking. 78% think that the rules set by their associations "protect and enhance" the value of their property, and only 1% think that these rules hurt value instead. 88% of respondents who have had to deal directly with professional community managers indicate that they had positive experiences. The research was paid for by the Foundation for Community Association Research, a not-for-profit group set up by Community Associations Institute (CAI) in 1975. This survey, which was derived from phone interviews made during August of 2005, has an error margin of +/- 3.5%. A survey summary can be found at www.caionline.org/about/survey.cfm.
