Question: I need information on HOA policies and procedures with regards to fining. Can you help me? Answer: Generally, the board has the authority to enact reasonable rules and enforcement procedures. They should include: Clearly definition of the issue (parking, pets, failure to pay HOA fees) Consequences for failing to obey like fines or curtailing use of amenities  Appeal process. Fines need to be reasonable. Any rule or resolution that is contemplated by the board should be[...]
National existing home sales dropped 3% in September according to the National Association of RealÂtors. Conversely, housing starts jumped up 15% and beat estimates in the same month. Yet another grab-bag of mixed indicators. To strike a more intimate nerve with us Central Floridians, CoreLogic recently released analytics indicating that the total mortgage debt in Orlando is greater than the sum of the property values. You read it right: the City Beautiful is underwater. Know [...]
Question: We have a president who solicits co-owner involvement when the board is discussing business at a board meeting. Should co-owners be allowed to participate in board discussion as if they were a board member? Should a board meeting be conducted like a town hall meeting where everyone can speak? It is my contention that a board meeting is for the board to conduct its business without co-owner input. Answer: Your interpretation is correct. Board meetings are designed for the directors to [...]
Question: We recently got a professional reserve study done. Our budget committee took the information and plugged it into a spreadsheet that will allow us to postpone the need for a professional study revision. The substitute study changes some of the assumptions, like reducing the recommended reserve contribution and the inflation rate. By doing this, we can lower our annual contributions significantly. Our reserve study provider has recommended annual updates. What are the pros and cons of [...]
The purpose of a Maintenance Plan is to instruct a homeowner association board and property manager how to properly maintain common element components. Following a well prepared Maintenance Plan will help extend the useful life of the components and reduce costs to the members. An effective preventive maintenance plan should satisfy the following five key goals: Preserve owners’ investment. Preventive maintenance can extend the life of building components, sustaining and [...]
For those still not sure what's going on in the Orlando condo market, here's a quick update: Bottom for condo conversions was last year; inventory is getting sparse; prices have been on the rise for 12 months now, and for Orlando bank owned condo foreclosures in the under $100K price bracket, it's a fast paced, all-cash, aggressive, seller's market. All of those statements are facts as of September 2011. Suprised? Our regular investors aren't. They know, because they're [...]
A recent Federal Reserve study elucidated the fact that about 2.3 million homeowners could have refiÂnanced last year had lending standards not been so strict or had they not owed more than the home is worth. You don’t say. Well I’ll be goll-derned. You mean to tell me that this whole mortgage situaÂtion would be better if people still had home equity? Man. I gotta get me some of THAT stuff. Existing home sales jumped upwards 7.7% while new [...]
In common wall housing, unit flooding and damage can happen for a variety of reasons including roof leaks, water supply pipes leak, toilet/bathtub overflows and washer hose ruptures. Who is responsible for water damage, the HOA or unit owner? First, determine the actual cause of the loss and whether any of the involved parties were negligent in their maintenance responsibilities (like, left the water running). Then, review the governing documents to determine what guidance there may be for [...]
With the collection rate being what it is and bank foreclosures taking forever, I understand that Boards do not want to wait any longer than necessary to take action to collect overdue assessments. Many Boards give management and their attorneys "marching orders" to proceed as quickly and as forcefully as possible and I agree - that is prudent in light of the current economic climate.  However, the desire to do something fast should never replace or outweigh the desire to do [...]
Orlando's "Canadian Invasion" continued last week with 2 bus loads of eager Canadians pulling into the Madison Condos in MetroWest Orlando for a tour and quick lecture by Condo Metropolis on the best way to purchase distressed / bank owned / inventory. Eyewitness News 9 came along for a the ride and they had their hands full with investors who were keen to talk and ready to write contracts. MetroWest's real estate foreclosure inventory has been the target of [...]