Due to the projected path of Hurricane Irene community association members should begin making preparations. One of the major effects of a hurricane on communities in our region is flood damage. 
For members of homeowners associations (HOA) and community associations in the Mid Atlantic Region, flooding is the most common and costly natural disaster. Just one inch of water in your home or office can cost thousands of dollars in cleanup and replacement costs, including drywall, baseboards, floor coverings and furniture.
There are things you can do to prepare your home and family now for flash floods:
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Make a family emergency plan. Emergency preparedness is everyone’s responsibility. Write down your plan. Decide ahead of time where you will go if you have to leave and where family members will meet up. Identify an out-of-town emergency contact.
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Get supplies for an emergency kit. Start with three days’ water and three days’ packaged and canned food. Add a battery-powered radio and extra batteries. Store in waterproof containers with wheels or that you can lift so you can take them with you.
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Stay informed about what could happen. During storm season, listen to local media for up-to-date reports on weather watches and warnings. Keep a battery-powered portable radio—with a NOAA weather band—handy in case the power goes out. Choose one.
Learn more about preparedness at http://www.ready.gov/index.html
The most unexpected east coast earthquake of 2011 was felt all acr
oss the Washington Metropolitan Area and as far as New England, Ohio, and the Carolinas. Fortunately, only minor damage was reported. While this is an extremely rare case it does raise questions of insurance coverage.
Of the many things your association assessment pays for, insurance is one of the most important. Association governing documents and state law require the association board to purchase adequate insurance as part of a comprehensive risk-management program.
There are two major types of commercial insurance coverage for an Homeowners Association (HOA) —property and liability.
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Property insurance covers loss of or damage to any common structures or physical property caused by fire, flood, storms or other natural events. For instance, if high winds uproot a tree that damages a common roof, the association’s property insurance would cover the cost of repairs. Property insurance may also cover what we call “human perils” (such as theft) and “economic perils” (such as stock market fluctuations) that might impact our association’s investments.
It is imporant to communicate with your insurance professional to ensure that you have the appropriate coverage for your unique HOA needs. If you have a professional community association manager they will facilitate this evaluation at least on an annual basis.
The association’s insurance does not cover private property of owners or residents. Each member should have his or her own insurance policy for their home or belongings. If you need information about homeowners insurance, talk to a licensed insurance agent who specializes in homeowners associations. Or you may want to talk to the association’s insurance provider; this person will know exactly where the association’s master policy coverage ends and where yours should begin. This prevents you from over or under insuring yourself. If you have a professional management company, contact them and ask for a reference.
Let's all hope that earthquakes will not require regular considerationin during HOA insurance reviews in our region any time in the near future.
We all can just get along. The key? Communication. It’s often the best way to prevent and resolve conflict. Having worked in the community association management industry for 25 years we have been asked to mediate more than a few homeowner association (HOA) neighbor to neighbor disputes. It is important to remember that the management company is not in a position to resolve these kinds of disputes outside of the bounds of consistent enforcement of Associations rules.
You don’t have to be friends or spend time with your neighbors to achieve a peaceful coexistence, but you should try to be a good neighbor and follow these tips:
Say hello. At the mailbox, while walking the dog or when you see a moving van arrive, introduce yourself. Learn your neighbors’ and other homeowners' names and regularly offer a friendly greeting.
Provide a heads up. If you’re planning a construction project, altering your landscaping or hosting a big party, contact your neighbors beforehand. In the case of major construction or landscaping projects this is helpful in addition to completion of any established association approval processes. Applications for approval may even request that neighbors sign off on plans.
Do unto others. Treat neighbors as you would like to be treated. Be considerate about noise from vehicles, stereos, pets, etc. Pets are a common concern that we hear from neighbors. .
Know your differences. Make an effort to understand each other. Differences in age, ethnic background and years in the neighborhood can lead to different expectations or misunderstandings.
Consider the view. Keep areas of your property that others can see presentable. Don't let your grass get out of control and keep the area free of litter.
Appreciate them. If the neighbors do something you like, let them know. They’ll be pleased you noticed, and it’ll be easier to talk later if they do something you don’t like. Telling a neighbor how nice their lawn or garden looks is a great way to say hello.
Stay positive. Most people don't try to create problems. If a neighbor does something that irritates you, don’t assume it was deliberate.
Talk honestly. Tolerance is important, but don’t let a real irritation go because it seems unimportant or hard to discuss. Let your neighbors know if something they do annoys.
Be respectful. Talk directly to your neighbors if there’s a problem. Gossiping with others can damage relationships and create trouble.
Remain calm. If a neighbor mentions a problem they have with you, thank them for the input. You don’t have to agree or justify any behavior. Wait for any anger to subside before responding.
Listen carefully. When discussing a problem, try to understand your neighbor’s position and why he or she feels that way.
All members can help the association minimize its maintenance expenses by observing a few simple considerations.
This helps hold assessment levels—your fees—down.
1. Pay the annual assessment. As a member of the homeowners association you have a responsibility to contribute to the upkeep of the common property. Limiting the need to collect delinquent fees will ensure that assessment levels can be stabilized.
2. Pay your assessments on time. Eliminating the need to send late notices will reduce office and postage costs and will keep fees down. If you are having trouble paying your fees, contact your professional management company or board of directors to see if they can offer a payment arrangement.
3. Clean up after yourself. Debris left on the common area requires special maintenance, and that can mean additional costs. These additional costs do not take in to account the effect that a littered common area can have on your property values.
4. Be kind to the landscaping. Every bush destroyed or flower trampled has as price tag attached and so does the labor to replace it. The landscaping is installed to create a beautiful place for all to enjoy. Less money spent on replacements could mean more money spent on beautification.
5. Observe the rules. Association rules are not arbitrary or frivolous. They have been carefully developed to keep property values up and insurance rates down.
To sum up: Money saved on major expenses such as management, collections, insurance, landscaping, and trash removal can be used to either add services, which may in turn increase individual property values, or to reduce assessment fees.
Remember, the community association is a membership organization. Every member can make a difference and play a role in improving the community for everyone. Contact your management company or board of directors to see how you can contribute.
Major Amenities will require repair and replacement at some point during the lifetime of the association. The playground, private roads, community center, retaining walls, entrance monuments, swimming pool, are just a few of the common amenities found in community homeowners associations.
These items will need to be replaced from time to time, regardless of whether the association plans for the expense or not. It is far better to plan and set funds aside now then to be caught off guard at an unknown date in the future.
Reserve funds aren't an extra expanse. Afterall, these repairs will be needed at some point. Budgeting for reserves just spreads out expenses over time and to all members who use them during the lifetime of the association.
There are other important reasons to place association funds into a reserve account:
1. Reserve Funds meet legal, fiduciary, and professional requirements. A replacement reserve may be required by:
Any secondary mortgage market in which the association participates
State statutes, regulations, or court decisions
The association's governing documents
2. Reserve funds provide for major repairs and replacements that we know will be necessary at some point in time. Although a street may not need repair for another 25 years, every owner who has used it should contribute to its replacement costs (and not just the person who recently joined the community).
3. Reserve funds minimize the need for special assessments of borrowing. For most association members, this is the most important reason.
4. Reserve funds enhance resale values. Lenders and real estate agents are aware of the ramifications for new buyers if the reserves are inadequate. Many states require associations to disclose the amounts in their reserve funds to prospective purchasers.
5. The American Institute of Certified Public Accountants (AICPA) requires the community association to disclose its reserve funds in its financial statements.
As a homeowner in a community
association HOA,
you have certain rights—and responsibilities.
You have the right to . . .
- A responsive and competent community association.
- Honest, fair, and respectful treatment by community leaders and managers.
- Attend meetings, serve on committees, and run for election
- Access appropriate association records.
- Prudent financial management of fees and other assessments.
- Live in a community where the property is maintained according to established standards.
- Fair treatment regarding financial and other association obligations
- The right to due process and to appeal decisions.
- Receive all rules and regulations governing the community association—if not prior to purchase and settlement, then upon joining the community.
You also have the responsibility to . . .
- Maintain your property according to the governing documents and established standards.
- Treat association leaders with honesty and respect.
- Read and comply with rules and regulations of the community and ensure that your tenants and guest do too.
- Participate in community elections and on other issues.
- Pay association assessments and charges on time.
- Contact association leaders or managers, if necessary, to discuss financial obligations and alternative payment arrangements.
- Request reconsideration of material decisions that personally affect you.
- Provide your current contact information to the association so you receive all information from the community.
Education and Training: Invaluable Tools for a Homeowners Association.
Education and Training for the Board of Directors - Boards of directors are responsible for the effective governance of the community association. While Directors may bring their own personal and professional experience to the position most boards will not be completely versed in the roles and responsibilities of a community association board specifically. This makes education and training extremely valuable. Learning the ins and outs of association leadership and governance gives elected volunteers a starting point. Understanding best practices for policy making and policy enforcement will allow for the most effective and least controversial term of office. Finally, education and training are the best ways to avoid conflict and protect the investments of the community association.
Elected community association leaders can do a number of things to educate themselves.
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Hire a professional and accredited association management company (AAMC). If you have a professional management company working for you, you should be able to have your questions answered. Your company may even provide training and education programs.
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Join and participate in the Community Association's Institute (CAI). CAI is a national community association industry organization dedicated to ensuring best practices. Community volunteer leaders are invited to participate in the education and training programs offered by CAI.
Education and Training for Homeowners - Membership in a Homeowners Association (HOA) or Community Association comes with rules and responsibilities. For new members of an HOA education is the key to a full and happy life in a new community. The key is reading and fully understanding the governing documents. Be sure that you received these very important materials before you become a member and at the time of purchasing your new home. The associations documents will act as a guide or roadmap throughout your homeownership. You will know what you can and cannot do with your property. You will also know your responsibilities in terms of assessment contributions from year to year so that you can budget.
Homeowners can do a number of things to educate themselves.
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Contact your community association's professional management company. Your contact at the management company should be able to help you to understand any rules and responsibilities associated with membership in the HOA.
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Attend the annual meeting of the Association and some Board of Directors meetings to know what is happening in the community.
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If your Association does not have a professional management company, request that the Board of Directors consider hiring one.
Additional Resources
More information on board member education can be found here.
For information on Accredited Association Management Companies (AAMC) in your area click here.
To sign up for Maredith Management's Board Orientation Training Seminar please click here.
For a free consultation with an Association Management Specialists (AMS) please click here.