Welcome Guests,
The information provided here has been prepared to assist in the management and administration of your Homeowners Association; to “strengthen the unity of the Board of Directors and protect the value and enjoyment of your property”.
These are trying times for “Homeowners Associations” – where’s the Money?
Costs of insurance, utilities, maintenance and other budget items continue to increase; over the past few years there has been a substantial increase in association dues. Dues have gone up, costs have gone up, but for many associations, reserves are not able to keep up with the financial demand and in the meantime, the associations continue to get older which in turn requires more maintenance and additional costs. Conversely, many homeowners such as, those on fixed incomes, first time buyers and homeowners concerned with selling their units are interested in keeping dues as low as possible.
Recent Legislation requiring a summary of the Association’s “Reserve Funding Plan” illustrates the level of sophistication and complexity that has evolved in the Community Association Industry. The California Civil Code mandates that notices be sent to each homeowner annually informing them that certain Association information and procedures are available to them. Indeed it can be said the administration of Homeowners Associations requires professional and qualified management and competent Boards of Directors.
Many Homeowner Associations have come to the conclusion that the source of funds will continue to be limited; therefore in order to survive expenses must be trimmed. When reviewing the Statement of Income and Expenses it is clear that certain items cannot be trimmed but some can. Here are some tips: Review the insurance policy and seek new quotes from reputable companies. Review the landscape contract; this is often a major line item. Review maintenance items for areas that can be deferred without compromising the value of the property.
Some Associations have decided that self management (or partial management) is a concept to be considered. The intent here is for homeowners to assume certain light duties that are routinely provided by the property management company, farm out other functions such as finance and contract for that portion that requires professional management. Small Associations should review our “Small Association Modified Management (SAMM) program” and save enormously. For more information on this concept contact us at 888-771-7552.
~ Richard S. Monson, Pres.
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Having had the need to call on the California Association of Homeowners Associations from time to time over the past several years, I know first hand the excellent service that this organization renders. Its President, Richard Monson, is expert in troubleshooting problems and recommending workable solutions. He is a born leader and teacher. And although our homeowners association is very small, he treated us as if we were his largest client, providing our Board of Directors with advice, and resources (California Civil Code references, etc.) that enabled us to work more efficiently in our roles as caretakers of both the land and financial resources entrusted to us by our members. As we continue our struggle to educate and and improve unity among our membership, we can count on him to come to our rescue whenever needed. Plaudits to him and to the Association he represents! Sincerely, Dee Middleton, Wilseyville Homeowners Association
Post Script to earlier comment: I failed to mention that I am impressed with your newly reconstructed website, which I will visit frequently as it provides considerably more information and ease of access than did your earlier website.
Cheers!
Dee Middleton
Wilseyville Homeowners Association
So here is a question for the members. If you are a property management owner like Grubb & Ellis or Caldwell Banker, what assigned or designated authority can that corporation or if a Trust, assign to its employees, agents or trustees?
We have a family trust where I am a Co-Trustee on 12 Condo’s. I have a Durable Power of Attorney on all my elderly mothers properties and decision processes. One of those 12 units we changed title to include my full legal name as trustee. We have discussed the trustee verses owner of record issue with the Kern County, County Recorder who said Trustees have representation rights. I have consulted 3 attorneys, one Beth Grimm an HOA attorney. ECHO Magazine an HOA magazine also reported on trustees representing themselves on HOA boards.
But now ignoring the Kern County Recorder this association is confussed as to whether Trustee’s have a right to represent the properties they are legally responsible for. So I need some dialog and exchange here from other HOA’s who have participating Agents, Property Managers, Corporation Officers and designated Trustees. I am building a web site to address this issue as it has become an issue from single owners, confussed about the authority of Trusts and Corporations who own multiple units.
Richard, lets have some member dialog here, I know your opinion!