Community Association Financials

Community associations of all kinds, regardless where they’re located, are subject to stringent requirements regarding board of directors and annual membership meetings. Strict compliance can pose a challenge for some associations in the best of times, let alone during a public health emergency. Social distancing protocols and prohibitions against gatherings make traditional meetings nearly impossible…

Your clients may have the legal right to foreclose on a delinquent owner’s property, but that doesn’t mean they should — especially if the sale price is disproportionately low. That approach could backfire, with the sale overturned by the courts. A recent ruling from the South Carolina Supreme Court (Winrose Homeowners’ Ass’n v. Hale) drives…

Governing documents typically give community associations the right to foreclose on delinquent owners at some point. That right, however, doesn’t necessarily entitle an association to sell foreclosed property at whatever price it wants. A recent court case (Winrose Homeowners’ Ass’n v. Hale) drives this point home. A state Supreme Court found that the sale price…

No one can say for certain when the next recession will strike the U.S. economy, but one thing is certain — it’s going to happen. Yet, despite the hardships many community associations suffered in the last round, some remain just as vulnerable as they were then. It may be up to their managers to nudge…

The so-called Great Recession wreaked havoc on community associations across the country, and many economic experts are predicting that the next recession looms on the horizon. Whether it’s sooner or later, there’s no doubt that another will come eventually. Are your clients taking the necessary steps now to protect themselves? Cash shortfalls In the previous…

You’ve probably seen it before — an owner adds some type of restrictive endorsement in the memo portion of a check in hopes of pulling a fast one. This week’s article explains how a condo association in Ohio has now spent years in court as a result of such an endorsement. The case provides some…

Attorney Daniel Miske, of Milwaukee, Wis., firm Husch Blackwell LLP, calls them “professional debtors” — the kind of people who try to evade their financial obligations by, for example, getting cute with the endorsements on their payment checks. An owner in Ohio dragged a condo association through years of litigation because of such an endorsement.…

This is Part 2 of a 2-part series. Read Part 1 here: In April, we discussed the numerous benefits associated with allowing owners to make payments online, as well as how managers can overcome resistance to the change from boards of directors. Now we have some advice for managers to smooth the transaction once they’ve…

This week, we dig into how your clients might reap substantial savings by upgrading to LED, or light-emitting diode, lighting. You've been in the dark if you don't know how much longer LED lights last than traditional bulbs. “We have some lights that will last over 100,000 hours, and most of our lights are rated…

Sometimes owners strike out on their own and file lawsuits they think their associations should be filing—but does that mean the association has to reimburse them for their legal costs? The guiding principle regarding action, or lack thereof, is clear in most community associations: The majority rules. Sometimes, though, fired-up owners who disagree with the…