Important Questions Homeowners Should Ask at Annual Meeting

The financial statements usually given at the annual meeting consist of the Balance Sheet and Budget Comparison.  They are intended to give the reader a picture of the financial health of the community.  The problem is that they fail to give a complete picture.

AT&T's Proposed Tower

Folks, this has got to be an embarrassing moment for AT&T.  The FCC if forcing AT&T to install a tower in Mesa to cover gaps in coverage.  The proposed tower is supposed to be disguised to make it look like something other than a cell tower.  In this case it's supposed to look like a palm tree. It looks more like a photo of what we can expect it to look like in 5 years or after a Haboob?   Because it is just unacceptable by any standards.  
 Read on to see photo.

Protecting the Ownership

HOA BoD has a duty to take reasonable steps to protect the ownership from liability from losses.  This includes keeping owners safe, ensuring that vendors are supervised and aren't breaking into peoples homes or cars, taking steps to keep kids from getting run over, etc.

The one thing that I haven't seen homeowners complain about or even think about is ID theft.  As homeowners we can take steps to protect ourselves from ID theft.  However, there is one simple step that can be taken to possibly prevent ID theft that isn't being done by HOA boards. 

SB1468 - The Only Way to Keep Board Members in Check!

I recently ran across a site that appears to be a Community Associations Network site.  It's very well written and has great tips.  And expresses how we all feel about HOA boards who just don't get it.  Those of us who suffer from headaches and hope that common sense will prevail in HOAs.  Suffer from them due to head trauma from banging out heads against the wall, desk, floor, or other hard surface hoping the horse will drink the dam water.

How does Your Board Interpert the Declaration and Statues?

The rules and regulations of the community are adopted from the provisions within the declaration.  However, there are portions of the declaration that are ambiguous and only act to restrict or limit the board.  The board may have policies and procedures to follow but, these aren't derived from provisions in the declaration.

Maintaining Landscaping is More Than Mowing and Trimming

It amazes me the amount of people who think you just water, mow, and trim trees and shrubs thinking that is all landscaping is about.  They must think that if you just put gas in your car and keep the tires inflated and your done.   No No No!   If that is all you do to your car it isn't going to last very long. 

Board Members Have a Duty to Protect the Communities Best Interests

When owners elect board members they are placing their faith and trust into them.  We trust that they will not just focus on one area of the community.  That they will benefit the masses not just themselves.  We are trusting that these people will take more than a few seconds to consider if something should be done or not.  Just because the law gives the board members an out if they rely upon the advice of a professional.  Does not mean that the court will allow this as a viable reasoning if board members did not use common sense. 

Board members still have to take into consideration who the information is coming from.  It doesn't matter if it's a law firm, landscaper, utility company, the city, or builder.  Every company even if it's an individual is in business to turn a profit.  Therefore, everyone at the company is nothing more than a salesman.  For the company to get the contract the person you are talking to must make you like them and make you comfortable.  Hence, they must sell themselves. 

To do so they must act as if they are your friend and are giving you some really good deal.  Then they turn on the charm to get you to trust them and remember them.  It's the same as interviewing for a job.  Because that is what they are doing after all. 

In the creative process board members will and should allow the contractor to point out possible problems and make suggestions.  However, keep in mind they are in business to make money.  So, some suggestions are going to be viable and great ideas and some are not.  When dealing with something that is charged by the square feet the larger the area the lower the price per sq ft becomes. 

For instance, if you have a community with 200,000 sq feet of grass that is maintained and the goal is lower water usage.  The contractor may suggest converting small areas to a desert landscape to save water.  The area they may suggest could be only 300 sq ft or 600 sq ft. and cost $15,000.00 or $25.00 per sq ft. to remove and redesign and plant.  This is when you have to pull out the thinking cap.

Let's say the current water bill runs $40,000.00 a year and the cost to mow is $60,000 a year.  If we use 600 sq ft and figure out the percentage it is of 200,000 sq ft.  We get .003 or .3% of the total sq ft.  Of the total 200,000 sq ft only .3% would be converted.  Now .3% of the yearly water consumption comes to $120.00 per year and of the mowing costs is only $180.00.  Meaning the 600 sq ft costs $300.00 annually to maintain.  The cost to convert 600 sq ft is $15,000.00 meaning it would take 50 years for the money saved in water and mowing before any savings would be seen. 

Common sense tells us that 600 sq ft is an insignificant amount of area to convert when there is 200,000 sq ft to maintain.  Common sense also tells us that the only person or persons benefiting from such a project is the contractor.  This project is not in the best interest of the community. 

The community is better off just shutting off the sprinklers and stop maintaining it the area than to pay someone to dig it up.  Because even if you get a bid that is for $5,000.00 it will still not be in the best interest of the community.  Your better off just letting the grass die off by its self and covering it with rock. 

Board members need to use common sense and logic.  Business is business and those in business are in it to turn a profit.  Nobody is in business to lose money!  Not even an HOA.

Which Reserve Study Items Have to Be Replaced Now and What Can Be Delayed?

You've got your reserve study updated, now what.  If your surprised at the increase in replacement costs your not alone.  But, the first thing you should do is break down the list of items by way of importance.

How HOA Boards Get Around a Required Vote to Charge a Special Assessment

The blog article below is written by Robert M Nordlund, PE, RS founder of Association Reserves.  I'm including his biography as an example of the backgrounds of the people who evaluate and prepare reserve studies.  I find it to be very disrespectful and a huge waste of money when board members purchase studies and act like they don't have to follow them or it's a scam.  I once heard a property manager say that it's just a guide you don't have to follow it.  To them I say, architectural guidelines are just a guide and we don't have to follow them.  I wish!

Not All Licensed Contractors Are Created Equal

If your like most people when you need an appliance serviced or some other repair or maintenance work done.  You pick up the phone and call a few places to get prices ask if they are licensed then select one to do the work.  The person who comes to do the work may come alone or with another person.  Depending upon the type of work being done the repair person or people will be independent contractors or employees of the company.  It's common among appliance repair industry for the person to be an independent contractor or subcontractor.  These guys typically have to purchase the parts they carry on the truck.  Other in home service companies like landscapers; are employees of the company that you called.  We assume the person or people doing the work are licensed contractor but, that isn't so.