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The rep from the property management firm does that, not the board. The first order of business at the next meeting is for the board to review and accept--or correct--the minutes.
I'm starting to suspect that the OP doesn't even HAVE a property management firm. I thought that was a basic requirement for all condo complexes. It's in our by-laws. If they are trying to cheap out by not having a property management firm and doing it all themselves, then they probably get what they deserve.
She said they do have a property manager, but he’s useless. We had one like that when we took over from the builder. We fired him and hired a well respected, very professional company. Our rep attends our monthly Board meetings so she’s there and knows everything that’s going on. In addition, her professional advice has been invaluable. The company provides education and training for board members. They have a website where all the minutes, financials, HOA documents, contracts etc. can be viewed by any resident at any time. Yes, they cost more than the useless outfit we inherited, but they’re worth every penny.
I think where HOAs go off the rails is when residents and Boards are OK with them being loosely run. Professional management, if done correctly, helps prevent that. The CC&Rs explain in detail the expectations of the Board and the structure of the association. Good property management will insist a Board follow this document.
She said they do have a property manager, but he’s useless. We had one like that when we took over from the builder. We fired him and hired a well respected, very professional company. Our rep attends our monthly Board meetings so she’s there and knows everything that’s going on. In addition, her professional advice has been invaluable. The company provides education and training for board members. They have a website where all the minutes, financials, HOA documents, contracts etc. can be viewed by any resident at any time. Yes, they cost more than the useless outfit we inherited, but they’re worth every penny.
I think where HOAs go off the rails is when residents and Boards are OK with them being loosely run. Professional management, if done correctly, helps prevent that. The CC&Rs explain in detail the expectations of the Board and the structure of the association. Good property management will insist a Board follow this document.
Yes, I posted that before I saw her other post.
As to your bolded--exactly. Our PM firm is not cheap, either, but in the end, it is worth the money.
FYI, we are a small complex built in 1985, 122 units, no pool or clubhouse or other amenities, and our monthly fees are $280.
They went up a bit a few years ago because insurance rates went up on all wood-frame condo complexes in NJ after the Sandy storm, even though we are about five miles inland. Residents were not happy about the increase, but we need insurance.
As to your bolded--exactly. Our PM firm is not cheap, either, but in the end, it is worth the money.
FYI, we are a small complex built in 1985, 122 units, no pool or clubhouse or other amenities, and our monthly fees are $280.
They went up a bit a few years ago because insurance rates went up on all wood-frame condo complexes in NJ after the Sandy storm, even though we are about five miles inland. Residents were not happy about the increase, but we need insurance.
You bring up another good point. It’s not enough to just look at the comparable condos or townhouses down the road, see that their dues are lower and immediately claim yours are too high. Ours are much higher ($450 vs $300) than the community next to us despite being roughly the same quality in construction, size, age etc. That’s because we’re structured very differently.
Their association pays for 4 things: yard maintenance, roofs, painting and a master insurance policy for liability and common areas. Ours pays for yard maintenance, roofs, painting, exterior pest control, termite bonding on every unit, water, road maintenance, sewer maintenance and the biggest difference master insurance that covers not only walls out, but walls in as well. All I have carry in terms of homeowners is liability, contents and loss of use. That runs me $600 a year while the folks next door are paying $2400 for their homeowners insurance. That alone explains the $150 a month difference in our dues.
Any real estate agent worth their salt will research and explain these types of differences in dues to their clients. As long as a buyer can see that paying more gets them more, higher dues are no detriment to sales.
The rep from the property management firm does that, not the board. The first order of business at the next meeting is for the board to review and accept--or correct--the minutes.
I'm starting to suspect that the OP doesn't even HAVE a property management firm. I thought that was a basic requirement for all condo complexes. It's in our by-laws. If they are trying to cheap out by not having a property management firm and doing it all themselves, then they probably get what they deserve.
Legally it is up to the BOD Secretary to take and distribute minutes. We have a PM but they only attend our BOD Meetings at our request. We the BOD run our association, not some PM.
Emily, I sense your frustration because of your situation, however, there are people here who are offering suggestions to you and you seem to be angry with them for their answers. I wrote early on about the inability to effectively answer your questions since there were many important factors that we did not know.
It is surprising that you do not have a management company handling the community. This begs the question, who sends your monthly or quarterly bills (or was ever the frequency of your fee is) and who is receiving and recording and depositing the same? Based upon what you are stating about your board, I also wonder if you have D & O insurance to cover yourself in the event you are ever held liable for what the board is doing? If your board is run as poorly as you are suggesting, I suggest you RUN as fast as you can and resign from that board, must especially if there is no insurance.
I don't know what state your condo is in but I would check with a local realtor or your state Attorney Generals office and ask if you state has an office the deals with Common Ownership properties. They might be able to help you.
Legally it is up to the BOD Secretary to take and distribute minutes. We have a PM but they only attend our BOD Meetings at our request. We the BOD run our association, not some PM.
Ours attend every meeting. We do run our association, of course. The PM works for US.
The advantage to having a professional PM firm is that they actually have experience and know what they are doing, know the laws, know how things work, and can advise us.
A board of trustees can be made up of residents who have no clue about how to run a real estate complex. I have experience in contracting and procurement, so I brought that to the table as a board member, but there are no building management or real estate experts or people familiar with NJ condo law on our board. We hire an expert to help us, but the final decisions are made by the board.
Emily, I sense your frustration because of your situation, however, there are people here who are offering suggestions to you and you seem to be angry with them for their answers. I wrote early on about the inability to effectively answer your questions since there were many important factors that we did not know.
It is surprising that you do not have a management company handling the community. Who sends your monthly or quarterly bills (or was ever the frequency of your fee is) and who is receiving and recording and depositing the same? Based upon what you are stating about your board, I also wonder if you have D & O insurance to cover yourself in the event you are ever held liable for what the board is doing? If your board is run as poorly as you are suggesting, I suggest you RUN as fast as you can and resign from that board, must especially if there is no insurance.
I don't know what state your condo is in but I would check with a local realtor or your state Attorney Generals office and ask if you state has an office the deals with Common Ownership properties. They might be able to help you.
Good question. And who manages the collection efforts regarding the inevitable unit owners who don't pay their fees and fines? Who sends out letters about dryer vent cleaning and letters to unit owners who don't comply with rules (such as picking up dog poop or leaving abandoned cars, etc.?) It is useful to have a management firm as a buffer between the board and their fellow homeowners and neighbors for those things.
Oh wait... due to conditioning by the other boards... who did not provide minutes to the residents... most residents are not aware that minutes exist at all. Thus they are not aware they are missing anything. If they ever wanted to review the paperwork of the condo, they wouldn't even know to look for minutes.
Well not really. But the selfish attitude is them. They want my money right now so they can have this done at the start of their run here. if the assessment was fair and reasonable stretched out not to put too much focus on a glut at a time period, I would be fine with it even if it didn't directly effect me. No matter what we shouldn't have assessment after assessment all scrunched up at once. Even more horrific as we have a solid reserve fund.
You know what it cost last time. Just add a reasonable inflation cost and ask your property manager and you are set. I have been told it is from 3000 to 5000 per unit. Likely 3500. Last time it was 2700 (in 2002).
Your so nieve. I have a property manager... he is useless. He is the person who does what the board decides... plus he has no fiduciary duty to the residents so.. if he messes things up... there is zero consequence as long as he did what the contract provides. We need like a corporation executive who can be held personally liable for messing things up. He also only makes money by having tons of properties...so he isn't good for any of them.
The HOA is a corporation and it's board members are the 'executives' (directors). Who have a fiduciary responsibility to the association.
It depends what the fees are for. My neighborhood kept the rates steady for 10 years. We've had inflation since then - power costs have gone up, cost for grounds maintenance has gone up but the rates stayed the same. The board feels we need some upgrades to the pool (pumps, repairs, pool deck, etc). Rates went up 10%. People are flipping out.
If residents get a detailed list of where the HOA fees are going, then it should be no surprise when/if they go up. If the community civic building needs repairs that the budget doesn't have and the surplus is too low, rates have to go up.
I've seen my community's surplus drop year-over-year. I wasn't the least bit surprised when the rates jumped.
A reserve study is imho not appropriate for a small condo.
The laws about condo reserves and how often your HOA should conduct a reserve study vary by state. Some states - like Arkansas - have no laws about reserve studies, while Florida requires a reserve study every three years. Nevada requires a reserve study be conducted at least every 5 years but that reserve study must be reviewed and studied annually to determine sufficient funds.
Common industry practice is that homeowners associations should perform periodic reserve studies as a prudent business practice. Directors of associations are generally held to a “prudent businessman” rule in determining whether or not they have met the fiduciary duty of their position for the association. A prudent businessman would establish a capital replacement budget (reserve study) to make sure he is generating enough revenues (reserve assessments) to provide for major repairs and replacements.
In which state do you live?
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