What We're Thinking About Lately...

Details: Written by Lauren Peddinghaus; Category: What We're Thinking About Lately...; Created: 23 July 2010

We are always advising Board members to be careful about what is recorded in meeting minutes and shared with owners. Not only can a potential buyer review the minutes and potentially find reasons not to proceed with a purchase, Board members could leave themselves vulnerable to defamation lawsuits if they include notes that reveal personal information about an owner.

Meeting minutes should also be approved by the Board at a subsequent meeting to ensure that they are accurate before they are made available to owners.

For more on recording minutes, read our article "Board Secretary getting carpel tunnel? Take the pain out of taking Board meeting minutes!"

You can also download our Guide to Conducting a Condominium Association Meeting in the Forms & Templates section for additional information and sample minutes.

Details: Written by Lauren Peddinghaus; Category: What We're Thinking About Lately...; Created: 14 July 2010

Your association's general insurance policy should cover your building at its full replacement cost. It is the Board's responsibility to obtain adequate insurance for the association. Failure to obtain proper insurance could leave the Board personally responsible if a claim is made and coverage is not sufficient.

Speak to your insurance agent about having a building replacement cost appraisal done to be sure that your policy contains the appropriate coverage amounts.

Details: Written by Lauren Peddinghaus; Category: What We're Thinking About Lately...; Created: 09 July 2010

I've been doing some research lately into possible bank financing for capital expenditures for a small condo association. To be honest, there aren't many options out there for smaller buildings. Most banks aren't willing to take a risk on a smaller building, usually because a single defaulting unit can have a great impact or the loan simply isn't a worthwhile financial investment for them. However, you can increase your chances of obtaining financing if you have the proper documentation in order when you are ready to apply. In general, you'll need the following to be evaluated for a bank loan:

Tax Returns for last two fiscal years
Financial Statements for last two fiscal years (Income Statement & Balance Sheet)
Year-to-Date Financial Statements, including an Accounts Receivable Ledger
Current Annual Budget
Current # of Non-Owner Occupied Units
Description and cost estimates of work to be completed and copies of bids or signed contracts for the work to be performed

Being diligent about your financial well-being isn't just good business practice, it could mean the difference between a bank loan and a major special assessment. If you need help getting this documentation in order, please give HausFS a call!

Details: Written by Lauren Peddinghaus; Category: What We're Thinking About Lately...; Created: 01 July 2010

One of the biggest challenges in condo living tends to be a lack of storage space for owners. Owners might have a small storage unit in the basement if they're lucky, and maybe a bit of extra space in a garage if they're extra lucky. In general, storage seems to be in short supply when it comes to condo living.

As a result, personal belonging often end up in hallways, entrance ways and stairwells. Shoes, bikes and baby strollers tend to collect in these areas. And while owners may have limited personal storage space, personal belongings are specifically prohibited from common areas by nearly every Declaration I've encountered. Common areas are not an appropriate place for your personal belongings and you may be open to fines if you store your stuff anywhere other than in your unit or assigned storage area.

Of course, every association has the right to make exceptions. Before you impose on the space that you share with your neighbors, you should communicate with the Board about whether or not it is permissible to leave anything in a common area.

Details: Written by Lauren Peddinghaus; Category: What We're Thinking About Lately...; Created: 22 June 2010

To put it simply, there is generally no excuse for non-payment of your assessments.

Whether you have a leak in your unit that has not been fixed, or you disagree with the Board's decision about who was hired to perform the work on a project that necessitated a special assessment, or you feel the Board is acting irresponsibly by implementing a large increase to the annual budget, you are obligated to pay all assessments charged to your unit.

In order to dispute the validity of an assessment that has been charged, an owner would have to prove that the Board acted illegally or failed to adhere to the business judgment rule, which requires only that the Board acts within the scope of its authority in good faith to further a legitimate interest of the condominium.