Posts Tagged ‘San Antonio HOA management company’
A well funded reserve account is a clear indication of how prepared a community association is to deal with its long-range maintenance needs. Without a well funded reserve account, most association’s only option to pay for repair needs that arise is to impose a special assessment on their members. However, special assessments are traumatic for boards, members and San Antonio HOA management companies and their community managers. They can also be inherently unfair because they penalize those members who happen to be living in the community when these predictable expenses become due.
A reserve account is an account specifically designed to pay for common elements for which a useful life can be estimated. Most communities include those common elements that are expected to wear out in three to 30 years. The reserve fund is not intended to fund everyday needs that are covered by the community’s general operating account; however, to pay for capital expenditures to replace and/or maintain the common elements. Although having a well funded reserve account doesn’t guarantee that you’ll never have to impose another special assessment, it significantly improves your odds and stabilizes your community’s future.
Despite the logic of having a well-funded reserve account, many community associations don’t have one. Others may have an account but don’t adequately fund it. In either case, the community will face a fiscal crisis if significant common area work must be done.
Also, Boards have been forced out of office over inadequate reserve accounts. Also, according to some HOA attorneys and San Antonio HOA management companies, board members can be sued for violating their fiduciary duty to their associations by failing to maintain adequate reserves. In one case, an association sued its developer-controlled board for violating its fiduciary duty to the association by failing to fund a reserve account. The court ruled that the board had failed to fulfill its supervisory and managerial responsibilities when it failed to establish a reserve account. Because of this, the court said that the board and its individual directors were liable to the association for the association’s financial losses.
How do you start contributing to a reserve fund if you haven’t before? The Board will need to decide how much will be needed for future repairs and begin to save money each month from their operating account. Ask your San Antonio HOA management company to transfer the same amount each month from the operating account to a money market or other non-risk, liquid investment account. Before you know it, the association will have saved a significant amount of money for future repairs and help to eliminate the risk of a special assessment.
Spectrum Association Management is a homeowners association, condominium association and high rise association management company serving Dallas, Fort Worth, San Antonio, Houston and Austin areas. To learn more about Spectrum Association Management visit us at http://www.spectrumam.com/ or to request a quote for management click here. Also be sure to “like” us on Facebook by clicking the following link: http://www.facebook.com/spectrum.association.mgmt.
Many communities have bulletin boards in their lobbies, clubhouses or common areas. Typically, the association and the San Antonio HOA Management company use the boards to post meeting agendas, reminders about upcoming events and renovations, and other noteworthy information for members. Sometimes, the association lets homeowners post personal items on the bulletin board as well. However, letting homeowners post on bulletin boards can cause problems. For example, what if the material a member chooses to post is objectionable to others? Or what if members remove other people’s postings to put up their own?
The Board of Directors, along with the help from a San Antonio HOA management company, should establish rules and guidelines for the information posted on the community’s bulletin boards. Here are some tips for establishing bulletin board rules:
Ban material that may violate fair housing laws. Ban all material that may be perceived as discriminating against people based on their religion, nationality, mental or physical disability, race, color, sex, and family status. If the Board of Directors fails to ban this type of material, the association could face a fair housing complaint.
Ban postings related to illegal or illegitimate activity. Ban any postings related to illegal or illegitimate activity, such as solicitations for an escort service, or sales of illegal weapons or other contraband. For example, if a member posts an illegal weapon for sale on the association’s board and the weapon gets into the wrong hands and leads to a murder, the association could be perceived as facilitating the sale and be sued for damages.
Ban profane and pornographic material. A community is supposed to be a safe place for families. Board of Directors should include language in the rules for bulletin board posting banning any material containing profane language or pornographic images. Also, the board can determine what is acceptable and what is not and when in doubt, should err on the side of caution. If an item is questionable, it should not be allowed on the bulletin board.
Require postings to be approved by the Board of Directors. To ensure that nothing objectionable is posted on the association bulletin board, require members to bring the item they want to post to the San Antonio HOA management company office so that it can be reviewed by the board. It’s also a good idea to put the association’s “stamp of approval” on all permitted postings. In the rules, state that only items with the association’s official stamp of approval will be posted. Another good idea is to state that the board of directors reserves the right to remove any unapproved postings.
Only the manager may put up and remove postings. The rules should state that only the association manager may add postings to the bulletin board. To add some teeth to this, also state that members who are caught putting up or removing postings will be banned from posting material on the community’s bulletin board in the future. This one rule can help eliminate a lot of trouble among members.
For additional information on rules for bulletin boards, consult an HOA attorney or your management company. Spectrum Association Management is a homeowners association, condominium association and high rise association management company serving Dallas, Fort Worth, San Antonio, Houston and Austin areas. To learn more about Spectrum Association Management visit us at http://www.spectrumam.com/ or to request a quote for management click here. Also be sure to “like” us on Facebook by clicking the following link: http://www.facebook.com/spectrum.association.mgmt.