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11/10/2008 10:48:18
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Subject: Home Owner's Association
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Elizabeth Scott
Joined: 10/03/2008 08:08:12
Messages: 206
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Question from Nick Schwendeman:
"While I manage commercial office buildings, I don't have any experience in residential Home Owners Associations. I have a developer looking to do a low density residential development, and they are looking for some "guidelines" as to what a typical HOA fee should be to the prospective purchasers on a monthly basis. They obviously need to create a budget of expenses that would be incurred on behalf of the HOA, including landscape maintenance, utilities if separate, trash pick-up, pool and spa costs, management, insurance, taxes if not billed individually, etc.
Does anyone have a sample budget format they would be willing to share with me for this type of project? Thanks."
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11/10/2008 10:48:43
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Subject: Re:Home Owner's Association
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Elsie Hermann
Joined: 09/25/2008 21:54:44
Messages: 202
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Comment from Chris Rosprim:
"You need to go to: http://www.caionline.org/
The CAI is an organization - similar to an apartment owners / managers association - whereby you can get all sorts of help, guidelines, forms, etc. relative to management of an HOA. There you will find complete info as to how to prepare a budget and what to include.
You will need to know what assets of the community there are and how long their life is and allow for a replacement reserve to ultimately replace each of them at the end of their life time. Info you can obtain from the CAI will be invaluable and you / the association should consider joining the CAI - a very worthwhile organization with chapters all over the country. They offer seminars, educational courses, web site, etc., etc."
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11/10/2008 10:51:56
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Subject: Re:Home Owner's Association
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Joel Felix
Joined: 11/10/2008 10:51:47
Messages: 1
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To Nick or any others who may be interested in learning the basics of "Common Interest Developments" (CID) management, you may be pleased to know that IREM now offers a 5 Day course on managing CIDs! Check our links to the course from the IREM home page or look in the Education tab for offering in your area. "Common Interest Developments: Managing Community Association Properties" (CID201) was developed by IREM CPMs in 2007 for real estate managers who want to move into this fast growing segment of the real estate management industry. CID201 covers all the bases of the community association world from governance, and state regulatory issues, ethics for managing agents, to the maintenance and financial management of the assets held in common. The course will also be of interest to Association Boards of Directors and service providers deepening their knowledge of the industry.
CID201 is offered for classroom, homestudy, and online formats. Thanks, and good luck!
Joel Felix
Curriculum Developer, IREM
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11/10/2008 10:52:58
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Subject: Re:Home Owner's Association
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Elsie Hermann
Joined: 09/25/2008 21:54:44
Messages: 202
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Comment from Guy M. Biasi. CPM"
"OK, I will now state my unedited bias. I HATE HOA's. There, I said it. Twice the work and half the money, boards with ego-bombarded members, late night meetings over the dumbest of things, board members with extremely poor personal boundaries, etc., etc., etc. No more HOA's for me unless I am nearly poor, destitute and living in the gutter. Oh, and did I mention twice the work and half the money"
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11/10/2008 10:55:29
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Subject: Re:Home Owner's Association
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Jeffrey Laass
Joined: 09/29/2008 08:49:58
Messages: 73
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Very succintly put Guy!
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11/10/2008 10:56:47
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Subject: Re:Home Owner's Association
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Lori Burger
Joined: 09/15/2008 19:57:58
Messages: 75
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Ouch! Association's can be quite challenging and certainly are a good source of management fee income. Personally, I have managed Association's since the early 80's. I have had the unique pleasure of hosting the Dali Lama for a week as a rental guest, administered numerous multimillion dollar full-envelope renovation and fire restoration administrative reconstruction service contracts under separate consulting agreements with the Boards and assisted Association's recover from devastating financial situations into successful organizations. Yes it is very true that HOAs can eat you alive if you do not structure your Agreement well OR have the guts to tell your client enough is enough. There are ways to improve client relationships, such as regular training sessions for Board Members. In Las Vegas we just held one and called it "Board Member Boot Camp". Association management is tremendously growing on the west coast, large high rises and master-planned communities, commerical condominiums. We are now managing a very well recognized mixed use community in Windor, CA which will lead to a half-dozen other new work-live communities. This is a valuable source of revenue stream and while we must continually watch the bottom line, we're in it for the long haul.
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11/10/2008 11:02:12
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Subject: Re:Home Owner's Association
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Elsie Hermann
Joined: 09/25/2008 21:54:44
Messages: 202
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Comment from Ben Larsson, CPM:
"This website will certainly help anyone managing HOA's. http://www.wpcn.com
I have created a few yearts ago to assit managers with HOA's.
Web Page Condominium News (WPCN) Inc., a global resource and information center created for the benefit of condominium, strata and unit title owners and their associations, managers and body corporate entities,
On a region specific basis, the public section of the site provides discussion boards, news articles, information, tips, links, trades, suppliers, professionals, and dates for local classes and seminars.
WPCN provides a secure area of the site enabling all members to subscribe to full online interactive record storage and retrieval services for all their documents, quotes , insurance polices etc. including our new time saving Minute Builder Wizard.
Web Page Condominium News may be found at http://www.wpcn.com"
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11/10/2008 11:03:09
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Subject: Re:Home Owner's Association
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Elsie Hermann
Joined: 09/25/2008 21:54:44
Messages: 202
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Comment from Kipp Gillian:
"HOA's are a killer when it comes to selling your condos. I own about 5 as investment properties and have realized that he developer needs to set the standard of expectations or at least have a directive meeting before turning things over to the HOA board.
40 unit luxury loft - 370/mo
300 unit luxury loft - 365
500 unit condo highrise - almost 600/mo
80 unit luxury condo - 476
these higher cost condos are b/c of building concierge and staff members. You must not overstaff as this causes a bludging waste of money that will causes qualified buyers to walk away. the 500 unit condo highrise above has about 3 worthless employes that would drop our HOA's down to about 400/mo but b/c of the sheer mob mentality it's hard to get rid of them. Plan accordingly
Kipp Gillian - recruiter in real estate
http://www.gessearch.com
http://www.devconjobs.com"
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11/18/2008 17:18:59
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Subject: Re:Home Owner's Association
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Jesse Holland
Joined: 10/28/2008 19:54:22
Messages: 38
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It's important to remember that the hoa dues are going to be based upon what's included. i.e. if roofs are the responsiblity of the association that higher dues than if not. in this way you can set up an association to be very nominal and include very little or very inclusive.
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11/19/2008 20:27:03
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Subject: Re:Home Owner's Association
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Lori Burger
Joined: 09/15/2008 19:57:58
Messages: 75
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Hi Nick,
I know that it has been awhile, but if you need a template let me know and I'd be happy to share one with you.
Lori Burger
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01/05/2009 12:51:26
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Subject: Re:Home Owner's Association
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Michael Packard
Joined: 09/15/2008 14:53:49
Messages: 3
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Check out my article in this months JPM. In addition to my comments in JPM, I have visited Community Association management companies in Dubai and Australia recently and in both cases the firms I met with charge top dollar for their services. They simply do not "low ball" their bids. All new developments in those countries are Condos/HOAs. Yes, dealing with Boards of Directors can be challenging. As Lori mentioned, however, part of our obligation to our communities is to educate the Board memebers which will in turn help them understand how to better handle their obligations and how to better interface with the management company and its personnel.
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01/16/2009 15:47:01
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Subject: Re:Home Owner's Association
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Paul Dumouchel
Joined: 01/16/2009 15:39:38
Messages: 14
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i can pass along the request to see if my company can assist.
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03/24/2009 08:27:31
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Subject: Re:Home Owner's Association
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Robert Pryor
Joined: 03/24/2009 08:03:15
Messages: 2
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Our office just started managing HOA’s in the past 12 months. Our focus previously has been Commercial Office and Retail. I appreciate everyone’s comment and links to more information regarding association management. Does anyone one have recommendations for turning around a challenged association? One that we are managing was developed as apartments in the 1960’s, turned condo in the 1980’s and has been managed by the residents until we got involved 9 months ago. We face design, maintenance and financial challenges. Any recommendations besides run away as fast as we can?
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03/25/2009 17:18:04
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Subject: Re:Home Owner's Association
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Lori Burger
Joined: 09/15/2008 19:57:58
Messages: 75
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There is something to be said about running. Sometimes I feel just like that. I have always been up for a great challenge though and have taken these kinds of situations head on.
I wrote an article for IREM, "Renovation Management for Aging CIDs" published in JPM. I don't recall the year I wrote it. IREM can find it for you or email me and I will send it to you, loriburger@ebmc.com. The article deals with aging communities. I think the article would be applicable today. There would be one significant difference, that is the ability to obtain a bank loan. Obtaining a loan would probably be harder.
The process of addressing the physical and financial woes in many cases takes years to address properly and completely. First it takes much time to get the Board to buy in, then followed by the membership buy-in. One association the reconstruction project was over $50K a unit, several hundred units. Today, thank our lucky stars...its over. Roofing is new, window and door flashings replaced, siding and paper replaced, new gutters and downspouts and the residents couldn't be happier. Best of all the Manager couldn't be happier.
Put forth a solid presentation to the members. Include the reputable construction team including project manager, architect, attorney and banker and include hard numbers from real bids and see if you can get approval from the members. In my experience, it will take going to the members more than 1 time. They'll vote the project down the first time. But be ready and within 30 days go back for another presentation and vote.
Currently these economic times woill make it extremely difficult to implement a full envelope reconstuction project. I wouldn't even consider attempting it unless I had no other alternative. If it were me....I would begin planning now for a project in the Spring of 2011. During this time, do a mock building to get costs and work out a solid bid package. I think you'll have all of your ducks in order by then and by then hopefully the Association bankers would take on a project like that and homeowners will have a more confidence in approving a project like this.
Lori 
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08/25/2009 15:22:28
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Subject: Re:Home Owner's Association: Owner/Renter ratio and current lenders
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Ronald Clark
Joined: 08/25/2009 15:14:55
Messages: 2
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The Board of Directors of the community I manage is currently reviewing 2 hardship requests to override the current lease permit waiting list and allow 2 units in the building to be rented. However, there is a limit to protect value of the building (and its residents) that no more than 20% of the building may be rented out to non-residents. The B.O.D. for the HOA would like to know if they grant one or both of these cases- will lenders be less likely to favor units that are for sale or applying for refinancing. How should I advise my B.O.D.? We are a 70 unit luxury midrise condo building in a central and affluent part of the city, with only 6 units up for resale and no foreclosures to date.
This message was edited 1 time. Last update was at 08/25/2009 15:25:24
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