Community Association Financials

Budgets, Dues, Association Fees, Assessments, Financial Controls, Insurance, Reserves

Work Opportunity Tax Credit Can Add to the Bottom Line

Community association management companies (and their clients) have a valuable tool available for growing their staffs and reducing their tax bills at the same time — the Work Opportunity Tax Credit (WOTC). And they may not even be aware of it. “The credit is very overlooked,” says Jamie Dokovna, a shareholder in the Florida law…

Watch Out for Legal Pitfalls with 55-and-Older Communities

The federal Housing for Older Persons Act (HOPA) exempts 55-and-older communities from the prohibition against familial status discrimination in housing. But some of these associations fail to comply with the law’s strict, and ongoing, legal requirements, leaving them vulnerable to discrimination claims. As an example, to qualify for the exemption from familial discrimination liability, a…

Fannie Mae Tightens Requirements on Condo, Co-op Mortgages

Beginning Jan. 1, 2022, Fannie Mae will implement tougher requirements related to aging infrastructure and deferred maintenance on mortgages for attached condo and co-op communities. The updated requirements are temporary, but no end date has yet been established. “Associations, boards, and managers really need to be cognizant of these new requirements, especially when you think…

Rising Sea Levels Bring a Wave of Risk — Even in Unexpected Locales

Savvy community association managers have realized for some time that rising sea levels —whether in oceans, lakes, or rivers — pose a threat to their clients. “The problem is that it’s such a slow creep that it’s not visible to the naked eye,” says Brad van Rooyen, president of HomeRiver Group-Florida, the management company for…

Avoid the Potential Pitfalls of Sharing Common Areas Among Communities

When multiple associations share amenities or common areas through a master association, frictions can arise. Our experts have some ideas for preempting those through effective negotiation. How It Happens Master associations come in different flavors, but Kevin Hirzel, managing member of Hirzel Law, PLC, a Michigan-based firm that works with numerous community associations, says he…

One Association’s Loss Could Prove To Be a Future Victory for Others

When an owner drops a lawsuit against a community association, the association can recover its attorneys’ fees, right? Not necessarily. A California association recently learned this lesson the hard way. Ironically, though, the court’s ruling could prove helpful for other associations. In 2008, the association obtained majority approval from the members to spend about $5.3…

55-and-Older Communities: 3 Legal Landmines to Avoid

The federal Housing for Older Persons Act (HOPA) exempts 55-and-older communities from the prohibition against familial status discrimination in housing. But some of these associations fail to comply with the law’s strict, and ongoing, legal requirements, leaving them vulnerable to discrimination claims. Here are the three main areas where they can slip up. 1. The…

New Demographics Mean New Ways of Doing Things

Community associations across the country are seeing a change in their demographics, and with shifting generations come shifting demands. Is your management company prepared to appeal to younger generations who have different priorities and ways of conducting business than their elders? If you can’t answer in the affirmative, here’s what you need to consider. “Even…

Association’s Ultimate Victory Doesn’t Guarantee Attorneys’ Fees Award

When an owner drops a lawsuit against a community association, the association can recover its attorneys’ fees, right? Not necessarily. A California association recently learned this lesson the hard way (Champir, LLC v. Fairbanks Ranch Ass’n). Ironically, though, the court’s ruling could prove helpful for other associations. Traffic Light Project Halted In 2008, the association…

Get Ready for the Changing of the Guard

Community associations across the country are seeing a change in their demographics, and with shifting generations come shifting demands. Is your management company prepared to appeal to younger generations who have different priorities and ways of conducting business than their elders? If you can’t answer in the affirmative, here’s what you need to consider. Shifting…