A Primer for Consideration
scale can dictate a price reduction.
Achieving the Budget
It’ s necessary to take into consideration the potential extent of hidden costs and adjust the scope of work accordingly to keep within budget.
only mastered with years of experience. HOAs need a professional Construction Manager who“ speaks the language” and isn’ t afraid to get his / her hands dirty when issues arise. There are a lot of moving parts when it comes to reconstruction. Make sure you have someone in your corner who understands all of them.
Assistance with Contractor Selection
From the correct license to the correct insurance to successful experience with your size of project; who will be the foreman; what is the extent of their time on site; what tools will be provided to the employees; are they employees or subcontractors … just some of the questions to pursue.
Contractual Issues
A professional Construction Manager drafts a contract for the association. He or she does not let the association sign the contractor’ s contract.
Scheduling
Understanding the sequence of construction events and coordination among the subcontractors is an art
Progress Payment Approval
Wood replacement can look complete, but if the nails have not been set and the wood filler has not been applied- it’ s not complete. Contractors need to be paid timely and correctly, but paying ahead is always a recipe for disappointment. HOA
Barrera And Company has been in business since 1980 and specializes in Reserve Studies and Construction Management. They can be reached at:
Barrera and Company 2207 Garnet Ave., Suite H San Diego, CA 92109 858 483 0600 Peter @ barreraco. com www. barreraco. com.
COMPANY OWNED UNITS
QUESTION: I serve on the board of a townhouse association.
We have a potential buyer of a unit that is a limited liability company. If the LLC becomes an owner and the LLC has 50 members, will all 50 members have rights to use the common area facilities?
ANSWER: Good question. Because of the uncertainty and to avoid potential litigation over the issue, we address it when we restate CC & Rs and bylaws for our clients. We define who does and does not hold voting and common area usage rights for( i) those who merely hold a security interest in the property,( ii) tenants,( iii) trusts,( iv) corporations,( v) partnerships, and( vi) other ownership entities. Doing so eliminates the problem. Your association should consider doing the same.
NOTICE OF RULE CHANGE
QUESTION: We are changing several rules. May we send only the rules that are changing to homeowners? Our manager says we must send out all the rules for the 30-day homeowner comment period, not just the ones being changed or added. I do not read Civil Code 1357.130 that way. Who is correct?
ANSWER: You’ re correct. The statute only speaks to proposed changes not the entire package.
The board of directors shall provide written notice of a proposed rule change to the members at least 30 days before making the rule change. The notice shall include the text of the proposed rule change and a description of the purpose and effect of the proposed rule change.( Civ. Code 1357.130( a).)
Once the rule change has been approved by the board, notice of the approval must be given to the membership before the change can take effect. Ideally, changes are incorporated into the rule book and a full set is mailed or delivered to the membership. For some associations that can be quite costly. An alternative is to mail the changes to the membership and post a full set of revised rules on the association’ s website. HOA
Contact us at( 800) 464-2817 or info @ adamskessler. com
Adrian J. Adams, Esq. Adams Kessler PLC
Spring 2013 | Issue # 5 | The HOA Board Quarterly | 9