ISSUE
01
First Quarter 2012
THE QUARTERLY NEWSLETTER FOR
HOA BOARDMEMBERS
The
HOA Board Quarterly
THIS ISSUE
MANAGEMENT ............. P . 1
Tips on selecting a Community Management Firm for a Homeowners Association
ATTORNEY ................. P . 2-3 ASPHALT ...................... P . 4 CONSTRUCTION ........... P . 5 FIRE SPRINKLERS .......... P . 6 INSURANCE ............... P . 6-7 LANDSCAPING ............. P . 9 MAINTENANCE & REPAIR . P . 8 PAINTING ..................... P . 9 PEST CONTROL .......... P . 10 PLUMBING ................. P . 11 POOL and SPA ............ P . 12 PRESSURE WASHING . P . 13 RESERVE STUDIES . P . 14-15 RESTORATION ....... P . 16-17 ROOFERS .................... P . 18 SECURITY ................... P . 19 TOWING SERVICES . P . 20-21 TREE SERVICE ............ P . 20
One out of every three people in California is living in some type of planned community governed by a homeowners association . Hundreds of thousands of consumer dollars are collected every month in assessments from the many homeowners associations in California .
The odds are good that if you live in one of the more than 44,000 homeowners associations in California that a professional community association management firm retained by your board of directors collects your assessments . For most people , their home represents their most important financial asset . Keeping that in mind , I ’ d like to make some recommendations on what homeowners should look for in a community association management firm .
1 . Proof of Expertise .
Ask whether or not your community management firm has been certified . The California Association of Community Managers ( CACM ) offers certification for both the individual manager ( Certified Community Association Manager or “ CCAM ( r )”) and for management firms ( Certified Management Firm or “ CMF ”). Be suspicious of pricing that ’ s substantially below the rest of the competition . Never hire a firm just because it offers the lower rates . There ’ s probably a reason why .
2 . Evidence of Risk Management , Including Insurance .
Check to make sure the firm practices risk management , including carrying the proper amount and type of insurance to protect against theft , errors and omissions , liability and workers compensation claims .
3 . Proper Internal Financial Control Systems .
What sort of internal checks and balances system does the management firm employ for handling association funds ? The company should follow proper methods of handling cash receipts and disbursements , account receivable and revenues , as well as accounts payable , purchasing and contracts .
4 . Disclosure of Subcontractor Contracts .
Make sure you understand which companies have been hired to perform such services , as pool or landscape maintenance . The community management firm should disclose if they own any interest in or any portion of the business or may have any potential conflict of interest . Disclosure is the key here . Bottom line , the best way to make sure you ’ re getting the most value out of your community management firm is to participate in the governance of your association . Volunteer on a committee . Get to know your neighbors and vote at each election . Most importantly , ask the tough questions if you have any doubts or concerns about the management of your association .
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