2008 CAM Continuing Education course

Community Association Management i

Bert Rodgers Schools distance learning continuing education courses allow you to enjoy the convenience of studying on your schedule, without the stress and expense of driving to class. Fulfill your 2008 education requirements with the courses in this book or online, studying at your pace, on your schedule in your home or office.

It’s easy! Read the courses, written by nationally-known industry experts Richard Thompson and Ellen Hirsch de Haan. At the end of each course evaluate your comprehen-sion of the material by answering the true or false final assessments. Study online or by correspondence. The online option gives you the ability to register, study, answer the final assessments questions, and print your certificate(s) of completion immediately upon passing each course. If you choose correspondence, simply mail or fax your registration form and answer sheet(s) to our school (see detailed instructions in this book). We offer convenient same-day and next-day priority grading options.

Save time and money when you choose Bert Rodgers Schools for your continuing educa-tion. For maximum savings, take advantage of our Special Offer—only $129 for all 5 courses (a total of 18 hours), including the 2-hour 2008 Legal Update. That’s a savings of $36!

Rely upon Bert Rodgers Schools while enjoying the savings and convenience of distance learning. Benefit from our 50 years of experience in educating Florida professionals that we put to work for you!

Welcome Community Association Management Professionals!

Continuing Education Requirements

Community association manager licensees must satisfactorily complete a minimum of 20 hours of continuing education by September 30, 2008. The 20 hours of continuing educa-tion shall be comprised of courses approved by the Council, pursuant to Rule 61-20.5082, F.A.C., in the following areas:

• 4 hours of legal update seminars. Licensees shall satisfactorily complete a 2-hour legal update seminar during each year of the renewal period. The 2-hour 2008 required legal update must be completed between October 1, 2007 and September 30, 2008.

• 4 hours of instruction on insurance and financial management topics relating to commu-nity association management.

• 4 hours of instruction on the operation of the community association’s physical property.

• 4 hours of instruction on human resources topics relating to community association man-agement.

• 4 hours of additional instruction in course approved by the Council.

Community association managers licensed between October 1, 2006 and September 30, 2008, are not required to complete continuing education for this initial license period.

The DBPR requires that licensees retain, and make available to the Department upon request, continuing education course certificates of completion for 3 years following course completion.

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ii Bert Rodgers Schools

DirectoryBert Rodgers Schools1855 Porter Lake DrSarasota FL 34240Phone 941-378-2900 • Fax 941-378-3883Toll Free 800-432-0320

Instructor, Technical, and Administrative SupportTelephone Hours: M-F 8:30 AM to 5:15 PMEmail: [email protected]@bertrodgers.comwww.bertrodgers.com

Division of ProfessionsRegulatory Council of Community Association Managers1940 North Monroe Street Tallahassee, FL 32399www.myflorida.com/dbpr/pro/cam/index.htmlPhone: 850-487-1395

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Community Association Management iii

Table of Contents

FounDER

Bert Rodgers

PRESIDEnT

Lori J. Rodgers

ADMInISTRATIvE vICE PRESIDEnT

William E. Giffard

DIRECToR oFInFoRMATIon SySTEMS

Alison Harner

DIRECToR oF FInAnCE

Aaron Pulone

DIRECToR oF oPERATIonS

Kelli Finnigan

PRojECT MAnAgERS

Valerie Churchillo Lisa Lacey

InSTRuCToR

Janine Spiegelman

PRojECT CooRDInAToR

Jerry Schmitt

STuDEnT SERvICES SuPERvISoR

Patti Pasquini

STuDEnT SERvICES

Brenda Fletcher Mark Forsman Jenncie Grove Mary Killoran Shirley Samson Kayla Smillie

TyPESETTIng

Wild Dezign

PRInTIng

Action Printing

COMMUNITY ASSOCIATION MANAGEMENT

2008 Legal Update | 1 Final Assessment | 15

Association Financial Management and Insurance | 17 Final Assessment | 39

Operation of the Association’s Physical Property | 41 Final Assessment | 63

Communication Skills and Tools | 65 Final Assessment | 91

Board Operation Teamwork and Problem Solving | 93 Final Assessment | 113

Instructions/Grading | 114Registration Form/Answer Sheets | 115

BertRodgersSchools

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iv Bert Rodgers Schools

Bert Rodgers Schools ©2008

All rights reserved, including the right to reproduce this manual or any portion of this manual in any form, or to use it for teaching purposes without the express written consent of the copyright holder.

Richard Thompson courses used by permission. Copyright by Regenesis.net. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service.

If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

Bert Rodgers Schools shall not be liable in any way for failure to receive and/or grade your answer sheet within any specific time period. It is your responsibility to ensure that you have complied with your license renewal requirements in a timely manner.

Bert Rodgers Schools recognizes and respects its students’ privacy. Course records are confidential, and the School does not sell or rent students’ names or other information to any company or organization.

Cover design: Digital Ink Design GroupISBN: 1-891753-49-5Printed in the United States of America

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�

Learning Objectives

Upon completion of the course the learner shall be able to:

2008 Legal Update

2 Hours in Subject Area: Legal Update

�. Discuss the 2007 amendments to the Florida Statutes.

2. Identify and describe recent rule changes to Chapter 6�-20, Florida Administrative Code, Parts I and II.

3. Discuss review of Chapter 455.

4. List key provisions of Florida Statute 6�7, Corporations Not for Profit.

5. Discuss recent changes to Chapters 7�8, 7�9, and 72�, Florida Statutes, Condominiums, Cooperatives, and Vacation and Time Share Plans.

6. Identify and describe federal laws and regula-tions impacting community association manage-ment.

7. Discuss case law affecting community associa-tion management.

LegisLatiOnThe Florida Legislature had a very busy session in 2007, considering and addressing a number of bills which affected operations and occupancy in condo-minium, cooperative, and homeowners associations, as well as timeshare regimes. There were also some changes which generally affect community association operations.

As is true every year, in 2007 there were also a number of proposed bills which did not pass. This course includes information on those initiatives, to keep you posted on possible future trends in regula-tion.

For your reference: “SB” stands for Senate Bill. “HB” stands for House Bill. The letters “CS” before either SB or HB stand for “Committee Substitute for.”

sb 902: community associationsSB 902 affects community associations, cooperative associations, and homeowners’ associations. This law went into effect on July 1, 2007.

community association impactsBeach access. Amends §718.106, F.S., to provide that a local government may not adopt an ordinance or regulation that prohibits unit owners or their guests

from pedestrian access to a public beach contiguous to a condominium property, except where necessary to protect public health, safety, or natural resources.

Lender Consent of Amendments. Amends §718.110(11), F.S., to address lender consent of amendments when required by the condominium documents. Several of the noteworthy provisions of these changes are as follows:• For any mortgage recorded on or after October 1,

2007, any provision in the declaration, articles of incorporation, or bylaws that requires the consent or joinder of some or all mortgagees is enforceable only as to certain matters, including, but not limited to, amendments that adversely affect the priority of the mortgagee’s lien or the mortgagee’s rights to foreclose its lien or that otherwise materially affect the rights or interests of the mortgagees.

• For any mortgage recorded before October 1, 2007, any existing provisions in the condominium documents requiring mortgagee consents shall be enforceable.

• Includes a method for identifying the holders of outstanding mortgages and providing them with notice of the proposed amendment.

• After the notice is sent to the mortgagees as required under the statute, any mortgagee who fails to respond within 60 days after the date of mailing

by Ellen Hirsch de Haan, B.A., J.D., M.ED.

Approved by the DBPR Council for CAM, Provider #000�856, Course #96254�6

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2 Bert Rodgers Schools

shall be deemed to have consented to the amend-ment.

• For amendments requiring mortgage consent on or after October 1, 2007, any amendment adopted without the required consent of a mortgagee is voidable only by a mortgagee who was entitled to notice and an opportunity to consent.

• Sets a statute of limitations for actions to void an amendment.

Historically, some of the condominium laws created in the past were written to require lender approval of certain types of, or even all, amendments to the Declaration of Condominium. This created a significant impediment to the various associations’ ability to amend governing documents, even if the laws changed. Previously, an association would have had to spend substantial time and money to obtain the required mortgagee consents. One of the most ben-eficial provisions in this new law is that if the proce-dural steps for providing notice are followed and the mortgagee does not respond, it will be deemed an approval. This should make it easier for associations to reach the level of consent required by the govern-ing documents.

Power to acquire leaseholds, memberships, or other possessory or use interests. Amends §718.114, F.S., to provide that subsequent to the recording of the declaration, agreements acquiring leaseholds, memberships, or other possessory or use interests not entered into within twelve (12) months following the recording of the declaration must be approved in the same manner as material alterations or substantial additions to real property that is asso-ciation property.

Mixed-use condominiums. Amends §718.404(1) and (2), F.S., dealing with mixed use condominiums. §718.404(1) prohibits the condominium documents from permitting the owner of any commercial unit to have the authority to veto amendments to the decla-ration, articles of incorporation, bylaws, or rules and regulations of the association. §718.404(2) provides that where the number of residential units in the con-dominium equals or exceeds 50% of the total units operated by the association, owners of the residen-tial units shall be entitled to vote for a majority of the seats on the board of administration. The new law will make these provisions retroactive as a remedial mea-sure.

cooperative association impactsEquities facilities clubs. Amends §719.103(18), F.S., to provide a definition for an “equities facilities club.” It provides that an “equity facilities club” means a

club comprised of recreational facilities in which pro-prietary membership interests are sold to individuals, which membership interests entitle the individuals to use certain physical facilities owned by the equity club. Such physical facilities do not include a residen-tial unit or accommodation.

This language provides cooperatives with an abil-ity similar to that permitted under the Condominium Law, which allows community associations to pur-chase golf courses, country clubs, and the like.

Homeowners association impactsPresuit mediation procedures. Amends the petition for mediation provisions contained within §720.311, F.S., which requires mandatory mediation for certain disputes (e.g. covenant enforcement, use or changes to common areas, etc.) between a homeowners associ-ation and a member before the dispute could be filed in court. The effective date of this new law is July 1, 2007. This change is extremely helpful for homeown-ers associations, which were previously required to wade through a series of burdensome requirements of the petition for mediation process, which allowed the person being sued to significantly delay the enforce-ment process. Specifically, the aggrieved party no longer has to file a petition for mediation with the Division of Land Sales, Condominiums, and Mobile Homes. Instead, an aggrieved party must now serve upon the responding party a written offer to partici-pate in presuit mediation. The form of the written offer must be strictly adhered to. A sample written offer is contained within the new statute. The written offer, which must be sent via certified and regular first class mail, informs the responding party of the dispute and offers presuit mediation as an avenue to resolve the dispute. The aggrieved party suggests the use of one of 5 certified mediators to mediate the dispute. The responding party is given the option of selecting one of the 5 certified mediators.

If the responding party agrees to attend mediation with one of the 5 suggested mediators, the mediation must be scheduled within 90 days, unless extended by mutual written agreement. Both parties are like-wise required to prepay one-half of the mediator’s estimated fees. The aggrieved party is authorized to immediately proceed with the filing of a lawsuit against the responding party if the responding party: 1) fails to respond to the written offer via certified and regular first class mail within 20 days of the date of the mailing; 2) fails to agree to one of the 5 suggested certified mediators; or 3) fails to prepay one-half of the mediator’s estimated fees.

The new law also states that persons who refuse to participate in the entire mediation process may not recover attorney’s fees and costs in subsequent litiga-

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2008 Legal Update 3

tion relating to the dispute. In addition, the new law allows the prevailing party in any subsequent arbitra-tion or litigation proceeding to recover costs and attor-ney’s fees incurred in the presuit mediation process.

Overall, the changes made to §720.311, F.S., will prove very beneficial to homeowners associations. The new law will dramatically accelerate the presuit mediation process. Additionally, the new law will pro-vide homeowners associations a less expensive path to the courts by providing a lower procedural hurdle to moving into court. If you have any questions con-cerning the new requirements mandated by §720.311, F.S., you should contact your legal counsel to guide you through the process.

Official records. Creates §720.303(5)(d), F.S., to pro-vide that the association is not required to provide a prospective purchaser or lienholder with information about the subdivision or the association other than information required to be disclosed by Chapter 720. If the association chooses to provide information, the association may charge a reasonable fee for providing good faith responses to requests for information if the fee does not exceed $150 plus the reasonable costs for photocopying and attorney’s fees.

Reserves. Amends §720.303(6), F.S., as follows:• Provides that if the association does not provide for

reserve accounts, each financial report must state in conspicuous type that the budget does not pro-vide for reserves. (The exact language required is in §720.303(6)(c), F.S.)

• Provides that an association shall be deemed to have provided for reserve accounts when reserve accounts have been initially established by the developer or when the membership of the association affirma-tively elects to provide for reserves.

• Provides that if reserve accounts are not initially provided for by the developer, the membership may elect to establish reserve accounts upon the affirma-tive approval of not less than a majority of the total voting interests of the association.

• If reserve accounts are established, they shall be funded or maintained unless the reserves have been waived or reduced by the membership upon a majority vote at a meeting at which a quorum is present.

• Provides funding formulas for reserves.• Describes the funding of pooled reserve accounts.• Provides that reserve funds and any interest thereon

must remain in the reserve account and used only for authorized reserve expenditures unless their use for other purposes is approved in advance by a majority vote at a meeting at which a quorum is present.

Financial reports. Amends §720.303(7), F.S., as fol-lows:• Deletes the requirement that the association pre-

pare a financial report within 60 days after the close of the fiscal year and replaces it with a requirement that within 90 days after the end of the fiscal year, or on the date provided in the bylaws, the associa-tion must prepare and complete or contract with a third party for the preparation and completion of a financial report for the preceding fiscal year.

• Requires that within 21 days after completion of the financial report, but not later than 120 days after the end of the fiscal year or other date as provided in the bylaws, the association must provide each mem-ber with a copy of the financial report or a written notice that a copy of the financial report is available upon request.

Architectural control covenants. Creates §720.3035, Florida Statutes. The noteworthy provisions are as follows:• Provides that the authority of an association or an

architectural committee (or other similar commit-tee) to review and approve plans and specifications for the location, size, type, or appearance of any structure or other improvement on a parcel, or to enforce standards for the external appearance of any structure or improvement located on a parcel, shall be permitted only to the extent that the authority is specifically stated or reasonably inferred as to such location, size, type, or appearance in the declaration of covenants or other published guidelines and stan-dards authorized by the declaration of covenants.

• Provides that if the declaration, or other published guidelines and standards authorized by the declara-tion, provides options for the use of materials, the size of the structure or improvement, the design of the structure for improvement, or the location of the structure or improvement on the parcel, neither the association nor any committee shall restrict the right of a parcel owner to select from the options provided in the declaration or other published guidelines and standards authorized by the declaration.

• Provides that unless otherwise specifically stated in the declaration or other published guidelines or standards authorized by the declaration, each parcel shall be deemed to have only one front for purposes of determining the required front setback. When the specific setback limitations are not provided, the applicable county or municipal setback limitations shall apply.

• Provides that if a homeowners association or any committee should unreasonably, knowingly, and willingly infringe upon or impair the rights and priv-ileges set forth in the declaration or other published

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guidelines and standards authorized by the declara-tion, the adversely affected parcel owner is entitled to recover damages caused by such infringement or impairment, including any costs or reasonable attorney’s fees incurred in preserving or restoring the rights and privileges of the parcel owner.

• States that neither the association nor any architec-tural control committee shall enforce any policy or restriction inconsistent with the rights and privi-leges of a parcel owner set forth in the declaration or other published guidelines and standards autho-rized by the declaration, whether uniformly applied or not.

Because architectural control is one of the most important functions of a homeowners association, it is particularly important at this time that all homeown-ers associations review their declaration of covenants and other published guidelines and standards provid-ing for architectural control. A homeowners associa-tion or an architectural committee (or other similar committee) should not rely on undefined, unwrit-ten, or unpublished architectural control guidelines. Rather, guidelines and standards should be published in the declaration of covenants or in a separate docu-ment if authorized by the declaration of covenants.

The new law’s apparent goal of requiring pub-lished guidelines and standards for architectural con-trol should assist associations and architectural review boards when considering requests to approve plans and specifications and when enforcing architectural control requirements. This should eventually result in a fewer number of disputes between the association and parcel owners with respect to architectural control. Attorney’s Fees. Amends §720.305(1)(d), F.S., to pro-vide that a member prevailing in an action against the association under §720.305(1) is entitled to recover reasonable attorney’s fees and additional amounts as determined by the court to be necessary to reimburse the member for his share of assessments levied by the association to fund its expenses of the litigation.Developer requirements. • Creates §720.307(3)(t), F.S., to provide that for asso-

ciations incorporated after December 31, 2007, the developer must pay to have a turnover audit pre-pared of the association’s financial records.

• Creates §720.308(2), F.S., to address guarantee of common expenses by the developer.

Hb 7031: community associationsThis bill, dealing with insurance, developer disclo-sures, and condominium conversions, became effective on May 24, 2007 when it was approved by the Gover-nor. It impacts community associations, homeowners’ associations, and cooperative associations.

Insurance. During the 2007-A Special Session, the Florida Legislature adopted legislation permitting community associations operating at least 50 residen-tial parcels or units to “self insure,” for the purpose of pooling and spreading the liabilities of its group mem-bers relating to property or casualty risks or surety insurance. Specifically, the law permitted windstorm insurance coverage for a group of no fewer than 3 communities created and operated under Chapter 718 (Condominiums), Chapter 719 (Cooperatives), Chap-ter 720 (Homeowners Associations), or Chapter 721 (Timeshare Associations) to be obtained and main-tained for the communities if the insurance coverage is sufficient to cover an amount equal to the probable maximum loss for the communities for a 250-year windstorm event.

HB 7031 fixed what was perceived to be certain “glitches” in the law adopted during the Special Ses-sion, including:• Amends §718.115 and §719.107 to provide that the

common expenses of an association include the cost of insurance acquired by the association, including costs and contingent expenses required to partici-pate in a self insurance fund.

• Amends §720.308, F.S. to provide that assessments may be levied by the board to secure the obligation of the association for insurance acquired from a self-insurance fund.

Another “glitch” to be corrected was that the original legislation did not amend Chapters 719 and 720 to specifically authorize cooperative associations and homeowners associations to self-insure. This law fixes that glitch and implements for cooperatives and homeowners associations the self insurance provisions in the law adopted during the 2007 A Special Session.

Developer Disclosures. Amends §§718.503 and 718.504, F.S. and §§719.503 and 719.504, F.S., relat-ing to developer disclosures prior to sale. These pro-visions apply to both condominium and cooperative associations. The following are some of the changes: • Provides that the figures contained in any budget

delivered to a buyer are estimates only, that the actual cost of such items may exceed the estimated cost, and that any such changes in cost do not con-stitute material adverse changes in the offering.

• Requires that the budget prepared by a developer be prepared in good faith and must reflect accurate estimated amounts.

• Preserves the developer assessment guarantees in the prospectus and provides that subsequent increases that are beyond the control of the developer shall not be considered an amendment that would rise to rescission rights.

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2008 Legal Update 5

• Provides that if the closing on the contract occurs more than twelve months after the filing of the offering circular with the Division of Florida Land Sales, Condominiums, and Mobile Homes, the developer must provide a copy of the current oper-ating budget to the buyer at closing.

Cooperative Special Assessments. Amends § 719.108, F.S. to clarify (similar to the Condominium Act) that if a special assessment is levied, excess funds may, at the discretion of the board, either be returned to the unit owners or applied as a credit toward future assessments.

Condominium Conversions. Amends Chapter 718, Part VI, to change the information that must be dis-closed by the developer of a residential condominium created by a conversion. Some of the changes include: • Clarifies the law by adding the terms “converter”

and “as provided in this section” to modify “reserve accounts” in order to better differentiate between converter reserve accounts and regular reserve accounts.

• Requires the age of any component or structure for which the developer is required to fund reserve accounts be measured in years, rounded to the near-est whole year. The amount of converter reserves to be funded must be based on the age of the structure as disclosed in the inspection report, which must be determined by an architect or engineer.

• Requires a developer who sells a condominium parcel in a condominium conversion project to dis-close in conspicuous type in the contract whether the developer has established converter reserve accounts, provided a warranty of fitness and mer-chantability, or posted a surety bond for purposes of complying with the law.

sb 314: condominium terminationSB 314 had the strong support of the Real Property Section of the Florida Bar. A very similar bill passed the Legislature last session (unanimously), but was vetoed by Gov. Bush because he felt the threshold to terminate could be too easily attained. Hearings were held around the state to strike a balance between the property rights of condominium owners as a whole against the rights of a lone holdout who opposes the termination plan. The bill was then modified to address those concerns.

SB 314 amends §718.117, F.S., to provide a method of terminating condominiums in the event of economic waste, disrepair of the property, and when continued operation of the condominium is made impossible by law or regulation. In the event of eco-nomic waste, the percentage needed to terminate is

the lesser of the lowest percentage of voting interests needed to amend the declaration or as provided in the Declaration for termination of condominiums. There are special provisions in this bill for the termination of timeshare units. Optional termination can be effectu-ated by 80% of the unit owners if not more than 10% of the total voting interests of the condominium have rejected the plan of termination by negative vote or by providing written objections thereto. Mortgagee consent is not required unless the plan of termination will result in less than full satisfaction of the mort-gage lien. The effective date of this new law is July 1, 2007.

sb 1844: new collection and Foreclosure regulations for Homeowners associationsSB 1844 deals with liens and foreclosures for hom-eowners associations. The effective date of this new law is July 1, 2007, and it will have a dramatic impact on the collection and foreclosure process for home-owners associations. SB 1844 creates §720.3085, F.S., and several of the noteworthy provisions of the bill are documented below:• The bill mandates that a parcel owner is liable for

all assessments on a parcel and is jointly and sev-erally liable with the previous parcel owner for all unpaid assessments that came due up to the time of transfer of title.

• Provides for the payment of interest and late fees on unpaid assessments.

• Prioritizes the application of any payment received.• Prohibits the placement of a restrictive endorse-

ment on the payment.• Requires written notice before a lien is filed against

a parcel.• Provides the owner with 45 days to make payment

for all amounts due.• Provides for the foreclosure of the lien, but not

until 45 days after the parcel owner has been pro-vided notice of the association’s intent to foreclose.

• Permits the owner to make a qualifying offer one time during the pendency of a foreclosure action, in which case the foreclosure action is stayed for a period not to exceed 60 days.

Hb 405: timeshare and vacation PlansThe new law makes a number of changes to Chapter 721 dealing with timeshares and vacation plans. The effective date is July 1, 2007. Some of the significant changes include the following:

• Permits a seller to offer timeshare interests in a real estate property timeshare plan located outside of

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the state without filing a public offering statement provided certain criteria are satisfied.

• Creates definitions for “lead dealer” and “resale service provider” and creates new recordkeeping requirements for lead dealers and resale service providers.

• Provides that the failure of the managing entity to obtain and maintain insurance coverage during any period of developer controls constitutes a breach of the managing entity’s fiduciary duty.

• States that a managing entity that is an owners asso-ciation may waive or reduce reserves by a majority vote of those voting interests present, in person, or by proxy, at a duly called meeting of the owners’ association.

• States that the managing entity is authorized to man-age the reservation and use of accommodations using those processes, analyses, procedures, and methods that are in the best interest of the owners as a whole and to encourage the maximum use and enjoyment of the accommodations and other benefits.

• States that any determination by a timeshare asso-ciation of whether assessments exceed 115% of assessments for the prior fiscal year shall exclude anticipated expenses for insurance coverage required by law or by the timeshare instrument.

• States that the managing entity shall use due dili-gence to obtain adequate casualty insurance in such covered amounts and subject to reasonable exclu-sions and reasonable deductibles.

• Provides certain factors to be taken into account when determining whether the insurance obtained by managing entity is “adequate.”

• Provides that the managing entity is authorized to apply any existing reserves toward payment of insurance deductibles or the repair or replacement of the timeshare property after a casualty without regard to the purpose for which such reserves were originally established.

sb 259: Mobile Home relocationSB 259 changes the eviction notice requirements found in §723.062, F.S., by requiring the following language be added, “You may be entitled to compensation from the Florida Mobile Home Relocation Trust Fund, Administered by the Florida Mobile Home Relocation Corporation (FMHRC). FMHRC contact information is available from the Florida Department of Business and Professional Regulation.” The bill also provides for late fees if a mobile park owner does not make pay-ments to the Florida Mobile Home Relocation Cor-

poration within the required time period. Additionally, the bill provides for a time period within which an application for funding for relocation expenses must be submitted to the Florida Mobile Home Relocation Corporation. SB 259 became law on May 22, 2007, the day the Governor signed the bill.

Hb 7057: My safe Florida Home Program, Florida building code, and citizens Property insurance corporation and Openings ProtectionHB 7057 has a number of sections dealing with the My Safe Florida Home Program, the Florida Build-ing Code, and eligibility for coverage by Citizens Property Insurance Corporation. The part that has received the most attention is the section creating §627.351(6)(a)8., F.S., which provides that effective January 1, 2009, a personal lines residential struc-ture located in a wind borne debris region that has an insured value on the structure of $750,000 or more is not eligible for coverage by Citizens unless the struc-ture has openings protections. A residential structure will comply with the requirements if it has shutters or opening protections on all openings and if such open-ing protections complied with the Florida Building Code at the time they were installed.

Note that condominium buildings are not con-sidered “personal lines residential structure.” Rather, condominium buildings are insured as a “commercial lines residential” structure. Therefore, it appears that the new law will apply to single family homes (with an insured valued of $750,000 or more in the wind borne debris region and insured by Citizens), but not to condominium buildings.

sb 2498: insurance reformSome of the highlights include:

• Freezes rates charged by Citizens Property Insurance Corporation until 2009.

• Amends §627.70131, F.S., to require insurance companies to pay or deny a claim or a portion of the claim within 90 days of receiving notice of a claim.

• Amends §627.70131, F.S., to apply the 90-day pay-ment requirement to residential property claims, commercial property claims for structural or con-tents coverage if the insured structure is 10,000 square feet or less, and commercial property claims for contents coverage under a commercial property insurance policy if the insured structure is 10,000 square feet or less.

• Amends §627.70131, F.S., to require the insurer to pay interest on any payment or a portion of a claim

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2008 Legal Update 7

paid 90 days after the insurer receives notice of the claim, or more than 15 days after there are no longer factors beyond the control of the insurer which rea-sonably prevented such payment, whichever is later.

sb 500: instant bingoSB 500 deals with gambling regulations and amends §849.0931, F.S. The effective date of the new law is July 1, 2007 and recognizes “instant bingo” as a per-missible form of bingo on community association property. Instant bingo is a form of bingo that is played using tickets that contain numbers that are concealed by a cover. The player removes the cover and wins a prize if the set of numbers, letters, objects, or patterns on the ticket match a pre-designated pattern. The pre-designated pattern appears on a “game flare,” which is a board or placard that contains the game name, the manufacturer’s name or logo, the form number, the ticket count, the prize structure, the cost per play, and the serial number of the game. Although many of the new provisions governing instant bingo are identical to those governing traditional bingo, there are a few key differences.

The new law does not restrict the number of instant bingo prizes that may be awarded in one day. Likewise, the amount of each prize is not restricted. Instead, the prize amount is simply indicated on the game flare. Additionally, the number of days per week that instant bingo can be played is not limited by this legislation. The price of an instant bingo ticket must be printed by the manufacturer on the face of the ticket, and the price cannot exceed $1.00. No discounts or free tickets are permitted. The game flare must be posted prior to the sale of any tickets, and the serial numbers of the tickets and the game flare must match.

sb 2234: regulation of building inspection ProfessionalsThis legislation will require that building inspectors, mold assessors, and mold remediators be licensed by the Department of Business and Professional Regula-tion by July 1, 2010.

sb 1824: Mortgage FraudThis legislation provides greater consumer protec-tions related to the mortgage loan application process and makes mortgage fraud a third-degree felony. The effective date of the law is October 1, 2007.

nOtewOrtHy biLLs tHat DiD nOt Pass

These bills did not pass in 2007. The substance of the bills can be reintroduced in subsequent years.

sb 714: sponsored by senator siplin This bill would have prohibited associations from liening, foreclosing, and/or pursuing a monetary judgment for amounts less than $2,500 and would have removed the association’s ability to recoup attor-ney fees and costs. Known as the anti-foreclosure bill, SB 714 would have greatly impacted an association’s ability to timely and efficiently collect its assessment stream in order to ensure the continuation of essential community services.

Hb 1373: sponsored by representative robainaThis bill would have imposed sweeping changes to the laws pertaining to condominiums, cooperatives, and homeowners associations as well as expanding the powers associated with the Office of the Condomin-ium Ombudsman. The original version of this bill was 221 pages in length. Several of the highlights of this bill are as follows:

• required notices of proposed amendments to be sent via certified mail

• eliminated the ability of members to waive the financial reporting requirements for more than 2 years

• eliminated the ability of the members to opt out of the statutory election procedures

• required a community association to give members 24-hours advance written notice of any attempt to access a condominium unit, and

• revised the prescription pet requirements

recent cases, arbitratiOn DecisiOns, anD DecLaratOry stateMents aFFecting cOMMUnity assOciatiOns

In addition to legislative changes, during the course of a year, the Circuit Courts, District Courts, and Arbi-tration Division of the Department of Business and Professional Regulation deliver decisions and rulings which affect the operations of Community Associa-tions in Florida. These are referred to as “case law” or “common law.”

The following are case study samplings of rel-evant 2007 case law:

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case stUDy OneChalfonte Condominium Apartment Association, Inc. v. QBE Insurance Corporation, Case No. 06-81046 (S.D. Fl. 2007)

FactsIn October 2005, Hurricane Wilma damaged the Chalfonte Condominium, a luxury condominium adjacent to the ocean in Boca Raton, Florida. Chal-fonte Condominium was insured by QBE Insurance Corporation with coverage of approximately $70 mil-lion dollars related to property damage, and an addi-tional $6.5 million in law and ordinance coverage. Chalfonte Condominium reported significant damage to QBE immediately after the hurricane. QBE failed to adjust the claim in a timely manner. In fact, the association did not receive a formal adjustment (esti-mate) of the damages from QBE until after the asso-ciation sued QBE in Federal Court.

The association stated that it spent approximately $12 million dollars on hurricane related repairs that should be covered by QBE. QBE disagreed, and claimed that the association exaggerated its damages. QBE also claimed that many of the damaged items were excluded from coverage due to ordinary wear and tear, corrosion, and other issues. QBE also chal-lenged the association’s decision to replace all the exte-rior windows and sliding glass doors, not only those beyond repair. The association’s decision to replace all the exterior windows and sliding glass doors was based on the analysis of a certified general contractor, who determined that more than 75% of the sliding glass doors and windows were severely damaged and had to be replaced. The association also determined that it was required to replace all the windows and sliding glass doors because the alternative (replacing the vast majority but leaving a small percentage of the original doors and windows) would create an incon-sistent design and violate the local ordinances. The local ordinances specifically require multiple building communities to have a unity of character and design.

QBE rejected most of the association’s claim, and argued the actual casualty damage suffered by the association was only about $460,000. This amount was well under the $1.6 million dollar deductible, so QBE determined that the association was entitled to no compensation despite the insurance policy and Hurricane Wilma.

issueWas QBE’s claim that it owed the association no money because the casualty damage suffered by the association was actually below the $1.6 million dollar deductible in the insurance policy correct?

HoldingNo

rationaleThe association’s claim went to trial on 3 separate counts (legal theories). The first count asked the court to issue a declaratory judgment declaring that the asso-ciation was entitled to coverage for damages related to Hurricane Wilma. The second count alleged that QBE was in breach of the insurance policy as a result of its failure to provide coverage. The third count was a count for breach of the implied duty of good faith and fair dealing related to the provisions of the insurance contract. The association argued that the duty of good faith and fair dealing is implied into all Florida contracts, including insurance policies. QBE argued that the judge should enter judgment against the association, at least on the third count, claiming that Florida Law does not recognize a separate count for breach of the implied duty of good faith and fair dealing related to the provisions of the insurance con-tract. QBE also argued to the judge that Count III of the Complaint was actually an action for “bad faith”, a second lawsuit sometimes feasible only after the con-clusion of the first lawsuit. The judge disagreed and decided that the association was entitled to allege a breach of the implied duty of good faith and fair deal-ing related to the provisions of the insurance contract. The judge also decided that the discretion afforded to QBE by the insurance contract could not be exercised in a manner that destroyed the parties’ reasonable expectations based on the language of the insurance contract.

After a trial that lasted 2 weeks, a Federal Court jury returned a verdict finding that the association suffered hurricane related damages in the amount of approximately $8.1 million dollars and that QBE did not act in good faith. QBE will also be responsible to pay pre-judgment interest and prevailing party attor-ney’s fees and costs to the association. The jury’s find-ing will also allow the association to pursue another lawsuit against QBE for “bad faith” pursuant to Sec-tion 624.155 of the Florida Statutes, which could lead to QBE having to pay triple the damage award.

This verdict sends a message to QBE that they cannot treat their insureds that way. The verdict is also a reminder to all community associations of the criti-cal importance of conducting a complete and thor-ough post casualty inspection, which should include an inventory of the entire property, including the units. This process should also include documenting all of the damages, and as soon as possible, retaining competent professionals who also document the dam-ages with photographs, video, and detailed records. It is also worth noting that it may not be too late to file a supplemental insurance claim if the original claim

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2008 Legal Update 9

was not adjusted accurately. Supplemental claims are still being processed by the major insurance carriers in certain instances.

case stUDy twOAuto Zone Stores, Inc. v. Northeast Plaza Ventures, LLC, 934 So.2d 670 (Fla. 2nd DCA 2006)

FactsA landlord filed a lawsuit seeking a court order declar-ing that the landlord could develop certain property. The landlord argued that the development 1) did not breach the restrictive covenants affecting the real property, but 2) the court should enter an immediate order declaring that the development was permitted regardless of whether the restrictive covenants were breached. The landlord argued that if the court even-tually found breach of the restrictive covenants, the breach could be remedied with a payment of mone-tary damages and court orders preventing violations of restrictive covenants should only be entered if the party suffering from the breach can demonstrate irreparable harm, or that monetary damages could not adequately compensate for the breach. The trial court agreed, and entered the declaratory order permitting the landlord to develop the property, without ruling on the issue of breach. The tenant appealed.

issueDoes a party need to demonstrate irreparable harm, or that monetary damages could not adequately com-pensate the breach in order to obtain a court order (an injunction) prohibiting the breach of a covenant affecting real property?

HoldingNo

rationaleRestrictive covenants affecting real property are usu-ally intended to create rights to use or limit the use of property in order to maintain the character of a neighborhood. Their value is often difficult to mon-etize and sometimes impossible to replace, unless the affected party moves. Therefore, Florida courts have traditionally afforded restrictive covenants affect-ing real property (such as the restrictions contained in community association declarations) a special sta-tus; and entered court orders to prevent their breach without regard to whether the party claiming breach could demonstrate irreparable harm, or that monetary damages could not adequately compensate the breach. In fact, Florida law requires that injunctive relief to remedy the violation of a restrictive covenant be entered, even if the breaching party can demonstrate

that monetary damages could adequately compensate any breach, unless there are equitable defenses to the request for an injunction (i.e. failure to enforce similar violations). Therefore, the Appellate Court reversed the Trial Court’s order permitting the possible breach of a restrictive covenant.

case stUDy tHreeMuegge v. Heritage Oaks Golf & Country Club, Inc., 209 FED.APPX. 936 (11th Cir. 2006)

FactsThe home of plaintiff’s daughter was robbed by paint-ers who were painting the exteriors of the homes in the Heritage Oaks Club Homes Three Subdivision. Plaintiff sued (among others) Heritage Oaks Club Homes Three Association, Inc. for negligence. The Trial Court entered judgment as a matter of law against the Plaintiffs and refused to allow the case against the homeowners’ association to proceed to trial. The Plaintiff appealed.

issueDoes a homeowners association owe a duty to its residents or their guests related to security where the Declaration specifically and clearly states that the association was not responsible for providing security, even though Heritage Oaks provided gated entrances to the subdivision?

HoldingNo, at least as to security issues unrelated to the gates

rationaleIn order to bring a successful claim for negligence, a plaintiff must show, among other things, that the party being sued owed a duty to the plaintiff. Here, the asso-ciation’s governing documents explicitly disclaimed all liability to provide security. The association con-trolled the gates, but the court stated “Muegge failed to present any evidence that Heritage Oaks had a duty to do more.” The court did not write a detailed opin-ion on the issue. The court appears to rely entirely on the language in the Declaration to hold that the association did not have a duty to do anything other than reasonably operate the gates, if it was obligated to do even that. Previous Florida courts have held that associations may be responsible for crimes committed in the community if the association should have fore-seen the possibility of the crime and did not take any action to prevent it. Additionally, other Florida courts have held that even in the absence of a duty, a claim for negligence can be sustained if an entity provides security voluntarily (despite the lack of a duty to do so), but does so negligently.

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�0 Bert Rodgers Schools

The Appellate Court’s order is not clear as to whether it was holding that the language of the Dec-laration disclaiming any duty related to security was enforceable in all instances, or only in this case because the plaintiff did not present any evidence that the asso-ciation should have reasonably foreseen the risk due to other similar crimes in the community, or owed a duty to the plaintiff because the association attempted to provide security, but did so negligently. Regardless, the lesson to be learned from this case is that the asso-ciation’s governing documents should provide for clear disclaimers of any duty to provide security.

case stUDy FOUrSand Lake Residence LLC v. Ogilvie, 951 So.2d 117 (Fla. 5th DCA 2007)

FactsLandowners who held easement providing for ingress and egress across permanent access road on adjoin-ing property (Sand Lake) sued to remove the speed bumps installed by Sand Lake, and require that Sand Lake leave an electronic gate that Sand Lake installed but that was not described in the easement agreement open. The easement agreement provided a nonex-clusive perpetual easement in favor of the adjoining landowners’ over Sand Lake’s access road. The agree-ment contemplated the installation of one electronic gate but Sand Lake installed a second electronic gate and placed speed bumps across the permanent access road. Sand Lake provided the adjoining owners sev-eral means to pass through the front gate, which was not contemplated in the agreement. The landowners could open the gate by using a single button remote, by entering a personal access code in the gate’s keypad, by calling Sand Lake’s office during business hours, by calling their own cell phone numbers from the gate and buzzing themselves in. If the owners wished to admit a guest or a delivery person, they were per-mitted to either provide that person with their per-sonal access code, or utilize any of the other options for entry. The Trial Court held that both the speed bumps and the gate unreasonably interfered with the adjoining landowners’ easement rights, and ordered that they be removed. Sand Lake did not appeal the ruling with regard to the speed bumps, but did appeal the ruling with regard to the gate.

issueDoes an electronic gate with all the options mentioned above unreasonably interfere with the easement rights of the owners?

HoldingNo

rationaleIf the document granting the easement does not address the issue, whether or not a gate may be erected depends on whether the gate would unreason-ably interfere with the easement holders’ rights. The Appellate Court distinguished one prior community association case precluding the erection of a gate by holding that the gate here was much easier to access because it could be opened from a distance by anyone in all of the above described ways. It is unclear how many of these access options are necessary to obtain the same result in light of the prior cases which have held that other gates without all of these access options do unreasonably interfere with easement rights.

It is also important to note that Florida case law still considers some gates and standard speed bumps to unreasonably interfere with the easement rights of the owners that are commonly included in community association’s governing documents. Therefore, absent specific language in a community’s governing docu-ments permitting material changes to the Commu-nity’s gate or the addition of a gate or speed bumps, the Board should consult the association’s attorney. Depending on the language of the Community’s gov-erning documents, such changes (or other material changes) are commonly only permitted if the owners vote to amend the governing documents or otherwise hold a vote to approve the change.

case stUDy FivePhilips v. Hirshon, 958 So.2d 425 (Fla. 3rd DCA 2007)

FactsAn individual owning a cooperative apartment died and willed his cooperative apartment to a friend. The Florida Constitution prohibits the devise of home-stead property if the owner is survived by a spouse or minor child. Individuals owning cooperatives are permitted to declare the cooperative as a homestead for tax purposes. If the apartment was a condomin-ium (or a free standing home), the portion of the will regarding the cooperative apartment would be invalid because condominiums and homes in associa-tions are considered real property and subject to all of the homestead provisions of the Florida Constitu-tion (not just considered homestead for tax purposes). This means, among other things, that condominiums and homes that qualify as homestead are protected from forced sale of most creditors, and also may not be devised by the owner if the owner is survived by a spouse or minor child.

issueIs a cooperative apartment, where the “owners” actu-ally own shares in stock entitling them to occupy the

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2008 Legal Update ��

apartment, but not the apartment itself, treated the same way as a condominium apartment with regard to all of the homestead provisions of the Florida Con-stitution?

HoldingNo

rationaleIn 1978 the Florida Supreme Court decided that cooperatives were not subject to the homestead provi-sion in the Florida Constitution which prohibits the devise of homestead property where there is a sur-viving spouse or minor child. The Florida Supreme Court concluded that “owners” of cooperatives owned stock, and not real property, so this provision of the Florida Constitution did not apply to coop-eratives. Although owners of cooperatives can claim the homestead tax exemption, they are still not con-sidered in the same way as other real property. This appellate court also explicitly disagreed with a recent appellate decision from another part of the state that was decided in 2002. This appellate court concluded that cooperatives are subject to forced sale by credi-tors, and would not be considered protected by the homestead provision of the Florida Constitution for that purpose either. The 2002 appellate decision from another area of Florida previously held that coopera-tives were protected from forced sale and considered homestead for that purpose.

It is important to note that this appellate court recognized that the Cooperative Act (which arguably was enacted by the legislature and intended to treat cooperatives as real property) was not considered by the Florida Supreme Court in its 1978 decision, but felt that if change was warranted, the Florida Supreme Court should make this decision. It is also important to note that the appellate court recognized its decision added to the uncertainty in an area of the law of great public importance, with broad ramifications. For this reason, this appellate court explicitly asked the Florida Supreme Court to decide whether the 1978 decision was still viable and also clarify how all judges should treat cooperatives, at least with regard to the homestead provisions related to forced sale and devise and decent.

Please note: This decision was written on May 2, 2007, and at least one brief has already been filed with the Florida Supreme Court. There is a reason-able possibility that the Florida Supreme Court will issue an opinion clarifying how cooperatives are to be treated and resolving the conflict. Unless and until that happens, the result in a case now depends in cer-tain instances either on the area of Florida where the cooperative is located, or the judge randomly selected in areas where the appellate court has not ruled.

case stUDy siXJ. Lynn Construction, Inc. v. Fairways at Boca Golf & Tennis Community association, Inc., 2007 WL 1931390 (Fla. 4th DCA 2007)

FactsThe association entered into a written contract with Lynn Roofing, a roofing contractor for construction and repairs. The contract required Lynn Roofing to obtain a bond insuring that it would comply with its obligations under the contract. Lynn Roofing applied for and attempted to obtain the bond, but Lynn Roof-ing stated that obtaining the bond was impractical. Without modifying their original written contract, the parties negotiated an alternative. Specifically, the association agreed to accept a personal guarantee by Lynn Roofing’s President and a more favorable pay-ment schedule. The understanding was memorial-ized in correspondence and an addendum prepared by the Association’s attorney was signed. However, the addendum was not signed by both parties as required by Section 11 of the original written contract, which required modifications to be in writing and signed by both parties. Within a couple of weeks, the asso-ciation’s attorney sent a letter to Lynn Roofing ter-minating the contract and arguing that the parties’ subsequent negotiations and the addendum were of no force and effect because Section 11 of the origi-nal contract required all modifications to be in writing and signed by both parties to be effective. The trial court agreed and ruled that Section 11 of the original contract was unambiguous and therefore the subse-quent negotiations and the addendum were not bind-ing on the association because they were not signed by both parties. Lynn Roofing appealed.

issueCan unambiguous written contracts be modified by subsequent oral agreement or other course of conduct of the parties even though the original written con-tract unambiguously prohibits modification without the written consent of both parties?

HoldingYes

rationaleThe appellate court reversed the trial court and stated that in some instances unambiguous written contracts can be modified by subsequent action of the parties. This may also include a subsequent “oral agreement of the parties,” even though the parties’ written con-tract explicitly prohibits such modification. Although the result of this decision was likely due in part to the fact that the association’s own attorney prepared the

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addendum and induced reliance on the part of the roofing contractor, and the case can be distinguished based on this fact alone (among others), there is some broad language in the appellate court’s opinion. As a result, any time an association takes any action that is contrary to the express terms of the contract, or could reasonably be interpreted to modify the parties’ origi-nal written contract, the court may consider this evi-dence. Moreover, if the evidence is substantial, there is a risk that the judge or jury will determine that the other party reasonably relied on the actions of the association, permitting the judge or jury to ignore the unambiguous contractual provisions in the original contract. This case emphasizes how important it is for associations to be very careful when communicating with vendors, and choosing attorneys.

case stUDy sevenTurnberry Court Corporation v. Bellini, 2007 WL 2254680 (Fla. 3rd DCA 2007)

FactsPorto Vita was the owner/developer of the South Tower of Porto Vita, a residential condominium complex in Aventura, Florida. On March 22, 2000, a unit was sold to 2 individuals by the developer. Both prior to and after the closing, the owners complained of problems with the unit’s air conditioning system. These problems included leakage, dust accumulation, abnormal noise, and uneven air flow temperatures. An inspection revealed that the problems were caused by several deficiencies in the installation of the air condi-tioning system.

The owners sued the developer and the jury returned a verdict in favor of the owners on the the-ory that there existed an implied warranty of the air conditioning system by the developer. The devel-oper appealed and argued that pursuant to the Con-dominium Act (FL. St. §718.203), developers do not impliedly warrant air conditioning systems, because they are excluded from such warranty as “mechanical elements serving only one unit.”

issueDoes Florida law permit an individual owner to sue a developer of a condominium based on an implied warranty theory if the unit purchased by the owner contains defective property such as an air conditioner, which the developer sold to the owner with the unit?

HoldingYes

rationaleEven though Section 718.203 of the Condominium

Act sets forth the developer warranties and appears to exclude “mechanical elements serving only one unit” such as air conditioners, a review of the history of the Condominium Act and the remainder of its provi-sions permit such a claim. This is because the objec-tive of the Condominium Act as demonstrated by its other provisions is to also cover and extend warran-ties to personal property transferred by the developer with the unit, which can include items such as refrig-erators, stoves, ceiling fans, or air conditioners. The opinion is very broadly worded and a developer might be required to warrant any personal property trans-ferred with the unit (perhaps even furniture), but at a minimum, significant items such as those mentioned above are subject to claims for breach of warranty, despite the apparent exclusion contained in Section 203, and the general rule applicable to most other real estate transactions of “buyer beware.” This decision is a big victory for condominium unit owners and opens the door to claims against developers that were once thought by many to be barred by Section 203 of the Condominium Act and Florida law.

case stUDy eigHtIn Re: Petition for Declaratory Statement, Clois-ter Beach Towers Association, Inc., Docket No. 2007003592 (Declaratory Statement Issued Feb-ruary 28, 2007)

FactsCloister Beach is community association. In 1995, the association amended and restated the By-Laws. The amended By-Laws provide that “A director who has completed a 3-year term as a member of the Board of Directors shall not be eligible to serve on the Board of Directors again for a period of one year.”

issueCan a community association prevent a unit owner from running for the Board if the association’s gov-erning documents explicitly provide certain qualifica-tions that the unit owner does not meet, and/or can an association enforce term limits contained in an association’s governing documents.

HoldingNo

rationaleThe Division analyzed the language of the Condo-minium Act, and concluded that the Condominium Act explicitly permits all unit owners to run for elec-tion to the Board, with the sole exception of convicted felons whose right to vote has not been restored. The Division also noted as support for its interpreta-

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2008 Legal Update �3

tion that when the Condominium Act was amended in 2000, the legislature repealed the provision of the Condominium Act that specifically stated “In order to be eligible for Board membership, a person must meet the requirements set forth in the Declaration.” Therefore, all owners, (except felons whose right to vote has not been restored) are permitted to run for the Board, and provisions of the condominium docu-ments adding additional qualifications or term limits are unenforceable because they contradict the current Condominium Act.

case stUDy nineIn Re: Petition for Declaratory Statement, Gulf Island Beach and Tennis Club Community associa-tion I, Inc., Docket No. 2007001248 (Declaratory Statement Issued March 26, 2007)

FactsGulf Island Beach and Tennis Club is a community association. Article VII, Section 1 of the condomin-ium’s Articles of Incorporation provides “The affairs of the Association shall be managed by a Board con-sisting of the number of directors determined by the By-Laws, but not less than 3 directors and in the absence of such determination, shall consist of 3 directors.” The By-Laws did not specify any number of directors. However, Article 4 of the By-Laws stated that the Association shall be managed by a Board “as set forth in the Articles of Incorporation.” Prior deci-sions of the Division held that if a condominium’s documents provide a possible range of the number of directors without an explicit method for determining the actual number of directors, they would be treated as silent on this point. Therefore, the association must be managed by 5 directors, the statutory default. This is because Section 718.112(2)(a)(1) provides that if the By-Laws are silent, the association shall be run by 5 directors (unless there are less than 5 units).

issueIf language in a community association’s By-Laws (either explicitly or by reference to another one of the condominium documents) provides for a range of directors, but also provides that in the absence of a specific mechanism in the condominium documents to determine the number of directors, the Board shall consist of 3 directors, should the board be comprised of 3 directors or the statutory default of 5 directors?

HoldingThree directors

rationaleThe Division’s logic is that “Section 718.112(2)(a)(1),

Florida Statutes does not change the number of mem-bers of the Board as it only operates in the absence of any provision specifying the number of members.” This broad logic (and the actual text of the statute) arguably calls into question the Division’s prior opin-ions, which state that if a condominium’s documents are not silent and explicitly address the issue, but provide a possible range of the number of directors without an explicit method for determining the actual number of directors, there must be 5 directors, even though the condominium documents provide for a possible range. However, in this instance, the Division did not reconsider its older decisions on this point, and it did not have to because the Division held that the condominium documents stated clearly enough that 3 directors should govern the association. There-fore, although the Division may clarify this issue in the future, the Division’s current opinion appears to be that if the governing documents provide a range but do not provide a method for determining the number of directors within the range, 5 directors shall be on the board pursuant to the statutory default. However, if the condominium documents provide for a range of directors, but also can be reasonably read to provide for a default number of directors other than 5 (such as 3 in this instance), the default number contained in the condominium documents (3 in this instance) shall govern the association.

case stUDy tenFaircrest Community association, Inc. v. Sullivan – Moore, 2006 WL 4451884 (Final Order June 2006)

FactsThe association filed a Motion seeking attorney’s fees and costs related to an arbitration that was dismissed, because the owner conceded to the association and began complying with the association’s written demand to cure before the arbitration was served. The owner also ultimately cured the violation (removing the unauthorized lanai cover on her property).

issueIf an owner concedes that the association is correct, and begins complying with the association’s written demand and reasonably begins to cure the violation before the arbitration is served on the owner, and eventually does cure the violation, is the association entitled to an award of attorney’s fees and costs related to the written demand and the drafting of the arbitra-tion petition?

HoldingNo

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rationaleWhile an association is entitled to attorney’s fees if it wins the arbitration or if the unit owner concedes that the association is correct and begins to comply after being served with the arbitration, the association is not entitled to attorney’s fees if the compliance reasonably begins before the owner is served with the arbitration petition, and reasonably concludes shortly thereafter. The reason for this is that the Division will not accept arbitration petitions if the owner has decided to com-ply and conceded to the association’s position. While case law requires an owner to pay attorney’s fees if the owner decides to comply in response to existing legal proceedings, the Division will not accept petitions if the owner has begun compliance. Therefore, accord-ing to the Division (even though the owner was previ-ously warned that such an action would be filed), the owner will be allowed to comply within a reasonable time without paying the association its attorney’s fees, if the owner began complying before the arbitration was served. If the owner does not concede and begin compliance until after the arbitration is served, or loses the arbitration, then the association can recover its attorney’s fees.

This decision emphasizes the importance of the Board (or the property manager) notifying the associ-ation’s counsel immediately if an owner appears will-ing to comply, so that the attorney does not spend time (and the association does not have to incur attor-ney’s fees related to) drafting a Petition for arbitra-tion that the Division will not consider, and which cannot be recovered from the owner. Of course, there are situations where the owner may have a last min-ute “change of heart,” and such attorney’s fees are unavoidable (though still unrecoverable). However, in most instances, these situations can be avoided if the association keeps the association’s attorney apprised of any evidence that the owner appears willing to com-ply. Certainly, if the unit owner indicates in response to the association attorney’s letter that the unit owner will comply, it is worth waiting a reasonable time before filing the arbitration, because should the owner reasonably begin to comply prior to being served with the arbitration, the owner will not be obligated to pay the association’s attorney’s fees.

case stUDy eLevenRichter v. Beachwoods Property Owners Association, Inc., 959 So.2d 1237 (Fla. 50 CA 2007)

FactsThe association brought an action to foreclose a lien for unpaid assessments on a members’ property. Despite conflicting affidavits that were filed by the association and the owners, the association sought a Summary Judgment of Foreclosure and sought to

have the property sold at public auction. Summary judgment is a much quicker procedure, and precludes what could possibly turn into years of litigation on disputed issues. Most foreclosures are uncontested and decided by summary judgment. The trial court granted the association’s motion for summary judg-ment of foreclosure, and ordered the property sold at public auction. The owners appealed.

issueMay a trial court grant a Summary Judgment of Fore-closure if the owner files an affidavit conflicting the association’s evidence on a material issue, or is a trial necessary?

HoldingThe appellate court reversed, and instructed the judge to conduct a trial.

rationaleForeclosure Summary Judgments (which take about 6 months from start to finish), are typically the way fore-closures are resolved because owners rarely raise any valid defenses. However, if the owner retains counsel and raises valid defenses, Florida law requires a trial because summary judgments of foreclosure (which take much less time than trials and generally do not require Board involvement) may not be granted if the owner raises valid defenses (though the association can still obtain a foreclosure judgment after a full trial).

Although this particular appellate case is new, it simply reiterates the status of current law, which the trial judge misconstrued by granting summary judg-ment (which was reversed on appeal). I included it because foreclosures are on the rise, and the sheer volume increases the odds that a particular foreclosure case may not be resolved by summary judgment, even if the association is correct, especially if the owner hires competent counsel. Depending on how aggres-sive the owner’s attorney is, a trial (which the owner is entitled to if the attorney raises certain valid defenses) and final resolution could take years, especially if the owner appeals, as occurred in this case.

Each case is different, and in most instances, fore-closures will still be resolved at summary judgment. However, if a determined unit owner retains an attor-ney who raises a host of valid defenses, the full Board should be advised, and the Board should consider alternative options, such as mediation and settlement of the dispute. The Board may ultimately decide to go to trial, but the Board should make this decision, because a trial often requires Board member involve-ment, results are not guaranteed, and some trials takes a significant amount of time to resolve.

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2008 Legal Update �5

Final assessment 2008 Legal Update

For immediate results, test online at www. bertrodgers.com

Instructions• Answer the True or False questions below.• Locate the course title on the Answer Sheet in the back of this book• Fill in your answers for each question in the space provided. Please use pen or pencil.• Complete the Final Assessments, Attest Statements, and Course Evaluations for all courses selected, fill out the

Registration Form and submit both the Registration Form and Answer Sheet(s).• A passing score is 70% or higher (7 or more correct answers out of 10).

1. SB 902 affects community associations, cooperative associations, and homeowners’ associations. T F

2. In the past all condominium laws were written to require lender approval of all amendments to the Declaration of Condominium. T F

3. Associations must have a prepared and completed financial report within 90 days after the end of the fiscal year or on the date provided in the bylaws for the preceding fiscal year. T F

4. A homeowners association or an architectural committee (or other similar committee) should not rely on undefined, unwritten, or unpublished architectural control guidelines. T F

5. Effective July 1, 2007 HB 405: Timeshare and Vacation Plans Creates definitions for “lead dealer” and “resale service provider” and creates new recordkeeping requirements for lead dealers and resale service providers. T F

6. Condominium buildings are considered “personal lines residential structure.” T F

7. Effective July 1, 2007 “instant bingo” became recognized as a permissible form of bingo on community association property. T F

8. The new “instant bingo” law restricts the number of instant bingo prizes that may be awarded in one day. T F

9. New legislation will require that building inspectors, mold assessors, and mold remediators be licensed by the Department of Business and Professional Regulation by July 1, 2010. T F

10. Effective October 1, 2007 new legislation provides greater consumer protections related to the mortgage loan application process and makes mortgage fraud a third-degree felony. T F

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�7

Learning ObjectivesUpon completion of the course the learner shall be able to:

association Financial Management and insurance

4 Hours in Subject Area: Insurance and Financial Management

�. Describe the skills needed to prepare budgets accurately, avoiding the creation of deferred maintenance and special assessments.

2. List the 5 fundamental steps of budgeting.

3. Discuss the components of an Operating Budget and an Income and Expense Statement.

4. Explain the importance of accurately identify-ing and grouping related expenses into account codes and how this process improves the accu-racy of the annual budget.

5. Explain how to present and gain approval for the budget, thus ensuring asset and property values are maintained.

6. List the elements of a successful assessment col-lection policy.

7. Identify steps the manager may take to acceler-ate collection of late assessment fees.

8. Explain why managers should exercise a plan to repair and replace major common area compo-nents.

9. List 5 reasons healthy reserves are critical to a healthy association.

�0. Discuss the 5 components needed to conduct a Reserve Study.

��. List the 4 elements needed to establish a funding plan.

�2. Explain the difference between baseline funding and threshold funding.

�3. Explain several of the most common elements of reserve terminology.

�4. List several items found on the reserve compo-nent checklist.

�5. Explain how a policy document can eliminate gray areas in both maintenance and insurance.

�6. List 3 strategies a manager can use to reduce insurance premium costs.

�7. Differentiate between a single-entity and all-in association insurance policies.

�8. Discuss several points the manager and board considered in the case study on risk manage-ment.

�9. Explain the benefit and limits of Directors and Officers insurance.

20. List several scenarios in which directors and offi-cers have liability.

2�. Discuss how an Areas of Responsibility Policy can clarify insurance coverage and limit liability for the association and members.

22. List the 5 steps the manager can follow to develop a policy for handling insurance claims.

bUDgets

better budget basicsMany potential buyers of condominiums are attracted to their maintenance-free aspect. Fixed income buy-ers expect maintenance fees to remain relatively stable, possibly adjusted by inflation and little more. Unfortunately, this is rarely the case due to the ten-dency of many boards to keep fees and reserves unre-

alistically low. This budget “starvation” results in deferred maintenance and special assessments. What can be done to prevent this?

The accuracy of the budget directly affects future year budgets and maintenance fees. Under-budgeting creates shortfalls which are often covered by reserve funds earmarked for future replacement and repairs. This in turn causes a shortage in reserves. If these shortages are not corrected in the year they happen, a

by Richard Thompson

Approved by the DBPR Council for CAM, Provider #000�856, Course #9625407

CAM_book.indb 17 6/12/08 7:44:03 PM


domino effect results year after year until the commu-nity finds itself in a precarious financial situation.

Webster’s defines budget as: “A financial state-ment of estimated income and expenses for a specific period of time”. In an individual’s personal budget, income is determined and then assigned to various expenses. For a community association budget, the process is reversed. Expenses are estimated and then the source of revenue is determined. Maintenance fee levels are the end product of the budget process, not the starting point. Deciding what maintenance fees will be and then producing a budget will usually pro-duce disastrous results.

5 basic budgeting stepsSo how can your community avoid the trap? There are 5 basic steps to budgeting.

step 1: reserve contributions Reserves are the funds you put away to fund future repair and replacement projects. For this purpose, a Reserve Study is necessary. The Reserve Study identifies the common area components (like roofs, painting, siding, paving, and so on) for which the association has maintenance responsibility, assigns a useful life and replacement or repair cost to each component, and a long range funding plan so that future maintenance can happen without the need for special assessments. It is the single most important piece of the budget because it provides a long-term plan for all boards to follow. It also helps relieve the board from political pressure to not raise fees since The Reserve Plan dictates a prudent course of action that defends all owners’ interests, not a particular individual’s. More importantly, associations that fund a sound Reserve Plan consistently better maintain the property which produces higher resale values. Reserve Study computer software and workbook manuals are available for self help, or a professional consultant can perform the Reserve Study.

step 2: Operating budget expensesTo budget for the upcoming fiscal year, examine the previous 3-year history of each line item (i.e., the actual disbursements, not the budgeted). This infor-mation will show spending trends that may other-wise be missed. Then, consider future changes that will affect disbursements. For example: utilities, what rate increases are expected for the next year? Call the utility companies and ask. Are there any operational changes that will increase or decrease utility con-sumption? For example, if additional security lights are to be installed, an increase in the electricity budget may be called for; if existing light fixtures are being

replaced with energy efficient ones, a decrease may be in order.

These types of questions must be asked for every line item in your budget. Do not make the mistake of taking the previous year’s budget and merely adjusting for inflation. This across-the-board method merely compounds each year’s mistakes.

step 3: Operating budget revenue other than maintenance feesScrutinizing other sources of revenue is necessary because they offset money needed for maintenance fees. It involves the same process as Step 2. Prior years should be examined to spot trends. For example, look at trends in late-fee collections. Consider interest rev-enue on reserve funds based on the next year’s begin-ning balance, the additions to it and disbursements from it during the year. This will impact your interest revenue. If your association charges move-in fees, is the real estate market active or flat? Do you charge for parking spaces or RV storage fees? (When it comes to limited amenities like these, the association should consider charging fair market rates to maximize asso-ciation revenue.)

step 4: Maintenance Fees Now it’s time to calculate maintenance fees. It’s a sim-ple math equation:

Annual Reserve Contribution + Total Expenses - Total Other Revenue = Maintenance Fee Requirements

This figure is then divided equally or by percent-age of ownership, depending on your community’s governing documents, to determine the annual main-tenance fee for each owner.

If the budget maintenance fee is close to last year’s, your community has probably been budget-ing well. More than likely, the comparison may show that a significant increase is in order. If so, this is the board’s opportunity to revise the budget to reflect an acceptable maintenance fee increase. An acceptable fee does not change reality, however. To move towards a reality budget the board might propose a transition period of, say, 3 years where the gap between accept-able and reality is closed by 1/3 each year.

During the transition period, cosmetic reserve repairs like painting and carpeting can be deferred as long as the underlying structure is not threatened. Lower priority disbursement items like window wash-ing may also be eliminated to help hold the line. On the revenue side, consider raising things like park-ing fees when possible. Since the budget reductions reflect an austerity program, the board should care-fully explain the long term plan to the members. The message to all homeowners, real estate agents, buyers,

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Association Financial Management and Insurance �9

lenders, and other interested parties should be that the plan will make the association financially sound.

step 5: the year-end Financial statement This step compares the current year actual to the budget. It will show whether the association spent or collected more money than planned in order to include the changes to account balances in the next year’s budget. If disbursements were higher than bud-geted and/or income lower, the shortage was probably made up by using reserve funds. If this was the case, the association’s reserves are lower than expected and additional funds will have to be collected to bring the reserve accounts up to their proper level.

The year-end budget review is important because it reminds the board that each year’s budget affects and is affected by other years’ budgets. Overages and shortages will increase or decrease funding require-ments in future years.

While an association’s past budgeting errors are water under the bridge, its future financial stability can be secured by a commitment to thoughtful bud-get planning that reflects the true needs of the com-munity. The successful association plans for the future instead of reacting to it. See Figures 1 through 4 for examples of a condominium budget and financial statements.

Figure �: Sample Budget (Source: http://regenesis.net/3/accounting.htm#budget)

nOttacare cOnDOMiniUM OPerating bUDget

revenUe Regular Assessments $�30,000 Laundry Income 2,000 RV Parking Fees 2,500 total revenue $134,500 eXPenses Administrative Accounting-Tax Returns $ 500 Board Education �,000 Insurance 5,000 Legal 2,000 Office Supplies �,500 Postage 500 Property Management �2,000 Reserve Study Update 500 total administrative $ 23,000 Fees & Licenses Elevator 500 Pool 500 total Fees & Licenses $ 1,000 Maintenance Carpet-Cleaning $ �,000 Deck-Repair 2,000 Electrical-Repairs 2,500 Elevator-Contract 5,000 Fence-Repairs 2,000 Janitorial-Contract �0,000

Janitorial-Supplies 2,000 Landscape-Contract �8,000 Landscape-Irrigation Repairs 500 Miscellaneous 2,000 Painting 2,000 Pest Control 3,000 Plumbing-Repairs 2,500 Pool-Chemicals �,500 Pool-Contract 6,000 Pool-Repairs 2,000 Roof-Repairs 4,000 Siding-Repair 2,500 Supplies 2,000 Tree Work 500 total Maintenance $ 71,000 Utilities Electricity $ �0,000 Gas-Pool 2,500 Telephone-Elevator 500 Water - Irrigation �,500 Water & Sewer �5,000 total Utilities $ 29,500 tOtaL eXPenses $124,500

reserve cOntribUtiOn $ 10,000

tOtaL eXPenses & reserves $134,500

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Figure 2: Budget Notes (Source: http://regenesis.net/3/accounting.htm#income&expense)

bUDget nOtesrevenUe

regular assessments: Collected monthly from each owner Laundry income: Revenue from 4 washers & 4 dryersrv Parking Fees: Revenue from 40 RV parking spaces

eXPensesaDMinistrative accounting-tax returns: CPA to prepare and file association federal returnboard education: Subscriptions, seminars, memberships, videosinsurance:Deductible: $2,500Hazard Insurance with Guaranteed Replacement Cost: $5,000,000Directors & Officers Liability InsuranceGeneral Liability: $2,000,000Fidelity: $25,000Earthquake Insurance (subject to a �0% deductible)Legal: Consult with attorneyOffice supplies: Copies, paper products, misc.PostageProperty Management: Annual Contract with Velvet Glove Managementreserve study Update: Adjust study for changes interest earned, inflation, and actual work performed during previous year

Fees & Licenses elevator: Due in September and payable to State Licensing BureauPool: Due in April

Maintenance carpet-cleaning: Clean clubhouse carpet in April and NovemberDeck-repair: Replace boards, etc.electrical-repairs: Repair common area lightingelevator-contract: Annual contract with Up & Down Elevator MaintenanceFence-repairs: Replace posts and boards, etc.janitorial-contract: Annual contract with White Glove Janitorial Servicejanitorial-supplies: Small equipment and specialized cleaning suppliesLandscape-contract: Annual contract with Mow & Blow LandscapingLandscape-irrigation repairs: Repair broken pipes and missing headsMiscellaneous: Items that do not fit in other categoriesPainting: Touch up trim, siding, decks, and fencingPest control: Treat buildings for termites and carpenter antsPlumbing-repairs: Repair common area plumbingPool-chemicals: Chlorine tablets, oxidizer, algaecide, etc.Pool-contract: Annual contract with Pools R UsPool-repairs: Fix handrails, loose tilesroof-repairs: Repair missing shingles, bad flashing, lifted seamssiding-repair: Replace bad siding, recaulksupplies: Fasteners, boards, caulk and other misc.tree work: Remove dangerous limbs or cut limbs away from structures

UtiLities electricity: For common area, clubhouse and poolgas-Pool: For pool heatertelephone-elevator: Emergency phone required by statewater-irrigation: For watering common areawater & sewer: For clubhouse and units

reserve cOntribUtiOn Annual contribution based on 30-year study

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Association Financial Management and Insurance 2�

item Month Month ytD ytD actual budget actual budgetrevenUe Regular Assessments $ 9,900 $�0,833 $53,200 $54,�67 Laundry Income 250 208 �,250 �,04�Parking Fees 200 �67 �,�50 833total revenue $10,350 $11,208 $55,600 $56,041

eXPenses aDMinistrative Accounting-Tax Returns $ 0 $ 42 $ 0 $ 208Board Education �00 83 500 4�7Insurance 4�7 4�7 �,800 2,083Legal 200 �67 700 833Office Supplies �00 �25 525 625Postage 75 83 550 4�7Property Management �,000 �,000 5,000 5,000total administrative $1,892 $1,917 $9,075 $9,583

Fees & Licenses Elevator $ 0 $ 42 $ 0 $ 208Pool 0 42 0 208total Fees & Licenses $ 0 $ 84 $ 0 $ 416

Maintenance Carpet-Cleaning $ �00 $ 83 $ 500 $ 4�7Deck-Repair 250 �67 850 833Electrical-Repairs 300 208 �,200 �,042Elevator-Contract 4�7 4�7 �,400 2,083Fence-Repairs �00 �67 775 833Janitorial-Contract 833 833 4,�67 4,�67Janitorial-Supplies �25 �67 750 833Landscape-Contract �,500 �,500 7,500 7,500Lands-Irrigation Repairs 0 42 �50 208Miscellaneous 25 �67 �,000 833Painting �50 �67 �,�33 833Pest Control 200 250 �,750 �,250Plumbing-Repairs �50 208 975 �,042Pool-Chemicals 35 �25 825 625Pool-Contract 500 500 2,500 2,500Pool-Repairs 0 �67 750 833Roof-Repairs 225 333 2,200 �,667Siding-Repair �75 208 684 �,042Supplies 268 �67 552 833total Maintenance 0 42 200 208 $ 5,353 $5,918 $29,861 $29,582 UtiLities Electricity $ 825 $ 833 $ 5,000 $ 4,�67Gas-Pool 250 208 950 �,042Telephone-Elevator 42 42 �95 208Water - Irrigation 200 �25 625 625Water & Sewer �,�00 �,250 5,800 6,250total Utilities $ 2,417 $ 2,458 $12,570 $12,292 total expenses $ 9,662 $10,377 $51,506 $51,873

reserve cOntribUtiOn $ 833 $ 833 $ 4,165 $ 4,165total expenses & reserves $10,495 $11,210 $55,671 $56,038 net gain or (Loss) ($ 145) $ (2) ($ 71) $ 3

incOMe & eXPense stateMent – May nOttacare cOnDOMiniUM

Figure 3: Income and Expense Statement (Source: http://regenesis.net/3/accounting.htm#income&expense)

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accOUnt cODesFinancial reports need sufficient detail to guide the Board in good stewardship. Assign an account code to each item of income and expense item in each income & expense report. By systematically identifying and grouping related expenses, the Board can refine and improve the annual budget. For more information on financial reporting, see articles-Financial.

incOMeClubhouse RentalLaundry IncomeLate FeesInterestMisc. IncomeMove in/Move out FeesNSF Check ChargesParking Fees

Maintenance eXPensesBuilding Exterior RepairCarpet CleaningChimney Cleaning & RepairClubhouse MaintenanceClubhouse SuppliesDeck RepairDoor & Lock RepairElectrical & Lights MaintenanceElevator MaintenanceEntry Structure RepairFence RepairsFire Protection System RepairGarage Door & Gate RepairGutters & Downspouts CleaningGutters & Downspouts RepairHeating & Air ConditioningJanitorial ServicesJanitorial SuppliesLandscape-BarkdustLandscape-Drainage RepairsLandscape-Irrigation RepairLandscape-Pest ControlLandscape-Pond MaintenanceLandscape-Pruning BushesLandscape ContractLandscape-Trail RepairLandscape-Tree WorkMaintenance Misc.PaintingPest Control-BuildingPlumbing RepairsPool-Chemicals & SuppliesPool-Equipment RepairPool-RepairPool-ServiceRoof-Building RepairRoof-Carport RepairRoof-Clubhouse RepairRoof-CleaningSecurity Systems MaintenanceSecurity Guard ServiceSignage RepairSpa-Chemicals & SuppliesSpa-Repair

Spa-ServiceStreet & Sidewalk CleaningStreet & Sidewalk RepairWindow Washing

aDMinistrative eXPensesAccounting/Bookkeeping ServiceBank ChargesBoard EducationConsulting ServiceInsurance-Ordinance or LawInsurance DeductibleInsurance-Directors & Officers.Insurance-EarthquakeInsurance-Employee DishonestyInsurance-FloodInsurance-General LiabilityInsurance-HazardInsurance-Workers CompLegal ServicesLicensesManagement Add’l FeesManagement ContractManagement-Resident ManagerMeeting ExpenseOffice SuppliesPayroll ExpenseRental Expense-Resident ManagerTaxes-Federal & StateTaxes-PropertyTaxes-Unemployment

UtiLitiesCable TVElectricityElectricity (Pool/Spa)GasGas (Pool/Spa)SewerTelephoneTelephone ElevatorTrash RemovalWaterWater-IrrigationWater & Sewer

reserve eXPenDitUresAddress SignageAppliancesAsphalt Paving OverlayAsphalt Paving RepairAsphalt Paving SealcoatAwningsBenchesBoiler

Building Exterior/SidingBrick & Mortar RepairChimney CapsConcrete RepairDecksDoorsDrainage CorrectionElevator RenovationEntry StructureFenceFlooringFountainFurnitureHot Water HeaterHVACLandscape RenovationLight Fixtures-ExteriorLight Fixtures-InteriorMailboxesOffice EquipmentPainting - ExteriorPainting - InteriorPlayground EquipmentPlumbing FixturesPool Deck RefinishPool EquipmentPool FilterPool FurniturePool HeaterPool PumpPool ReplasterRetaining Wall RenovationRoof-Cedar ShakeRoof-Cedar ShingleRoof-Composition-3 TabRoof-Composition-ArchitecturalRoof Gutter & DownspoutRoof-Flat-Built UpSecurity EquipmentSidingSignage-AddressSignage-EntrySignage-StreetSpa EquipmentSpa FilterSpa HeaterSpa PumpSpa ReplasterTennis Court FencingTennis Court NetTennis Court RestripingTennis Court ResurfacingUtility RenovationWall PaperWindow Treatments

nOtesboard education: For purchase of videos, books, subscriptions, seminars, etc.insurance Deductible: For payment of claims that fall below the policy deductibleinsurance-Ordinance or Law: Pays for increase replacement costs due to zoning or building code changesLicenses: For elevator, pool, spa, etc.Utilities-water-irrigation: Irrigation water requires no sewer and may only be used for part of a year. By separating building from landscaping usage, irrigation leaks can be more easily detected.

Figure 4: Account Codes(Source: http://regenesis.net/3/accountcodes.htm)

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Association Financial Management and Insurance 23

Presenting: the budget!Number crunching—what a drag. But having enough of it in all the right places ensures the assets and prop-erty values are maintained. Community associations have the ability to draw the members into the budget process in a way big government can’t. With a bit of planning, the budget can be a harmonizing exercise instead of a battleground of discontent.

Philosophically, it’s important for the Board to adopt a “we’re one of you” attitude because, frankly, it’s true. All association members, including direc-tors, pay their fair share of the freight. Even if the Board has the power to unilaterally adopt the budget, approaching it as a consensus-building exercise will work wonders in how the message is received.

Form a budget committee It is often difficult to get members to volunteer for Board positions but getting some to commit to a short term Budget Committee is not so tough. There are always a certain number of bean counters out there who would make time for a 4-6 week stint crunching numbers. Targeting CPA or bookkeeper members is logical but there are amateurs that can provide valu-able service, especially if they are longtime residents who know the community association’s history or have served on a past Board.

Poll the Members Asking the members for budget suggestions is usually largely symbolic, like raising the flag and see if anyone salutes. There may be a couple who do but most do not even notice. But the mere fact that all were asked, goes a long way toward building support. Those that respond may be thoughtful or total flakes but the Board does not need to commit to including the sug-gestions, only to consider them. Gather this informa-tion the month prior to Budget Committee meetings so the information can be included for consideration.

budget review Meeting Once the draft budget has been compiled, a Budget Review Meeting should be scheduled. This could be part of a regular Board meeting if the budget is simple or a part of a special meeting if the budget is complex or contentious. All members should be invited and encouraged to attend. A formal presentation should be made and presenters must be prepared to answer questions or justify line items.

budget approval After the review is held, formal approval of the budget should take place. If this requires a quorum of mem-

bers to vote, sending out formal announcements, bal-lots, etc., are in order. If the Board has the authority to approve the budget (hopefully yes), it is still a good idea to inform the members when and where that approval will take place. It should happen at least 30 days prior to the start of the new fiscal year. Assuming the budget has increased (and it usually should due to inflation alone), the Board should give members at least 30 days notice of any homeowner fee change.

circulate approved budget Once the budget has been formally adopted, a copy of it along with detailed notes explaining each line item and a side by side comparison of the past and future budgets should be sent to each member. A cover let-ter should explain what the new homeowner fee will be if equal, or include a matrix showing the different fee levels if prorated by percentage or fraction. This would be the perfect time to distribute payment enve-lopes and coupons if you use them.

The whole budget process generally takes 4 to 12 weeks from start to finish depending on complex-ity and the requirements for approval. There are few exercises that have a more profound effect on the asso-ciation’s destiny so do not downplay it. The budget is a chance for a new beginning, improvement, and team building. Do not miss the opportunity to engage the members.

assessMents

greasing the wheelsMoney is the grease that oils the community associa-tion’s wheels. Without it, the association screeches to a grinding halt. Without money, bills go unpaid, needed repairs are delayed, property values fall, and tempers rise. In most association budgets, there is little margin for slow or no payers, so attention to timely collection is essential. Yet, it’s a recurring problem in many asso-ciations because Boards are reluctant to enforce col-lection on neighbors and/or friends. But there is no government bailout for community associations. If all don’t pay, the remaining members must make up the difference. The picture is not pretty.

While the governing documents empower the community association to collect the money it needs to operate, the details on collection is left to the dis-cretion of the Board. There is much to consider:• Should a late fee be charged? • How about charging interest on the outstanding

balance? • How about a bad check charge? • Should a lien be filed? • Should an attorney be used for collections?

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• Can the community association get reimbursed from the debtor for costs of collection?

• Should the association consider foreclosure in some cases?

• Can the association garnish wages?

The answers to these questions are Yes. And all should be integrated into a collection policy that should be adopted and followed consistently by the Board and Manager. The primary goal of the policy should be to keep the community association bill at the top of the debtor’s bill paying stack.

Since a collection policy is complex, it should be formalized in a board resolution which recites the governing document authority and the details of the procedure. As with all resolutions, it should be circu-lated among the membership prior to enactment for review and input. Once adopted, the collection reso-lution should be posted on the association’s website and attached to each attempt to collect a delinquency. That way, members know exactly what the process is and are forewarned of consequences.

Collection policies vary in procedure but the fol-lowing reflects a sequence commonly used unless the governing documents indicate otherwise:1. Homeowner fees (dues, assessments) are due on

the first of the month.2. On the 10th, a late charge is applied and Notice of

Balance Due sent which includes a Right of Appeal and Repayment Plan Request.

3. After 30 days, a 10-Day Notice of Intent to Lien is sent.

4. After 40 days, the account is turned over to the community association’s attorney for further action.

5. The attorney immediately sends a 10-Day Demand for Payment letter again citing the Intent to Lien.

6. By 60 days late, the attorney files a lien against the debtor’s property and may, if appropriate, invoke termination of association paid utilities provided to the owner, restriction to amenities (like pool, clubhouse, etc.), acceleration of fees due for the remainder of the fiscal year, garnishment of wages, seizing assets for resale (cars, boats, etc.), taking an assignment of rents if the unit is rented, and other allowable options.

7. By 120-180 days late, the community association should consider processing a foreclosure action.

Here are details on selected actions:

Late charge. A late charge is appropriate for each month the account is delinquent. Generally, a flat fee of $10 to $25 per month is acceptable. If partial pay-ment is received, it should always be applied to the

oldest balance so that late fees are levied for each month there is a balance due.

Notice of balance due. This statement advises the debtor early of the late fee. It usually results in a speedy payment. The debtor may have an explanation (check’s in the mail, Post Office lost it, dog ate it, etc.) that can be considered.

Right of appeal. The debtor may dispute the valid-ity of the debt, especially if there are fines and other charges that are not part of the regular fees. They are entitled to appeal the billing. Of course, convincing evidence must be presented that negates the charges. The Board has the final say and appeals should be heard quickly and not delay the collection schedule.

Repayment plan request. There can be extenuating circumstances like injury, disability, job loss, or other unavoidable financial setback that the Board should consider in allowing a repayment plan. Repayment plans should not be granted automatically since they put an additional burden on the other members to fund the shortfall. However, filing an aggressive col-lection on someone who is unable to pay for valid reasons could alienate an otherwise good neighbor, unnecessarily increase the debt on someone who can’t even pay the principal, and tip the debtor into prema-ture bankruptcy. If there is a reasonable expectation of financial recovery, it is often in the community associ-ation’s best interest to work with the debtor.

In general, repayment plans should serve as a stopgap measure only and extend only a few months. The plan should be strictly adhered to so the associa-tion does not lose ground as time passes. Approving the plan needs to be considered in the overall scheme of the association’s cash flow. If the association needs every penny every month, approving a repayment plan means others will have to ante up the cash so bills can be paid. This translates into a special assessment (the longest 4 letter word there is). In other words, if the association has no excess cash to draw on, the mem-bers should approve the plan.

Notice of intent to lien. This warning notice advises the debtor of the costly consequences for nonpay-ment. In most cases, outstanding balances are resolved before the deadline.

Lien recording. Recording a lien against the debtor’s unit/home is the most important collection action the community association can take since it secures pay-ment of the balance due. It is very important that the lien be properly prepared and recorded. A knowledge-able community association attorney should always be used for this purpose. The attorney will need:• copies of all notices sent to the debtor

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• copies of appeals, repayment proposals and responses, if any, from the debtor

• copy of unit deed verifying who is legal owner• mailing address of the legal owner• property tax ID number• a current account balance with all charges detailed

including late fees and interest charges• a copy of the Collection Policy

Acceleration of assessments. Some governing doc-uments provide the right to accelerate the balance of the current fiscal year’s assessments in the event of default. Invoking this right is subject to the Board’s discretion which includes the number of times a par-ticular owner has been delinquent and the amount of the delinquency. If your community association has this right, it is best for the Board to establish the criteria under which it is invoked (for example, if the debtor has been delinquent twice in the previous 12 months or the balance exceeds, say, $1000).

Foreclosure. Foreclosure of debtor property is the most extreme form of community association collec-tion and not particularly easy to pull off. The asso-ciation must be able to buy out prior lien holders like lenders, and possibly, the IRS. Debtors enjoy Homestead Right protection in most states which protects tens of thousands of dollars of equity. After all prior lien holders are satisfied, there must be enough equity remaining to justify the action, that is to say, to pay the outstanding balance owed.

Foreclosures are politically charged inasmuch they usually involve a person’s home. If the owner is disabled or elderly, the issue gets even more sensitive. For a variety of reasons, the Board should seriously consider whether foreclosure should be pursued. Unless the debt is significant (many thousands of dol-lars), it is generally more prudent to wait until the property sells. The attorney should make a recom-mendation to the Board after all the facts are known and discussed at length. Foreclosure should never be undertaken lightly or automatically.

Money comes and money goes but mostly goes. Money is hard to come by. Keeping the community association wheels greased is a never ending task. To ensure that your association never lacks the lubrica-tion it needs, develop and follow a fair but firm col-lection policy. Then hire a professional manager to enforce it. Keep that community association rolling.

For a sample collection policy see Figure 5 on the next page.

Collection corrections. Why is it taking so long to collect delinquencies? Can we close the pool to the deadbeat? Why can’t we collect on that judgment? These are questions that too many board members

and managers ask...mainly because there is no col-lection policy. A clearly worded, communicated, and enforced collection policy is the solution to collec-tions. A collection policy simplifies one of the Board’s most disagreeable tasks: collecting money from neigh-bors. Since the course of action is predetermined, the Board does not need to wring their hands over each case. Here are some of the essential components:

• Payment Date: _____ of the month• Payment Late: _____ of the month• Late Fee: $_________• Finance Charge: _____% per month• Payments applied to oldest balance first• Type of notices (10 Day Notice to Pay, Notice of

Intent to Lien, etc.)• Who provides the notice (association, attorney)• When account is referred to an attorney• All collection costs charged to the debtor

The association has the right to obtain and exe-cute on a personal judgment (garnish wages, attach personal property, etc.). Amenities (pool, tennis court, club house) are suspended for delinquencies of a cer-tain dollar amount. See fairdebtcollection.org.Get work phone numbers. Getting a judgment or lien does not guarantee payment. In most jurisdic-tions, a collection can receive up to 25% of a debtor’s “disposable” wages (after withholding). Ask all own-ers for work phone numbers for “emergencies” with a pool or car registration form.

Notice all legal owners. There may be more than one owner on each unit title. Make sure all applicable names are on the notices. A title company can assist with this information. All owners are equally respon-sible for the entire debt.

Checks marked “Paid in Full”. Cashing checks so marked could be considered binding. Make sure the amount truly is “paid in full” before depositing.

Record liens. Liens alert lenders, purchasers, and title companies of a cloud on title that needs to be cleared up. For this reason, long standing delinquen-cies often get cleared up at refinancing or sale closing. A recorded lien improves the odds of collecting even if an owner files bankruptcy or a lender forecloses. If the lender forecloses, the association can collect if there are surplus proceeds. If there is no lien and the property is sold, the association has no claim.

Let the attorney handle it. After several rounds of written notices and 60 days have passed, turn the mat-ter over to the association attorney. Cease commu-nications with the debtor. Do not discuss repayment agreements, collection costs, or payoff information.

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nOttacare cOnDOMiniUMsaMPLe aDMinistrative resOLUtiOn # ___

cOLLectiOn POLicy

WHEREAS, Section _____ of the By-Laws of the ____________________ Association grants power to the Board of Directors to conduct Association business, and Section ____ of the Declaration and Section _____ of the By-Laws grants the authority to levy assessments against owners. And because the Association’s economic well-being relies on the timely payment of assessments and other allowable charges. And because it is the Board’s duty to use its best efforts to collect funds owed to the Association,

LET IT BE RESOLVED THAT these collection procedures shall be followed:

1. aMOUnts PayabLe tO tHe assOciatiOn include, but are not limited to, regular assessments, special as-sessments, rules enforcement fees, repairs to the common area that are an owner’s responsibility, legal fees and other costs associated with collection of funds on behalf of the Association.

2. PayMent scHeDULe. The regular assessment is payable in advance on the ____ of each month. Fees not received or postmarked by the ____ of the month will be considered past due.

3. Late Fees, nsF & interest cHarges. • A late fee of $_____ shall be charged monthly on all delinquent balances. • A $____ NSF (Non-Sufficient Funds) charge will apply to any returned check. • Any balance older than 30 days will incur an interest charge of ___% per month until paid.

4. OrDer OF creDiting PayMents. Payments received shall be first applied to assessments owed, then to late charges, interest, or collection expenses.

5. PrOcess FOr DeLinQUency nOtiFicatiOn. For all balances exceeding $_____ that are thirty (30) past due, the following notification process applies: • FIRST NOTICE. First Notice of Past Due Charges including detail of assessments, late fees, NSF charges,

interest, and other charges that apply will be sent by First Class Mail to an owner whose balance is thirty (30) days past due.

• SECOND NOTICE. Second Notice of Past Due Charges including detail of assessments, late fees, NSF charges, interest, and other charges that apply will be sent by First Class Mail to an owner whose balance is 60 days past due.

• �0 DAY DEMAND. �0 Day Demand for Payment including detail of assessments, late fees, NSF charges, and interest charges that apply will be sent by First Class Mail to an owner whose balance is 75 days past due. This Notice will recite intent to turn the matter over to an attorney for collection enforcement if balance is not paid within �0 days. Attorney actions include but not limited to filing a lien against the owner’s property, a personal judgment against the owner and property foreclosure.

6. LegaL services. If a delinquent account is referred to an attorney for collection, the owner shall be charged the Association’s reasonable attorney fees and related costs.

7. OtHer cHarges. The Association may charge the owner for: • Fees charged by Property Manager to collect funds payable to the Association • Owner bankruptcy • Foreclosure action or deed in lieu of foreclosure • Notification, filing and satisfying liens • Enforcement of the Association’s Rules, Bylaws, Declaration, or Policies • Costs of litigation • Repairs to the Association’s common areas that result from the acts of owners, their tenants, or guests

8. Debt cOLLectiOn OPtiOns. In order to collect a debt owed to the community association by a member, the following options may be invoked to satisfy that debt: • Garnishment of member’s wages • Seizing of member’s personal property • Suspension of amenity privileges (like pool, clubhouse, tennis courts, etc.) • Suspension of voting rights • Suspension of community association provided utilities • Collection of rents being generated by member’s community association unit or home • Foreclosure of member’s community association unit or home

Recorded in the Book of Minutes: ___________, 200 __ Date: _____________________, 200___

________________________________________________President - Board of Directors

Figure 5: Sample Collection Policy (Source: http://regenesis.net)

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Referring all calls to the attorney will expedite the process. One attorney letter often does the trick.

Take away privileges. Many association governing documents allow the association to withhold access to amenities like pool and parking. If allowable, do it.

Shut off association utilities. In some cases, drastic action is called for. Your collection policy can call for shutting off association paid utilities like water, if all other measures to collect have been tried and failed. This may require a plumber.

Copy assessment payment checks. For the record, photocopy a check from each owner when received, whether delinquent or not. The information will be valuable if collection is necessary and may save a $100-$200 “skip trace” cost later.

Money is the life blood of every community asso-ciation. Since most operate on a tight budget, if one owner defaults, the effect is soon felt by all. There’s no magic money or lines of credit. If one doesn’t pay, the rest have to. If your collections need corrections, get after it.

trumping the irsA recent U.S. Supreme Court decision could be help-ful to community associations in collecting judg-ments for delinquent assessments in cases where the IRS records a lien against the debtor’s real property after an association’s judgment lien. In U.S. v. Estate of Romani, the Supreme Court resolved a conflict between 2 federal statutes, one which provides that federal tax liens “shall not be valid” against properly recorded prior judgment liens and the other which provides that, in certain circumstances, claims of the U.S. Government “shall be paid first.”

In 1985, a Pennsylvania court entered a $400,000 judgment against Romani. The judgment was recorded in the county clerk’s office, thereby becom-ing a lien against Romani’s real estate. Later, the IRS filed a series of tax liens on Romani’s property, total-ing $490,000. Romani died in 1992, leaving an estate worth only $53,001. The estate’s administrator sought permission from the court to transfer the real prop-erty to the judgment creditor, but the IRS claimed that its later-recorded tax lien had priority.

The Supreme Court decided that a prior-recorded judgment lien prevails over a later-recorded federal tax lien and authorized conveying the property to the judgment creditor. This decision is important for community associations in situations where there is not enough money to satisfy creditors. So long as an association’s judgment lien is recorded before IRS tax liens, the association should have priority in satisfying its judgment.

reserves

reserve study tutorialEvery association should exercise a plan to repair and replace major common area components like roofs, siding, and decks. Healthy reserves are critical to a healthy association because:

• Buyers examine the reserves before buying.• Lenders examine the reserves before approving a

loan.• The board has a fiduciary responsibility to protect

the association from financial hardship.• The costs of maintaining the property will be shared

by all owners now and in the future.• It provides a predictable, manageable contribution

plan• A healthy reserve fund will enhance the value of the

home.• Most importantly, it will avoid special assessments.

To conduct a reserve study, you need the follow-ing information: • item/component description • number of units per item/component• replacement cost per unit • year built or placed in service• life expectancy in years

3 steps to Determine reservesStep 1: Make a list of all common and limited common elements. These are defined in your association’s governing documents (Declaration of Condominium, Site Plan, and Floor Plans). Some examples include: decks/patios, gutters, roofs, siding, elevators, fire protection equipment, pavement (resur-facing, sealcoating, restriping), pool (equipment, fur-niture, replastering, deck resurfacing), fences, and signage.

To ensure a thorough list, consider all structures on the property, not just the most obvious ones. For example, dwelling roofs are obvious. However, do not overlook garages, clubhouses, and shed roofs. If simi-lar items are built or placed in service in the same year, lump them together as a single line item and note the total number of items; if not, list them as separate line items. This will be the case in associations which were built in phases.

Avoid combining dissimilar items together, like clubhouse roof and dwelling roofs. Separating these gives a more accurate picture of your reserve needs and reduces confusion should questions arise in the future. If you feel you must combine items, document the rationale behind it.

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Document any assumptions made to eliminate confusion. By doing so, anyone unfamiliar with the association will be able to understand the report. Note, for example: “The boat dock located in the SW corner of property is not being reserved. Although a common element, it was decided by an association vote to remove it at the end of its useful life. Refer to the May 2004 Board minutes.”

Step 2: Determine life expectancy and replace-ment cost. These items go together. A question about one leads directly to the other. Check associa-tion records for work that has been done in the past. This will provide an indication of an item’s life expec-tancy and replacement cost. In a development where the developer is still selling units or has recently completed all sales, ask the developer to provide this information. If you are in an older development, ask qualified contractors or equipment manufacturers, getting a minimum of 3 estimates. The lowest esti-mate is not always the best indicator of the quality of work, so ask for and check references.

Some contractors may require a nominal fee for a detailed estimate. However, most will credit payment for an estimate toward any work done within a rea-sonable time frame. If an item is nearing the end of its useful life, getting a detailed estimate (regardless whether it is free or not) is a good idea. If the item in question has a long remaining useful life, pursue get-ting a conservative, general estimate. This is usually sufficient for planning purposes.

You can also obtain costs for labor, material, and useful lives through sources that provide national averages indexed to your local area. This is generally sufficient for long range general planning. If you use national averages, always get a detailed estimate near the end of the useful life of a component for a more accurate picture.

Step 3: Establishing a funding plan. You now have all the required information to complete a Reserve Study. Next, you must select a funding strategy. This decision is very important and has serious financial implications for your association. The preferred fund-ing strategy accountants and professional Reserve Study providers use is a Cash Flow Analysis. In gen-eral, it examines and projects the reserving needs (contributions and expenditures) over many years, combining funds from all components, in order to determine a stable annual contribution.

In order to establish your funding plan, you need to determine:

• What is your current reserve balance? • Do you currently invest the money in your Reserve

Fund? If so, what is the investment rate? • What tax rate applies to the interest or dividends

earned on the invested Reserve Funds? (see past tax records or the accountant.)

• What is the current area inflation rate? This is important because in a cash flow analysis, you examine the contributions and expenditures over 5 or more years.

Once you have determined these parameters, you are ready to put together your cash flow analysis.

review analysisReview your reserve analysis annually and make adjustments as needed to the 3 areas listed below. A change in any will have an effect on your reserves.

Life expectancy. This can vary due to use, weather, workmanship, and so on. As items get close to the projected end of their useful life, closer monitoring is warranted.

Review replacement cost. As items get close to the projected end of their useful life, you will need to get a minimum of 3 bids for their replacement from qual-ified contractors.

Addition/removal of items. As time passes, items may be added or deleted from list of common and limited common elements, for example, removing a boat dock or adding a gazebo.

Healthy reserves are critical to the wellbeing of every community association. Investing in a compre-hensive reserve study and following a carefully charted funding plan will reap huge dividends in the coming years. If your association hasn’t already done so, get the ball rolling today!

See Figure 6 for definitions of key reserve terms.See Figure 7 for a sample of a Reserve Study

Checklist and Figure 8 for a Reserve Study Component Check List.

insUrance issUesinsurance sense and sensibilityInsurance claims in community associations are a frequent area of dispute. All too often, conflict arises because one party is underinsured and hoping anoth-er’s insurance will pay for a loss. Misunderstanding the insurance responsibilities of association versus owners abound. Governing documents are often vague and who reads them anyway?

There is a frequent misconception that the asso-ciation will cover all major losses to owner property. To complicate matters, many insurance agents never read the association’s governing documents and don’t understand which coverages are appropriate for their owner clients. How can the management, board, homeowners, and agents make sense out of this insur-ance mire?

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reserve stUDy terMinOLOgycomponent: The elements which form the foundation for the Reserve Study. Reserve components consist of those that are maintained and repaired by the association.component inventory: The task of identifying and measuring reserve components by visual observation, re-view of association files, and blueprints and input from knowledgeable experts. condition assessment: The task of evaluating the current condition of the component based on observed or reported characteristics.Deficit: An actual (or projected) reserve balance less than the Fully Funded Balance. The opposite would be a surplus.Financial analysis: The portion of a Reserve Study where current status of the reserves (measured as cash or percent funded) and a recommended reserve contribution rate (Reserve Funding Plan) are derived, and the projected reserve income and expense over time is presented. Fully funded: When the actual or projected Reserve Balance is �00% funded.Fully funded balance: An indicator against which the actual or projected Reserve Balance can be compared. This number is calculated for each component, and then totaled. Funding goals: There are several approaches to Reserve Fundings:

baseline funding: Establishing a Reserve Funding goal of keeping the reserve cash balance above zero.Fully funding: Setting a Reserve Funding goal of attaining and maintaining reserves at or near �00% funded.statutory funding: Establishing a Reserve Funding goal of setting aside the specific minimum amount of reserves required by local statues.threshold funding: Establishing a Reserve Funding goal of keeping the Reserve Balance above a speci-fied dollar or percent funded amount. Depending on the threshold, this may be more or less conserva-tive than “Fully Funding”.

Funding plan: The savings plan followed to funds adequate to pay for anticipated reserve expenditures.Funding principles: In the development of a funding plan, the following 4 principles are to be considered:

• Sufficient Funds when Required • Evenly Distributed Contributions over the Years • Fiscally Responsible

Percent funded: The ratio at a particular point of time of the actual Reserve balance to the fully funded bal-ance expressed as a percentage.Physical analysis: The portion of the Reserve Study where the Component Inventory, Condition Assessment, and Life and Valuation Estimate tasks are performed. remaining useful life: The estimated number of years that a Reserve Component will serve its intended func-tion. replacement cost: The cost of replacing, repairing, or restoring a Reserve Component to its original functional condition. The Current Replacement Cost would be the cost to replace, repair, or restore the component dur-ing that particular year.reserve balance: Actual or projected funds as of a particular point in time that the association has identified for use to defray the future repair or replacement of those major components which the association is obli-gated to maintain. Also known as Reserves, Reserve Accounts, Cash Reserves.Reserve study analyst: A professional that prepares Reserve Studies.reserve study: A Reserve Study identifies the major components for which the association has maintenance responsibility that have a useful life of 3 to 30 years. Each component is assessed for condition, useful life, and cost of replacement. With this information, a 30-year maintenance schedule and funding plan is produced. This 30-year plan provides current and future Boards with a roadmap to responsibly maintain the community’s assets. Following the plan insures that all members pay their fair share of these major expenses. Special assess-ments become a thing of the past! special assessment: An assessment levied on the members of an association in addition to regular assess-ments. Special Assessments are often regulated by Governing Documents or local statutes.surplus: An actual or projected Reserve Balance greater than the Fully Funded Balance. See Deficit.Useful life: The estimated time in years that a reserve component can be expected to serve its intended func-tion when new if properly installed and maintained

Figure 6: Reserve Study Terminology(Source: http://regenesis.net)

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reserve stUDy cHeckList

Figure 7: Reserve Study Checklist (Source: http://regenesis.net)

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Association Financial Management and Insurance 3�

Figure 8: Reserve Study Component Checklist (Source: http://regenesis.net)

reserve stUDy cOMPOnent cHeckList

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A policy document called Maintenance and Insurance Areas of Responsibility can eliminate gray areas or gaps in both maintenance and insurance. By identifying building and grounds components and assigning responsibility to either the association or owner, gaps are effectively closed. The idea is to clearly define the point where association responsi-bility stops and owner responsibility begins. If you maintain it, you insure it. For example: repairs to all common water supply and drain lines are an associa-tion responsibility; repairs to all unit water supply and drain lines from connection point with common lines are an owner responsibility

Once the areas of responsibility are completed, approved, and distributed to the owners and their insurance carriers, all have the same point of refer-ence. Bottom line: maintenance requests and insur-ance claims are expedited and the association is only paying for things that are its responsibility. One caveat: for every rule, there is an exception. As excep-tions are identified, the areas of responsibility should be revised.

The association must be careful on how many insurance claims it turns in. Frequency of claims affects the association’s premium level and insurabil-ity. Associations that file too many claims get canceled. Assigning certain insurance responsibilities to the owners reduces the association’s exposure and keeps insurance affordable. Another cost cutting technique is to raise the deductible to $2,500 or higher and have the association pay for smaller claims (also called self insurance). Raising the deductible will often result in a dollar-for-dollar savings in premium. Premium savings can be assigned to a budget category called “Insurance Deductible” to cover insurance losses that fall under the deductible.

It’s the board’s responsibility to make the best “sense and sensibility” by turning the vagaries of the governing documents into a practical policy. The work that goes into developing this policy will reward the association by reducing conflicts and promoting harmony.

insuring successThe last several years have been brutal to the insur-ance industry and policy holders. Terrorist attacks, weather-related claims, huge court awards, shrinking reserves, and stock market volatility have conspired to hammer profits. The industry has reacted by ratch-eting up premiums, discontinuing or limiting certain coverages, adding exclusions (like mold), and termi-nating higher risk clients.

Community associations have seen first hand the effects of these insurance industry “corrections”. Some have seen premiums double or triple and oth-

ers get pink slips even though they have never made a claim. Fortunately, the community association insur-ance market has not dried up altogether. As longtime players are benched, others are coming up to bat, even in this roller coaster market.

One underlying principle to keep in mind is that insurance in any form presents some form of risk for the insured. The gamble is that bad things won’t hap-pen but insurance companies know that somewhere, sometime, they will. And, when the insurance pays off, the costs impact the premium rate structure. Therefore, during tight insurance markets, the Board will need to consider increasing the association’s risk to reduce premium cost. Here are some strategies to help see you through.

Shop around. Not all insurance carriers have expe-rienced the same loss history and have lower pre-miums. Check with national companies that have a special line of community association coverages like State Farm, Allstate, Farmers, and CAU-Community Association Underwriters for options. Call each com-pany’s administrative office and ask for the name of the agent who writes the greatest amount of commu-nity association insurance. It is very important to only deal with an agent who is knowledgeable about how community associations work. There are also a variety of independent insurance agents who can shop a wide market of companies to build a policy for you as well. But again, it is important that the agent understands what community associations are about. The wisdom of this will become crystal clear as soon as you need to file a claim.

Review coverages. All associations should have Fire & Hazard, Directors and Officers Liability, Employee Dishonesty, and General Liability coverages. Some other desirable coverages include Earthquake (manda-tory in some regions), Wind and Flood, and Building Ordinance or Law. The latter covers increased recon-struction costs due to building code or zoning restric-tions. Earthquake insurance typically has a sizeable deduction, like 10% of the coverage amount. The Board should discuss with the agent the pros and cons of eliminating certain coverages. Or, reducing a par-ticular coverage may reduce premium. Review options with your agent.

Increasing deductibles. Increasing the deductible always reduces premium. It also means the commu-nity association self insures for that amount. Offset raising your deductible with an insurance reserve.

Control claims. It is extremely important for the Board to control the kind and frequency of insur-ance claims. To aide that process, an Insurance Areas of Responsibility Policy should be adopted that care-fully defines what qualifies for an association insur-

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ance claim, and just as importantly, what does not. Association members are charged with insuring cer-tain things. In condos, it often is described as “from the decorated surface of the unit in”. That means unit interior damage should be paid for by the member’s insurance, even if the source of the damage came from outside, like a roof leak or an errant sprinkler head (as long as the association was not negligent in repairing these items).

Directing claims to members’ insurance will reduce claims on the association’s insurance. The association’s insurance should typically be used for larger claims like wind, rain, and fire damage that impact many units or other common area structures.

Reserve for self insurance. Whichever your deduct-ible is—$1,000, $2,500, $5,000 or higher—that is the amount that the community association is self insured for. It is reasonable to plan for one claim a year by funding an Insurance Deductible Reserve within your reserve account in the amount of your deductible. If you file no claims during the year the reserve can be rolled over to the next year’s reserves. If your asso-ciation has not filed a claim in years, you might set up a 3-year reserve, funding one third of the deduct-ible each year. If no claims are filed, it’s money in the bank.

Even though community associations have been rocked by the insurance storm in recent years, using these strategies will help ensure success at the most reasonable cost available. Since these costs are likely to climb even higher, be prepared by taking action early.

areas of responsibilityUnderstanding the scope of association insurance coverages is basic to protecting the vital interests of the owners. Do you understand what the association’s duties are when a fire, windstorm, or burst pipe dam-ages the common elements or unit interiors?

The association’s insurance duties are addressed in the governing documents (sometimes called CC&Rs - Covenants, Conditions, & Restrictions). The insurance company’s duties are based on the word-ing of the policy. The 2 documents often contradict. Surprisingly, the insurance policy often pays for the repairs that aren’t even an association’s responsibility. Are there reasons why such broad coverage may not be in the association’s best interest? If an owner neg-ligently causes a loss, is it fair that the repairs be done under the association’s policy?

Traditionally, association insurance policies have fallen into one of 3 different categories. The narrow-est is called bare walls and covers little of the owner’s fixtures and finishes. Next, and most common, is the broader coverage known as single entity. This type

expands coverage to include standard fixtures and fin-ishes provided by the builder. The broadest is referred to as all-in or modified single entity which includes coverages for owner installed upgrades such as cabi-nets, light, and plumbing fixtures.

Many association insurance policies are the all-in type which creates a dilemma. While the association could cover many owner claims, it is unwise to do so. The association’s policy is somewhat like an auto policy in that multiple claims may increase future pre-miums or cause the policy to be canceled. So, many association governing documents require the owners to insure their own interior finishes and fixtures and the association insurance only comes into play if there is multiple unit damage due to, say, a fire. This spreads the risk around and keeps the association insurance viable.

Since the association and owners each have dis-tinct repair and insurance responsibilities, it is very important that those responsibilities be clearly delin-eated. “Inside=Owner” and “Outside=Association” won’t cut it because there are exceptions. And at some point, “Inside” and “Outside” meet. Where exactly is that dividing line? A way to clarify this has been developed called the Maintenance & Insurance Areas of Responsibility. It lists grounds and building compo-nents like the roof, gutters and downspouts, plumb-ing-interior, plumbing-exterior, and so on, and assigns responsibility either to owner or association.

The Areas of Responsibility not only eliminates many disputes, it advises both association and owners’ insurance agents what kind of coverage is necessary. It also helps the Board and Manager perform consis-tent maintenance because there is a clear roadmap. This document is one of the building blocks of com-munity harmony. Do not wait for the next insurance “event” to come crashing or burning in. Write your own “Areas of Responsibility” and be prepared.

types of coverageManaging risky business. I recently received a call from a community association about their recreational facility. Our conversation formed the basis of a case study on Board “risk management” that is applicable to other associations.

Here’s the scenario: This upscale community maintains a clubhouse and multi-pool facility. In addi-tion to social events, the members can take advantage of aquatic classes of various kinds. While access to the pool area is restricted and controlled, there has been a growing concern by the Board that the association may not be providing adequate pool safety by way of lifeguards. On the other hand, the payroll costs for lifeguards are significant. What’s the proper/legal/moral/cost-effective thing to do? Hmmm, a quandary

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on the horns of a dilemma.....All Boards will face difficult decisions at some

point. The most important part of a decision is not the outcome as much as how it was arrived at. For insignificant points of policy or budget, the process may be as simple as a motion carried by the majority. For other issues, such as our case study, it behooves the Board to break it down into its component parts. As the saying goes, “If you truly want to understand something, just try to change it.”

Major points to consider. The lifeguard issue can take on other forms, like security guards and parking patrols. The Board needs good information to come to a reasonable decision. So what are the major points to consider? Some are no nonsense, strictly business while others are emotional and morality based. Let’s look at a few:• Governing documents: Before you go too far

down the road of radical change, always check your governing documents and the state statutes to see what the association is obligated to do. If you are still unclear, consult with a knowledgeable attorney. If the proposed new service is not required by docu-ments or statute or ordinance, the Board is blaz-ing new trails. This isn’t necessarily wrong but the Board needs to examine the issue more closely than otherwise before coming to a decision.

• Insurance risk: Insurance is a way of life in America and no community association should leave home without it. Take matters like this one to your agent and get a written reply as to what the current policy will, or won’t, protect against before and after the proposed change. Either the association is on solid ground insurance-wise or it may need additional coverage.

• Cost: The cost of additional services, like life-guards, is significant. When spread out over hun-dreds of homeowners, however, the sum may not be unmanageable for each owner. Here, the eco-nomic status of the homeowners plays a big part. Is your community composed mostly of fixed income retirees, working professionals, or young struggling families? Ability of the homeowners to pay should be a big part of the decision.

• Benefit: Who will benefit from the service—the majority, most, or a few? Governments provide ser-vices for minority interests that are paid for by the majority under the theory that the more affluent have a social responsibility to care for the less fortu-nate. In community associations, the majority rules. This may mean that the minority’s needs go unmet.

• Ethics: It gets sticky trying to argue safety issues. No one wants anyone to get hurt and a caring Board wants to do the right thing. This is certainly

understandable. The question seems better asked, “Who’s responsible for providing the protection?” Historically, each citizen had the primary respon-sibility to care for those things or people that were held dear. Should the association step in and be more effective than an individual with a vested interest? Talk this one through before moving to other considerations.

• Future obligations: Entering into a new or expanded service sets the stage for many years to come. Something that didn’t formally exist in short order will become an amenity, an expectation. Amenities are difficult to undo even when their need or usefulness has long since passed. The Board needs to carefully consider future financial ramifica-tions of decisions made today.

• Legal: On the one hand, the association needs to provide reasonable protections for its owners. On the other hand, by providing lifeguards, guard services, and the like, some courts have held that owners, guests, and even trespassers are relieved of personal responsibility when injury is suffered. Questions come up like: If it is valid for the association to pro-vide lifeguards during normal pool hours, is it also reasonable for the association to have to provide a guard service in off hours to keep people from jumping the pool fence, swimming, and drowning? These things have a way of growing beyond their original intended scope.

• Homeowner involvement: For sweeping issues or increases in cost, it is reasonable that the Board inform and give a voice to the homeowners. While the governing documents may not require it, it makes practical sense. Faced with the conflicting aspects of our case study, a homeowner meeting specifically called to discuss the issue is appropriate. At that meeting, all arguments should be presented and homeowner opinion solicited. If the proposal is to fund a new service and the majority of own-ers disagree, the Board can either agree, go against the tide, or step down and be replaced. Whatever the case, the record will show that the Board did its homework by soliciting professional and hom-eowner input. In short, the Board used due diligence in coming to its decision.

Conclusion. Are there risky issues to deal with in your community? Remember that you are not alone in sorting them out. The effective Board is a team effort where the sum is greater than its parts. By tak-ing advantage of collective experience, risky business can become business as usual.

why Do D&O?Every director and officer of a community associa-

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tion board has personal responsibility for association business. The basic purpose of Directors and Officers insurance (D&O) is to protect directors and officers from claims made because of wrongful (or allegedly wrongful) acts or omissions made while acting in their individual or collective capacity on behalf of the com-munity association.

General liability insurance will not protect direc-tors and officers in the same way. This insurance is to cover against third party bodily injury and property damage. Directors and Officers insurance covers against third party financial damages and other claims not covered under General liability.

Here is a list of scenarios in which directors and officers have liability:• continuing a wrongful practice after learning it’s

wrong• libel or slander• failing to pay community association debts in a

timely manner• improper management resulting in losses• receiving personal gain while performing as director

or officer• making decisions based on adequate information

and advised judgment• ignorance of association books and records• verifying content of official documents before signing• obedience to the governing documents• self dealing• aiding and abetting illegal actions of others• conflict of interest• carelessness in conducting business or legal matters• failing to see what could be seen by merely looking• inducing intentional or careless wrongdoing• ignoring statutory or regulatory requirements• insufficient oversight of officers or employees• nondisclosure of questionable or unlawful actions

Because of all these traps and pitfalls a director or officer could fall into, D&O insurance should never be optional. No one should serve on a board without it unless, of course, you have absolutely nothing to lose. I personally don’t know one person that doesn’t. Do D&O.

when D&O insurance won’t DoAll wise community associations should carry D&O which provides coverage in the event of a lawsuit claiming some Board act or omission caused harm. D&O insurance does not, however, cover a director or officer who is hurt while on the job. For example, if

a Board member climbs on the roof to inspect it, falls and gets injured, there will likely be no insurance cov-erage for medical bills or lost wages. This is because directors are typically not required to climb on roofs as part of their job.

A typical D&O liability policy protects the asso-ciation when someone makes a claim for monetary damage, not property damage or personal injury, aris-ing from the negligent actions of the Board. Claims for personal injury or property damage usually fall under the association’s general liability policy. The insurance company is required by the terms of the insurance policy to defend such a claim and to pay any settlement reached or judgment entered due to the association’s negligence. Payments are capped by the policy limits less any applicable deductible.

Some general liability policies have “Medical Payments” coverage regardless of who is at fault, however, most policies exclude claims for medical payments to the “insured” and generally define the “insured” to include officers and directors.

Also, since directors and officers are rarely deemed to be association employees, they would not generally be covered by workers compensation insurance.

Before an association is liable for an injury suf-fered by a director or officer, it must be established that either:

(1) the association directly caused the damage(2) required the director to perform the task which

injured him(3) was negligent in some way that the director

was injured. In the example, the association did not act in a negligent manner and, therefore, has no liabil-ity to pay for the director’s medical expenses

One Final consideration D&O coverage will not protect Boards that knowingly violate the governing documents or state law. For this reason, it is very important that all board members review and become familiar with them. Ignorance of the documents or law is no excuse.

Understanding the scope of association insur-ance coverages is an important part of serving on the Board. If it has been a while since the policy has been reviewed, invite the association insurance agent to attend a board meeting to explain the coverages and ways to improve it.

coverage and compensationInsurance: How much is enough? If you own a condominium, adequate insurance for your dwell-ing is every bit as important as it is for other kinds of homeowners. Determining exactly how much insur-ance you need, however, can be tricky.

It is a common misconception by condominium

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owners that association insurance covers everything. Many wait until there is a major catastrophe to find out it doesn’t. One of the first things to do is to review your association’s governing documents to determine what you are responsible for insuring. Believe it or not, this varies greatly from association to associa-tion.

The governing documents should spell out who is responsible for insuring what, like common (all own-ers use) elements such as sidewalks, swimming pools, landscaping, and limited (specific owner use) common areas like garages, decks, and so on. It should also state whether the association or owner is responsible for insuring building fixtures and appliances inside your unit.

Many association bylaws call for assessing each owner a proportionate share of major property and liability losses, also called a “loss assessment”. For example, if a major fire wreaks havoc on your build-ings or a repairman sues the association after falling from a ladder, you may be asked to pay a share of the losses not covered by insurance. In most locations, unit owner condominium policies provide an automatic $1,000 of coverage for loss assessment for covered perils. But you may want to increase this amount with a loss assessment coverage endorsement if the deduct-ible on the association’s master policy is higher than normal.

Not all loss assessments are covered by insurance. For example, if hurricane winds damaged the pool house, a resulting loss assessment would be covered by your insurance up to your limits for loss assess-ment. But if the association decides to remodel the pool house and owners are assessed, this would not be covered by insurance. Loss assessment coverage does not insure for poor planning.

Unit owners insurance also provides for personal property coverage. You determine how much insur-ance you need. Experts recommend getting a replace-ment cost coverage endorsement. Without it, covered losses to your personal property will be paid accord-ing to their market value at the time of loss adjusted by depreciation. Replacement cost coverage costs a little more but if you have a covered loss, you will be able to replace most items with new ones with no deduction for depreciation. The policy deductible does apply and there are coverage limits on jewelry, furs, silverware, and firearms.

How much insurance is enough? First make sure you have the right kinds of insurance to protect you where the association’s policy does not. Setting levels is the second step. Your agent can assist you with both steps. Don’t forget to review your policy periodically especially if property values have changed signifi-cantly.

Insurance victim compensation. An oft repeated scenario in common wall communities is water damage which originates from a neighboring unit. Whether it’s a broken pipe or washing machine hose, surf’s up! and usually between midnight and 4 AM (disasters are funny that way).

While victim frustration and irritation always results, the most natural reaction is looking for some-one to blame. However, this is a crime that usually has no perpetrator. Rarely does someone consciously set out to flood the neighbors. This is one of those irri-tating events controlled by unseen forces commonly referred to as “stuff” happens. What now?

Of the 2 entities the victims would like to blame—the neighbor or the association—both have legitimate alibis. The neighbor’s toilet supply line probably broke when the neighbor was gone so there is con-siderable damage done their unit as well. And they had no control of the event. Your neighbor may have even called his insurance agent about fixing his and your damage. The agent often replies either, “We’ll fix yours but not your neighbor’s” or “Call the asso-ciation’s insurance carrier. They’ll pay for the damage to both”. Technically speaking, correct, but practically speaking, wrong advice.

Like the neighbor, the association usually is not negligent in causing the damage. Things happen. And unless the result is catastrophic, involving many units and 10s or 100s of thousands of dollars of damage, the association’s insurance should not be involved in the repairs even if the policy covers it. Why? Insurance companies set their rates according to the number of claims filed and the dollar value of those claims. Association insurance is written on the assumption that it will rarely be needed. And to keep premiums even lower, higher deductibles like $2,500 are opted for. This encourages the association not to file small claims which may jeopardize insurability. Too many claims result in cancellation.

All unit owners are required to carry homeowner insurance for a good reason—to spread the risk around and ensure that each owner has the correct amount and appropriate kind of insurance. Some need relatively little and some need more to cover valuable contents, home businesses, and other special needs. It is important that owner insurance be the first line of defense when possible. In the scenario discussed here, unless either the neighbor or association was negli-gent in some way, the owner victims would file claims on their own insurance and pay the deductible out of their own pocket.

The association can assist in sorting out claims and responsibilities by enacting an Areas of Responsibility Policy which clearly defines who is responsible for insurance and maintenance according to building and grounds components. This one page

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document establishes the guidelines for the Board, owners, and insurance agents and eliminates most dis-putes. Once adopted, the Board should be extremely careful what things the association repairs. Fixing unit damage that the association is not responsible for may establish an expensive precedent.

Avoiding insurance victimization is a matter of proper planning and notification. Make sure all own-ers know what’s what with an Areas of Responsibility Policy. Then, owners won’t get caught with their insurance pants down.

Limiting insurance claimsOne of the biggest traps for community associations is that their insurance coverage often permits payment of claims that rightly belong to homeowners. This is due to the broad or “blanket” coverage nature of the association policy. In effect, the insurance carrier looks to the association to determine whether it should pay a claim or not. If given no direction, the carrier usu-ally errs on the side of the homeowner.

The problem is that if the association permits all claims regardless of their source, soon the premium would skyrocket or worse, the policy would be can-celed. To protect the association’s interests, the board should develop and enact a policy concerning insur-ance claims and put the association insurance carrier on notice. Each owner would then be responsible for notifying his own carrier of the association policy.

Barring conflicting insurance requirements in the governing documents or state statute, here are reason-able guidelines for the association to follow in devel-oping a policy for handling insurance claims:1. The association is responsible for repairing only

those things for which it has maintenance responsi-bility.

2. If the association is negligent in maintenance that results in unit damage, like failing to repair a leak-ing roof in a timely manner when notified, the association is responsible for the damage repairs to the units.

3. Each unit owner is responsible for insuring his own unit and personal property. For example: If a washer hose breaks in Unit A on the 3rd floor, damaging 3A and its 2 downstairs neighbors, each unit owner would be responsible for insuring damage suffered within his unit. The association’s insurance would not be involved.

4. If association common area property is damaged by an event that originates within a unit (e.g., described in Item 3) the association may hold the unit owner liable for the damage and seek recovery under the liability portion of the unit owner’s insurance. This is based on the principle that the association has the

authority to define who is responsible for repair-ing common area damage according to the source of the damage. If the damage originates from an association-maintained source, the association is responsible. If it originates from an owner-main-tained source, the owner is responsible. Owners do not have the same policy-making authority as the association and can only make claim against a neighbor’s policy if negligence can be proven.

5. To help clarify these principles, the board should adopt a Maintenance and Insurance Areas of Responsibility Policy. This policy eliminates gray areas in maintenance and insurance. It provides a quick reference for the board, property manager, owners, and insurance carriers. It also expedites maintenance requests and insurance claims.

Since insurance is such an important element of the community’s well being, it behooves the Board to formalize a comprehensive policy. Why wait for an accident to happen? An association policy on insur-ance claims is pro-action in action.

insurance GapposisOne of the all too frequent occurrences in commu-nity associations occurs when a gap exists between insurance carried by the association and insurance carried by each homeowner. This is not a small prob-lem. According to Murphy’s Law: If there is a loop-hole, insurance adjusters will find it and refuse to pay a claim on it. In community associations where the association maintains and insures the common area and building exteriors, owners are expected to main-tain and insure from the unfinished interior surfaces in, plus all personal property. When different insur-ance carriers define coverages differently, a gap in coverage results.

One way to eliminate the possibility of insur-ance gaps is to have both the association and all own-ers insured by the same carrier. It makes sense to go one step further and all use the same agent. When the same carrier is used, where one policy stops, the other begins. No gaps.

Another way of solving the problem is for the Board to adopt a Maintenance and Insurance Areas of Responsibility List. This list can get rather lengthy because it identifies specific building components and subcomponents (e.g., as lights-parking, lights-build-ing, lights-entry, etc.) and either assigns responsibility to either the association or the owner. This list should be consistent with maintenance responsibilities found in the governing documents. Once the list is complete and approved by the Board, a copy should be provided to each owner with instructions that a copy be sent to the owner’s insurance carrier. All agents are then con-structively put on notice as to what level of coverage

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is expected by the insured. The written notice should request any exceptions to the coverage to make dou-bly sure there are no gaps. If there are gaps, there will be an opportunity to close them.

Insurance claim disputes are among the most frequent found in community associations. Many of them could be avoided by closing the gap between coverages and clarifying the maintenance and insur-ance expectations of the parties. If your community has not gone through this exercise, now is a good time to get started. And don’t delay. There is too much at stake. And don’t forget to put it on your annual calen-dar to remind new owners.

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Final assessment association Financial Management and insurance




1. The accuracy of the budget directly affects future years’ budgets and maintenance fees. T F

2. Under-budgeting creates windfalls which are often covered by reserve funds earmarked for future replacement and repairs. T F

3. The approval of the budget should happen at least 30 days prior to the start of the new fiscal year. T F

4. The Board should give members at least 30-days notice of any homeowner fee change. T F

5. A late charge is inappropriate for each month the account is delinquent. T F

6. If a partial community association fee is received, then it should always be applied to the oldest balance so that late fees are levied for each month there is a balance due. T F

7. Recording a lien against the debtor’s unit/home is the most important collection action the community association can take since it secures payment of the balance due. T F

8. It is not very important that the lien be properly prepared and recorded. T F

9. Some governing documents provide the right to accelerate the balance of the current fiscal year’s assessments in the event of default. T F

10. Foreclosure of debtor property is the most extreme form of community association collection and not particularly easy to pull off. T F

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4�

Learning Objectives


Operation of the association’s Physical Property4 Hours in Subject Area: Operation

of the Association’s Physical Property

�. List several key steps managers can take to main-tain the value of the association’s physical prop-erty with a minimal amount of funds and energy.

2. Identify 5 areas to overview during the annual maintenance review.

3. Define the guidelines for maintenance of the components of the common area checklist.

4. List 3 things regarding the pipes in the associa-tion’s common areas that managers should have checked on an annual basis.

5. Explain the importance of developing guidelines for maintenance of each component of the com-mon area.

6. List the 3 steps that ensure the manager’s preven-tive maintenance plan is successful.

7. List 3 reasons it is a good business practice to hire a construction manager when maintenance projects involve several trades.

8. Discuss 2 contract clauses that should be included in all construction contracts.

9. List 4 steps managers should take to prepare for a professional roofing job.

�0. Explain how to determine if the manager should hire a roofing consultant.

��. Discuss 3 experts the manager should consider hiring prior to selecting a roofing contractor.

�2. Differentiate between 3 commonly used roofing materials, comparing the benefits and pitfalls of each.

�3. List 3 drawbacks of asphalt pavement.

�4. Contrast the properties of asphalt and coal tar and discuss the best methods to protect asphalt pavement.

�5. Identify 3 forms of asphalt pavement mainte-nance.

�6. Explain how the acronym P-A-I-N-T serves as a helpful checklist for managers planning a paint-ing project.

�7. Discuss 3 strategies managers can use to deter-mine the proper color code for their community.

�8. Explain the concept of color dynamics and how size and position of the buildings factor into color selections.

�9. Identify the 5 main causes of paint failure.

20. Discuss the causes of paint blistering, contrasting moisture, and heat blistering.

2�. Explain how managers can best monitor and control the usage of community paid utilities.

22. List 3 considerations when servicing exterior lighting.

23. Compare and contrast Compact Fluorescent Bulbs (CF) and Incandescent Bulbs (IB).

24. Discuss how creative use of landscape options coupled with the latest irrigation technology can significantly reduce maintenance and utility costs.

25. Explain how informed landscape maintenance policies can contribute to the aesthetic appeal, enjoyment, and value of the community’s property.

26. Discuss 3 of the 7 basic horticultural principles that serve as the basis for xeriscaping.

27. Explain the differences between structural and topographical drainage.

28. List several techniques managers can utilize to conserve water.

29. Discuss 3 benefits of hiring an arborist.

30. Identify 5 reasons a tree should be removed.

by Richard Thompson


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Maintenance

building value by Preventive MaintenanceMany community associations are growing old—and not always gracefully. Dry rot, extensive wood boring insect damage, leaking roofs, and hefty special assess-ments seem to be the order of the day. Letting mainte-nance slide year after year is not the answer. Owners’ property in associations that are well maintained will sell faster and for more money. It is a matter of protecting and maintaining the value of the asset, a Board’s primary and legal responsibility.

So how can those associations that want to main-tain their assets do so with a minimal amount of funds and energy? There are several keys which may assist in the maintenance journey:

Get committed. The Board needs to first go on record that it is committed philosophically to preven-tative maintenance. Consider enacting a formal writ-ten resolution approved by the Board that mandates professional quality maintenance of the property as a foundation of this commitment. As boards change, they will be held to this standard.

Get organized. Find volunteers for a Maintenance Committee. If any of the volunteers have experience in construction, design, or architecture so much the better. Next, put together a job description for the committee outlining the major responsibilities and time lines for completion of certain tasks.

Develop a component list. Besides the obvious like roofs, paint, paving, and so on, there may be other not-so-obvious components. Review your documents to identify all the components that your association is obligated to maintain. If there is confusion regarding maintenance responsibility for limited common areas like a unit’s deck, you may wish to consult your attor-ney. If your community is older, you may want to do this anyway to make sure the documents conform to current laws. Amending them will clarify maintenance responsibilities that are vague or absent.

Your insurance agent needs to know which com-ponents the association will be taking responsibility for and how that might affect coverage and premiums. (Insurance coverage disputes between association and homeowners are common because of poorly written documents and failure by the Board to properly define responsibility). The key is to bring clarity and distinc-tion to those components which will be maintained by the association, as opposed to those maintained by the homeowners themselves.

Physically inspect the components. Many Boards have never taken the time to walk around the property on a maintenance inspection and those that do often do not possess the proper skills. Choose the people

carefully who will perform this duty. In addition, include reputable, licensed, and qualified contrac-tors, engineer, or architectural consultants or certified building inspectors. These people have a “trained” eye which will pick up potential problems that laymen would miss.

Although they may charge for their time, they will save money in the long run. Once you have completed your walk-through, categorize all components in the following manner:• Building components. Roofs, gutters, windows,

siding and trim, decks, garage doors, heating/AC units, elevators, etc.

• Site components. Pavement, concrete, area light-ing, fences, entry monuments, etc.

• Landscaping components. Time clocks, sprinkler heads, controllers, water features, etc.

• Recreational components. Pool, spa, sauna, tennis courts, playground, exercise room, clubhouse, etc.

annUaL Maintenance reviewNow is the time to assess the condition of your asso-ciation’s assets. Sharpen your pencils, dust off your clipboards, and prepare to scrutinize the buildings, grounds, and amenities. Let’s starting with the build-ings. There is a lot going on, so pay attention.

At the roof line, scrutinize the chimney caps. Are any missing or rusted through that need replacing? Make a note by location. Next, look at the chimney chases (enclosures). The section above the roof line gets more weather than the sheltered part and the sid-ing often needs repair or repainting. Next, check out the roof, if it’s the kind you can see from the ground. Anything obvious that needs repaired or cleaned? Note any areas that have moss buildup so that moss killer can be applied during the summer. Since it’s difficult to truly assess roofing condition from the ground and dangerous to be “mountain goating” on the roof, it’s highly recommended that you have a roofing contrac-tor do the roof and flashing inspection. They have the knowledge, equipment, and guts to do it right. Finally, the gutters and downspouts probably need a cleaning.

Check the siding and trim. Any popped nails that need to be resecured? Check the caulking joints around the windows, doors, and trim. More than likely some have opened up and need recaulking. Any paint peeling? In particular check the south sides or those likely to receive more weather. Scrape bad areas, prime and spot paint, unless you are plan-ning a project-wide painting. Do you have synthetic stucco (EIFS-Exterior Insulation Finishing System)? An annual inspection by a trained inspector is highly recommended. EIFS hides and promotes dry rot that

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Operation of the Association’s Physical Property 43

often cannot be detected by visual observation. Special moisture scanning equipment is required.

Decks should be checked for dry rot and negative drainage or ponding. Look underneath at the deck, supporting posts, and joists and use a small screw-driver to probe for dry rot. Check the deck fences and rails. Replace bad wood as needed. Check the points of connection to the building since this is often incor-rectly done and provides a point of water intrusion. Check flashing at sliding glass doors, again, a likely point of leakage.

Look at the grounds. For asphalt, the best time to do the sealcoating and general repairs is in warm, dry weather. Don’t forget to repaint curbs and parking spaces. Walk the concrete walks and look for tripping hazards caused by lifted, cracked, or sunken slabs. Note the locations and get those areas ground down or removed and repoured. Moss and algae growth can cause slipping hazards. Treat or pressure wash as needed. This is particularly important in senior com-munities.

Check your fencing. Summer rains can change exist-ing grade contours. Other than the posts, there should be no earth-to-wood contact which will promote dry rot and insect infestation. Check the posts to make sure they are solid and replace any that are dry rotted. Use only metal, redwood, cedar, or pressure treated posts. Look for signs of sprinkler overspray on fences and have your landscaper adjust spray heads accordingly.

Check common area lighting for broken, cracked, or rusting fixtures. Consider upgrading older incan-descent lighting to more efficient high pressure sodium, metal halide, halogen, or fluorescent. The light levels will increase dramatically and the power bills will plummet.

Look for evidence of water ponding around build-ing foundations. Fill and regrade for positive drain-age. Ponding on walkways can be cured by clearing ground drains or installing drain tile pipe to carry water away. Clean out ground and storm drains.

Walk the common area landscaping with your landscape contractor and make a punch list of items needing attention. The sprinkler system should be checked for broken pipes, missing or bro-ken heads, and clogged valves. Splash blocks can be added where downspouts dump into landscaped areas. Look for wet, spongy areas in the lawn indicative of drainage problems. If severe enough, the contractor can install drain tile pipe to dry the area out. Check for bare spots or pests in the lawn and ground cover.

Have trees inspected. Trees are one of your big-gest assets and should be closely inspected at least every 3 years by an arborist. Look for split and bro-

ken branches, disease, and overgrowth that require knowledgeable “corrective” care. Don’t rely on your landscape contractor who usually only contracts to do “maintenance pruning” to keep limbs off the build-ings and walkways.

Inspect the pool and spa with the pool mainte-nance contractor. How’s the plaster? Are the railings and coping stones loose? Are there potential trip haz-ards? Is it time to rebuild the sauna? Don’t forget to do a safety check of the playground equipment.

Springing into action takes planning. First make a list of the problem areas and prioritize repairs. Don’t delay contacting contractors since their “dance cards” fill quickly.

FaLL FiX-UP Every fall, community associations should exercise a series of preventive common area maintenance func-tions. For small community associations or those with few common elements, the list will be short and easy to complete. For larger, more complex complexes, the list can be daunting. But, overlooking these things can have disastrous and expensive consequences. See Figure 1 for a helpful checklist to kick-start the pro-cess.

Maintenance gOaLsDevelop a maintenance plan. Define the guideline for maintenance of each component assuring profes-sional lasting repairs. Avoid the band-aid mentality—it will cost you dearly. Use your service providers to determine reasonable methods and costs.

Allocate the funds. The best maintenance plan in the world is useless if not properly funded. Since money comes from the operating budget and increasing the maintenance budget is not popular, it is critical to have the plan that justifies the budget. Build the bud-get around the maintenance program, not vice versa.

Follow-up on the work. Have the Maintenance Committee or property manager do monthly (at least quarterly) inspections and put the observations in writing for the file. The report can be used as a check-list for the maintenance or landscaping people doing corrective work.

Build service continuity. Establish long term rela-tionships with reputable service providers for conti-nuity. Once a provider understands and provides the service you are looking for, why reinvent the wheel every time the Board changes? Check each vendor’s costs at budget time to confirm that the association is getting a competitive price.

If a preventive maintenance program is imple-

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FaLL FiX UP cHeckList q smoke Detectors

Change batteries for those that require them and check to make sure all are operating properly. q clean carpets Upholstery, Draperies & air Ducts

• Carpets should be cleaned at least once a year and more often if traffic demands it. • Furniture upholstery and draperies of common areas should be inspected and cleaned if necessary or at least every 2 years. • Common area air ducts in the hallway, clubhouse, etc. should be cleaned at least every 3 years to abate spores, dust, and

mold that trigger respiratory problems or allergies. q Forced air Heating/cooling system Maintenance

Remove any flammables stored in the room since the fumes could be ignited by the furnace when it’s fired up. Change the fil-ters. Set the thermostat to heating mode and test the furnace to burn off the dust that collects over the summer and to ensure it is in working order. Consider hiring a heating professional to perform a maintenance check-up, including these steps:

�. Inspect thermostat for proper operation. 2. Inspect filter and change or clean as needed. 3. Check all electrical components and controls.4. Oil motors as needed. 6. Inspect heat exchanger for possible cracks, which would introduce carbon monoxide into the living space. 7. Check air flow. If diminished, it may be necessary to clean the evaporator coil and ductwork.

q Door & window weather stripping Check the weather stripping around all doors and windows and replace it if necessary.

q storm windows & Doors• Inspect and replace cracked or broken glass. Repair frames; replace broken, worn, or missing hardware; tighten and lubricate

door hinges and closers; check for broken or missing glazing. • Consider installing thermapane windows to replace storm windows and improve energy efficiency.

q garage Doors Clean and lubricate hinges, rollers, and tracks; tighten screws.

q Parking Lots• Arrange for sweeping. • Have drains cleaned out. • Repaint curbs. • Repair deteriorated areas.

q exterior Lighting• Replace burned out bulbs for better security and night visibility. • Reset exterior lighting clock to adjust for seasonal change or replace with photocell system.

q water Heaters• Every 6 months you should turn off the energy source and flush until clear of sediment. • Inspect flue assembly (gas or oil heater); check for leaks and corrosion.

q Foundation• Close or plug foundation vent openings. • Check and correct grade for proper drainage away from foundation. • Repair cracks.

q Decks Remove potted plants and removable carpet which can promote wood dry rot under wet conditions.

q gutters & Downspouts• Clean gutters and downspouts and make sure they are running clear.• Correct known drainage issues.

q Landscaping• Prune back trees or shrubs at least 3 feet from the siding and roof. • Fertilize, thatch, aerate, and reseed turf areas.

q Pipes• Check for rust or white lime deposits that indicate leaking. • Install covers on outside hose bibs if danger of freeze is possible. • Perform a preventive flush or rooting to prevent drain line blockage back-ups and flooding due to build-up or tree roots.

q roof-shingled• Check for warping, aging, moss, and cracking; repair or replace as needed. • Inspect and repair flashing around chimneys, skylights, and vents.

q roof-Flat• Sweep to remove debris; clear all drains and scuppers. • Inspect and repair separated roofing seams • Inspect and repair parapet wall caps. • Inspect and repair vent and pipe flashing

q siding Inspect siding (especially on the sun and weather sides) for evidence of deterioration, including cracks, splintering, decay, and insect damage; clean, treat, recaulk, and repair as needed. • brick and stone. Check joints between wood and masonry. Waterproof, repair, or repaint if necessary. • wood. Look for peeling paint or splitting wood; evidence that water is getting into the siding. Prime and repaint as needed. • stucco. A chalky residue is evidence of oxidation and deterioration of paint or color coat that reduces stucco’s effectiveness.

Check for cracks which allow water to get in around windows and doors. Hire a professional to correct the problem. • trim. Remove peeling paint on the trim and fascia boards, window sills, and sashes; prime and repaint as needed.

Figure �: Fall Fix-Up Checklist

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mented, the association can not only help protect itself from unscheduled special assessments, but will enhance the unit values as well. The purpose of pre-ventive maintenance is to spend some money now to save a lot later. It is a legacy deeply appreciated by those that follow.

The Areas of Responsibility Checklist (Figure 2) clarifies responsibilities and should be tied to a Board Resolution which is consistent with the governing

documents. This policy will eliminate insurance dis-putes and ensure maintenance is handled correctly and consistently. While this sample is not comprehensive, it does include many components commonly found in condominiums. Once adopted as policy, a copy should be distributed to every owner with instructions to provide a copy to their insurance company.

1. exterior siding & trim A Repair, replace, paint, caulk

2. gutters & Downspouts A Repair, replace, paint, caulk, clean

3. roofs, roof Flashing & Decking A Repair, replace

4. Perimeter wall studs & insulation A Repair, replace

5. Perimeter wall interior sheet rock O Repair, replace

6. Party wall studs A Repair, replace

7. Party wall sheet rock & insulation O Repair, replace

8. building ceiling & Floor rafters A Repair, replace

9. Unit interior wall sheetrock & Finish O Repair, replace

10. Unit interior ceilings & Floors O Finish, sheetrock, insulation, subfloor A Ceiling & floor rafters (SEE #8)

11. Unit Fixtures & Finishes O Appliances, cabinets, plumbing fixtures O Floor coverings, window treatments

12. Unit Doors & Locks - exterior O Repair/replace door, door casing and locks A Paint, caulk, flash, exterior trim

13. windows & screens O Repair, replace A Paint, trim, caulk, flash

14. electrical A Electric panels, meters A Exterior outlets & fixtures A Wiring from meters to unit breakers O Unit electric wiring, switches, etc.

areas of responsibility checklist for Maintenance & insurance

a = association O = Owner

15. Plumbing A Common supply and drain lines O Supply/drain lines from connection with common O Unit water shut-off valves, interior fixtures A Central hot water heater O Unit hot water heater

16. Decks & Patios A Repair, replace, paint O Surface materials

17. Hallways & stairs - common area A Repair, clean, paint

18. sidewalks & steps - common area A Repair, replace, clean

19. insect & Pest control O Unit interiors A Unit exteriors: wood boring or stinging insects; animals

20. water & smoke Damage O Damage to unit interior from unit or neighbor source A Damage to unit interior from common area source

22. common area trees, Flowers, Plants & shrubs A Maintenance, removal, replace

23. Parking garage & Lot A Clean, restripe, repair, signage

24. elevator A Repair, replace, remodel

25. Pool, Pool Deck, Furniture & equipment A Maintenance, repair, replace, remodel

26. Fences A Repair, replace, refinish

27. signage-entry, address, street A Repair, replace, refinish

(Source: http://regenesis.net)Figure 2: Areas Of Responsibility Checklist For Maintenance And Insurance

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cOntractOrs

start to Finish contractingYour community may be faced with a large siding, dry rot, or structural repair. These projects often involve a number of trades like carpentry, electrical, plumbing, and engineering that must be properly combined for a satisfactory outcome. If the scope of work is large, it makes sense to use the services of a professional Construction Manager (CM). Here are some reasons.

Speak the same lingo. Contractors prefer to work with people who understand their trade. Making a profit depends on maximum production and efficiency from a work crew. CMs speak “Contractorese”.

Good specifications. A good CM provides the kind of specifications that allows subcontractors to be more price competitive. When dealing with laymen like homeowners, it’s common for subs to add a margin to compensate for potential problems resulting from inadequate specs.

Getting material you bargained for. Occasionally materials get “mistakenly” delivered to another job site or arrive in a lesser quality than ordered. Consider having your CM buy the materials direct and have them delivered to the job site. The CM will ensure you get what you ordered.

A good contract. Include contract clauses that keep costly change orders to a minimum such as:• time frame for job completion• penalties for failing to meet the deadline• hours when work may be performed• requirement for liability and workers compensation

insurance quality checks prior to payment• progress payments based on work completed• 10% holdback pending final review

Don’t advance funds. Associations managing their own projects, large or small, often fall into the trap of advancing money prior to work being done. Prepayment is a red flag. Contractors who require prepayment are often in financial straits or do not have adequate credit to purchase the materials needed for the job. Occasionally, contractors disappear with the money or pay another job’s bills with it. There can be exceptions to this rule, like purchasing custom built windows or installing special order materials. If this is the reason for prepayment, have the materials delivered to the jobsite and pay the bill directly.

Lien releases. Lien releases are written and signed statements from the contractor that warrant all employees, subcontractors, and suppliers involved in the job have been paid. Employees, subcontractors, and suppliers have the legal right to file a lien on the

property to which their labor or materials is attached. Don’t tender payment without exchanging it for a lien release that transfers this liability to the contractor. Writing the check to both the contractor and sup-plier is additional insurance that it won’t come back to haunt you.

Scheduling. CMs handle the complex schedul-ing of various trades to ensure smooth job progress. Understanding the sequence of construction events is essential. CMs aren’t afraid to apply pressure to speed up slow contractors (contractorese is “kicking butt”).

Hold back. It is common to withhold 10% of the total contract pending completion of a punch list gathered as result of a walkthrough by the contractor and CM. Do not release funds unless satisfied that the job is complete.

Construction managers are masters in piecing together complex projects and getting the best value for your money. There is too much at stake to risk try-ing to do this yourself. Do not go down this road with-out one. Get a Construction Manager involved in the planning stages to run the project from start to finish.

Managing constructionAs stated above, your community may be faced with a large siding, dry rot, or structural repair. These proj-ects often involve a number of disciplines like carpen-try, electrical, plumbing, and engineering that must be properly integrated for a satisfactory end result. When it comes to accomplishing complex renovation proj-ects, it makes sense to use the services of a professional Construction Manager (CM). Here are some of the reasons.

Subcontractors prefer to work with people who understand their trade since making a profit is based on achieving maximum production and efficiency from a work crew. A good CM provides thorough specifica-tions, scheduling, and supervision that allow subs to be more price-competitive. On the other hand, when dealing with laymen like homeowners, it’s common to add a margin to compensate for potential production problems.

CMs help design contracts that include details that keep costly change orders to a minimum. These contracts contain specific time frames for completing the job, penalties for failing to meet the deadline, and the hours when the work may be performed. Typical contracts also require written evidence of liability and workers compensation insurance.

Associations overseeing their own projects often fall into the trap of advancing money prior to work being done. Prepayment is a red flag for trouble. Contractors that require prepayment are often in financial straits or do not have adequate credit to pur-

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chase the materials needed for the job. It’s not uncom-mon for these contractors to disappear with the money or pay another job’s bills with it.

CMs understand the importance of progress pay-ments and lien releases. Progress payments allow a contractor to receive a portion of the total contract based on the actual work completed. These payments include the contractor’s signing of a lien waiver that warrants all employees, subcontractors and suppliers involved in the job have been paid.

CMs handle the complex scheduling of various trades to ensure smooth job progress. Understanding the sequence of construction events is essential. Moreover, CMs “speak the language” and aren’t afraid to apply pressure to speed up slow contractors.

In the final analysis, Construction Managers more than pay for themselves in cost savings and quality results. If your association is contemplating a sizeable or complex project, contact one today to discuss the advantages.

cause for clausesEach year, thousands of community associations across the country engage in complicated renovation projects that run the gamut from siding replacement to roof overhauls to dry rot repair to new decks and fences. Aside from the complexity of the tasks themselves, all need a carefully crafted construction contract that not only describes the scope of work and price but includes the fine print.

Contractors typically present contracts that address what is most important to them—the money. The scope of work described is usually very general, like “paint buildings”. The contract rarely includes the “how” details, which is the part most critical to the community association. For this, get independent consultants to provide the scope of work. Local paint suppliers, for example, will provide custom specifica-tions to fit your surface and location. They will even provide a free progress inspection service to ensure the work is being done properly so that the material warranty is not voided.

Similarly, take advantage of other knowledgeable consultants for complex and costly projects. While they aren’t free, they are generally worth their weight in gold in making sure the work gets done right. They can often steer you to reliable contractors and sub-stantially lower costs.

Below is a list of contract clauses that should be included. Simply attach them as an addendum to your contractor’s contract and make them a condition of acceptance.

You should have a knowledgeable attorney review the contract as well.• Names and business addresses of the parties. • Date that the contract is signed.

• A short narrative that summarizes the agree-ment. For example, “Nottacare Condominiums is hiring I.M. Manly Contractors to remove the old siding and install new siding on Buildings A-D fol-lowed by a total repaint of all buildings. (see Scope of Work for specifics)”

• Obligations of each party. For example, the con-tractor agrees to provide the labor and material to complete the scope of work (attached) in a timely and professional manner. All changes or additions must be approved in writing by the association President. The association is obligated to pay the contractor in 4 progress payments within 7 days of billing.

• Deadline for performance. This clause usually includes the phrase, “Time is of the essence” to imply that work must be completed barring only unforeseen circumstances like material delay or weather. Working 6 different jobs at the same time is not a valid excuse for delay.

• Time effectivity of the contract. • Cost of the work and materials. This could either

be a set price or an hourly labor rate with material at, say, cost plus 10%.

• Payment schedule. Is it due on completion or in installments?

• Late payment penalties. Can interest be charged? • Warranties. These come in 2 forms, material and

labor. Material warranties come from the manufac-turer and are subject to proper installation. That means that even though the material warranty is, say, 20 years, improper installation will void the war-ranty. Labor warranties are offered by the installa-tion contractor and are usually relatively short, a few years at most. In either case, be crystal clear what the conditions for honoring warranties are and get them in writing.

• Terminating the contract. Define under what condition either or both parties could terminate the contract. Breach of contract can be enforced by either. There should also be a mutual agreement clause to terminate.

• Arbitration or dispute mediation. If there is a problem that cannot be worked out, it’s usually in both party’s interest to have a trained mediator help sort it out rather than engaging dueling lawyers.

• Paying attorney fees. If the matter lands in court, the prevailing party should be entitled to payment of attorney fees and legal costs.

While the fine print seems cumbersome and unnecessary, these clauses ensure either performance or consequences for failure to perform. These are clauses with a true cause. See Figure 3 for an example of a contractor screening list.

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cOntractOr screening cHeckListThis checklist applies to small and medium size renovation projects. For larger ones, hire a construction manager, architect and engineer.

Company __________________________________________________________________________________________________

Contact: ___________________________________________________________________________________________________

Address: ___________________________________________________________________________________________________

City _____________________________________________________________________________ State_____ Zip_____________

Phone:___________________________________________________________ Fax:______________________________________

Cell ____________________________________________________________ Email_____________________________________

Website _____________________________________________________ State Contractors License Number: ________________

�) Number of years in the business: _____

2) Performed community association construction projects?

q No q Yes List: __________________________________________________________________________________

a. Association _________________________________________________________________________________________

Address: ____________________________________________________________________________________________

Work performed: _____________________________________________________________________________________

b. Association _________________________________________________________________________________________

Address: ____________________________________________________________________________________________

Work performed: _____________________________________________________________________________________

3) Current work load:

q Available now q Available within 30 days q Other ______________________________________________

4) How much of this project will be done “in house”?

q All q Most q Other __________________________________________________________________________

5) How much work will be subcontracted? q None q Some q Other __________________________________

6) Total number of employees: _______

7) References for recently completed projects:

a. Project: _____________________________________________________________________________________________

Contact: _______________________________________________________________________ Ph#_________________

b. Project: _____________________________________________________________________________________________

Contact: ______________________________________________________________________ Ph#__________________

8) Bond Carrier: ___________________________________________________________________________________________

Limits $ _______________________________________________________________________________________________

Agent ___________________________________________________________________________ Ph#__________________

9) Liability Insurance Carrier: _______________________________________________________________________________

Limits $ _______________________________________________________________________________________________

Agent ___________________________________________________________________________ Ph#__________________

�0) Payment Options:

q In Full Upon Completion (Best)

q Progress Payments according to work completed

q Deposit or Advance Required $_________

q Other _______________________________________________________________________________________________

��) Tour some active construction sites.

Site #�: ________________________________________________________________________________________________

Impression: ____________________________________________________________________________________________

Site #2: ________________________________________________________________________________________________

Impression: ____________________________________________________________________________________________

�2) Visit the contractor’s office.

Impression: ____________________________________________________________________________________________

�3) Overall Rating: q Fair q Good q Great

Date: _________________, 200__ Completed by: ________________________________________________________

Figure 3: Contractor Screening Checklist (Source: Compiled by the author.)

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rOOFinggetting roof readyFor many community associations, this year will bring new roofs. Roofs, of course, come in many variations, designs, and materials. Some can last a hundred years like tile or a few decades like flat hot tar built-ups. With longevity comes increased cost although many higher priced options are better values. Architectural composition shingles are very affordable and carry 30 to 50 year warranties. For flat roofs, rubberized mem-branes offer better durability and ease of repair than traditional hot tar varieties.

Preparation. While improvements in roofing mate-rials are great news for consumers, the best roof invented can be your worst nightmare if it’s not installed properly. Installing a roof is a technical exer-cise that requires special training and attention to detail. Since roofs are intended to last many years, selecting a roofing company that will likely be around for years is also extremely important. Here’s how to get ready for a proper roof job:• Hire only licensed roofing contractors that specialize

in the kind of roof you want. If you have a multiple year roofing repair schedule, it’s very important to use the same roofing company even if it costs a bit more money. When different contractors are used, sorting out repair, maintenance, and warranties gets to be almost impossible.

• Get at least 3 bids from qualified contractors • Check contractor licensing with the appropriate

state agency. Most states keep licensing and insur-ance information plus a history of complaints made.

• Call at least 3 references from each of your bidders to inquire about performance.

Bid specifications. Unless the roofing job is straight-forward (remove and replace with no repairs), invest in a roofing consultant (not a contractor) to prepare detailed specifications which can be bid by the con-tractors. Those specifications should include: • removal and disposal of existing roof• repair of damaged sheathing• protection of landscaping, decks, etc.• properly installed sheathing if required• proper underlayment• proper attic ventilation• adequate insulation, if applicable• selection of the right roof system• proper flashing• gutters and downspouts, if necessary• rain protection during course of work• regular debris clean up

There are building code and product specifica-tions that need to be considered. Code allows no more than 2 roofs over a dwelling. Regardless, it is recommended to remove the existing roof system so that the roof deck can be properly inspected and repaired. Also, some manufacturers will not warrant their product when it is installed over an existing roof. Finally, a roof installed over another never lays down properly and detracts from curb appeal. If a new type of roofing is being considered that is heavier than the original, like tile or slate, a structural engineer should calculate the weight load requirements. It may require structural enhancements to carry the additional load.

Since a roofing project is always costly, it is worth hiring an attorney prepare a contract which includes the manufacturer’s installation specifications. Besides getting the work done properly, getting it done within a certain time frame is important. This is done by including a per day dollar penalty for non-weather related delays.

The payment schedule is extremely important. Do not enter into an agreement that requires prepayment for labor or materials. This is a red flag for a contrac-tor that is financially strapped or using your money to pay for other bills. Making several progress pay-ments is normal but the payments should be based on actual work completed. Of course, never tender final payment until all work is completed and the contrac-tor provides a properly executed lien waiver. Finally, assemble a roofing file which includes the contract, product information, and warranty.

right roofingThere are a number of things to consider when select-ing the right roof for your association. Cost and dura-bility head the list, but aesthetics are important too. The right roof for your home is the one that balances all of these considerations.• Asphalt shingles hold an overwhelming share of

the U.S. roofing market. Most asphalt shingles are fiberglass reinforced which consist of a fiberglass mat with a top and bottom layer of asphalt and min-eral granules. Zinc or copper granules are applied to asphalt shingles to protect against algae growth. While 3-Tab style shingles have been very popular, “Architectural” style (mimics a wood shake look) has become increasingly popular. Asphalt shingles are available in 25-50 year warranties depending on the thickness. Most roofing materials are catego-rized as UL Class A, B, or C, with A being the most fire resistant followed by B and C. Most fiberglass shingles have a Class A fire rating.

• Wood shingles and shakes are made from cedar, redwood, southern pine, and other woods. Shingles are machine-sawn; shakes are hand-hewn and

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rougher looking. Their natural look is popular in California, the Northwest, and Midwest. Things to consider: they have a UL fire rating of Class B, C, or none at all, and they should be treated with a preservative every 3 to 5 years to prevent decay. In other words, they are high maintenance.

• Clay or concrete tile is a durable but fairly expen-sive roofing material. “Mission-style” and “Spanish” round-topped tiles are widely used in the Southwest and Florida, and flat styles also are available to cre-ate French and English looks. Tile is available in a variety of colors and finishes. Note: Tile is heavy so if you are replacing a lighter roofing with tile, you will need to verify that the structure will sup-port the load.

• Slate is quarried in Vermont, New York, Pennsyl-vania, Virginia, and Canada. It comes in different colors and grades, depending on its origin. While extremely durable, it is more expensive than other roofing materials and its application requires skill and experience. Many old homes in the Northeast still are protected by this long-lasting roofing material.

• Metal roofing is a normally commercial roofing material that works in some residential settings. Some metal shingles are constructed to simulate traditional roofs like wood shakes, shingles, and tile. Apart from metal roofing’s longevity, metal shingles are relatively lightweight, typically have a Class A fire rating, have a greater resistance to adverse weather, and can be quite aesthetically pleasing.

• Synthetic roofing simulates slate, wood shingles, and shakes. Visit a building that is roofed with that product before making a buying decision.

Aside from product choices, the roofer’s experi-ence level is critical to the installation. Check refer-ences and the product warranty carefully. Product warranties often have “loopholes” for installation problems. If possible, use an installer that is certi-fied by the manufacturer. This way, no matter what the problem, you’re covered. Choose the right roof-ing weighing aesthetics, cost, durability, warranty, and maintenance. The last thing you want is your resi-dents singing “Raindrops Are Fallin’ on My Head”.

asPHaLtabcs of asphaltAsphalt is the material of choice for most roads and parking lots. It is a mix of about 92% stone aggregate and mineral filler combined with 8% asphalt binder. This combination allows it to stay in place and repel water. Because it stays dry, it has the strength to carry traffic loads and lasts a long time. It does, however, have drawbacks:

Poor resistance to the sun, salts and chemicals. Asphalt is a complex mix of thousands of chemicals with predominantly open chain molecules with a high degree of double bonding. What this means to the average mortal is that open chained molecules provide easy access for sun, salts, and chemicals which break them down and destroy their binding and waterproof-ing properties. The visual indicator of this breakdown is the change of color from dark black/brown to gray.

Poor resistance to petrochemicals. Asphalt is the heaviest and final component of petroleum distil-lation. The distillation process separates the asphalt from other byproducts like gasoline and oil. Since these byproducts are similar in molecular structure, they easily dissolve chemicals in asphalt.

The drying process. As unprotected asphalt ages, the oils migrate to the surface and are burned off. As this continues, the pavement hardens and shrinks produc-ing hairline cracking. Cracking allows water to pen-etrate the water repellent barrier to the ground below which, in turn, causes ground swelling and sinking which causes more damage to the asphalt. Advanced deterioration causes “alligatoring” (cracked surface area resembles an alligator’s back), heaving, sinking, and disintegration.

Pros and cons of traffic. Major roads have an advan-tage over community streets and parking lots because of heavy traffic which continuously “kneads” the oxi-dized surface back into the pavement bringing up fresh material. After the asphalt binder is exhausted, major roads are either overlaid with fresh asphalt or the pavement is completely removed and reinstalled. Low traffic community roads do not receive the same traffic loads and must apply different maintenance techniques to preserve the asphalt.

Protection. So, what is the best way to protect asphalt pavement? Sealcoating or slurry coating is recom-mended. Sealcoating uses refined coal tar. Coal tar is a byproduct of coal being converted to coke in steel mills. Coal has different origins than petroleum so it has different properties than asphalt. It has a much more stable molecular structure that is resistant to weather and chemicals. Coal tar is mixed with clay, mineral fillers, and water to produce an emulsion or slurry which is easily applied to the asphalt. The min-eral fillers give it durability. The coating is both flex-ible and protects against weather, sun, and chemicals.

When should a sealcoat be applied? Since asphalt begins to oxidize immediately after installation, it is recommended that sealcoating be applied when the asphalt is new. Thereafter, recoating should occur about every 5 years (sooner in high traffic areas). Major cracks should be sealed and spot pavement repairs made before each sealcoat application.

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Operation of the Association’s Physical Property 5�

If sealcoating is done as recommended, the life of the pavement can be extended up to 300%. It also leaves a satin black finish which adds to the beauty and value of the property. Clearly, asphalt mainte-nance should be a high priority in every community association. Do your community a favor and contact a qualified paving contractor today for an evaluation.

why Maintain your asphalt?Asphalt pavement is basically sand, gravel and glue. The glue used to keep the sand and gravel together is asphalt, a heavy by-product of oil refining. While sand and gravel do not deteriorate significantly, the asphalt binder does quite rapidly due to oxidation, solar radia-tion, pollution, and chemicals spilled from vehicles.

No pavement has ever been constructed that does not need maintenance. Many community associations find out too late that proper maintenance could have prevented costly replacements.

Maintenance is the art of keeping pavements in full service, with minimum expense, and the least inconvenience to the public and the residents. Improper maintenance is usually worse than none at all. Preventative maintenance is a wise investment. There are several basic forms of maintenance.

Sand slurry sealer. Also called sealcoating, this pro-cedure will protect against oxidation and spills while making the asphalt visibly attractive. This application should be applied at least every 5 years or more fre-quently if use is heavy and deterioration is apparent. Applied at proper intervals, it will prolong the life of pavement indefinitely at a fraction of replacement cost.

Crack sealing. Cracks are usually caused by either a failure of the base, water damage, or excessive weight on the pavement surface. Cracks can easily be repaired by installing a hot pour material to fill them. The crack sealer provides a waterproof bond and is rub-berized to give support while the pavement expands and contracts in changing temperatures. Cracks that go unsealed will continue to allow water into the base structure, causing severe damage to the pavement as the base deteriorates. A pavement crack inspection and correction should take annually.

Patching. If significant deterioration has taken place, removal and replacement of certain areas may be pos-sible. If excessive ground water or poor soil conditions have aggravated the problem, corrections should be performed before applying the patch.

Paint

P-a-i-n-t PerfectionNo 2 painting projects are alike. Types and conditions

of materials to be painted, complexity of architec-tural features, types and degree of weather exposures, impact of landscape features, and shade configurations all make a big difference in a well-conceived painting program. Even the purpose of painting can vary from one project to the next. Painting may address preven-tive maintenance, aesthetics, a waterproofing pro-gram, or all of the above. Regardless of the variables, following the acronym “P-A-I-N-T” will enhance your chances of success:

P - Plan. Inventory every paintable item and decide when it needs to be painted. Prioritizing is particu-larly important if the painting budget is inadequate to paint everything at once. You can concentrate on the short-term needs, and accrue money in reserves for future painting.

A - Ask. The paint industry changes rapidly so make no assumptions. All paint companies offer free expert advice on the latest and best products for your par-ticular needs. In addition, they can provide specifica-tions to use for bidding the project and actually do inspections on the project to ensure the product is being applied properly. This is also the time to update your color scheme. Ask the paint company to prepare a color board with 3 different trim and body options (usually a free service but worth paying for). Let the owners vote on their favorite.

I - Inspect the work. In the planning process, walk the site completely. Notice which areas are fading faster than others (typically south, southwest expo-sures). Determine the condition of the underlying materials to be painted (they may need to be refur-bished or replaced).

Note the detrimental effects your sprinkler sys-tem may be having on your painted surfaces, and make necessary connections to avoid premature fail-ure of the new paint. Know what unavoidable damage the painting process may cause to landscaped areas and plan accordingly.

During the job, do not rely on the painting con-tractor to inspect his own work. Make sure that the paint manufacturer’s representative inspects the proj-ect at logical intervals. This way, the manufacturer cannot void the warranty for improper application.

Each product has a recommended “mil” thickness which can vary depending on method of application (brush, roll, or spray), ambient temperature, and dry-ness of the surface. It is critical that the right product be applied in the right way.

After the job is done (at least according to the painter), do a walk-through inspection of your proj-ect before you pay the final painting bill. There are always, always, always (did I repeat myself?), always corrections and additions to every job. Get them done before you make final payment while the painter

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is motivated. Once paid, it’s off to the next job and motivation plummets.

After 6 months, and especially after the first rainy period, inspect the whole job to see how it’s holding up. There are often areas that begin to flake or crack. In particular, look for painted rails and other exposed horizontal surfaces that get direct rain. All significant failures should be touched up immediately. Do not wait!

N - Negotiate. Get competitive bids from qualified contractors whose references you’ve checked. All bids should be based on identical and clear specifications provided by the paint manufacturer. Do not automati-cally choose the low bid. All bids are negotiable and you may get the price you want from the painter you like best just by asking. You’ve got nothing to lose.

T - Timing. All your planning and painting needs should take into consideration that most painting is done usually within a relatively small weather window (unless it’s interior). Give your contractors plenty of lead time so you don’t get caught in the “schedule squeeze”. It’s common for painters to take on more work than is humanly possible given the weather enve-lope. The last thing you want is to have the painter working in the rain saying “We always do it this way”. Better to wait until next year.

There are few community association projects more important than painting. Remember the acro-nym P-A-I-N-T as you venture into your next round and it will turn out A-O-K.

choosing the Paint colorCoat of many colors. Jacob’s son Joseph in the Bible wore a coat of many colors which attracted much attention. In matters of both fashion and paint, color matters. In community associations, it matters even more since the impact of the color palette is so much larger. And it’s not just the colors you choose but how they are applied. Trim accents can make or break the overall effect. Practically speaking, paint color is fundamental to curb appeal. Curb appeal translates directly into increased market value. Lack of curb appeal translates into...well, you know. So what’s the proper color code for your community?

Complement permanent colors. Use a color range that complements the permanent colors such as the roof and brickwork. If you plan on changing the color of the roofing in the near future, be sure to consider this in selecting paint colors or keep the roof color neutral.

Assess in natural light. Study paint color samples in natural light. Buy quarts of several body and trim color combinations and paint test areas which receive full sun. View these colors at different times of the day

and from different angles. Keep in mind that colors will appear lighter when painted over a large surface.

Poll the members. To promote participation and harmony, let your members decide which combina-tion they like best. If your property is large enough to permit several combinations, allow the owners of each building to decide which combination they want for theirs. They’re paying for it. Let them decide.

Color dynamics. Consider the effects of light and dark colors in relationship to the size and position of the buildings. Lighter colors make a building seem larger while darker colors make it smaller. A darker color is often a good choice for buildings built in close proximity to one another and vice versa.

Tie in landscaping. Use the colors of flowers, trees, and shrubs as inspiration for a pleasing, complimen-tary color scheme.

Use lighting accents. Besides increasing safety, cre-ative lighting provides a delightful after-dark variation to your colors. Consider spot lighting around build-ing entrances and focal points.

Ask the experts. Paint companies often offer color design counsel for no charge in hopes of selling paint. A design consultant will give you the latest contem-porary colors and combinations to modernize your community look. Don’t get caught in a time warp by staying with the same-old same-old. Keep your colors fresh. HINT: Buyers pay more.

A carefully selected color pallet is the key to main-taining high market values and attractive appearance. This is a coat of colors your members will wear with pride.

Paint Failure glossaryUnderstanding the primary causes of paint failures will help prevent future paint problems. The primary causes of paint failures are moisture, inadequate sur-face prep, improper application of paints, the sun, and weathering. Some of the more common paint failures are listed below in alphabetical order with recommen-dations for their prevention.

Alligatoring. Cracked paint that resembles alliga-tor skin, and is generally found on wood surfaces. It occurs when paint cannot adhere to a glossy surface, when a second coat of paint is applied over an inade-quately dried first coat of paint, weather aging, exces-sive coats of paint, or when the finish coat expands and contracts at a greater extent that any underlying coats. Paint must be completely removed when alligatoring has occurred to ensure an even and uniform finish. Wood surfaces should be primed with a top quality alkyd primer and acrylic latex finish.

Bleeding. An unsightly surface discoloration com-

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major budget item, the reduction is significant. Based on the savings, the community association can justify paying for the repairs and it’s cheaper for everyone if they’re done efficiently. These repairs can be done by maintenance people who charge a fraction of what plumbers charge.

Perform repairs. Pick a weekend when a repair crew can do repairs and advise residents of the schedule and the need to be home during no more than a 2 hour time frame. Using the returned Utility Audit as guides, have crews equipped with toilet tank repair kits, an assortment of faucet washers, low-flow water restrictors, 13-watt compact fluorescent bulbs, and programmable clocks for heat move quickly from house to house. The repairs shouldn’t take more than 15-30 minutes per unit so 2 men could do around 40 homes or more in a day.

There may be several homes that cannot be accessed because the owner is unavailable. Arrange another weekend to finish up. There may be a few who refuse access but with 80-90% compliance, the project is a great success. And if there is evidence that a holdout’s unit is leaking water (you can hear it run-ning), it qualifies under the community association’s emergency access rights.

watt savings!In many associations, light bulb replacement contin-ues like the Sorcerer’s Apprentice: it burns out, you

replace it, it burns out, you replace it, it...you get the picture. When it comes to servicing exterior lighting, there are a variety of considerations such as:• Do the bulbs provide enough light for security and

safety?• What does burn-out replacement cost in time and

money?• How much do the bulbs themselves cost?• How long do they last?• What is the energy cost?

Fortunately, there is a handy solution that maxi-mizes utility while minimizing cost called compact fluorescent bulbs. They come in many sizes and shapes that fit your existing fixtures.

Let’s do a little comparison between incandescent bulbs [IB] and compact fluorescents bulbs [CF] and be amazed. Exterior garage, entry, and porch lights are often lit by 60W IBs with an average life of 750 hours versus a 13W CF that has a life of 10,000 hours (13 times more). Used 12 hours a day, an IB will last about 2 months while a CF lasts over 2 years.

Let’s assume that exterior lights burn 4,380 hours a year (12 hours/day average). An IB will use 262 kilo-watts versus 57 kilowatts for the CF. At 5.5¢/kilowatt hour (West Central Florida area power cost) that’s an energy cost of $14.41/year versus $3.14 (a $11.27 per bulb savings/year). Multiply the total number of 60W IBs times $11.27 you have and be impressed at the savings. For example, if there are 100 bulbs, the annual energy savings is over $1,100!

While CFs are more expensive than IBs (around $4 each versus 50¢) the extra long life, reduced bulb changes, and brighter light more than make up for the cost difference. Watt a difference!

When it comes to conserving energy and reduc-ing costs, it’s the drips and the watts that’ll get you. Do an annual energy review to make sure you don’t slip drips and know what’s watt.

LanDscaPing

PlantasyAs community associations age, both structures and landscape wear out. And just like those groovy har-vest golds and avocado greens of the 1970s, landscape tastes have changed. Fortunately, the varieties of plants available have made the options wonderful and numerous. The best news of all is that creative use of these options coupled with the latest irrigation tech-nology can significantly reduce both maintenance and utility costs. That is landscape news every association can use—more is less. Here are few pointers to get the landscape renovation process moving:

Develop a landscape plan. Rather than cruising

Utility audit

1. Toilet[s] running continuously? q Yes (how many? ___) q No If unsure, put a couple drops of dark

food coloring the tank, wait for 15 minutes and if color shows in the bowl, it’s running.

2. Faucets drip? q Yes (how many? ___) q No

3. Do you have low-flow faucets? q Yes q No (how many? ___) q Unsure

4. Do you have low-flow shower heads? q Yes q No (how many? ___) q Unsure

5. Do you have a programmable clock for your heat?

q Yes q No q Unsure

6. Are all exterior light fixtures using compact fluorescent bulbs?

q Yes q No (how many? ____)

7. (Add other questions that apply)

Figure 4: Utility Audit

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Wal-Mart looking for plant bargains, hire a land-scape architect who will integrate site, irrigation, curb appeal, and maintenance needs in a comprehensive plan. This plan will include specific plant selections that are placed appropriately for best impact. The plan can then be bid by a variety of installation contractors so the community association can get the best value.

Convert turf to planting beds. Reduce mainte-nance and water costs. Bushes have deeper roots than turf and require less water.

Tree thinning and replacement. Developers are notoriously bad about planting too many trees, the wrong kind, or letting the low bid dictate the number or mix. Generally, since new trees come in small cali-pers, it takes more of them to make the desired mar-keting impact. The job done 20 to 30 years ago has now produced an over-dense mix of trees that are too close to buildings, road, and walkways. An arborist can evaluate the mix and make removal and replace-ment recommendations to suit a mature landscape.

Modernize the irrigation system. Recent improve-ments to irrigation technology now deliver water where and when it’s needed. With more zone control, turf and planting beds receive differing water amounts. Rain override sensors eliminate cycles as needed. Drip irrigation provides steady yet low water flows to plant-ing beds. Buried drip systems apply water directly to the roots, and reduce water loss through evaporation and runoff. Drip systems are coupled with traditional sprinkler systems to deliver water efficiently.

For any association over 20 years old, the time has come, the walrus said, to talk of many things. But few things are more compelling than landscape reno-vation. Cut costs, lower maintenance, improve curb appeal, and up market values...a true plantasy.

Protect your Landscape investment!Landscaping is your one property asset that can and should improve with age. However, diligent atten-tion is required in order to make this happen. Skilled maintenance work, along with occasional and ongo-ing improvement work, are essential.

Skilled shrub pruning is one of the most impor-tant requirements of a sound maintenance program. Selective cutting sustains a natural form while remov-ing twigs and branches that are getting too large or overcrowded. Knowledgeable pruning will allow plant size reductions with improved vigor in most cases. Plant shearing, shaping, and hedge trimming, by contrast, ignores plant growth habit and ultimately destroys the branch structure. Carving a sheared form into any shrub increases twig density at the surface, thereby shading out, and in many cases killing off interior growth. The sheared shrubs still continue to

get larger with each passing season, until ultimately the only realistic option remaining is removal and replacement.

As you can see in this example, the landscape maintenance philosophy can produce vastly different returns for your investment. The recommended phi-losophy produces a maturing shrub that contributes more each year to the aesthetic appeal, enjoyment, and value of your property. The other philosophy leads to overcrowding, property devaluation, and requires cor-rection by replanting a new, small plant. This replace-ment will take years to contribute much to the appeal of your association. What landscape philosophy does your association follow?

XeriscapingOne of the great challenges most community associa-tions experience is how to reduce landscape mainte-nance and water costs. Xeriscaping is a method of combining attractive, pest resistant, and low mainte-nance native plants in a way that conserves water. It is based on 7 horticultural principles:1. Plan and design. Group like-water need plants.

Consider existing vegetation, topography, and the intended use. Use native species to reduce adaption problems. Eliminate runoff conditions. Decide plants placement based on visual impact and sun/shade needs. (See www.floridayards.org/ for Florida friendly landscaping tips.)

2. Evaluate and improve soil. Soil analysis provides information for plant selection and soil amend-ments which help soil absorb and store water. Soil amendments such as peat moss or compost improve root development, water penetration, and reten-tion.

3. Reduce turf. Turf should be considered a design element rather than the whole landscape. Reduce or eliminate turf areas, and locate them so that they may be watered more efficiently.

4. Use appropriate plants. While most plants have a place in Xeriscape, using low water-need plants maximizes water conservation.

5. Install efficient irrigation. Use soaker hoses or drip irrigation. Adjust according to seasonal needs and the weather. Irrigate for plant condition, not for schedule. New plants require additional irriga-tion for up to 3 years.

6. Use organic mulch. Mulch reduces evaporation, weed growth, erosion and soil temperature fluctua-tions. Proper mulch application is a key to a suc-cessful Xeriscape. Organic mulches like wood chips or bark are best.

7. Maintain appropriately and consistently.

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Properly pruned, weeded, and fertilized plants require less water and also look nicer. A landscape adapted to the environment will require less main-tenance, less fertilizer, and reduce the use of pesti-cides.

So, how low can your H20 go? Consult with a professional landscape design architect to discover the wonderful options for beautifying and reducing costs at the same time. You grow girl (or boy)! For more, see Landscaping Specifications below.

water water everywhereA verse from The Rhyme of the Ancient Mariner reveals a man surrounded by water that he wants but can’t have. Florida has lots of water which can be in the wrong places, and drainage is a common prob-lem. Drainage falls into 2 categories: structural, which involves buildings, and topographical, which involves surfaces.

All buildings have a structural drainage system: Roofs capture the water, gutters manage it and down spouts and ground drains dispose of it. Ninety percent of structural drainage problems start with the system design. When gutter size is determined by aesthet-ics, downspout placement by convenience, and little thought given to carrying capacity, poor drainage is the result. If overflowing is occurring, design correc-tions are in order.

Improper installation of well designed systems is another variable. The proper functioning of all gut-ters, down spouts, and ground drains is based in posi-tive slope—water runs downhill. Resetting a negative slope can correct that issue.

Ground drains receive water from roofs, gut-ters, and down spouts. They also accept leaves, twigs, bottle caps, nails, pieces of shingles, and what-have-you that create blockage. Regular gutter and down-spout cleaning helps maintain healthy ground drains. Periodically, however, a pipe-rooting service is called for. As the name implies, many of the blockages can be attributable to roots getting in the pipes. This is par-ticularly common in older systems that have cracked pipes or unsealed joints. If ground drain backups are frequent, it’s wise to have a preventive rooting done to the system. If you forget, fear not. The flooding will remind you.

Now, on to topographical drainage. Some areas are blessed with a high clay content soil which “sponges” water. Positive grading is critical to move water downstream because clay won’t allow water to “percolate” out quickly enough to prevent ground sat-uration. Ground saturation creates swampy, soft areas and puts enormous pressure on building foundations. If the foundation has cracks, the water will find them. If there are no cracks, the pressure will cause a weak-

ness in the concrete and crack it. If these conditions exist, excavating around the foundation and installing a perforated drainage system to carry the water away is a possible solution.

Perforated pipe systems are a good solution as well for swampy landscaped areas where regrading is not possible. Another solution is a French drain sys-tem like an underground perforated 55-gallon drum set in the low or swampy area. Ground water accu-mulates in the drum and either slowly percolates out or is removed by the drainage pipe system sometimes supplemented with a sump pump.

The rains of summer teach us much about weak-nesses in our drainage systems. While the rains will pass, poor drainage will continue to damage the land-scaping and buildings if not corrected. Take the time to inspect your property for problem areas that can be corrected. Before you undergo any substantial correc-tions, get detailed design specifications from a quali-fied engineer.

watering wiselyAs community associations enter the highest water demand season, there are several conservation tech-niques that will help them do the job a bit better.

Compost, mulch, and barkdust. These hold water like a sponge, slowly releasing moisture when plants need it. In this environment, plants grow deep roots, reducing how much and how often sprinkling and fertilizing is needed. If your planting beds are bare dirt, consider an application of these recommended amendments to promote root growth, reduce water consumption, and reduce weed infestation. Also leave grass clippings to build up mulched soil that uses less water.

Wash your plants. Airborne urban pollution can leave a layer of residue on plants and soil that inhibits water absorption. One easy way to counteract this is by spraying the planting beds and turf down using a hose end sprayer filled with inexpensive liquid dishwash-ing soap. As strange as it sounds, it actually breaks up the residue and reduces water tension, allowing better water absorption.

Sprinkler tune-up. Adjust all your sprinkler heads to irrigate living things, not walks and driveways. Replace leaky faucets and broken sprinkler heads. Water turf areas about 1” a week.

Sprinkler enhancements. Install a rain sensor to override the automatic sprinkling system when it rains. Where possible, install drip irrigation systems to trees, shrubs, and flowers. Get water directly where it’s needed. If you are using hoses to irrigate, install hose timers to control the flow.

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Xeriscape your plants. Xeriscape refers to creative, attractive landscaping that provides a diversity of seasonal colors and textures while reducing outdoor water use by 30 to 50%. Nurseries carry numerous trees, shrubs, perennials, and ground covers which are low water-using. Visit them and ask for suggestions.

Watering wisely creates a healthier landscape and reduces one of the community’s most costly budget items. This is one area where your investment will pay BIG dividends. Water on!...rather, water off!

arborists are awesomeAn arborist is a specialist in tree care. Proper tree care is an investment which leads to substantial returns to a community association. These living assets should be treated with the best expertise available. A certi-fied arborist is someone trained in the art and sci-ence of planting, caring, and maintaining trees. The International Society of Arboriculture offers its ISA Arborist Certification to those seeking advanced train-ing. It requires at least 3 years field experience and passing a comprehensive exam along with continuing education to maintain the certification.

Arborists offer very important services:

Pruning. There are 4 classes of detailed prun-ing outlined in the National Arborist Association Pruning Standard (for more, see our Landscaping Specifications section below). In general, though, “maintenance” pruning keeps branches off buildings and away from streets and walkways. This kind of pruning is often covered under a landscape contrac-tor’s agreement but it is very limited in its scope. Most landscape contractors limit pruning to no more than 12 feet off the ground. This leaves a lot of tree that needs attention.

Corrective pruning done by Arborists is more intensive and addresses issues related to a tree’s health, appearance, and longevity. Besides dealing with branches that damage the building gutters, roof, and siding, corrective pruning removes dead or diseased branches, improves the tree structure for appearance, and can open up view windows.

Removal. There are a variety of reasons to remove trees:• Dead or dying. While removing a dead tree is a no

brainer, removing a dying tree may prevent other species from contracting the same problem. Cut one so others may live.

• Hazardous (leaning or destroying property). It’s not uncommon for trees to be planted by develop-ers too close to buildings. It’s no big deal when the trees are 10 feet tall. When they get to be 30 feet and start damaging the building, sidewalks, and foundation, it’s time to remove them.

• Not suited for the location. Depending on size, trees can either overshadow the competition or be overshadowed. Either case creates problems for turf, bushes, and flowers. Trees should lend shade and beauty but not turn the common area into a wooded gloom.

• Overcrowding. This condition usually results from the developer stage when many small trees were planted for effect. Once mature, a thinning process is needed to reduce the crowding.

• Blocking view. Small trees get tall and block cher-ished and valuable views. Rather than removal, cre-ative pruning can open views while retaining the privacy that trees lend to neighbors in close prox-imity.

Planting. Arborists can recommend and plant trees suitable to your location and topography. Since trees last a long time, making the right choice up front is very important.

Planning and design. Many Arborists are trained in landscape design and can provide a comprehen-sive tree plan for ease of maintenance, durability, and improved aesthetics.

Tree care. Arborists can lay out a maintenance plan for your trees to keep them healthy including:• Fertilization• Cabling or bracing for added branch support• Aeration to improve root growth• Spraying or injecting for insect and disease prob-

lemsProper tree care is one of those things that should

never be skimped on. Using trained professionals like Arborists just makes tree-mendous sense.

Politics of treesOne of the most controversial issues that faces a com-munity is tree removal. While there are many prac-tical reasons to remove trees, some residents take a deeply personal interest in their fate. It is the practical versus the emotional. Let’s explore the dynamics of this phenomena.

In a new development, the builder often selects trees for visual appeal, rapid growth, and ease of main-tenance. The trees are young and occupy a relatively small area. Over time, these trees do what trees do, get bigger and denser. With size come maintenance problems like:• tree debris that clogs the gutters• branches that damage roof and siding• branches that obscure security lighting or vision, a

safety issue

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• overcrowding that promotes plant and tree diseases• roots in the sewer lines that cause backups and

flooding• shading that promotes moss and algae growth• tree roots that lift sidewalks or crack asphalt• trees that block views

The cost of tree damage control can easily get to a point where removal may need to be considered. From a strictly dollars and cents point of view, the cost to remove a tree versus ongoing maintenance costs is a no-brainer. In most cases, several hundred dollars in removal cost will often save thousands of dollars in maintenance or damage. However, the politics of removal should not be ignored.

Emotions run high about tree removal and opin-ions often run 180 degrees apart. A resident who com-plains of debris in the gutters and lobbies for removal is often countered by another that loves looking at the lush foliage. And let’s face it, trees don’t happen over-night. There are those who feel that killing such an enduring life form is morally wrong and that people should adapt to the changing tree environment.

An issue like this is best handled by an informed democratic process: First, hire a certified arborist to inspect and make written recommendations about the trees in question. This step is invaluable since the Board now has expert input into the process that often offers alternatives to removal. Second, flag trees with bright surveyor tape for easy identification.

Next, send a written notice to all owners that

includes the location of the trees and the reasons for removal. It is important to include all owners because tree removal is a philosophical issue that impacts more than those in the immediate vicinity of the removals. The notice should allow at least a 30-day review period during which the Board accepts written comments before making a final decision. If there are numerous trees involved, it is prudent to hold a spe-cial owner meeting to discuss the issue. Let concerned owners vent. Remember, this is a hot topic.

Once the Board has gathered opinions, decision time is at hand. Before moving ahead, keep in mind that many cities require removal permits. Tree com-panies don’t always comply with the law, so check with your local City Hall before proceeding. Also, a lone dissident owner or even renter may file a com-plaint with the City road-blocking the removal pro-cess. This doesn’t necessarily kill the process but will involve another level of review that will delay it. Finally, make sure all pruning alternatives have been considered. For example, view removals can often be cured by “window” pruning that can often satisfy view blockage complaints.

The politics of tree removals give the Board an opportunity to show true leadership and sensitivity. Trees are one of the community’s most valuable assets. A good board politician will earn a vote of confidence if this issue is handled carefully.

See the following Florida Landscaping Specifica-tions chart.

LanDscaPing sPeciFicatiOns - FLOriDa

janUary - MarcHturf

This is the best time of year for a number of chores. Mow and water as needed; this being the dry season, it’s likely watering will be more needed than mowing. Hold off on fertilizing your lawn grass until the weather warms up.

Remove thatch—grass growing on top of other grass, rather than in the soil. Some mowers have a “de-thatch” setting, or you can use an ordinary rake. It’ll be easier to get it now than any other time. And if you don’t, it’ll just get worse.

It’s the best time to apply a pre-emergent herbicide to stop (weed) seeds from germinating in your lawn. Be care-ful not to apply it in flowerbeds that you want to re-seed naturally. And be sure to read the label carefully even before you buy an herbicide. Many of the popular “weed and feed” mixtures contain chemicals that should not be used near streams, bodies of water, areas that drain directly to the aquifer, or where children or animals will be exposed to the chemicals.

shrubs and trees

Now is the best time of the year to shop for azaleas and camellias. Why? Because you can see them in bloom—no guessing about what color and type of flowers they’ll have. Azaleas and camellias prefer similar growing con-ditions: shade (they can tolerate some direct morning sun, but not afternoon sun) and rich, well-drained, acidic soil (they don’t like soggy soil or over-watering). Although they’re susceptible to a few pests and diseases, once established they’re generally healthy, long-lived, low-maintenance plants.

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January through March is the prime time to prune many trees and shrubs. Prune these summer and fall flower-ing trees and shrubs about the time they come out of their winter dormancy (any day now). You can tell they’re coming out of dormancy when the first signs of new growth—little green things—appear on the stems: Abelia, Goldenrain tree, Oleander, Cassia, Hibiscus, Tibouchina, Crape Myrtle, Mimosa, and Roses. Evergreens such as Boxwood, Juniper, Podocarpus, Holly, Ligustrum, and Wax myrtle can be pruned any time (except that you prob-ably don’t want to cut off flower buds).

DO NOT prune azaleas or camellias now, though. In fact, there’s almost no need to prune azaleas and camel-lias at all, except to remove damaged limbs. For azaleas, camellias, and these other winter and spring flower-ing trees and shrubs, wait and prune them during the first 2 months after flowering is over: African Tulip Tree, Hydrangea, Spirea, Dogwood, Indian Hawthorn, Star Magnolia, Fringe Tree, Redbud, Wisteria, Gardenia, and Saucer Magnolia.

annuals and shrub beds

There’s still time to transplant a number of cool season annuals, but mainly we’re entering the beginning of planting season for warm-season annuals and perennials. In our climate, the cool-season plants will be dead or dying by the end of May, and many of the warm season annuals planted now will be worn out by mid-July, so plan on repeat plantings over the next few months so you can extend the colors of summer.

Even though there’s still some risk of frost and freezes, 4” pots of the following can safely be planted now: Alyssum, Baby’s Breath, Calendula, Candytuft, China Doll Carnation, Delphinium, Dianthus, Dusty Miller, Foxglove, Lobelia, Marguerite daisy, Nasturtium, Pansy, Petunia, Snapdragon, Statice, Stokes Aster, Sunflower, Sweetpea, and Yarrow.

water requirements

Unless rains have been regular, you probably need to irrigate. Watch for indications of drought from your lawn before watering. Irrigate about 3/4”-�”, 2 to 3 times per week during the summer. Water during the early morn-ing to avoid diseases. Even with a professionally installed system, it is important to check coverage at least weekly as heads may become clogged, damaged, or off-center, and leaks in the line may occur. An easy way to routinely check your irrigation system is to place small, straight-sided cans in a straight line from your sprinkler to the edge of the watering pattern and look for uniformity of coverage. If an area is not receiving water from one or more heads, or if a head is not providing complete coverage, dry spots can develop. This can lead to any of the problems associated with drought-stressed turf. While checking uniformity with the coffee can method, you can also easily determine how long it takes your system to apply 3/4-� inch of water. Turn the water on for �5 minutes and calculate the average depth of water in the cans. Multiply this number by 4 to determine the irriga-tion rate inches per hour.

aPriL - jUneturfTime to restart the endless summer cycle: water, fertilize, water, weed, water, mow, and repeat cycle.

Go easy on the fertilizer and pesticides, especially if you have the sandy soil typical of northern and central Florida. It’s more like a sieve than a sponge, and the chemicals make their way pretty quickly into waterways and the underground aquifer.

A pre-emergent herbicide is a chemical that prevents weeds by stopping seeds from germinating; if the weeds are already up, it has no effect. Also, it’s nondiscriminatory—it stops good seeds as well as weed seeds. If you apply one of these or a “weed and feed” product to your lawn, read the label carefully BEFORE you even buy it. Many of these mixtures contain chemicals (atrazine, for example) that should never be used near streams, bodies of water, areas that drain directly to the aquifer, or where children or animals will be exposed to the chemicals.

shrubs and trees

April through June is the time to fertilize most trees and shrubs, especially the ones that are just finishing flower-ing. The type of fertilizer you use should depend partly on the type of plant and partly on the condition of the soil it’s growing in.

If there are fertilizers formulated for the specific plants that need your help, such as camellias, it’s probably wise to use them for its regular diet. At the same time, if your camellia’s leaves look yellow this is a condition known as chlorosis. It’s caused by a deficiency of iron in the soil and is easily corrected by adding an iron supplement

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to the soil around the plant. These products are also available in the fertilizer section at garden centers and have the word iron in the product name.

Florida soils tend to be somewhat alkaline and high in phosphates, so you want to be careful not to add too much phosphate. It’s best to use a time-release fertilizer and water it into the soil so it gets to work right away and doesn’t oxidize.

Pruning. If any of your trees and shrubs still show freeze damage from last winter, don’t wait any longer to remove any cold-damaged or dead wood. There are a couple of ways to tell if a branch is dead. One is to try gently bending it; if it breaks, it’s dead, if it bends and snaps back into position, it’s probably not. Or scrape the branch with your fingernail; if there’s some green underneath the outer layer, it isn’t dead.


The afternoon rains tend to shatter blooms of geraniums and can promote leaf spot diseases on many flowers. Use a general-purpose fungicide labeled for flowers when frequent afternoon rains begin.

4” pots to plant in April: Celosia, Coleus, Calliopsis, Crossandra, Dusty Miller, Exacum, Gaillardia, Gazania, Hollyhock, Impatiens, Lobelia, Marguerite Daisy, Marigold, Nicotiana, Ornamental Pepper, Pentas, Periwinkle, Phlox, Portulaca, Rudbeckia, Salvia, Streptocarpus, Sweet William, Thunbergia alata, Torenia, Verbena, and Zinnia.

In May, plant 4” pots of Celosia, Coleus, Calliopsis, Crossandra, Exacum, Gaillardia, Gazania, Hollyhock, Impatiens, Kalanchoe, Marigold, Nicotiana, Ornamental Pepper, Pentas, Portulaca, Salvia, Torenia, Verbena, Vinca, and Zinnia.

June is a hot month, which limits planting of many flowers. For June planting, choose hardy flowers: Celosia, Coleus, Exacum, Hollyhock, Impatiens, Kalanchoe, Marigold, Nicotiana, Ornamental Pepper, Portulaca, Salvia, Torenia, Vinca, and Zinnia.

water requirements

The amount of water to apply at any one time varies with the amount of water present in the soil, the water-hold-ing capacity of the soil, and soil drainage characteristics. An efficient watering wets only the turf grass root zone, does not saturate the soil, and does not allow water to run off.

Florida soils are typically sandy and hold � inch of water in the top �2 inches of soil. If the roots are in the top �2 inches of soil and the soil is dry, then 3/4 to � inch of water is required to wet the area thoroughly. This is equiva-lent to 465 to 620 gallons of water for each �,000 square feet of lawn. Generally, turf grasses require no more than 0.3 inches of water per day. Under extreme summer conditions, water use can be as high as 0.4 inches of water per day. During winter, when grasses are not actively growing, water use may be only 0.05 inches of water per day.

jULy - sePteMberturf

If you still want to establish a lawn, you can seed, sod, or sprig all types of grass. However, seed of St. Augustine grass is not available and you must sod or sprig. Make sure to water it regularly to promote root development. If you are planning to travel out of town, make arrangements for your lawn to be watered.

This is a good time to fertilize Bahia, Bermuda, St. Augustine, and Zoysia with a water-soluble inorganic nitrogen source like ammonium nitrate or ammonium sulfate at a rate of � pound of actual nitrogen per �,000 sq. ft. An alternative balanced fertilizer, like �6-4-8, may be applied at the same rate of � pound of actual nitrogen per �,000 sq. ft.

This is also the time of year to watch for insects and diseases that damage lawns. It is much easier to control a problem when it is detected early. Watch for symptoms or changes in your yard that do not appear normal, and then identify the cause.

Chinch bugs may be observed in St. Augustine grass from April through September causing yellow or brown patches. Blades appear brown but not wilted. Only treat when population levels have reached a damage thresh-old of 25 chinch bugs per square foot. Spot treat affected areas with Diazinon.

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Operation of the Association’s Physical Property 6�

If mole crickets are a problem, you can apply a mole cricket bait. Lightly broadcast the bait evenly over the sur-face late in the afternoon when it is not likely to rain. Do not irrigate after the application.

There are several diseases that can be a problem. Dollar spot is a disease, which looks like 2-3 inch diameter dead spots scattered across the lawn. It can affect Bahia, Centipede, and Bermuda. Apply �/2 lb. of nitrogen to encourage grass to out grow the problem.

Gray leaf spot is a disease primarily of St. Augustine common in the summer, especially now that our seasonal rains have returned. Prolonged wet foliage and excess available nitrogen tend to increase severity and spread of this disease. Elongated, oval brown spots can occur in the leaves sheaves or stem. Some spots may have a yellow hallow. Disease blades wither and brown giving the lawn a scorched appearance. Mow less frequently and col-lect clippings if you have gray leaf spot.

Pythium and Take All root rots are common lawn diseases now. Grass weakened by poor drainage, excessive traffic, poor mowing practices, or nematodes are susceptible.

shrubs and trees

Containerized trees and shrubs can be planted now. Prune azaleas only up to mid July because buds will come soon. Cut back poinsettias by one-half to promote increased branching. Trim the spent blossoms off the crape myr-tle tree to encourage a second bloom on new growth. Divide and replant ferns and liriope that are too crowded.

Fertilize azaleas, camellias, and gardenias with “Camellia-Azalea Special” or other acid-forming fertilizer now. Fertilize roses with each new flush of blooms. Plant palms and potted crape myrtle in bloom.


Even though it is the hottest time of the year, there are quite a few flowers that can be planted. In July plant 4” pots of: Blue Daze, Blue Sage, Cannas, Celosias Cleome, Coleus, Crossandra, Dahlberg Daisy, Exacum, Echinacea, Gerbera Daisy, Golden Shrimp Plant, Globr Amaranth, Goldenrod, Impatiens, Justicia, Kalanchoe, Lantana, Lisianthus, Melampodium, Mexican Sunflower, New Guinea Impatiens, Nierembergia, Pentas, Portulaca, Purslane, and Salvia.

Refresh your garden with summer color in August by planting Coleus, Kalanchoe, Marigolds, and Salvia.

In September, plant Alternanthera, Blue Daze, Exacum (Persian Violet), Foxglove, Kalanchoe, and Wax Begonia. All are heat tolerant and will be colorful until first frost, which may be late November.

water requirements

Irrigation of many Florida lawns is controlled by a pre-set automatic sprinkler system. While automation is becoming increasingly necessary in many areas of our lives, automatic sprinkler systems and improper watering practices are undoubtedly the single biggest factor leading to decline of home lawns. It is important to remember that we do, on average, receive 60 inches of rainfall or more yearly in most parts of Florida, and that the major-ity of this rainfall occurs between June and October. When rainfall is adequate to meet the plants transpiration needs, supplemental irrigation systems should be turned off. How do you know what the grass transpiration needs are? University of Florida guidelines call for watering lawns on an “as-needed” basis. This can be deter-mined by observing the grass for signs of drought, which indicate that transpiration needs are not being met. The signs that you need to look for are:

• Leaf blades are folded in half lengthwise in an attempt to conserve water.

• The grass takes on a blue-gray tint rather than maintaining a green color.

• Footprints or tire tracks remain visible on the grass long after being made.

When these signs of drought are seen on a large portion of the lawn, its time to irrigate.

OctOber - DeceMberturf

It’s almost too late to fertilize for the fall. Hurry to do it before mid October. Pre-emergence herbicides can be applied now to control winter annual weeds. BE CAREFUL when you use products that contain Atrazine. If tem-peratures are above 85 degrees Atrazine herbicide damage may occur on your St. Augustine grass.

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(Source: Phillips Environmental, Clearwater, FL www.phillipsenvironmental.com)

In many parts of Florida, it is not possible to have an attractive, green lawn throughout the winter months due to low temperature exposure. Permanent lawn grasses in upstate Florida (Bahia grass, Bermuda grass, Centipede grass, St. Augustine grass, and Zoysia grass) go dormant in the late fall and winter. These grasses grow very slowly, lose color in the fall, and then turn completely brown with the first frost. Brown lawns throughout the winter are unattractive and weeds are easily seen, so a practice called “over seeding” is often used to provide a green winter lawn. Over seeding is the practice of using a temporary grass that is seeded into the permanent lawn to provide winter color.

which grass to use? Several cool season grasses can be used for over seeding, including ryegrass, bluegrass, Bentgrass, and tall fescue. Bent grass, bluegrass and fescue are beautiful and because of their fine texture are very compatible with Bermuda grass and Zoysia grass. However, due to their maintenance difficulties and costs, they are not generally recommended for the average homeowner. By far the most common temporary grass is RYEGRASS. Annual, intermediate, and improved (perennial) ryegrasses are popular because of rapid seed germi-nation, fast growth, adaptability, and reasonably low cost. Ryegrass is widely adapted, does well in either sun or shade and tolerates close, frequent mowing. If seeded heavily and mowed closely, ryegrass can provide a very dense and beautiful lawn throughout the winter. By the time the ryegrass dies, the permanent lawn grass should be actively growing again, and will provide color and cover the rest of the growing season. Of course, the rye-grass will have to be reseeded each fall to provide a green wintertime lawn.

timing? Establishment of winter ryegrass is a fairly simple procedure. Seeding time varies from October to early November in north Florida to mid-November and early December in central Florida. It is best to wait until the daytime temperatures are consistently in the low- to mid-70°F range. If the seeds are planted during warmer peri-ods, water stress and diseases will reduce the chance of seedling survival. In frost-free areas of south Florida, it is usually warm enough so the lawn does not go dormant. In this case, over seeding is probably not needed for winter color.

shrubs and trees

Plant containerized trees and shrubs anytime. However, wait until winter to transplant deciduous trees.

It is too late in the year to fertilize or prune most landscape plants. We are getting near the cold season and fertil-ization may result in cold damage.

Watch closely for scale insects on Camellias, Magnolias, Euonymus, Gardenia, Loquat, and Coniferous ever-greens. Horticultural oil, Cygon Diazinon, Malathion, Merit, Orthene, or 2% Di-syston G may be used to control the scales.

Check landscape plants for aphids. These are small insects that suck the plant juices from the under side of the leaves. A new aphid has appeared on the scene. The wooly hackberry aphid, which looks like snow on the twigs and leaves, is infesting only hackberry trees. Aphid feeding can also result in black sooty mold. Control with insecticidal soap, Orthene, Malathion, or Diazinon. You can mix your own soap solution by adding 2 table-spoons of dish detergent to � gallon of water.

Whiteflies have also been bad this year. Control is the same as with aphids. You may need to apply a series of spraying to eradicate.

In recent years, caterpillar infestations have been serious on a variety of landscape trees and shrubs. They can be controlled using Dipel, Thuricide, or Sevin.

Pruning. It is best to prune trees such as oaks, maples, hickory, and other large shade trees during the dormant season or just following a growth flush. Pruning at other times frequently promotes undesirable sprouting. Trees sprout excessively when pruned during active shoot elongation.


In October set out 4” pots of the following seasonal annuals: Snapdragon, Shasta Daisy, Foxglove, Pansy, and Petunia plants. In November, also plant Statice, Carnations, Calendula, and Dianthus. All are for December plant-ing.

Fertilize annual flowers during soil preparation and then monthly.

water requirements

Water during dry spells, especially Azaleas and Camellias. When rains stop, water �-2 times weekly. It is better to water your landscape more thoroughly and less often than to apply frequent shallow waterings. A good rule of thumb is to irrigate�/2” of water per irrigation. Adjust your irrigation seasonally as during the winter, your land-scape requires much less water due to shorter days and cooler temperatures.

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Final assessment Operation of the association’s Physical Property




1. A Board’s primary and legal responsibility is to protect and maintain the value of the asset. T F

2. The best maintenance plan has the budget built around the maintenance program. T F

3. The purpose of preventative maintenance is to spend a lot of money now and more money later. T F

4. If the community is faced with a large siding, dryrot, or structural repair, then it makes sense to use the services of a professional construction manager. T F

5. Since roofs are intended to last many years, selecting a roofing company that will likely be around for years is not important. T F

6. Unless the roofing job is straight forward, invest in a roofing consultant to prepare detailed specifications which can be bid by contractors. T F

7. The right roof for your home does not balance cost, durability, and aesthetics. T F

8. Asphalt is a mix of about 92% asphalt binder and 8% stone aggregate and mineral filler. T F

9. Since asphalt begins to oxidize immediately after installation, it is recommended that sealcoating be applied when the asphalt is new. T F

10. The acronym P-A-I-N-T stands for plan, ask, inspect the work, negotiate, timing. T F

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65

Learning Objectives


communication skills and tools

4 Hours in Subject Area: Human Resources

�. List 3 reasons managers need to communicate with community members.

2. Discuss the strengths and weaknesses of your diplomacy skills.

3. Explain 2 strategies that managers can use to lis-ten effectively to the different personality types within the community

4. Describe how the use of tact can promote the manager’s leadership role as well as harmony within the community.

5. Identify 4 steps managers can take to defuse explosive personalities.

6. List 3 strategies managers can use to resolve conflicts.

7. Discuss steps a manager can take to help neigh-bors resolve disputes.

8. Identify procedures to take when a board meet-ing is disrupted by a disgruntled homeowner.

9. List 3 benefits of Alternative Dispute Resolution.

�0. Discuss the differences between Arbitration, Mediation, and Conciliation.

��. Explain how an effective communication system supports a proactive management style.

�2. List 7 types of communication managers can utilize to build trust and allay rumors in a com-munity.

�3. Identify 3 types of letters managers frequently need to send.

�4. List 3 tips for effective collection letters.

�5. Explain 4 ways to respond effectively to com-plaint letters.

�6. Describe 5 strategies managers can utilize to produce great newsletters.

�7. List the �2 essential elements of a newsletter.

�8. Explain what type of information should be included in all newsletters.

�9. Discuss 3 elements of newsletter design and lay-out.

20. List 5 newsletter tips that keep reader’s interest.

2�. Discuss 3 ways online newsletters can be deliv-ered to readers.

22. Explain the ways email can be used as an effec-tive communication tool.

23. List 5 basic steps that can improve the quality of email communication.

24. Explain the benefits of establishing a community website.

25. Contrast Fill-in-the-Blanks Websites with Homegrown Website.

26. List 4 steps managers can take to cultivate a good neighbor policy.

27. Explain 4 techniques managers can use to resolve disputes between homeowners.

28. Discuss 4 reasons community members may resist action that is in their best interest.

29. Discuss the benefits and guidelines for open forums.

30. Identify 3 ways a manager can deal with strong arm tactics.

by Richard Thompson


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cLear cOMMUnicatiOn

wordsmithingCommunication is both a skill and an art form. When babies cry, the motivation is to get their needs met. Meeting the needs of others is nowhere in a baby’s method. While infant communication is primitive, it is highly effective. A crying baby gets fed, diapers changed, burped, etc. With maturity and training come more sophisticated and usually less self-serving ways to communicate. Community associations are charged with communicating with the members. The reasons for communicating vary including:• Socialization. As moderns become more isolated

from each other, the need to find connecting points becomes more important. Community associa-tions can provide a platform to coax members out of their isolation by offering volunteer opportuni-ties and social functions. Introducing the members to new residents through newsletters grooms the connections as well. A Welcoming Committee not only provides the human touch, it can provide early warning about important association rules and reg-ulations so that newcomers don’t inadvertently get crosswise with the association from the get go.

• Paying the bills. There are few things more imme-diate and urgent than collecting association fees. Without money, community association services suffer or are curtailed. Without money, mainte-nance lags and property values drop. Therefore, getting 100% payment compliance is extremely important. While the hope is that it is done volun-tarily, sometimes it must be coerced by legal means. But even when lawyers are brought into the matter, a carefully worded demand letter can produce quick results.

• Getting compliance. Every community associa-tion has rules. Hopefully, those rules are few, neces-sary, and not overly intrusive. When a rule is made, explaining the need for it and the goal in having it can go a long way to encouraging compliance rather than defiance. Whenever a rule is being con-templated, the board should always, always, always solicit member input. This tactic reduces the likeli-hood of challenge.

The more the words, the less the meaning. When it comes to effective communication, less is more. Choose words thoughtfully. Use words economically. This takes thought. In conversation, many words are used to test impact on the listener. So, in conversation, it’s not uncommon for the same thing to be repeated with different words in an effort to embellish or give greater impact to the meaning being conveyed. If folks write the way they talk, their writings would rarely

get read because they would be an unending ramble. Without a careful selection of words, communications can be misinterpreted or ignored.

Communication comes in many shapes and sizes. The common ones include signs, newsletters, meeting minutes, postings, emails, and the community associa-tion’s website. These communications can have a vari-ety of meanings: to inform, to warn (rule violations), to invite (summer social), and to congratulate (kudos for a job well done).

So, effective writing requires careful thought because an arrow, once loosed, cannot be retrieved. Words have both strengths and weaknesses. One weakness of the written word is that it may be read by an unintended audience which does not have the background the writer needs to be understood. Another pitfall is that some of the audience may be prejudiced against the writer and refuse to understand the communication the way it’s intended. These folks will actually take the message, add their own spin, and circulate the real story. A war of words ensues. The time and emotional energy it takes for damage control may discourage future communication altogether.

As it is written, In the beginning, there was the Word. Words are with us forever. It’s what we do with those words that make all the difference. Like black-smithing, wordsmithing takes hammering and shap-ing before the whole thought can take shape.

Hearin’ nOw?When to speak and when to listen is a challenge we all face. In daily conversations, the greater gift is the ability to listen.

Board members and property managers deal with irate homeowners that make blood boil. The urge to strike back is natural. The person yelling at you is not only a shareholder in the association you serve, but also believes passionately in what has caused their anger. That person is owed a full and fair hearing. Your role in any exchange is to remain calm, listen attentively, and discover the key to the conflict before you commit to any action.

Effective listening is the key to dealing with differ-ent personality types within the community. Listening without jumping to conclusions can be mastered by even a type-A personality eager to cut to the bottom line. Listening means really concentrating on what another person is saying and not just waiting for your turn to speak. Listen with both your eyes and ears. Let your body language show that the person speaking has your full and undivided attention. Show that you care about their problem.

Remember back in school when the English teacher stressed the importance of the 5 W’s in com-

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Communication Skills and Tools 67

positions: who, what, when, where, and why? Suc-cessful communication includes these same elements: Who is responsible? What is the issue? When did it start? Where is action is expected? Why is it being brought to your attention?

While the issue will often be emotionally charged, the effective listener focuses on the facts, not the emo-tion. Try this technique. Patiently listen while the person is speaking, nodding your head, and saying, “Uh-huh” and “Mmmm.” After the person has fin-ished, pause and repeat back what has just been said. Then ask if you understood correctly. By restating the key elements of the conversation, you are clarify-ing their position while showing that you are listening without agreeing with what has been said. (There are occasions when no amount of diplomacy will win the day. When that happens, it’s best to revisit the issue after a reasonable cooling-off period.)

Now that you have softened any anger with your superb listening skills, it’s problem solving time. Choose your words carefully. Once spoken, an ill word cannot be retrieved. For example, the word but acts like a roadblock to alternatives. Negotiate resolutions making the homeowner part of the process. Restate the key points discussed and what you both agree on as the correct course of action.

Effective listening separates winners from wanna-bees. Hear what I’m saying?

tHe test OF DiPLOMacy

Diplomacy can mean the difference between a friendly resolution or all-out war. Are you diplomatic when dealing with community members? Take this test to find out: 1. Can you communicate clearly that your thoughts

are opinions, not facts? 2. Do you avoid confrontation with those you’re

most inclined to argue with? 3. Do you hear the other person out before formu-

lating a reply? 4. Can you find common ground with another per-

son’s position? 5. Can you reinforce your views with facts, instead

of raw emotion? 6. Do you avoid making sarcastic remarks? 7. Can you keep your cool under fire? 8. Do you truly believe that everyone is entitled to

their own opinion? 9. Do you take pride in the battles that you success-

fully avoided? 10. Do you think others may offer a better solution

than yours?

How did you do? A score of 7 or more “Yes” answers indicates that you can be diplomatic. Since none of these questions asks the impossible, a score of 6 or below probably indicates that you place being right above teamwork, cooperation, and mutual respect. Standing up for what you believe in can be seen as a desirable trait, but not when it gets in the way of your community’s progress. If you’re having problems dealing with community members, learn from this test. You’ve got the ability and the positive results will be amazing to all, including yourself!

Arguments happen in community associations too. Some owners challenge the board with issues based more on control than substance. Others simply have a need for attention or assurance of being heard.

Still, there is an issue that must be dealt with. While sorting out the basis of the issue (control, atten-

reaLLy ListeningThe famous English comedy group Monty Python did a sketch involving a man who visited a business offering “Arguments by the Hour”:Client: I came here looking for an argument.Business Owner: No you didn’t.Client: Yes I most certainly did. I’d like to engage in an argument.Owner: No you don’t.Client: Are you trying to argue with me?Owner: No.Client: But you are. Everything I say, you dis-agree to.Owner: No I don’t.Client: But what you’re doing isn’t arguing, it’s being contrary.Owner: No it isn’t.Client: An argument isn’t mere contradiction. It’s 2 people engaging in debate over a topic of mutual interest.Owner: No it isn’t.Client: Look, this is ridiculous. Are you going to argue or not?Owner: Maybe.Client: Just answer me yes or no.Owner: Time’s up!Client: What do you mean “Time’s up”?...We just started!Owner: No we didn’t.Etc., etc, etc.

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tion, or reasonable concern), address the party in a caring and concerned manner. Gather information with an open mind. The answers may surprise you—even “crazies” have insight. Look for points of com-promise. These are neighbors after all, and decisions made today affect future community harmony. And try not to scold. Attention seekers will use scolding as grist for mills that go ‘round and ‘round. “They don’t care what you know until they know that you care.”

Truth sometimes gets lost in the translation. Sec-ondhand information may or may not be true. Dis-cernment is the key. Make sure that information you receive and communicate to others is the truth and nothing but. Remember, the difference between the truth and a lie is that a liar needs a better memory.

the art of tactOne of the greatest challenges for leaders of a commu-nity association is to treat adversarial members with kindness and respect. In certain communities where verbal bullets frequently fly, holding the tongue can be difficult. For leadership to maintain its position, however, the maturity demonstrated by tact can be the deciding factor in power struggles.

Charles Swindoll in his book, Come Before Winter, notes that tact is “the saving virtue”. He goes on to say, “Tact graces a life like fragrance graces a rose. One whiff of those red petals erases any memory of the thorns....It’s remarkable how peaceful and pleas-ant it can make us. Its major goal is avoiding unnec-essary offense...Its basic function is a keen sense of what to say or do in order to maintain the truth and relationships...It is incessantly appropriate, invariably attractive, incurably appealing, but rare...”

Proverbs 18:19 advises, “A brother offended is harder to be won than a strong city, and contentions are like the bars of a castle” Solomon wrote, “The heart of the righteous ponders how to answer.” And other equally insightful proverbs note, “The tongue of the wise brings healing” and “a man has joy in an apt answer and how delightful is a timely word.”

With whom in your community do you have a difficult time communicating? Could it be that your “brutal honesty” is more brutal than honest? Look for opportunities to forge consensus rather than being right. There’s no doubt about it, tact is a virtue that promotes harmony and the positive leadership role of every board, committee member, and manager.

resOLving cOnFLicts

constructive conflictWhile conflict is inevitable in a community associa-tion, there are choices about how it’s dealt with. When handled constructively, conflict can create a healthier awareness and better relationships.

Conflict rarely gets better with time. If allowed to fester by avoidance or grow by ongoing aggression, the feuding parties become more entrenched in their positions and arriving at resolution becomes more difficult. Resolution is most easily achieved early on. Here are the steps to getting it done:• Speak directly. Speaking directly with the person

with whom you have the problem, assuming that there is no threat of violence, will usually resolve the issue. Meet in person or talk over the phone to explain your concern in a positive, respectful way. (Anonymous letters, banging on the wall, or com-plaining to your neighbors does not qualify.)

• Plan your approach. Think about what you want to say in advance. Talk about the problem as you see it and how it affects you. Help the other party understand that a problem exists and invite them to help you find a solution that you can both live with.

• Choose a good time. Consider a time when you think the other person will be most receptive. A quiet place where you won’t be easily disturbed, perhaps with a cup of coffee, can make it easier to talk and listen. Avoid cocktail hour.

• Communicate openly and honestly. Express a positive attitude about working together to find solutions. Blaming the other person makes it harder for him to hear and understand your concerns. Remain open to a different perspective than your own and try to understand it.

• Listen. Give the other person a chance to explain their view, concerns, and feelings. Summarize what you hear and ask questions to clarify your under-

The Truth and Nothing ButPepe, a notorious bank robber, regularly robbed Texas banks, returning to Mexico before the Texas Rangers could catch him. The Rangers illegally crossed the border into Mexico and cornered Pepe in a bar. Since Pepe couldn’t speak English, the bartender was asked to translate. With guns drawn, they told the bartender to ask Pepe where he had hidden the stolen loot. “Tell him that if he doesn’t tell us, we’ll shoot him dead where he stands!”

The bartender translated and Pepe hast-ily explained in Spanish that the money was hidden in the town well, 17 stones down from the handle. The bartender then turned to the Rangers and said in English, “Pepe says that you are a bunch of stinking pigs, and he is not afraid to die!”

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standing. Understanding doesn’t mean that you agree. But just echoing another’s thoughts goes a long way toward compromise.

• Open up. Get the issues and feelings out in the open. Don’t ignore the part that seems too diffi-cult or minor. Your resolution will be durable if the issues are considered and addressed.

• Consider options. Be creative and offer solutions that you both think might work. Cooperating to find a solution is much more effective than one per-son demanding that the other change.

• Be SMART. SMART stands for Specific, Measur-able, Achievable, Realistic, and Timely. For exam-ple, “Beginning tomorrow, I’ll turn down my music by 9:30. If I forget, call me and let me know.”

• Keep the door open. Agree to revisit the issue to make sure your agreement is working. Communicate immediately if the solutions are not having the desired effect. Congratulate yourselves on working together to resolve the problem.

Building a lasting resolution from conflict can not only solve an immediate problem, but opens the door to better understanding and even, possibly, a lasting friendship. Don’t preclude the latter. Build on your success and miracles can happen.

Quelling the QuarrelQuarrel has been defined as the minimum number of people required to hold an argument. One of the many challenges facing community associations is resolving disputes between neighbors. Noise, parking, garbage, pets, trees, fences, and other territorial based conflicts can erupt any time. Most conflicts result from false assumptions and (according to the prison warden in Cool Hand Luke) a failure to communicate. Neigh-bors, wanting to avoid confrontation, stew over issues until their emotional pot boils over, usually scalding innocent bystanders. What now?

Conflict is a natural part of human relationships. Self interest is a top priority while other’s interests are usually somewhere down the list (WAY down). Peo-ple become embroiled because interests or values are challenged. Here are a few suggestions for quelling the quarrel:

Know what’s what. The Board wasn’t elected to baby-sit or police neighborhood squabbles. Some issues are association problems, some are not. Don’t take on personality conflict issues. People that can’t get along often look for others (you) to blame. Don’t get involved unless it affects the general harmony of the community.

Let them deal with it. If asked to intercede, suggest they discuss and resolve it like adults. If they won’t, let

it go. Don’t encourage this kind of immature behavior by facilitating more of it.

Clarify the issue. If the issue impacts the whole com-munity, clarify it. What seems to be isn’t always what is. Ask each party what they think the issue is. That alone may resolve the issue when they realize they don’t really know.

Facilitate discussion. If the association’s interests are involved, here are several tips for facilitating the discussion:• Schedule a convenient time to talk.• Agree on a neutral place for the meeting. • Stick to the facts. Steer clear of “He said, she said”. • Avoid blaming, insulting, and exaggerating which

make it difficult to consider other viewpoints. • Listen, even if you disagree, to better focus on the

issues. • Defuse hostility. Let them know you understand

they are angry or upset. Explore what’s behind the emotion.

• Direct the conversation toward solutions. • Question claims and assertions:

There are too many/much/little/few... Compared to what?

You never... What would happen if we did? We’ve tried that already... What was the out-come?

The only way is... Yes, that’s one option. Any oth-ers?

It will never work... What would work?

Good conflict resolution focuses on needs, not positions. It is indeed possible to quell the quarrel, and harmonizing your community should be a top priority.

community association terrorismOut of the blue, an irate homeowner launches a ter-rorism campaign aimed directly at the Board. It’s relentless and focused. The motivation may be some personal grievance, hatred of a board policy, disagree-ment on how the Board does business in general, or loathing for the community association concept. Rather than seeking redress in an orderly and open way, however, often it takes the form of poison pen letters, back alley rumor mills, or a terrorist-like assault at a Board meeting.

Board meeting terrorism is designed to hold the Board hostage to relentless rants of demands. The goal is clear: instant gratification. This form of com-munity association terrorism is designed to directly

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challenge board authority and to disrupt the orderly process. As with any terrorist attack, the Board’s ini-tial reaction is disbelief. But, the reality of the assault soon becomes clear and the need to act urgent.

How should the Board deal with this kind of attack? When presented a list of demands, should the items be discussed point by point? Should they be recorded in the minutes? What should be done?

Rule #1. Never negotiate with terrorists. The Board is not obligated to discuss anything not on the agenda. And it’s unfair and unreason-able to expect answers to firing line questions. The response should be, “Thanks for making your points. We’ll review them and give you a response in writing or consider them at the next Board meeting.”

Rule #2. Don’t record a list of demands. Min-utes are intended to discuss in broad terms the business of the Board. Specific motions should have enough detail for a description, for the discussion, and the outcome of the vote. It is not a forum for soap boxing, editorializing, or where items are entered into “evidence”. It’s enough for the minutes to state, “Mr. Terrorist asked that the Board consider issues relating to (describe).”

Rule #3. Control your owner forum. To encourage owner input, an Owner Forum before the meeting should give each speaker-owner up to 5 minutes to speak, but no more, so the Board can get on with its business. Letting someone hold the Board hostage should never be allowed and it’s up to the President to con-trol such actions. An abusive person should not be allowed to continue for any length of time.

Rule #4. When attacked, respond quickly and firmly. When the attack becomes apparent, it’s the President’s job to interrupt and, if neces-sary, ask the attacker to leave the meeting. If the attacker refuses to comply, the President should adjourn the meeting and advise that such con-duct will not be allowed at future meetings. Call the police if necessary.

Association terrorism is designed to fan the flames of emotion and to promote rash response. The Board needs to walk the high road and refuse to dance with such people. While this isn’t easy when the attack is intense, the directors outnumber the attacker and with a unified response, should be able to defeat the challenge and even help point the terrorist toward a better way.

alternative Dispute resolution (aDr)From time to time, disputes arise between community association members or between a member and the association. If left unchecked, these disputes can esca-late into dueling lawyers duking it out in a no holds barred courtroom battle. However, there is never a satisfactory end to this war. The time, emotional stress, and financial cost of legal jousting is tremen-dous. Judges are rarely schooled in how community associations work so the verdicts are highly unpre-dictable. Often both defendant and plaintiff are dis-appointed with the outcome. And after all is said and done, the parties are still neighbors who must figure out a way to get along.

ADR is an alternative that is gaining rapid accep-tance in resolving community association conflicts. The basic premise of ADR is that neither party is 100% right or 100% wrong. A trained mediator can usually sort out the issues, cut to the heart of the mat-ter, and forge a compromise that allows both parties to save face. This face saving is often more important than the issue that began the fight in the first place.

One thing is for certain, neighbors do not always get along. Since that’s known, it’s only a matter of time before there is conflict. Since community associations have a structure in place to deal with people issues, it’s important to plan for these events just like preventive maintenance on the buildings. Once conflict erupts, it’s usually too late to get the parties re-pointed to an amicable settlement. To that end, adopting an ADR Policy is a perfect way to help guide combatants toward a quicker, cheaper, and usually more effective resolution to the conflict.

On the next page is a sample policy (Figure 1) which uses the Resolution Process. Use it to shape your own, making sure to conform with applicable state statutes and existing provisions in your govern-ing documents. Some states may have a specific stat-ute in place so always have the policy reviewed by a knowledgeable community association attorney before adopting it to ensure it complies with existing law.

Dispute MediationWhile Americans have embraced the aggressive and competitive sport of lawyer-fighting by hiring them to litigate over issues significant or otherwise, skyrocket-ing litigation costs have caused many to re-examine the value of lawsuits for problem solving. Nowhere is this more apparent than in community associations, where disputes are a regular part of life. If you are a member of one, you know. Pets, parking, renters, late fees, fences, and an endless list of other issues are fuel for the fires of furious disagreement.

Consider cases like one in California where a dis-pute over a fence landed a homeowner with $40,000

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Communication Skills and Tools 7�

nottacare condominium alternative Dispute resolution Policy

WHEREAS, the Board of Directors of Nottacare Condominium believes that conflicts which arise between members or between a member and the community association are best resolved by way of negotiation and mediation rather than litigation; and

WHEREAS Alternative Dispute Resolution (ADR) is faster, friendlier, less expensive, and more effective than resorting to the courts to resolve disputes;

BE IT THEREFORE RESOLVED that the following ADR procedure is hereby adopted by the Board of Directors on the 3�st of December 2002 and shall be added to the Resolution Section of the Rules, Regulations & Resolutions:

a. applicability. This ADR procedure shall apply to all disputes which arise within Nottacare Condominium between members or a member and the homeowners association. Participation in the ADR procedure is voluntary on the part of a member and required by the community association.

b. Method. The ADR method used shall be “mediation”. Mediation is an informal, cooperative, problem-solving ap-proach to conflict resolution. It provides for a neutral mediator to assist the parties negotiate a settlement of their dispute which is agreeable to the parties.

c. Mediator. The mediator used for this process shall be one professionally trained to perform this service. The county offers free mediation service and there are several paid services in the area. If the parties cannot agree on a media-tor, the free mediation service will be used. If paid mediation is selected, the cost will be shared equally by the parties.

d. Procedure (Dispute Between Members)

i. Upon formal notice to the Board from a member that a dispute exists with another member, the Board shall con-tact the parties to determine the nature of the dispute and attempt to resolve the dispute quickly.

ii. If the efforts by the Board are not successful, within 3 (3) days, the Board shall send written notice to the parties acknowledging that a dispute exists, identifying the nature of the dispute, and offering ADR to the parties.

iii. Parties must respond acceptance or rejection within 5 days. Upon receipt of acceptance by the parties, the Board shall schedule ADR to be held within �4 days.

iv. In a dispute involving more than 2 parties, if less than all parties agree to ADR, the hearing may still go forward only if such mediation would be beneficial. In a dispute involving only 2 parties, if less than both agree to ADR, then the offer of ADR will be withdrawn. If the ADR offer is withdrawn and the dispute involves a violation of the Rules, Regulations & Resolutions of Nottacare Condominium, the Board will proceed with normal enforcement procedures.

v. If the mediator is unable to achieve a satisfactory compromise, each member is entitled to use other legal meth-ods available to resolve the issue.

e. Procedure (Dispute Between Member and Association)

i. In the event that a member violates a Rule, Regulation, or Resolution of the Association, the Board shall notify the member in writing of the violation and request that the member immediately correct the violation. The notice shall also inform the member of the option to resolve the dispute by way of ADR. If the member accepts the offer of ADR, it must be done in writing to the Board within 5 days.

ii. In the event that a member claims that the Association has failed to act properly or has acted improperly with regard to the exercise of its duties, responsibilities, and powers, the member shall notify the Association in writing of the claim. The Board shall investigate the claim and respond to the member in writing within 5 days stating the Board’s position with regard to the claim. This notice shall also inform the member of the option to resolve the dis-pute by way of ADR. If the member accepts the offer of ADR, it must be done in writing to the Board within 5 days.

iii. If the mediator is unable to achieve a satisfactory compromise, the Association may proceed with normal en-forcement methods. Each member is entitled to use other legal methods available resolve the issue.

DATED this __________________________ day of ______________________, 200___. ATTEST:

_________________________________________________ ________________________________________________President Secretary

Figure �: Alternative Dispute Resolution Policy(Source: http://www.regenesis.net/3/policy-resolution-creation.htm)

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in his own legal fees and, when he lost the decision in court, forced him to pay the $61,000 of commu-nity association legal fees as well. Or drapes—litigat-ing over a $500 set of drapes ended up costing one association homeowner $15,000 in legal fees. On top of which, after the legal jousting has ended, there you are living next door to the same people with whom you did battle by proxy. The war often settles down to a slow seething simmer and stays there for years. What a way to live. There’s got to be a smarter way for alleged adults to resolve differences, you’d think. There is.

Call off your dogs. ADR is the problem-solving method of choice for more and more homeowner organizations. Training is available for those who are interested in starting an ADR program as well. Partic-ipants in mediation or arbitration procedures between community association members describe the results as astonishingly effective and satisfying. The cost for mediation services in most areas is low or nominal.

Mediation and arbitrationThere are 2 ways ADR can work: In mediation, the disputing parties take their problem to a third-party neutral, who is the mediator. Investigation and doc-umentation of the complaint is made. The mediator conducts meetings in which he or she presents non-binding resolution recommendations. Mediation is usually described as a nonbinding settlement.

In some parts of the country, if both parties are willing to accept the terms of the recommended solu-tions offered by the mediator, a conciliation or con-sent agreement is drawn up. Both parties sign the agreement and it becomes an enforceable contract. Some groups that use this form of ADR insist that if both parties cannot reach an agreement the dispute proceeds to a public hearing of the association. The outcome of that hearing results in a binding agree-ment as well, which carries the same weight as a lower court decision.

Finding an ADR Provider. ADR providers vary widely in specialization, expertise, ability, and quality. Potential providers should be questioned about their training in the issues in dispute. Costs vary depending on the type of dispute and the expertise of the ADR provider. Some providers charge an hourly rate, while others charge a flat fee. Information is available from the following organization:

Better Business Bureau4200 Wilson Blvd., Suite 800Arlington, VA 22203 www.bbb.orgThe other form of ADR is the process of arbitra-

tion in which both parties, at the outset, accept that the ruling of the arbitrator will result in a binding

settlement. The American Arbitration Association, listed in the Yellow Pages of most cities, reports a steady increase of commercial mediations over the last 6 years. A dispute mediation service created in 1991 in Hawaii reported an 85% success rate among those parties who could be brought together. Clearly, ADR is having an impact on the homeowner and condomin-ium association communities.

Forgive and ForgetBasic human nature causes us all to offend others from time to time. Sometimes it’s done unintention-ally while other times with malice and forethought. But regardless of intent, if we are to coexist in peace, making amends is essential. Here are 7 “A’s” to go about it:

A-Address everyone involved. If your offense was perpetrated in a group setting, you should make amends to everyone that was there, both the target and the audience. The audience part is important because onlookers may not have been personally offended, but may carry the impression that you’re a jerk until you disabuse them of the notion.

A-Avoid if, but, and maybe. Don’t rationalize what you did. (“You made me mad”). Take responsi-bility for your actions.

A-Admit specifically. Say that you lost your tem-per, you misunderstood or whatever it was that trig-gered your inappropriate behavior.

A-Acknowledge the hurt. Admit that damage was done.

A-Accept the consequences. If there is something that needs to be restored (stolen, broken, etc.) restore it and pay the price.

A-Alter your behavior. Promise to do better in the future.

A-Ask for forgiveness. This may be the toughest part because you may not get the forgiveness you ask for. You can’t control the response but you can con-trol your desire for it. Expect the worst and hope for the best. Accept whatever response you get. Either way, it doesn’t change your part of the process.

Forgiveness is a life changing event for those who forgive and for those who ask for it. We’re all guilty of offending our neighbor. Forgive, forget, and be set free.

FOrMs OF written cOMMUnicatiOn

sharing the good newsDo you have a reliable system to get information to your association members quickly and accurately? Do you request suggestions and feedback? These are all signs of a proactive management style. Proactive managers welcome communication because it lets

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them know whether they are on track or derailed. As the saying goes, “The light at the end of the tunnel may be the headlight of an oncoming train.” Better to know sooner than later.

On the flip side, reactive communications keep the Board on the defensive and are indicative of a cri-sis management style. With crisis management, noth-ing gets done unless the smell of tar and feathers is in the air. Under these circumstances, it’s unlikely that the end result will be good. If this is the kind of style your Board has been practicing, consider what kind of environment this creates.

Failure to communicate makes fertile ground for rumor. And rumors can trample on the Board’s initia-tive and planning. While it’s best to head rumors off at the pass, rumors can sometimes be a way for the Board to identify some unaddressed issues. To deal with them, you might title a newsletter article “Rumor Has It...” and dispel the rumor with the facts. Here are some great ways to “tell it like it is”:

The Internet. Bar none, the Internet is the fastest and cheapest way to interact with the membership. Most folks now have email addresses so why con-tinue to waste time and money on duplication, labels, stamps, envelopes, and the U.S. Snail Service if you don’t need to? For about $1/day, your association can have its own website with key information posted and a turbo charged communication system.

Newsletters. These can be as small as one page and as large as the LA Times depending on how much time, budget, volunteer effort, and information there is. Pick a format and catchy name and stick with it. Make the information interesting. Decide at budget time how many newsletters there will be and when they will be produced.

Flyer boxes. Flyers distributed at the mailbox, club-house, recycling center, and other common points are a quick and cheap way to get the word out, but don’t forget to mail to nonresident owners.

Message board. Very effective if properly located and managed. Don’t let messages stay for more than a week as they blend into the landscape. Keep the board neat and sectioned according to topic.

Owner forum. Always give the owners a voice at Board meetings by way of a pre-meeting forum designed to let them speak their mind, ask questions, or offer suggestions. To facilitate this, always hold your meetings in a location that is large enough to accommodate guests.

Phone trees. In the kind of community where folks know each other, phone trees can work well for encouraging meeting attendance, polling, or passing on alerts. The idea of a phone tree is that, say, the

President calls 2 people and those call 2 more, and those 4 call 2 more, etc. Each person only needs to make 2 calls to get everyone informed.

Welcome packets. These can include things like the governing documents, budgets, rules and regula-tions, and other need-to-know information. The mes-sage should be, as the name implies, “Welcome to the neighborhood!” Include also architectural guidelines, maps, association services, clubhouse and pool sched-ules, a telephone directory, management, and emer-gency information.

Association phone number. This essential tool is often overlooked. Since board members and managers change, why not have a permanent association phone number with voice mail that can alert the right party? Large associations can have a voice mail system that can provide information by category or connect call-ers with emergency response, repairs, etc.

Clear and frequent communications is fundamen-tal to a successful community. It builds trust and allays fears that grow when folks don’t know what’s going on. Rather than get ground up in a rumor mill, share the Good News and watch harmony grow.

Plain speakingGood communication relies on common understand-ing of terms. English is particularly irksome because the same word or phrase can have radically different meanings. Take the military’s various translations of “Secure the Building”:Army: Occupy, neutralize the defenders and establish a guarded perimeter.Navy: Batten down the hatches so what’s outside won’t come inside. Marines: Level the building, pave the lot, and erect a razorwire fence to secure the Humvees.Air Force: Lease with an Option to Buy.National Guard: Hello Baghdad.

community association communicationAll humor aside, the type of communication practiced can form the basis of clear understanding and agree-ment or chaos and conflict. One of the community association Board’s greatest challenges is to communi-cate to the members effectively. Let’s look at various methods of community association communication:

Email. In terms of speed, efficiency, and cost, email can be a great boon to the Board if used properly. Email allows group discussions and transfer of infor-mation. But email discussion requires a high degree of skill. There are significant differences between a face-to-face and email-to-email exchange. In per-son, facial expressions and tone of voice can make all the difference to meaning. Small misunderstandings

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impact and sincerity long after the fact. Begin with a simple statement describing what you liked and why you liked it.

Rule violation letters. Enforcing rules on neighbors is one of the touchiest things community associations deal with. Never automatically accept responsibility on every rule matter. Most rule breaking should be first dealt with directly between affected neighbors. Make sure they try to resolve the issue first before getting involved. Some rule violations break the law (like loud parties). Let the police handle those.

If the issue truly is the community association’s responsibility, soften the blow by opening the let-ter with a statement like “Rules are needed to keep the peace and maintain high value of a cherished and valuable asset, your home. The few rules we have are not meant to be intrusive. They are meant to be inclusive. If all comply, better neighbor relations will result. That’s a good thing, right?” This approach is intended to promote community. Then you get to the heart of the issue. Quote the appropriate section of the governing documents or rules, request compli-ance by a certain date, and offer the option of appeal. See Figure 2 for an example.

Collection letters. Money is the life blood of a com-munity association. Since there is no government bailout for community associations, if one member doesn’t pay, the rest have to pony up. This is par-ticularly painful when it comes to special assessments since the amounts tend to be large.

Opening with a philosophical statement simi-lar to the Rule Violation letter is appropriate. But remember that the failure to pay may be more than an unwillingness to pay; it may be an inability to pay (job loss, death, disability, etc.). It’s important to get to the root of the problem quickly, so ask. There may be a payment plan option if warranted, but be careful not to allow the association’s bill to sink to the bot-tom of their pile too quickly. Food and shelter are top priorities. Never allow credit cards, car payments, and other less critical expenses to preempt the associ-ation’s needs. Remember, if they don’t pay, you and the other members will have to pick up the slack.

Back to the meat of a collection letter: always provide a current balance along with penalty, inter-est, and other charges accruing. Attach a copy of your Collection Policy which discusses what will happen if the bill is not paid. (You have a Collection Policy right? If not, enact one as soon as possible. There are few things more critical in a community associa-tion than cash flow. Include the deadline for payment before the collection moves to the next phase (more penalties, attorney fees, etc.) A collection letter must demand action.

If you have not received payment requested by

Collection Letter #1 (see Figure 3) by the 20th of the month, another letter should be mailed that steps up the pressure (see Figure 4). If Collection Letters #1 and #2 have not produced good results, the debtor has not made payment arrangements or paid in full, it’s time to send Collection Letter #3 (see Figure 5). It is a no nonsense notice reciting previous attempts to collect the Balance Due and the consequences for non-payment.Follow-up letters. These are in response to a com-munication you received. Use this basic structure:1. Express thanks for their concern, idea, suggestion,

etc.2. Recap the situation prompting the communication.3. Assure the recipient of your dedication to the issue.4. Invite future communication and input.

Complaint letters. These should never be written in anger. Cool down by waiting a day or 2 if that’s what it takes to regain your composure. This is particularly true of email. It is way too easy to fire off something you regret within seconds after it’s sent. Complaint letters should point to a solution of a problem rather than venting against some injustice. A constructive tone will vastly increase the chances of getting what you want. Follow these steps:1. Describe the problem.2. State what is wrong.3. Say what you’ve done about it so far.4. Indicate what you want done.6. Request a response or resolution by a specific date.

Response to complaint letters. A response to a com-plaint letter varies depending on if you agree or dis-agree with the complaint.

Steps to agree:1. Admit that the complaint is justified and apologize.2. State precisely what you are going to do to correct

the problem.3. End on a positive note.Steps to disagree:1. Thank the writer for writing.2. State the complaint to verify you understand what

it is.3. Explain the Board’s view of it.4. State your decision clearly, without apology.5. Offer alternatives to help the homeowner

Every association letter is an opportunity to pro-mote professionalism, reconciliation, and harmony. Use better letter techniques to pave the road.

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April �, 2008Mr. Rowdy N. Wilde666 Devil’s AlleyLeisure City FLPhone: 666-6666

Regarding: NOTICE OF RULES VIOLATION

Dear Mr. Wilde,

Nottacare Community association has a long history of cooperation and peaceful coexistence. This is only possible if all residents practice the Golden Rule in daily interaction with neighbors. A matter has come to my attention that requires me to tender you a Notice of Rule Violation. These are the circum-stances:

On March �5, 2008, your all day (and all night) “United Nations Day Celebration” which featured a Tequila Slamming Contest, Viking Smorgasbord, Samoan Fire Walking Ceremony, and Bacchanalian Orgy was suffered by all your horrified neighbors. Your exuberant guests made boisterous comments, lurid hand gestures, and unwanted advances to numerous neighbors that respectfully requested that you “tone it down a bit”. The event was in violation of the Nottacare Community association Rules & Regulations section titled “Quiet Hours” which reads:

“All residents shall respect quiet hours from �0 pm to 8 am to ensure restful sleep for the neighbors. For the balance of the day, noise level should be kept at a level so as not to disturb the neighbors.”

Violation of this rule carries a $25 fine which has been added to your current balance owing to the Asso-ciation. Please remit by no later than April �5, 2008. I would ask for your particular attention to main-taining quiet hours (and civil behavior) in the future.

If you have any questions about this Notice, please call me at 777-7777. If you would like to appeal this Notice, please so in writing to me at the address listed below. All appeals will be heard by the Board within �0 days.

Sincerely,I.M. EnchargeBoard PresidentNottacare Condiminium Association

PO Box �234Leisure City FL 22333

Figure 2: Notice of Rule Violation

Form-notice of rule violation Letter

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MaiLeD by certiFieD & First cLass MaiL

April �0, 2008

To: Mr. U.R. Tardy �23 Easy Street Anytown, USA

Regarding: Nottacare Condominium Homeowner Fees - Request for Payment

Dear Mr. Tardy,

It is now the �0th of the month and we have not received your homeowner fee of $�75.00 for the month. Was this just an oversight? If not, please call me immediately to make payment arrangements. Nottacare’s budget is lean and requires prompt and full payment from all members so we can pay our bills on time. Please forward payment today to the address listed below and include a Late Fee of $25 for a Total Balance Due of $200.00. (Starting April ��, 2008, there will be an additional $2.50 per day added to your Balance Due).

A copy of Nottacare’s Collection Policy is attached for your reference. Thank you for your immediate attention to this matter.

On behalf of Nottacare Condominium,Tommy TreasurerPO Box �2345Anytown, USA 5432�

Phone 666-6666Email: [email protected]

Figure 3: Collection Letter #�

collection Letter #1

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April 20, 2008

To: Mr. U.R. Tardy �23 Easy Street Anytown USA 5432�

Regarding: Nottacare Condominium Balance Due - 2nd Request for Payment

Dear Mr. Tardy,

It is now the 20th of the month and I have not heard from you or received payment. Your current Bal-ance Due is:

Balance as of April �, 2008Late Fee applied April �0, 2008Per day Late Fee 4/�� - 4/20/08 @ $2.50/day*plus $5/day thereafter$�75.00$ 25.00$ 25.00 *$225.00 * balance Due

If there is a problem that prevents payment, please contact me immediately. Otherwise, please for-ward your Balance Due to the address listed below today. If not received by the April 30, 2008, your account will be forwarded to Nottacare’s attorney, Ms. Lien N. Mean, for further action which may in-clude placing a lien on your property, filing a judgment against you, and other legal means of debt col-lection. To avoid more costs and inconvenience, please forward payment today. A copy of Nottacare’s Collection Policy is attached for your reference.

On behalf of Nottacare Condominium,Tommy TreasurerPO Box �2345Anytown USA 5432�


Figure 4: Collection Letter #2


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May �, 2008

To: Mr. U.R. Tardy �23 Easy Street Anytown, USA 5432�

Regarding: Nottacare Condominium Balance Due - 3rd Request for Payment

Dear Mr. Tardy,

It is now the 30th of the month and I have neither heard from you nor received your balance due which is:

Balance as of April �, 2008Late Fee applied April �0, 2008Per day Late Fee 4/�� - 4/30/08 @ $2.50/day *plus $5/day thereafter

$�75.00$ 25.00$ 50.00 *balance Due $250.00 *

Inasmuch as you have not responded to my previous requests, this matter is being forwarded today to Nottacare’s attorney, Ms. Lien N. Mean, for further action. From this date forward, please communicate only with Ms. Mean at Phone 444-4444 about this matter.

On behalf of Nottacare Condominium,Tommy TreasurerPO Box �2345Anytown USA 5432�


Figure 5: Collection Letter #3


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newsLetters

Community association newsletters are a great way to enlighten, inform, remind, and encourage. Inviting the membership to association events and meetings helps neighbors meet neighbors. Frequent reminders of important rules or architectural policies helps build a friendlier and more harmonious community. Rec-ognizing volunteer efforts encourages others to step up. Newsletters needn’t be long and involved, just rel-evant. The more you do it, the easier it gets.

newsletter goldHere are tips to make your newsletters pure gold:

Focus on building community. Get association members to become participants rather than observ-ers. Offer opportunities to do that on committees and social events.

Understand your audience. How old are they? What is their financial status? How do they like to spend their time? Find out by getting feedback from your readers with a questionnaire.

Inspire your readers. Make sure events, activities, and volunteer opportunities are well publicized. Cre-ate headlines to grab the reader’s attention.

Be consistent in layout and content. If you have a “Rules & Regs Corner” which highlights a particular association rule or policy, publish it in every issue. Always include current board and management con-tact information (mail, email, and phone).

Dash the draft. Write the rough draft as quickly as possible and then go back to polish and flesh out the details.

Archive your newsletters and articles. Many arti-cles bear repeating and as time passes will have new eyes that see them for the first time. Repeat seasonal reminders. Create folders on your computer for the months you publish your newsletter and put article files in the months they fit best. In time, you can build a reservoir of content to draw upon that will make newsletter writing much simpler and quicker.

Lead with your strong suit. Put the most important information up front. Organize the strongest points of an article before you write it.

Keep articles short. If an article is long or compli-cated, readers will move on. If there is simply too much good content to abbreviate, break the article into several articles.

Give credit and contact information. Include the newsletter committee, writer, and editor names and contact information.

Be positive and uplifting. While criticism has its

place, too much of it is a downer and chases most readers away. Strive for the positive. Be upbeat.

Proofread. Editing is a rewording experience. Care-fully review your work for grammatical and spelling mistakes or get a detailed oriented person to do it for you. Make sure your facts are straight.

Reprint with permission. Search the Internet for content that would be of interest to your readers. If you find an article that includes author and contact information, be sure to get permission before reprint-ing and give credit where credit is due.

Have fun with it. Give them a giggle or 2. The Inter-net is full of jokes, puns, and cartoons.

Publish pictures. Folks love to see themselves in the paper. Share event pictures, photos of board mem-bers, the manager, committee members, and other volunteers.

PDF it. Programs like Adobe Acrobat make it possible to convert word processing and newsletter programs into Portable Document Format (PDF) which can be posted on the association website or emailed to those who have email. PDF was designed with community associations in mind. Using it can save thousands of dollars in printing, supplies, and postage each year plus countless processing hours each year required of paper newsletters.

Get advertisers. If your community is large enough and its newsletter regular, it may attract advertisers like real estate agents, insurance agents, painters, and remodelers and help pay for itself.

Newsletters are a wonderful way to bind your community together in a custom way. Keep your community association in the know with timely and relevant newsletters at least 4 times a year. Build com-munity through communication.

newsletter PartsEvery association needs to communicate regularly to the members on association related issues like finances, rules, meeting minutes, and the like. Add-ing the personal touch with pictures of newcomers and volunteers makes the piece of greater interest to many.

Besides content, newsletters need to have an appealing and organized look. Software programs like Microsoft Publisher offers professional looking templates which require little more than filling in the blanks. With a little effort, the same effect can be cloned with word processing programs like Word and Word Perfect.

The Internet provides a substantial number of resources to assist in newsletter execution. One of the best can be found at www.desktoppub.about.com.

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Explore the intricacies of professional newsletters that will truly make them shine. What follows are of the 12 components that every newsletter should have. Knowing how to use them will improve the finished product. 1. Nameplate: The banner on the first page of a

newsletter that identifies the publication is its nameplate. The nameplate usually contains the name of the newsletter, possibly graphics or a logo, and perhaps a subtitle, motto, and publica-tion information including Volume and Issue or Date.

2. Body: The body of the newsletter is the bulk of the text excluding the headlines and decorative text elements. It’s the articles that make up the newsletter content.

3. Table of contents: Usually appearing on the front page, the table of contents briefly lists arti-cles and special sections of the newsletter and the page number for those items.

4. Masthead: The masthead is that section of a newsletter design, typically found on the second page (but could be on any page) that lists the name of the publisher and other pertinent data. May include staff names, contributors, subscrip-tion information, addresses, logo, etc.

5. Heads and titles: • Headline - After the nameplate, the headline

identifying each article in a newsletter is the most prominent text element.

• Kicker - Often seen in newsletter design, the kicker is a short phrase set above the headline. The kicker can serve as an introduction or sec-tion heading to identify a regular column.

• Deck - The newsletter deck is one or more lines of text found between the headline and the body of the article. The deck elaborates or expands on the headline and topic of the accompanying text.

• Subhead - Subheads appear within the article’s body to divide it into smaller sections.

• Running head - More familiarly known as a header, a running headline is repeating text—often the title of the publication—that appears usually at the top of each page or every other page in a newsletter design. The page number is sometimes incorporated with the running headline.

6. Page numbers: Page numbers can appear at the top, bottom, or sides of pages. Usually page 1 is not numbered in a newsletter.

7. Bylines: The byline is a short phrase or para-

graph that indicates the name of the author of an article in a newsletter. The byline commonly appears between the headline and start of the article, prefaced by the word “By” although it could also appear at the end of the article.

8. Continuation lines: When articles span 2 or more pages, a newsletter uses continuation lines to help readers find the rest of the article.

• Jumplines - Also called continuation lines, typically appear at the end of a column, as in continued on page 45. Jumplines at the top of a column indicate where the article is continued from, as “in continued from page 16”.

• Continuation heads - When articles jump from one page to another, continuation heads iden-tify the continued portion of the articles. The continuation headlines, along with jumplines, provide continuity and cue the reader as to where to pick up reading.

9. End signs: A dingbat or printer’s ornament used to mark the end of a story in a newsletter is an end sign. It signals the reader that they have reached the end of the article.

10. Pull-quotes: Used to attract attention, especially in long articles, a pull-quote is a small selection of text “pulled out and quoted” in a larger typeface.

11. Photos/Illustrations: A newsletter design lay-out may contain photographs, drawings, charts, graphs, or clip art.

• Mug shots - The most typical people photo-graph found in newsletter design is the mug shot—a more or less straight into the camera head and shoulders picture.

• Caption - The caption is a phrase, sentence, or paragraph describing the contents of an illus-tration such as a photograph or chart. The cap-tion is usually placed directly above, below, or to the side of the picture it describes.

12. Mailing panel: Newsletters created as self-mail-ers (no envelope) need a mailing panel. This is the portion of the newsletter design that contains the return address, mailing address of the recipient, and postage. The mailing panel typically appears on one-half or one-third of the back page so that it faces out when folded.

news Fit to PrintCommunication is essential for the wellbeing and harmony of your community. Do you have a regu-lar newsletter? Is it informative and timely? Do the owners read it? Is it worth reading? Answers to these questions vary, but more often then not, most news-

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letters are “throwaways”. It doesn’t need to be that way. With a bit of imagination, they could be both informative and fun to read.

First, what kinds of “boilerplate” information ought to be included?• Names of Board Members• Contact information for the management company• Most recent Income & Expense Statement• Committee Reports: architectural, budget, land-

scape, etc• Special upcoming projects, like tree trimming, are

particularly appropriate. • Rule reminder of those being regularly violated (like

barking and unleashed dogs) without being preachy• Event Calendar of social, meetings, maintenance

Design and LayoutAnother extremely important ingredient in a readable newsletter is the layout and design. There are many software programs available with standardized tem-plates included. Microsoft Publisher is inexpensive and user friendly. There are others more or less com-plicated depending on your computer sophistication. Here are some of the basics to keep in mind:• The design should be attractive, inviting and dis-

tinctive. The “look” of the newsletter attracts the reader.

• Each issue should look the same. Choose a simple format and stick with it.

• For maximum readability, use headlines and sub-headings. It’s easier to read.

• Avoid continuing articles on another page. • The newsletter title page should explain what the

newsletter is about and who publishes it. • Make the title distinctive.• Use only standard typefaces like Times Roman,

Arial, and Helvetica.• Italics can slow the reader down up to 30%. Use

them sparingly.• Body text should be 10 or 11pt, main headlines

18-24pt, and sub-headings should be 14pt. • Use bold type and/or italics to highlight people’s

names and to point out important details. • Avoid using all caps.• Use clipart. • Don’t put boxes around illustrations as they make

the pages look cluttered.An editor’s challenge is to include copy and an

attractive format that encourages residents to want to

read the newsletter. Put your imagination to work and make your news fit to print.

newsletter baker’s DozenUnless your community transacts all its business town meeting style, a newsletter is essential to keep the owners informed. Almost all communities should pro-duce one at least 4 times a year to remind old timers and notify newcomers of critical information. There are newsletter tricks of the trade to increase effective-ness and readability. Here’s a baker’s dozen: 1. Keep articles short. Get to the point. Headings

and bullet points grab readers’ eyes as they scan. Put important information in boxes.

2. Include good stories. Newsletters can be much more than information. Profile your board com-mittee members. Include a Newcomers section. Promote events. Include a Q&A section (even if you make up the question).

3. Put “hook” into your headlines. A good head-line reels a reader in. For example, “Board Raises Assessments” will pique more interest than “Board Passes New Budget”. Use puns, rhymes plus movie, TV, and book titles into your head-lines. For example, if a wind storm tears off a roof, try “Gone with the Wind.”

4. The facts. Stories should include who, what, where, when, and how information. If the cover story announces a new rule, explain why the rule was enacted, who it applies to, when it’s effective, and how it will be enforced. Don’t leave them with more questions than answers.

5. Lead with power. Lead off with high impact information. For example, instead of “The Board discussed ways for getting residents to com-ply with the pet policing policy, try “The Board discussed a new stock and pillory enforcement policy for residents who don’t police their pets.” (Just kidding but you get the idea, right?)

6. Proofread. Use a second set of eyes and always double check the spelling of names.

7. Use photographs. Photos help neighbors meet neighbors. Black-and-white photos will gener-ally reproduce better than color photographs although using a digital copier eliminates most of the difference. Actions shots work best. Include descriptive captions.

8. Share the good news. This is a golden opportunity to publicize accomplishments and things to come.

9. Standardize your look. Software like Microsoft Publisher offer attractive templates. Pick one and stick to it. Use no more than 3 different typefaces to avoid a busy and cluttered look.

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10. Use white space. White space frames the con-tent and gives the page breathing room.

11. Use a readable font. Serif fonts like Garamond, Times Roman, and New Century are easier to read that san serif fonts like Helvetica, Futura, and New Gothic. San serif works for headlines. NEVER SET BODY TEXT IN ALL CAPS—it’s difficult to read and intimidating. Use italics and bold sparingly—mainly for impact.

12. Use humor. Jokes and cartoons liven it up. 13. Post it online. While the paper chase will be

with us for some time, the web is a terrific way to reduce costs and improve efficiency. Anything you can lay out on paper can be done on your own community website and more. So there’s your baker’s dozen. Newsletters can

inform, tweak and pique interest. Informed owners tend to be more supportive of Board business and more likely to become involved as volunteers. Use newsletters to unify and harmonize your community.

OnLine cOMMUnicatiOn

Online newslettersIn community associations, consistent and effec-tive communication is extremely important to build consensus and to keep the gossip mill at bay. Besides the timely distribution of meeting minutes, newslet-ters are key to this charge. While printed newsletters have been the norm (and local printers thank you), the Internet offers a wonderful alternative to publish newsletters online and eliminate printing, mailing, labeling, and postage costs.

Online newsletters offer a number of really cool features that printed copy either can’t or would be very expensive to duplicate. They can include color for no extra charge so pictures, graphics, and fonts can shine with chromatic intensity. The same feature for printed newsletters ratchets up the cost considerably.

Text, graphics, and pictures can be hyperlinked to the community association’s website or other Internet locations. Newsletter ads can be linked to the vendor’s website where the vendor can prattle on endlessly about the benefits of the product or service. You can even add sound and video features to really jazz it up!

Online newsletters can be delivered to the reader in a variety of ways:

Email newsletters. Appear within the email message itself and include all the newsletter bells and whistles like fonts, color, and graphics. Internet websites like www.ConstantContact.com offer customizable newsletter templates that are easy to use, track deliv-ery, and other ingenious features that are free for dis-

tribution lists of 50 or less and very inexpensive for larger lists.

PDF newsletters. Convert Word and WordPerfect documents into a Portable Document Format (PDF) using Adobe Acrobat software. A companion software called Adobe Reader is available free at www.adobe.com to enable viewers to open PDF files. PDF news-letters can be mailed as attachments or posted on the community association’s website. Emailing PDF files works well if the file size is relatively small (under 250k). Larger files cause problems for dial up users or those that have a limited email Inbox capacity.

Word processor or publisher software newslet-ters. Both Word and WordPerfect have newsletter composing capability. There are also newsletter spe-cific software like Microsoft Publisher that are layman friendly and come with templates and other help-ful features. These files can be distributed as email attachments.

Website newsletters. Directly published to the com-munity association’s own website. Both website posted and PDF newsletters offer a number of advantages in that past newsletters can be archived and each news-letter can be searched by key words.

Formatting newsletters. When crafting the news-letter itself, there are a number of basic formatting recommendations:

Fonts. Use only a few different fonts and type sizes. Newsletters are commonly done in Times Roman and Arial which are easy to read. Choose one of these for your basic text and several of the thousands of others for titles. Use bold, italics, and color sparingly and for emphasis.

Columns. Follow the example of magazines and newspapers by using 2 or 3 columns. Articles are much easier to read in that layout.

Pictures and graphics. Images make the newsletter more eye-catching. But keep the file size small (10-50k) so they don’t slow the load time for viewers that are still using dial up connections.

Text boxes. Text boxes are floating fields can be placed anywhere in the newsletter either lining up with columns or straddling them. The background can be shaded with color and the borders have a num-ber of options.

Newsletter distribution. Getting the word out that the newsletter is available is a snap. Simply email a distribution list that the newsletter is available and attach it or include a link to the newsletter’s location. It’s helpful to include a brief description of articles to woo better response.

One obstacle to email newsletters is delivering the

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goods to computer challenged members. But let’s face it, there is a high price associated with printed com-munications in both labor and hard costs. These costs often discourage newsletter production or reduce the frequency.

Fortunately, there is no law that says newslet-ters, meeting minutes, and other association commu-nications (other than legal notices) need to be snail mailed. To encourage use of email delivery, why not give consenting members a credit of $25 a year? The association will save an unnecessary expense, reduce paper needs, and the members that drive the savings enjoy the savings.

If your newsletters are not all they could be, why not explore the fascinating world of online publish-ing? Dramatically lower the cost and production work while improving the quality of the product. This is good news indeed.

be availed of emailEmail is an ideal way to transact many kinds of com-munity association business. Once used by a few, now it is a generally accepted way to communicate. When tied to an association website, it provides a conduit to transmit requests and information quickly and cheaply. So, it is not only the most efficient way of moving information, it can significantly reduce the cost of cop-ies, office supplies, postage, and the labor to assemble those snail mailings. Email can be used for:

• information requests• maintenance requests• polling the members• new policy & rule review• sale closing requests• meeting minutes distribution• newsletters• meeting notices• invitations to social events

In addition to all the forms of communication it can handle, it provides a record of who, what, and when. Requests can be screened, sorted, and forwarded to the right person for execution. Clearly, there are many compelling reasons to make email the standard for community association communications.

As with any form of communication, there is pro-tocol that should be followed for it to be “all that it can be”. Here are some email basics to put zing in the thing:• Proofread and correct spelling and grammar before

sending. This demonstrates attention to detail and caring.

• DON’T TYPE IN ALL CAPS. It is perceived as shouting or anger.

• Refrain from underlining words since this is internet

protocol for hyperlinks. Instead, use bold and ital-ics, but use them sparingly and for emphasis only.

• Don’t cut or copy and paste documents from your word processing program into emails. Certain fonts, characters, and formatting are lost or corrupted in transit.

• Instead, send the original document as an attach-ment. Avoid attaching files over 100 Kb (kilobytes) since many email services have Inbox capacity restrictions or the recipient may have a slow modem and have difficulty opening the file. Or, post the information on the association’s website (You do have one don’t you? See our “Working the World Wide Web” section below and provide the link in the email, like www.nottacare.org/minutes.htm.)

• Archive “keeper” emails in logically named folders on your computer instead massing them in your Inbox or Sent Items folder.

• Consider carefully what you write and to whom you send it. Emails have a nasty habit of finding their way to people you did not intend. Be clear to the recipient if an email is for “Your Eyes Only”. As a rule, don’t write something about someone that you wouldn’t say to their face. The rumor mill delights in using such for grist and it will come back to haunt you.

• Write descriptive subject lines that will be famil-iar to the recipient. Increasing levels of junk email (spam) cause many to delete emails that have no Subject or a Subject that looks undesirable.

• If you forward a message, preface it with personal comments and ask for feedback. That way, it looks personalized rather than mass emailed.

• When forwarding or sending to multiple recipients, list only one of them in the To line and the rest in the Bcc (Blind carbon copy) line. That way, each recipient will get a personalized email without dis-closing the entire list to every recipient. This makes it look personalized and protects recipient privacy as well.

• Save commonly used email addresses in your Address Book. Use your Address Book to compile Distribution Lists like Condominium Board or Association Members. That way, selecting the list and placing it in the Bcc line has the same effect as selecting addresses one by one. It’s a great time saver.

• Delete all dated, no longer needed, duplicate, or reply emails to free up hard drive storage space.

• When replying, carefully select either Reply or Reply to All depending on your intent. If your mes-sage is intended for one, don’t bother every one.

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Lack of communication is one of the bugaboos many association members complain of. To cure that, email is a godsend to community associations. It not only significantly reduces cost and labor, it improves efficiency and frequency of communication. Isn’t it well nigh time you availed yourself of email?

working the world wide webThe Internet is the fastest growing communication and information resource the world has ever seen. There are literally millions of websites that provide information on subjects only limited by your imagi-nation. For a community association, the possibilities are equally limitless.

The cyberworld of the web offers rare opportuni-ties. Here are some ideas:

Build an association website. A community calen-dar, governing documents (sometimes called Cov-enants, Conditions, and Restrictions or CC&Rs), budgets, meeting minutes, community handbooks, rules and regulations, newsletters, and other items of interest to your community can be posted there. All these items can be made available 24 hours a day, 7 days a week to owners, real estate agents, lenders, title companies, prospective buyers, or anyone else who has a need to know. Just think of the time and cost savings to the association by eliminating the need to duplicate piles of documents! Instead, when docu-ments are requested, you simply direct them to the association website and let them copy or print out whatever they want, when they want it! The cost of designing and maintaining a website is very modest and there are a number of companies that specialize in association websites. In every metropolitan area, there are a variety of ISPs (Internet Service Provid-ers) that will host your website for under $50 a month which includes email service for the board members and property manager. This one is just too good to pass up.

Improve association communications. The website is an efficient way to communicate meeting agendas, to survey the community, get feedback, and to place maintenance requests. Whether an owner is a resi-dent or out of state, communications are fast. And with an email network, all directors, property manag-ers, and committee members can receive communica-tions simultaneously.

Free web access. If you want to consider these options and currently don’t have Internet access, your local library probably does. There are even helpful folks to show you how to use it. Check it out!

When it comes to communication and informa-tion storage and transmission, there is nothing faster

and cheaper than the web. Since the dream of com-munity associations is carefree living, take advantage of what the web has to offer and your association will come closer to the dream.

types of association websitesHaving a community association website is a tremen-dous plus when it has all the right stuff and is kept current. Members access the budget, rules, policies, and governing documents with a few button clicks. Prospective owners learn about the community before closing the deal. Need-to-know information is avail-able 24/7 so it saves time, money, provides a platform for efficient communication, and helps define a com-munity identity. Association websites come in differ-ent formats and slants, depending on who is paying the bill.

Developer marketing website. Developers spend considerable money these days promoting community association projects online. The sites are beautiful, intended to attract buyers, and increase profitability. They usually include floor plans, architectural render-ings, 360 degree panoramas, and other hot buttons for buyers. They rarely include information about the association operations, which is what really matters in the long haul. State laws usually require written dis-closure of this information in a phonebook size stack of documents which is carefully perused by each buyer before closing (NOT!).

Developer websites often wisely choose a web address that reflects the community like www.NottacareCon-dos.com. This address can be transferred to the asso-ciation upon turnover or, at least, when the developer has no further use for it. The community association can often transform it for operations use while retain-ing the high quality graphics.

Fill in the blanks website. Template based websites are designed for ease of use. This is particularly impor-tant when using volunteers to maintain the website. Simply fill in text, documents, and pictures into pre-determined fields and upload the result quickly. Some of these “fill in the blanks” websites are more focused on association business than others that include dis-tractions like advertising, weather, and stock reports. Ad-supported websites are generally cheaper but annoying for the users.

Homegrown website. Website building software is available like Microsoft Front Page that is relatively simple to learn and allows quite a bit of creativity in look and layout. Having the ability to make changes instantaneously is a huge advantage.

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community association web tips

The truly effective community association website requires thought and planning. Here are some tips for achieving success:

Define the benefits.• enhance property values• communicate information quickly• transmit maintenance and service requests • platform for neighbor communications• notification system for association meetings and

social events• reduce supplies, labor, and postage costs • conduct polls and surveys• inform buyers, title insurance, and real estate licensees• save money

Engage the members. When critical information is included on the websites, members can be directed there frequently. In time, it will become a matter of habit for many. A real bonus of the Internet is that it’s open for business all the time. No more phone tag.

Fast track communications. Having the ability to broadcast email to the members is more than just efficient. Many communications never happen at all because of the time and money it takes to assemble a mailing. Email eliminates those hurdles by allowing newsletters, meeting minutes, and notices to move fast and free of charge. To encourage use of associa-tion email communication, offer association members a rebate or credit of, say, $25 a year if they agree to accept email communications. The community asso-ciation will be money ahead.

Maintain fresh content. As the central informa-tion distribution vehicle, the website requires regular updating to remove the old and add the new. It needs to be at the top of the To Do List. If the website is out of date, traffic will soon fall off and folks will return to their old ways. Fresh content tied with broadcast emails pointing to the website will encourage mem-bers to use it.

Include basic information.• community association name• physical and mailing address, location, directions,

and map • community description (like, 86 condos, clubhouse,

pool, park, and walking paths)• management information (company name, man-

ager, contact information)• Board information (name, office held, contact infor-

mation)

Include special features. • downloadable documents and forms• activities calendar • resident directory (get privacy release from all listed) • newsletter archive• minutes archive• pictures of social events• online community association fee paying

Do it right.• Get a web address of your very own. While free

website services are enticing, committing to a pri-vate URL will make it much easier to find and dem-onstrate long term commitment.

• Budget time & money. Commit adequate man-power and funds to produce a professional result.

• Include all the “right stuff” (See Figure 6)

Having a community association website has so many advantages that it’s foolhardy to do without one. The affordable and user friendly options are many, so there is little excuse for not making the move. The web Tip of the Day is “Just Do It”.

getting aLOng

neighbor knowledge

One of any community association’s challenges is helping neighbors make nice. The board is frequently called on to mediate disputes and fine neighbors for doing bad things. Actually, it’s not the board’s job and in most cases, except those that directly impact the common area, these opportunities should be bounced back to the complainer to handle.

What exactly is a “good” neighbor? To be one, you don’t need to be friends or hang out together. Being a good neighbor is an attitude. A good neighbor atti-tude allows you to live as privately or as sociably as you wish. Here’s how to cultivate and nurture it:

Meet them. While marching up to their door with hand extended is great, the chance encounter works well too. Introduce yourself at the mailbox, while walking the dog, or when taking out the trash. Learn their names and offer a cordial “Hello” or “Good Morning” when you see them.

Keep them informed. Contact them before under-taking something that might affect them, such as hosting a big party, building a fence, cutting down a tree or getting a dog.

Be aware of differences. Age, faith, ethnic back-ground, and marital status can drastically affect life-

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styles. Be aware of the differences between you but home in on what you have in common.

Point of view. From your neighbor’s viewpoint, how does your compost pile, swing set, or junk car look? Would you like that view? (If you do, refer to your neighbor’s viewpoint).

Be appreciative. If a neighbor does something you like, tell them! They’ll be pleased that you noticed the new awning, patio furniture, plants, etc.

Assume the best. Most people don’t intentionally create problems. Assume the neighbor doesn’t know about the annoyance when you speak to them. Your delivery will be dramatically kinder. And assume they will be cooperative.

Be candid. If your neighbors do something that both-ers you, let them know as soon as possible.

Be calm. When discussing a point of contention, speak calmly, listen carefully, and thank them for tell-ing you how they feel. You don’t have to agree or jus-tify your behavior. If you don’t react defensively, anger usually subsides, lines of communication remain open, and resolution is possible.

Take your time. If caught in angry confrontation, take a break to reflect and finish the discussion when cooler heads prevail. Don’t leave it hanging. Time and lack of resolution will intensify hostilities.

Best advice of all. Treat others as you would like to be treated. This attitude will pave the way for good neighborliness. Love your neighbor as yourself.

coping with Mine!orsIn many community associations, frustration is lurk-ing just below the surface, waiting to explode into anger. Frustration is the result of unfulfilled expecta-tions. These expectations can be either reasonable or unreasonable, mature or immature. Mature expecta-tions are thoughtful considerations colored by fair-ness. These folks will generally resolve their issues in a win-win fashion. Immature expectations are out of balance and summarized by the philosophy we’ll call “MINE!”. MINE! thinking generally permeates those who delight in (for example):• parking in someone else’s reserved spot• allowing their dog to bark incessantly• planting in the common area• generally irritating the neighbors, yet• don’t believe the rules apply to them• want quick enforcement on others

While “MINE!ors” aren’t plentiful (thank good-ness), they do tend to take a disproportionate amount

of time to deal with. And you can’t ignore them because they’ll only throw a bigger fit!

With MINE!ors, there is a Parent-Child rela-tionship at work and precious little logic behind their actions and anger. MINE! is a territorial imperative—a wall of defense built out of fear. It’s reactionary and intense. For the MINE!or, facts and information are extraneous. When dealing with one, the main response should be reassurance. Responses like “I understand”, “We won’t do anything without polling all the own-ers” and “We are getting expert counsel before we decide” are all calming responses.

There are several other techniques for resolving MINE!or differences:• Allow the MINE!or to vent without interruption. • Respond without anger. Don’t fuel the fire. • Apologize without taking the blame: “I’m sorry you

feel that way.” • Empathize: “I’ve felt that way myself.” • Ask questions and solicit solutions. • If you can resolve the issue, say how and when it

will happen. • Confirm that your solution is acceptable. • End the conversation cordially and thank them. • Beat a hasty retreat.

Sometimes the property manager gets blamed for issues that are rightly the Board’s, due to lack of pol-icy and procedure. When that happens, the manager should advise the Board in writing (copy to owner) and ask for a decision at the next Board meeting (or as soon as possible if urgent). Advise the owner of the right to address the Board in person.

A final tip—Some MINE!ors resort to abusive behavior like screaming, swearing, and physical vio-lence. MINE!ors often vent during the cocktail hour and tend to disrupt a happy home. Never deal with someone who is clearly out of control. As a general rule, board members should not take phone calls directly about association business unless it’s an emer-gency. If you don’t have a manager to intercept such calls, consider getting an association phone line with Caller ID, Voice Mail, and Message Notification options. Prescreening the calls will determine whether to respond immediately or later. This process will cool MINE!ors who want response NOW!

Coping with MINE!ors is an infrequent yet demanding task. Ignoring them will only increase their intensity. Be patient...be calm...be consistent. MINE!ors respect a firm yet gentle hand.

Mind bendingMoney! There is never enough of it and community

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association Boards often struggle to get the member-ship to ante up enough to take care of common assets which often include the members’ own homes. You’d think protecting one’s own property would be natural. But in associations where the Board controls member assets, it’s often a point of contention. Tight fisted members challenge efforts to raise homeowner fees so adequate maintenance can take place. Consequently, the assets deteriorate and the members experience declining market values, livability, and unhappiness. Illogical you say?

There are several reasons members resist what is in their own best interest. These reasons often under-lie other areas in their lives so don’t take it personally. Just recognize that facts and logic are secondary with some people. Consider:• Mistrust. This feeling often runs deep. For this

person, a Board that communicates poorly or dicta-torially invites challenge. If there is a long history of this, resistance to money proposals, rules, and poli-cies is almost automatic.

• Inflexibility. If the community association has maintained no or low reserves since the beginning, getting the members to change is difficult. Like turning a barge, the process must begin early with a firm hand on the controls to ensure the association changes direction. Recognizing the natural resis-tance to change and plotting a gradual course of correction gradually woos support.

• Peter Pannism. Community associations are mar-keted as a way to reduce cost of living and home maintenance (called carefree by developers and real estate agents). But carefree doesn’t come free. It just means that someone else handles it for you. The Board often discovers that someone is the Board and asking for money to get the job done is an insult. This thinking is best summed up, “The community association can’t afford (reserves, man-ager, landscape contractor, pool contractor, etc.) but I personally don’t want to do any of it myself.”

• Intractability. Even the most successful Board lob-bying effort battles some opposition to the bitter end. Some just refuse to cooperate. That’s human nature. As long as the majority come around, you’ve succeeded. The biggest critics often become the staunchest supporters once the Board has proven successful.

• Fear and trust. Some fear what tomorrow will bring and need a higher degree of reassurance. These folks make decisions slowly or not at all for fear of making the wrong one. They rely heavily on those they trust. This is a great responsibility for those that accept it. For the community association Board, this means making informed decisions and

treating seriously the trust that has been given to you.

Even though these mindsets are largely emotional, they are very real and don’t go away. They must be overcome for the Board to move business along. It’s the people aspect of the community association busi-ness. These people are the association’s customers and if they aren’t buying, business comes to a standstill. Persuasiveness through patience, planning, and prod-ding—it’s a mind bending experience.

Having their sayThere is a thin line between opening Board meetings to guests and having those guests commandeer the show. While most guests are content to sit back and listen, others feel it’s their duty to pipe up on every subject and give their sage advice. You might even see their hand go up when the President asks for a vote. While maybe well intended (and maybe not), guests need to remain just that when attending a Board meeting. This means only speaking when requested to speak.

One mechanism for letting guest members have their say is an Open Forum which is held just prior to the formal Board meeting. But Open Forums need their ground rules. Some guests use them to soapbox, harangue, and harass. The Open Forum is designed to allow members to express opinions, ask questions, and petition the Board in a civilized and orderly fashion. It’s up to the Board President to lay down the rules in advance and cut folks short that violate the privilege.

A 15 minute Open Forum is usually adequate to accommodate the few guests that attend. The Presi-dent should ask upfront who would like to speak in the Open Forum. Not all do, so establishing the number is important. If 3 say “I do” than that means each is allotted 5 minutes. If there are 4, that means about 4 minutes. Announce the time limit and have a board member keep time. The message conveyed to the guest speakers should be “Be brief and to the point. We want to hear what you have to say but have important board business on the agenda we also need to attend to.”

The Open Forum is not designed to examine or debate complex issues or have the Board actually vote on a guest’s petition. If the guest is bringing a mat-ter of complexity to the Board, it should be put on the agenda and dealt with properly. By so doing, the guest can have enough time to address the topic in the detail it merits and can expect a board verdict at the conclusion, unless the issue is tabled until the next meeting. Members need to understand this important difference. The Board cannot (or should not) be mak-ing shoot-from-the-hip decisions on any subject that cannot be thoughtfully considered. An owner showing

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up at the Open Forum with an Architectural Change Request he wants approved so his contractor can start tomorrow is a prime example of something the Board should never act on. Complex issues take time to study and reflect upon.

An important component of allowing members to attend Board meetings is having enough room to actually have them attend. Holding Board meetings in someone’s kitchen does not lend itself to guests. Hold them in a location that allows a reasonable number of guests and provide seating. Do not let them sit around the Board table since this blurs the Board author-ity and guest function. The Board should face each other, not the guests. This configuration is impor-tant to maintain the Board nature of the meeting. A Board facing an audience invites continuing interac-tion with the guests and makes it difficult to focus on the agenda.

The Open Forum is a privilege, not a bully pul-pit. While a guest should be able to speak freely, it should be done with civility. If not, she should be asked to leave the meeting. Letting community asso-ciation members have their say is an extremely impor-tant facet of living in a community association. Even if they rarely show up, always keep the door open and be prepared to accommodate them.

community association extortionThere’s a gangster in the ‘hood. He’s rough, he’s tough, and he’s gonna show the Board who’s boss. He’s hold-ing his monthly assessment hostage to extort action from the association. It could be something he wants fixed or some rule he wants changed but regardless, no change is going to come until he’s satisfied.

This extortion technique is fairly common in community associations. It usually comes up when an owner’s request for maintenance has been ignored. Sometimes it’s because of how the Board is doing business: secret meetings, abuse of power, poor or unequal rule enforcement. So there is a demand for change which often includes an element of righteous indignation. “I’m not gonna TAKE it anymore!”

Sometimes the excuse for the holdback is legiti-mate. Repeated maintenance requests have gone ignored. The roof has been leaking for weeks and damage is being done to their personal property. And that constant dripping!!! Or there’s been a junk car with flat tires and a growing oil slick parked in front of their unit for months and yet still no action. So, one morning, Mr. Irritated wakes up and says “Hey! I pay my fair share. If I can’t get service, I’m not paying any more!”

There are several courses of action that the Board can take. But first, keep in mind that anyone who has withheld money has already had the last straw broken

and is not likely to be very cooperative. There’s going to be a certain level of resentment built up that must be overcome before communication can take place. Rather than write a letter or email, a personal phone call or visit is the best first step. This will address the feeling of being ignored. Express concern and get to the bottom of the problem. This is a fact-finding mis-sion so get the facts: dates, places, he saids and she saids. Keep notes. Then ask what exactly it will take to resolve the issue now. This is where it gets tricky. The answer you get may or may not be reasonable.

If the request is entirely reasonable, assure that steps will be taken to move it forward. Give a time-line for getting the task done and ask that you be called personally if it isn’t. Ask that the assessment be brought up to date in the meantime so late fees aren’t incurred. Offer to waive any that may have already been assessed if the balance is resolved within 48 hours. This will allow a graceful way out and demon-strate that you sympathize.

If the request is not reasonable, not the commu-nity association’s responsibility, or not budgeted or planned, explain that to make sure that it’s understood. Maybe it has not been properly explained before. If it has and the response is “I could care less. I’m still not paying until it happens.” then conclude the conversa-tion by saying you understand what’s being requested but can’t accommodate the request for such and such reasons. Add that the request can be formally appealed to the Board but that withholding money could negatively affect the Board’s decision. Ask that the holdback be paid so late fees and collection costs aren’t added to the balance. Another scenario to con-

wisdom of silenceA man of knowledge uses words with restraint, and a man of restraint is even-tempered

The words of a man’s mouth are deep waters, but the fountain of wisdom is a bubbling brook.

A fool’s lips bring him strife, and his mouth invites a beating.

A fool’s mouth is his undoing and his lips are a snare to his soul.

He who answers before listening—that is his folly and his shame.

Even a fool is thought wise if he keeps silent, and discerning if he holds his tongue.

From Proverbs 17 and 18

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sider—the holdback may be a cover up for a lost job or some other financial setback. That doesn’t justify it, but does throw a different light on the issue. Ask if there is something else, like a financial problem, that’s driving it. You might be surprised how often it is and, when caught off guard with your perception, an owner will fess up. If this is the case, focus on the truth of the matter. If there is a financial problem, maybe there is an accommodation the Board can make.

Strong-arm tactics to extort action from the com-munity association can be based in exasperation, a hidden agenda, or a personal conflict. It’s important to understand the underlying motivation so that rea-soned action can be taken. Getting to the bottom of it will help you make nice in the hood.

There are many opportunities for any leader to bear witness to these truths. For example, how do you handle irate phone calls from community members? Do you listen or counterpunch? At meetings, do you pontificate or do you act as a catalyst to productive discussion? If challenged, do you respond with anger or sincere concern? Does pride bring out the worst or best in you?

Community leaders are not expected to have all the answers. If you have nothing to say, don’t say it! Often, silence is the most effective form of wisdom. Silence allows a fool’s challenge to echo in his ears. That echo may just be the most effective answer. Silence is a sign of wisdom.

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Final assessmentcommunication skills and tools




1. Effective listening is the key to dealing with different personality types within the community. T F

2. One of the greatest challenges for leaders of a community association is to treat adversarial members with kindness and respect. T F

3. SMART stands for Specific, Mindful, Achievable, Realistic, and Temporary. T F

4. The Board is obligated to discuss anything not on the agenda. T F

5. Alternative Dispute Resolution (ADR) is a popular method that allows people to solve disputes in a cooperative manner rather than through litigation. T F

6. The various methods of community association communication include email, newsletters, telephone, website, and face to face. T F

7. Every community association letter is an obstacle in promoting professionalism, reconciliation, and harmony. T F

8. The 12 components every newsletter should include are nameplate, body, table of contents, masthead, heads and titles, page numbers, bylines, continuation lines, end signs, pull-quotes, photos/illustrations, and a mailing panel. T F

9. The website is an inefficient way to communicate meeting agendas, survey the community, get feedback, and place maintenance requests. T F

10. Having a homeowner association website has so many advantages, it’s foolhardy to do without one. T F

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93

Learning Objectives


board Operation, teamwork, and Problem solving

4 Hours in Subject Area: Other

�. List 3 common myths regarding the role of the community’s manager.

2. Identify 4 key traits of an effective community manager.

3. Explain 3 specific situations in which managers can mentor the community’s Board.

4. List 6 traits of a great manager.

5. Explain the responsibilities of board member-ship.

6. Discuss the role of the manager in developing effective meeting agendas.

7. Discuss several important features of the min-utes that can protect the association in the event of litigation.

8. List 3 ways to increase proxy returns.

9. Describe how managers can help improve meet-ings through seating arrangements.

�0. Identify 3 key components of parliamentary pro-cedure.

��. List 3 types of motions made by boards.

�2. Discuss how managers play a key role in board teamwork.

�3. Explain why group wisdom is superior to indi-vidual wisdom.

�4. List 3 important elements of an association’s Code of Conduct.

�5. List 5 items that should be included in a Board Manual.

�6. Explain the 3 levels of formal consensus.

�7. Identify 3 methods to recruit volunteers.

�8. List 4 ways to retain volunteers.

�9. Explain the phenomena of pluralistic ignorance.

20. Describe 3 methods managers can use to help boards deal with threats and disputes.

2�. Identify 3 strategies managers can implement to help boards break free from mistakes of the past.

22. List 4 ways to prevent board member burn-out.

ManageMent rOLes anD resPOnsibiLitiesDispelling Manager MythsCommunity associations hire managers for 2 basic reasons: to carry out board policies and to manage the community association’s business affairs. Sometimes, however, the manager’s role is misunderstood which could bring the manager into conflict with the board or members. Following are some of the most com-mon myths.

Manager is available 24/7. Community association managers generally manage many communities and must divide their schedule among them. While the management company usually provides emergency response 24/7, the manager’s time is carefully orches-

trated between clients to maximize efficiency and cost effectiveness to the clients.

Manager is responsible for contractor perfor-mance. The manager does not have direct control over the contractors. It’s up to the contractor to pro-vide agreed upon services in a timely manner. When the contractor fails, it’s up to the manager to enforce provisions of the contract by whatever means neces-sary including withholding payment or legal action.

Manager should anticipate maintenance. There is a perception that the manager is omnipresent and should catch maintenance problems as they happen. In reality, the Management Agreement typically calls for periodic property inspections (weekly, monthly, or quarterly) which are supplemented by maintenance requests from the Board or homeowners and feedback

by Richard Thompson

Approved by the DBPR Council for CAM, Provider #000�856, Course #96254�0

CAM_book.indb 93 6/12/08 7:44:34 PM


from maintenance contractors. To control manage-ment costs, identifying maintenance problems is a team effort.

Manager works for the owners. The manage-ment company enters into a written agreement with the Board of Directors which usually authorizes the manager to run association business in accordance with the governing documents, approved budget, and additional direction provided by the Board or Board president. Owners have no contractual authority and the manager should not take direction directly from an owner.

Manager takes direction from directors. Managers act under the direction of the entire board of directors or the Board president, who generally has authority to speak for the board between board meetings on many, but not all, issues.

Manager is a referee. Homeowners should not expect managers to arbitrate disputes with their neighbors. Unless the dispute involves a violation of community association rules or policies, the manager should not be involved.

Manager is an advocate. Venting frustrations at the manager about a Board action or inaction may make a homeowner feel better, but it’s up to the homeowner to make the case directly to the Board. The manager is not hired to be an advocate.

Manager is responsible for delinquencies. The manager is responsible to follow the community asso-ciation’s collection policy or as directed by the Board. Demanding payment doesn’t ensure getting it but the manager is responsible to keep up the pressure by following the collection policy which, hopefully, provides for escalating penalties for nonpayment (late fees, legal fees, restriction from amenities, curtailing voting rights, etc.).

The manager’s list of duties is long and encom-passes many categories of management including finan-cial, maintenance, and administration. The manager is a hired contractor that works under direct supervision of the Board and according to conditions of the man-agement agreement. The job is complex and each day presents a new series of challenges. De”myth”tifying the job tells you what the manager is not.

Managing expectationsCommunity association managers wear many hats while handling association business. However, the managers’ role at Board and homeowner meetings and the follow-up is pivotal to overall effectiveness. Here are some of the key traits of a competent manager.

As coach. The manager coaches the board of directors in its duties and helps organize and conduct meetings

so they will be an effective forum for policy mak-ing. The effective manager helps the president stay focused on business for maximum efficiency. When board actions deviate from the governing documents, the manager should point it out and get them back on track.

As organizer. Since the manager is usually the holder of the records, he or she plays an active role in the preparation and organization of meetings by assist-ing the president to prepare the agenda. The manager should present a concise and understandable report focused on the agenda. If the manager anticipates and provides answers to the board’s questions in the report, they will be able to make decisions more quickly.

As tactician. The manager must understand the dynamics of the Board of Directors in order to antici-pate their questions. The manager must get to know and understand each board member’s personality, background, and experience. Constructive sugges-tions must be delivered tactfully recognizing varying levels of sensitivity.

As communicator. Board decisions should be com-municated to the members quickly, usually by news-letter. The manager can work with a newsletter committee to develop the format and content. The newsletter should not only provide the pertinent Board meeting information, but promote pride and teamwork in the community. It should be presented in a way that will encourage readership. Make it fun! Mention names and events! Use graphics or clip art! Add jokes and quips!

As diplomat. Phone calls fielded by managers deal with financial, maintenance, and general information questions. Sometimes callers are upset and angry. By being attentive and asking questions, the manager can demonstrate the incredibly effective communication tool of caring. Once the caller feels understood, the manager can move on to problem solving. As the say-ing goes, “They don’t care how much you know until they know how much you care.”

Meeting expectations is the manager’s greatest challenge. By preparing thoroughly for meetings, expectations are more likely to be met. Meeting half-way won’t do it.

Manager MentoringA professional community association manager serves in many capacities—rule enforcer, money collec-tor, maintenance supervisor, newsletter editor, social chairperson, and on and on. One of the most impor-tant functions is as mentor to the Board. Mentoring provides an informed and objective perspective that is critical to Board decision making.

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Board Operation, Teamwork, and Problem Solving 95

Much manager mentoring goes on at Board meet-ings since that is where decisions are made. Since Board decisions can have sweeping implications, having a manager’s informed input can make all the difference in the outcome. By the same token, the Board needs to seek and hear what the manager has to say. To this end, the manager should jump in where appropriate to assist the Board in coming to reason-able conclusions.

Managers have the benefit of experience and perspective. That experience is grounded in work-ing knowledge of the governing documents, applica-ble state statutes, and good business practices. Both statutes and documents should be kept on hand with important sections highlighted. Good business prac-tices for community associations include fiduciary duty, clear communications, long range planning, financial stewardship, avoiding conflict of interest, and seeking wise counsel for informed decision. In these areas, the manager’s role is key.

Here are some specific areas where the manager should mentor the Board:

Education. Volunteer Boards typically don’t devote a lot of time to getting educated. They tend to be issue oriented, seeking answers as needed. But there are fundamentals that every Board needs to understand: How to run a meeting, how to build a budget, how to deal with conflict, how to run a successful renovation project, and how to make rules. Understanding the principles behind these issues will streamline business. The manager should educate the Board and promote educational resources when available. It will benefit both the community association and the manager’s ability to get work accomplished. The better the Board understands what the manager does, the less time the Board will spend micromanaging the manager.

Avoiding legal quagmires. The manager can be indispensable in steering the Board away from legal traps caused by inequitable rules and inconsistent enforcement, poor collection policies, disability access issues, and inadequate maintenance planning. The Board can attract litigation by both being overly aggressive and too passive. The manager knows when that risk is likely.

Informed decisions. Boards meet infrequently and it’s common for directors to show up ill-prepared for decision making even when meeting information packets have been provided in advance. Since deci-sions are called for, directors will make them even when they aren’t familiar with the issues. It’s impor-tant that the manager review the issues and make specific recommendations rather than let the Board meander to some conclusion. While the Board may come to a different conclusion than the manager’s, the recommendation should be the starting point since

the manager has thought long about what would work best. Having a recommendation also reduces the time spent talking about uncomplicated or straight-forward issues.

Pointing out conflict of interest. Conflict of inter-est is not always easy to detect by those guilty of it. In community associations, it usually starts innocently enough as a way to save the association money or time by hiring a director’s nephew to mow the lawn, for example, or paying a director to oversee a renovation project. It seems logical at the time, but it sets up the Board for accusations of self dealing. It’s the manag-er’s job to call a spade a spade and point the Board to alternatives.

Defusing personality conflicts. Personality clashes are not uncommon on an association Board. The manager can see the ones that are interfering with association business and discreetly counsel the offend-ers. In some cases, a director should be encouraged to step down from the Board if continuing conflict com-promises the ability to perform the duties.

Keeping the meetings on track. Unfocused and lengthy board meetings are one of the main reasons good volunteers don’t serve as directors. The manager can help keep the meeting productive and short by tracking the agenda, pressing for decisions, and point-ing out when the discussion is off topic. Manager’s recommendations are invaluable to reaching decisions and keeping the meeting moving.

Mentoring the Board is a high and worthy call-ing. A good mentor works from the sidelines coaching the team and does not lecture, talk down, or be heavy handed. Instead of pushing, the good mentor encour-ages better performance allowing the Board to take credit for the good results. Success encourages more success. What’s good for the community association Board is good for the manager.

Manager key indicator checklistThere are character traits and ways of doing busi-ness that make some community association manag-ers much more effective than others. Key indicators touch on significant aspects that make or break the effective association manager (or association manage-ment company). Check the appropriate boxes as they apply to you (see Figure 1).

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try On a new Hat

Board members. The following content is designed to give you a perspective from the other side of the table, allowing you to gain a greater understanding of the challenges these volunteers face. As you temporar-ily put on the board member hat, realize how you can turn these insights to your mutual advantage. Now enter the world of the board member...

bOarD MeMbersHiP

welcome to the board!The annual homeowner meeting convenes. The presi-dent of the association announces that the floor is open for nominations. A fellow homeowner says to you, “You know, you would make a good board member.” Before you have a chance to reply, some body move-ment indicates that you are willing, ready, and able to

serve. “The nominations are closed”, a vote is taken, and suddenly you’re on the Board! What does being on the board mean? Who is going to teach you? How much does it pay?

What does it mean to be on the board? You have made a commitment that you will serve the commu-nity interests to the best of your ability, be fair on matters that come before the board, will do your best to preserve and enhance the values of the association common areas, and that you will spend money in a prudent manner. Being a director also means that you have fiduciary duties which require making reasonable investigation into matters dealt with and acting in a businesslike, prudent manner when making decisions.

Who is going to teach you? Hopefully, you have several veterans on the board who will help you. Ide-ally, you will have an experienced property manager who works closely with the board and is willing to offer guidance. Continuity is one of a board’s great-

Figure �: Manager Key Indicator Checklist

Manager key indicator checklistItem Yes No 1. Communicates openly and honestly with the Board? q q 2. Responds to information and maintenance requests promptly? q q

3. Reasonably accessible by phone and email? q q 4. Prepared for Board and owner meetings? q q 5. Vigorously pursues delinquent homeowner fees? q q 6. Produces complete, readable, and timely financial reports? q q

7. Obtains at least 3 qualified proposals for large renovation projects? q q 8. Regularly attends association continuing education programs? q q

9. Knowledgeable about construction and maintenance management? q q 10. Spends funds prudently without sacrificing quality and workmanship? q q 11. Uses only licensed, bonded, and insured service providers? q q

12. Consistently acts with the community association’s best interests in mind? q q 13. Good understanding of community association governing documents? q q 14. Has a proactive management style? q q 15. Has conflicts of interest with vendors or maintenance providers? q q 16. Profits from service providers services? q q 17. Is the association receiving the benefits of volume purchasing? q q 18. A specialist in community association management? q q Totals ___ ___

If you scored 14 or more YES answers, you are a great manager. Give yourself a pat on the back. A score between 9 and 13 YES responses indicates you may need improvement. Identify weak points and develop a plan for increased training and education in those target areas. Between 4 and 8 YES responses indicate a need to develop a timeline for correction of areas that are falling short of expected performance. Less than 4 YES responses…May Day! May Day! Bail out before impact!

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Board Operation, Teamwork, and Problem Solving 97

est challenges. Ask questions. How have issues been handled in the past? Current boards should carefully consider plans laid by previous boards and not change them impulsively. Take time to become familiar with your association grounds and facilities. Review the association governing documents, the rules and regulations, and any other board policies in order to develop a familiarity with them. (Keep a set handy for when specific questions arise).

Make a commitment to attend all board meetings and prepare in advance by studying the agenda and related material. There generally aren’t many meet-ings and each deals with critical issues. Give them your full attention.

Budget time offers an opportunity to help build a sound financial future for the community. The 2 basic parts of the budget are operating (deals with routine maintenance and day-to-day expenses) and reserves (long range, major repairs and replacements). As a member of the Budget Committee, you will be asked to predict future financial needs by using both past budget history and new information accumulated for future repairs.

How much does the job pay? While no money is paid, there are many personal rewards to be had for a job well done. Dealing with people requires patience and flexibility. Remember that while disagreement is not always avoidable, you were elected to make deci-sions. Consider carefully those decisions put before

you and do your best. If you serve as a committed member, it will be one of the more rewarding experi-ences that you will have.

annUaL Meeting cHeckList

include in the Meeting notice:q Meeting Date, Meeting Time, Location, and

Agenda

q Mail Proxy for all to execute and return at least 3 days before the meeting to insure a quorum

notice requirementsq How many days in advance is notice required?

_______ q Mail notice _____________. Note the actual date

mailed.

board electionq Number of vacancies: ______q Names of retiring directors:__________________

__________________________________________q Length of each term [if varies]

________ ________ ________ ________

Quorumq Percentage of members required? _______%q Developer lots/units:_______q Owner lots/units:_______q Total lots/units: _______q Total needed: _______q Proxies received: _______q Number needed in person: _______

Other itemsq Sign-in Sheetq Extra copies of Agendaq Ballotsq Minutes of last year’s meetingq Financial/Treasurer’s Reportq Current budgetq Election Tabulation Sheetsq Committee Sign-up Sheetsq Architectural Design Policyq Architectural Change Requestq Pool/Tennis Registration formsq Pool/Tennis Court keysq Parking stickers or ID tagsq Governing documents - CC&Rsq Pens/pencils/notepads

bOarD Meeting agenDaboard Meeting

nottacare condominium april 1, 2008, 7 - 9 pm at the clubhouse

7:00-7:�5 Homeowner Forum7:�5 Call Meeting to Order - President7:�5-7:25 Review & Approve Minutes to Previous

Board Meeting - Secretary7:25-7:35 Financial Report - Treasurer7:35-7:45 Manager’s Report Committee Reports7:45-7:55 Landscape7:55-8:05 Architectural Review8:05-8:�5 Rules Enforcement8:�5-8:25 Newsletter Old Business8:25-8:40 Authorize lien filing on Unit �4 New Business8:40-8:50 Review request for deck installation at �23

Easy Street8:50-9:00 Review & approve Park Policy proposal9:00 Adjourn Meeting

Figure 3: Sample Annual Meeting Checklist(Source: Regenesis.net.)

Figure 2: Sample Board Meeting AgendaSource: http://regenesis.net/3/Meetings-Agenda.htm

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action/timed agendaKeeping the meeting moving and getting business done is what successful meetings are all about. Fig-ure 2 is a sample of an agenda with each item allot-ted a certain time to control the length of discussion. Action words like approve and authorize are used to guide the issue to a vote.

annual Meeting checklistAnnual meetings are more productive, organized, and harmonious with a bit of advance planning. Figure 3 is a useful checklist to prepare for this important event.

cultivating volunteersA common community association board ques-

tion is: “How do we get better participation from our members with board and committee work?” Many associations experience a large degree of apathy from the membership when it comes to volunteering. On the one hand, one of the reasons people buy into community associations is to reduce personal respon-sibility, like for exterior maintenance. On the other hand, there are many willing and talented members who could and would participate if given the right set of circumstances.

There is an art to recruiting volunteers. Posting a notice is not the right approach. You must woo them on many levels and over time. Here are some of the proven methods:

Communicate regularly. A frequent complaint of members is not being kept informed. To draw out vol-unteers, it’s critical that they know there is an ongo-ing need. Also, some members develop a suspicious nature about board motives when kept in the dark and use it as an excuse not to be involved. Let them know what you’re up to early and often! Repeated pleas for help will have their effect. A newsletter and flyer dis-tribution box (the kind used by real estate agents) is an inexpensive and convenient way to get the word out.

Give credit where credit is due. People love recog-nition. Make sure that directors, committee members, and other volunteers are given formal recognition for their efforts by way of meetings, minutes, and news-letters. Use every opportunity where there is an audi-ence. Be specific in your praise. For example, point out members who show superior landscaping abili-ties. (They are obvious candidates for the Landscape Committee). Award Certificates of Achievement at the annual meeting. Remember to recognize faithful volunteers doing more mundane day-to-day tasks like light bulb replacement or trash pick up. It is a wise board that makes a point of recognizing mere effort for its own merits.

Socialize the membership. People tend to want to help those that they know personally. However, many are shy and don’t make friends easily. The association can promote several socials annually to facilitate the process. Consider a spring clean-up party, pool party, or just plain potluck. It will help create a real “com-munity”.

Assign real jobs to do. It’s been said, “A commit-tee takes minutes and wastes hours”. There is noth-ing more futile and frustrating than a job with no job description or substance. There is real work to do at each community association. Directors and committee members should have clear “marching orders” detail-ing exactly what the objectives are, the time frame, and the money available to help get the task done.

Be an encourager. It is incumbent on the board to take the lead in cultivating volunteers. The success-ful leader motivates by persuasion and not authority. Remember, “A servant does not lower himself but elevates others”.

The ask. This is a little-used technique. Many folks don’t think they’re needed or talented enough. A per-sonal request can go a long way in getting these folks to step up. Something as simple as “You know, you would be really good at (fill in the blank)” make the ask very personal. You will be surprised how many will respond and will be flattered and receptive.

Respect their time. Part of what keeps volunteers away is fear of over commitment. The board should be very sensitive to time demands on volunteers. Board meetings should be few and action packed. With proper scheduling and timed agendas, community association business can get done with a minimum of time and fuss. When wooing volunteers, make sure to explain the time requirements for the job. The prop-erly managed association should demand hours, not days or weeks of volunteer time each year. If you’ve achieved this, let potential volunteers know.

Demystify the job. While having special training or talent can be a bonus to a board or committee posi-tion, it isn’t required. Encourage those that simply want to serve because they have the time and interest. These traits are more valuable in the long term than special training.

Aim high. Look for ways to pique interest of achiev-ers. If you aim too low, folks don’t think you need them. Identify several projects that take real thought, planning, and work but demonstrate visible results. Assign those special projects to members that like to “git’er done”.

24/7 recruiting. The month prior to the annual meet-ing is not the only time to look for board candidates and volunteers. New members often have an interest

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Meeting seatingThe seating arrangement at meetings is critical to a productive outcome. Foreign diplomats are particu-larly careful in choosing the shape of the table and who sits next to whom since the slightest faux pas can have disastrous results. In King Arthur’s day, meetings were held at a Round Table so that all could freely partici-pate without the King dictating the debate or worse. (Swords, lances, and maces were checked at the door).

There are lessons to be learned from this age-old experience that can be applied to community associa-tions. Associations have both Board and homeowner meetings and both formats demand very different seat-ing considerations.

Board meeting seating. Board meetings are designed to transact regular business for the care and welfare of

often millions of dollars of community assets. As such, they should be held at places and times conducive to business. Meetings held in someone’s home prove challenging.

At home meetings. Considering that owners are entitled to attend Board meetings (as an audience, not participants in the discussion or voting), there should be adequate seating available for them. If meetings are held in tiny quarters with room only for the Board, guests are effectively shut out and the impression is that they aren’t welcome. Seek the most spacious home available to accommodate both Board and guests.

Avoid using living rooms except for guest seat-ing. It’s very difficult to juggle papers or take notes while sitting in a Lazy Boy. Meetings should be held at a table large enough to spread out agendas, reports, and other papers without having to continually shuffle

PrOXy

nottacare condominiums annual Owners Meetingsaturday 7 p.m. on December 7, 200___

at the clubhouse1515 Leisure Lane, Peaceville, Usa

instrUctiOns

A quorum of at least _____% of the voting interests must be present either in person or by proxy (a representative you appoint to vote on your behalf) to hold a valid homeowner meeting. You can appoint anyone of legal age as your Proxy. Proxies assigned to “A Director of the Board” will be distributed equally among the attending Directors who are not running for re-election. You may designate a specific Director if you wish with Option #�.

Please complete and return by the deadline whether you plan to attend the meeting or not to ensure a quorum. If you attend the meeting, you may reclaim your Proxy and vote as usual.

I appoint: (cHeck One bOX OnLy)

q Option #1 _____________________________________________________________________________________

q Option #1a If my Representative fails to attend the meeting, this proxy may be reassigned to a Director of the Board who is not running for re-election for both voting and quorum purposes.

q Option #1b If my Representative fails to attend the meeting, this proxy may be reassigned to a Director of the Board for quorum purposes only.

q Option #2 A Director of the Board who is not running for re-election for both voting and quorum purposes.

q Option #3 A Director of the Board for quorum purposes only.

Date:________________________

Signature: _______________________________________________________________________________________

Print Name: ______________________________________________________________________________________

Address: _________________________________________________________________________________________

Return to Board Secretary or Property Manager no later than ____________________________________________.

Figure 4: Sample of a Proxy

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Board Operation, Teamwork, and Problem Solving �0�

the stack. If using a kitchen table, remove everything except meeting items. Turn off home and cell phones during the meeting since the ringing always disrupts the discussion and pulls someone away from the busi-ness at hand. (They’re probably telemarketers that will only foul your mood anyway.)

If there is a table head, the Board president should sit there and direct the meeting. The head of the table is the historical place of authority and there is no rea-son to buck tradition. The secretary taking minutes should sit at the opposite end of the table so all direc-tors can be more easily seen and heard. Guests should not sit at the meeting table since this is an invitation to actively participate in the business.

Avoid the temptation to have the Board face the guests as a panel. This seating format also invites par-ticipation from the guests and makes it difficult for the Board to talk amongst itself.

Formal Board Meetings. Ideally, the Board should meet at a location that is designed for meetings. Basics include a large conference table, good light-ing, bathrooms, temperature control, and room for guests. If none exists in your association, seek out meeting rooms in area community centers, libraries, and churches. They may be closer and cheaper than you think.

There are a number of advantages to moving out of the kitchen into a formal meeting place. The dis-traction potential is enormously reduced: no phones, food, TV, kids, dogs, and neighbors. The business meeting takes on a true business nature. Folks are less likely to linger in this environment or get into pro-tracted discussions. As with home meetings, seating should be adequate for both Board and guests—Board at the conference table and guests off to the side.

Annual community association meetings. These meetings should be carefully choreographed. Always hold them in a formal meeting facility large enough to accommodate all owners. Owners normally sit gallery style with the Board at a head table unless your group is small enough to fit around an Arthurian Round Table. Ideally, the head table should be “half moon” or “U” shape so all directors can see each other as well as the audience. Avoid having the Board sit panel style unless the meeting is intended to be a question and answer session with directors on the firing line. Make sure to have a proper sound system if the room requires it.

Meeting seating is critical when it comes to get-ting things accomplished efficiently. Set your sites for successful meetings and, don’t forget to check your swords at the door. See Figure 5 for Roberts Rules of Order and Parliamentary Procedure. In order for a community association to conduct business in a pro-fessional and effective manner, procedures are needed.

All board members should have a good understanding of these basic parliamentary procedures so meetings can flow smoothly.

bOarD teaMwOrk

group thinkCommunity associations are often portrayed as the detached governed by thankless volunteers. It’s the blind leading the blind—the clueless in charge of those that could care less. So how should this union of the unwilling go about acquiring the wisdom it needs?

James Surowiecki makes the case that a group is smarter than the smartest individual, in his book Wis-dom of Crowds. Surowieki’s research indicates that the wisdom of answers from those with only general life experience exceeds the wisdom of world experts. Here are some excerpts from an interview:

How did you discover the wisdom of crowds? The idea really came out of my writing on how markets work. Markets are made up of diverse people with different levels of information and intelligence, and yet when you put all those people together and they start buying and selling, they come up with generally intelligent decisions. I realized that it wasn’t just mar-kets that were smart.

Could you define “the crowd?” A “crowd” is any group which can act collectively to make decisions and solve problems. So, big organizations like a com-pany count as crowds and so do small groups, like a team of scientists working on a problem. But so are groups that aren’t really aware of themselves as groups, like investors in the stock market. They make up crowds, too, because they’re collectively produc-ing a solution to a complicated problem: the choices of investors determine stock prices.

Under what circumstances is the crowd smarter? There are 4 qualities that make a crowd smart:

Diversity. Group members are bringing different pieces of information to the table.

Decentralized. No one at the top is dictating the crowd’s answer.

Summarizes Answers. Combines all member answers into one collective verdict.

Independent. Individual answers are independently arrived at without worrying about what others think.

And what circumstances can lead the crowd to make bad decisions? Bad answers are more likely when most of the group are biased in the same direc-tion. When diverse opinions are squelched, groups tend to be dumb. It usually spells disaster when too much attention is paid to what others think. Stock market bubbles are a classic example of group stu-pidity: instead of worrying about how much a com-pany is really worth, investors start worrying about how much other people think the company is worth. The wisdom of crowds is that the best decisions come from independent individual decisions.

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What kind of problems are crowds good at solv-ing and what kind are they not good at solving? Crowds are best when there’s a “right” answer to a problem. If there is a factual question, groups consis-tently provide the correct answer. Groups aren’t good at problems of skill—for instance, don’t ask a group to perform surgery or fly a plane.

Why are we not better off finding an expert to make all the hard decisions? Experts, no matter how smart, only have limited amounts of informa-tion. They also have biases. It’s very rare that one person can know more than a large group of people, and almost never does that same person know more about a whole series of questions. It’s actually hard to identify true experts.

How can the crowd’s collective wisdom help an individual? The principle works for individuals as long as the groups are diverse and individuals try to be as independent as possible.

Is the wisdom of crowds about consensus? No. The wisdom of crowds emerges from disagreement. It’s the “average” opinion of the group, but not an opinion that every one in the group can agree on. Collective wisdom does not result from compromise.

In the final analysis, while it’s common to rely on the wisdom of experts or leaders when making difficult decisions, it’s more effective to rely on the wisdom of the group. Together all of us know more than any one of us does. The Board of a community association can draw wisdom from its members by involving them in policy and rule formation, the annual budget exercise, architectural design, and a host of other decisions. Involving the members adds another bonus. Compli-ance is more likely when the governed are involved in the governance. Remember the Boston Tea Party?

informed Decision MakingAs a member of the Board, you are charged with directing association business and being in the know. Since you are often directors of a multimillion dol-lar nonprofit corporation (asset-wise), you should carefully consider all business before acting. Asso-ciation business is seldom cut and dried. Often there are political ramifications to what the Board decides. These decisions should not be made on the fly but only after careful reflection.

In some organizations, retreats are used as a way of getting groups to focus on important goals and issues. A retreat needs to be held apart from day to day activities that invariably interfere: ringing phones, the kids’ rap music, and barking dogs make it impos-sible to focus on really tough issues. Consider gath-ering in a community meeting room. Libraries often have them available for little or no charge with the advantage of an available copier. Churches are also options. Retreats are designed to talk about philo-

sophical issues and not to transact business. Business, as always, should be handled in a duly-called board meeting open to the homeowners.

When it comes to having critical information at hand, the Board Manual fills the bill. The Board Manual is a collection of essential association infor-mation that can be easily and quickly accessed to respond to questions and emergencies such as:• Governing Documents (Declaration, Bylaws,

Articles of Incorporation)• Rules & Regulations• Current Operating Budget & Reserve Study• Insurance Coverage Recap & Agent Contact

Information• Management Planning Calendar• Maintenance & Insurance Areas of Responsibility• Current Financial Report• Meeting Minutes (last 12 months)• Newsletters (last 12 months)• List of Board Members, addresses, phone numbers,

and email addresses• Management key contact, phone numbers, email

address• Utility Companies (trash, water, power, gas, cable,

phone) phone numbers• List of Regular Contractors, key contact, phone

numbers (landscape, janitorial, etc.)• Map showing streets, buildings, homes, utility

meters, fire extinguishers, underground plumbing, equipment, etc.

• Security Information (keys, passwords, etc.)• Tool and Equipment Inventory• Equipment Information (elevator equipment, park-

ing garage door, pool equipment, etc.)

Organize this information by subject in a 3 ring binder so updates can be easily made. Provide one to each board member. With this basic information on hand, most issues and crises can be addressed without scrambling.

Prepare for meetings. All Board meetings should have an agenda and related materials distributed to the directors at least a week in advance of the meeting. Review things like financial reports, owner requests, and contract proposals in advance of the meeting so you’re not shooting from the “lip”. At the meeting, stick to the agenda. Do not allow owners to spring complicated issues at the meeting and expect a deci-sion. Architectural change requests and rules enforce-ment issues should only be considered after a full and complete written request is received and calendared for the Board Meeting.

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Board Operation, Teamwork, and Problem Solving �03

bOarD teaMwOrk case stUDy

a Most excellent way to board teamworkThis is how one Board of Directors successfully dealt with an issue that all too frequently haunts com-munity associations—special assessments. While the example is about a community in the Northwest portion of the U.S., this type of issue could apply to any community association in Florida.

Tom, the Board President of Coastal Village Condominiums, slammed the telephone receiver down after talking to the property manager and breathed a heavy sigh. After having to deal with several significant dry rot projects over the past 5 years, there was more yet to come. How could this have happened? The association had spent several hundred thousand dollars already to fix dry rot—what now?

Coastal Village had the misfortune of being built with the Northwest’s favorite building product, wood—wood framing, wood steps, wood siding, wood shingles. It was beautiful to look at, yes, but cold, rainy weather and wood buildings, unless properly constructed and maintained, are a formula for disaster. In the case of Coastal Vil-lage, the condominiums were built with T-�� siding, a type of decorative plywood panel with presawn grooves for accent. Where the siding panels met, decorative “batten’ strips were installed to cover the seams. On several recent site inspections, it was noticed that in places there was mushroom growth coming from beneath the bat-tens. Woodpeckers had also been drilling holes in the siding, a further indication of dry rot.

So what is dry rot anyway? In brief, dry rot is wood cancer. Actually misnamed, dry rot occurs under wet, cool, overcast conditions that frequent much of the Northwest. Spores that thrive under these conditions grow and multiply, breaking down wood fibers and structural integrity of wood building materials. Dry rot spores love dark hidden places beneath the siding like studwalls, subflooring, and floor joists. Unlike termites and carpenter ants, there is often no telltale signs until it erupts on the surface. A dry rot spot in the siding is often indicative of a much worse problem beneath—the proverbial tip of the iceberg.

Dry rot causes major structural damage and is a call for action. The Board of Directors and property manager met to discuss the preliminary findings. It was recommended that an inspection report be developed that could be used as a basis for action.

Who was to develop this report? While a licensed building inspector can identify dry rot, correction usually requires technical knowledge of construction materials and techniques. The Board approved an architect experi-enced in dry rot and gave him the task of physically inspecting all buildings. Lastly, a written communication was mailed to all homeowners advising of the dry rot alert.

It took the architect several days to complete the site inspection. Siding was probed for softness and marked, crawlspaces were inspected where possible for rotten subfloors or joists, batten boards were removed, and all roofs were inspected.

It was obvious that there had been a major original construction oversight: the siding had not been preprimed before the battens were nailed on leaving raw wood underneath the battens. Over time, rainwater had seeped behind the battens, soaking the wood and giving dry rot a foothold. The “weather” sides of the buildings showed a greater decay but virtually all sides of all buildings showed varying degrees of deterioration.

The architect wrestled with the proper solution: Do a remedial repair (patch) or a comprehensive recon-struction? The Board had experienced several “partial” fixes only to return to the problem all too soon. A special Board meeting was called and all homeowners invited to attend. The architect presented a comprehensive report detailing his findings. His recommendation: replace all siding and trim boards performing needed repairs to the underlying structure. The Board’s logical response was: How much is all of this going to cost?

the bidding Process: An invitation to bid the project was sent to experienced area contractors. Experienced meant specific and verifiable dry rot repair experience. Area contractors were chosen for proximity and ease of warranty follow-up work. The use of in-state contractors also meant more recourse for warranty issues through the Construction Contractor Board.

Interested contractors met with the architect at a bidder’s walk-through held at Coastal Village. Questions were asked and answered by the architect. The architect also considered suggestions from the contractors on materials and correction techniques to use. The 3 hours were well spent and revised job specifications were sent out to the contractors within several days. They were given 30 days to submit a written bid.

Once the bids were received, the Board scheduled another open meeting to which homeowners were invited.

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The bid review meeting was most interesting. Dry rot repair bids generally cause much uneasiness. Why? There are always 2 parts to the bid: Part One offers a set price to repair what can actually can be seen. Part 2 deals with what cannot be seen on a “time and material” basis. So the Board asked the logical question: How much should we plan for in total? The architect’s best guess: triple the Part One bid.

There is an expression that goes, “If you’re going to New York, don’t stop at Chicago”. After discussing the dry rot repair bids, one board member suggested that if all siding was to be removed, why not replace the outdated aluminum windows with more energy efficient ones at the same time? Aside from the fact that the cost of the sid-ing repair alone was sizeable, the suggestion made a lot of sense. The Board, keeping an open mind, agreed to look at options and costs.

Then, a board member/building contractor decided to submit a bid to do the work. That bid was substantially cheaper than the others received. Since there was an obvious conflict of interest, the remaining board members agreed that if his bid was accepted, he would have to resign from the Board. The architect inspected the contrac-tor’s work and references and reported back to the Board that all was acceptable. Based on the recommendation, the Board accepted his proposal and he promptly resigned from the Board.

The stage was now set. Based on combined estimates to replace all siding, paint, roofs (didn’t I mention that roofing was needed too?) and install new windows, the Board approved a special assessment of, hold on to your hat... $�4,000 per unit.

An elaborate presentation was carefully prepared and laid out at the Annual Homeowners Meeting 6 weeks later. Samples of dry rotted siding, window, and roofing samples were exhibited. There were several vocal own-ers that made their case against the assessment loudly. One howled “MISMANAGEMENT”. Some had legitimate concerns about not being able to pay. However, most listened patiently to the discussion. All were given a chance to ask questions and give opinion. It was a l o n g meeting. The board called for a vote of confidence and fell only a few shy of unanimous approval.

Following the meeting, a formal notice of special assessment was mailed to all owners of record. For those of limited means, a 3 year payment option was included while a discount was offered to those that prepaid.

It is said that an earthquake’s after shock is often worse than the initial shockwave. After the special assess-ment notice was received by those that had not attended the Annual Meeting, the Board was bombarded with phone calls again. It was obvious that there was still more damage control to be done.

Another meeting was called and many that missed the Annual Meeting were in attendance, as well as others that had come before. Of course, there was a rehashing of old information for those who missed it the first time around. The Board patiently indulged all input, positive and negative. While the meeting was long, this time it was different. Many of the owners who had attended the Annual Homeowners Meeting stood in defense of the Board. By meeting’s end, the overwhelming majority again affirmed the special assessment. Some thoughtful owners actually offered well deserved thanks to the Board for their hard work job.

the Moral of the story: This Board undertook a HUGE challenge successfully using the following tech-niques:

teamwork: Once alerted to a problem, a meeting of the whole Board was convened. The Board acted as a unit and unity was crucial to success.

consultation: A specialist was hired to determine the scope of the problem and proper correction. That informed opinion served as a solid foundation for action.

communication: Homeowners were notified early and updated regularly.integration: All owners were allowed to give input into the solution.Patience: The Board systematically analyzed and implemented the plan.no conflict of interest: When a board member wanted the job, he did not vote on the matter and stepped

off the Board when he was selected.re-evaluation: The Board made course corrections, like adding window replacement, when logic dictated.Leadership: The Board was elected to make tough decisions and they understood the need to lead.This Board was successful by integrating all of these important components. In so doing, they succeeded in

achieving the ultimate goal of a community association: Harmony

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Get good advice. One area where Boards often stumble is failure to seek out competent advice. Use your insurance agent, an attorney specializing in com-munity association law, a CPA, reserve analyst, engi-neers, and architects when the subject matter is clearly beyond the expertise of the Board. Do not “wing it” to save a few bucks. There is too much riding on the outcome and the owners are depending on you.

The Board is not charged with knowing every-thing but to make informed decisions. Gather infor-mation indicated for a Board Operations Manual and assemble it now! And, give yourself time to reflect on the impact and consequences of the decisions you make. Those decisions directly affect the harmony of the community.

Formal consensusWhen it comes to decision making in community associations, parliamentary procedure (Roberts Rules) is often the basis for making them. It provides a systematic and efficient way to get business done. However, parliamentary procedure is based on the democratic notion of majority rules. Sometimes you win and sometimes you lose. Americans have come to think this is the best option. While the system works pretty well, there is another process for decision mak-ing called Formal Consensus.

Consensus is generally understood to mean that all parties agree to a proposal or the proposal fails. But it’s hard enough to get 2 people to agree much less a group, so consensus is rarely sought or consid-ered. The idea behind Formal Consensus is a process that leads a group through levels of decision making which is more inclusive, invites creativity, and group solution making. For those used to democracy, it may take some practice since a goal of Formal Consensus is to engage the silent majority which typically don’t or won’t express an opinion.

Formal Consensus is a process which requires an environment in which all contributions are valued and participation is encouraged. To develop this process requires an organization to define commonly held principles which form the foundation upon which the process is built.

With Formal Consensus, decisions are adopted when all participants consent to the outcome of discus-sions about a proposal. People who do not agree with a proposal are responsible for expressing their con-cerns. No decision is adopted until there is resolution of every concern. When concerns remain after discus-sion, individuals can agree to disagree by acknowledg-ing that they have unresolved concerns, but consent to the proposal anyway and allow it to be adopted. Therefore, reaching consensus does not require that everyone must be in complete agreement.

Proposals ought to be prepared in writing and distributed well in advance of the meeting in which a decision is required. This encourages prior discus-sion and consideration, helps the presenter anticipate concerns, minimizes surprises, and involves everyone in creating the proposal. If the necessary groundwork has not been done, the wisest choice might be to send the proposal to committee. Proposal writing is diffi-cult to accomplish in a large group. The committee would develop the proposal for consideration at a later time. The presenter reads the written proposal aloud, provides background information, and states clearly its benefits and reasons for adoption, including addressing any existing concerns.

The Formal Consensus process consists of 3 levels:

Level 1: Broad Open Discussion: Allows everyone to express their perspective, including concerns, but group time is not spent on resolving problems. The scope is broad, allowing the discussion to consider the philosophical and political implications as well as the general merits and drawbacks and other relevant information.

Level 2: Identify Concerns: The group focuses its attention on identifying concerns, still not resolv-ing them. Reactive comments, even funny ones, and resolutions, even good ones, can suppress the creative ideas of others. The concerns are identified and pub-licly listed, which enables everyone to get an overall picture of the concerns. The focus is on identifying the body of concerns and grouping similar ones.

At this level, only concerns are to be expressed, reasonable or unreasonable, well thought out or vague feelings. The facilitator wants to interrupt any com-ments which attempt to defend the proposal, resolve the concerns, judge the value of the concerns, or in any way deny or dismiss another’s feelings of doubt or concern. Sometimes simply allowing a concern to be expressed and written down helps resolve it.

Level 3: Resolve Concerns and Call for Consen-sus: The group explores resolutions. The scope is very narrow. The focus of discussion is limited to a single unresolved concern until it is resolved. To encourage the process, the facilitator asks, “Are there any unre-solved concerns?” or “Are there any concerns remain-ing?” If there are, concerns are discussed. If, after a suitable interval of silence, no concerns are raised, the facilitator declares that consensus is reached and the proposal is read for the record. If, at this level, consen-sus cannot be reached, that too should be announced so other business can be attended to.

It is important to note that the question is not “Is there consensus?” or “Does everyone agree?” These questions do not encourage an environment in which all concerns can be expressed. If some people have a concern, but are shy or intimidated by a strong show-

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roberts rules of Order and Parliamentary Proceduresjustice and courtesy to all

One thing at a time the rule of the majority the right of the minority

securing the FloorWhen a member wishes to bring a matter before the house, he /she must first “secure the floor” (be recognized and get permission to speak). To do this:�. Member raises hand or rises to get Chair’s attention.2. Member addresses the Chair by title (not by name) and says “Mr. (Madam) Chairman” and then waits for rec-

ognition.3. The Chair recognizes a member by either calling the member by name or nodding in the member’s direction.4. Once recognized, the member “has the floor” and permission to introduce business.

introducing business As in securing the floor, there are several steps:�. A motion is made by stating, “I move that...” “I move,” is the equivalent of, “I propose”. 2. Another member seconds the motion by saying “I second the motion.” The reason that a motion needs to be

seconded is to indicate that more than one person is in favor of discussing the matter. It is not necessary to secure the floor in order to second a motion.

3. The Chair restates the motion: “It is moved and seconded that ...” “Is there any discussion?”

Discussing the Motion: Discussion of the motion allows opposing views on the motion to be debated. The Chair guides the debate by encouraging opposing views. For example, after a member has offered support for the motion, the Chair asks “Is there anyone opposed to the motion?” If a member expresses opposition, the Chair then asks “Does anyone want to speak in favor of the motion?” This back and forth method is important to limit endless discussions that are clearly in favor or opposed to the motion. If the Chair gets this impression, discussion should be ended and vote called for. If the motion is a hot topic, this process may continue for several rounds before the motion is ready to be voted on. Motions that are less volatile may have little or no debate. Based on the topic, the Chair may decide to extend or shorten the discussion before proceeding to a vote.

voting on the Motion by voice: Voting by voice is the most common method. The form is “All who are in favor of the motion say Aye (or Yes)”. In response, the members who are in favor of the motion should say “Aye,” loud enough to be heard. The chair then says: “All who are opposed say No”. All those opposed then say “No”. The chair announces the result by saying either, “The Ayes have it, the motion is carried,” or “The Nos have it, the motion fails,” followed by lightly rapping the gavel on the table. This completes the vote on a particular motion.

voting on the Motion by Hand: If the motion is particularly sensitive, a hand vote and tally is advisable. The Chair says, “All those in favor, raise their hand.” A tally is then taken and recorded in the meeting minutes. The Chair then says, “All those opposed, raise their hand.” That number is recorded as well. The Chair may ask for those that abstain (do not vote at all) if there are those present. However, members should abstain only if there is a conflict of interest or lack of understanding or background on the motion being voted on.

voting on the Motion by acclamation: If a motion being made is universally accepted by the members, the Chair may call for a voice vote by acclamation (no dissenters). If there is no objection, the vote is taken and recorded as such.

voting by secret ballot: For motions that are highly sensitive, such as election of officers, a paper ballot vote may be appropriate. In this case, each member indicates preference on a ballot, folds the ballot and passes it to the secretary or someone appointed to count the votes. In the case of elections where secret ballots are normal, the process isn’t necessary if there is only one candidate. In this case, the Chair may request a Vote by Acclamation.

types of Motions

Main Motion: When a motion has been made, seconded, and stated by the Chair, all other business should be deferred until the motion has been disposed of. If the motion is long and involved, the secretary should write it down before proceeding to debate or vote.

Motion to amend: This motion changes, adds, or omits words in the original main motion. It is debatable and subject to a majority vote.

Motion to Amend the Amendment: This motion changes, adds, or omits words in the first amendment. It is debat-able.

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voting Procedure: The main motion has been amended and subsequently re-amended. The first vote deals with the re-amendment. The second vote deals with the amendment. The final vote deals with the main motion (as amended if appropriate).

Motion to commit: When it becomes apparent that a particular motion requires further investigation or study, it may be moved to commit the motion to a committee for further review. This motion is debatable and amend-able.

Motion to table: This motion postpones the subject under discussion to some time in the future. It is not debat-able or amendable.

Motion to take from the table: The removal from the table a motion that has been previously tabled. It may be at the same or a later meeting. This returns the motion for further consideration; not debatable or amendable, and can have no subsidiary motion applied. It takes precedence over any main motion.

Motion to Postpone Definitely: A motion that automatically comes up under Unfinished Business at the next meeting. It is a debatable motion.

Motion to adjourn: This motion is in order except when a speaker has the floor, a vote is being taken or when the assembly is in the midst of urgent business. When a motion is made to adjourn to a definite place, and time, it is debatable.

Motion to reconsider: The motion to reconsider a motion that was carried or failed is in order if made on the same day, but must be made by one who voted with the prevailing side. Motion in question can be twice recon-sidered. It is debatable.

Question: This motion is made to close debate on the pending motion. It is not debatable. The form is “Mr. (Madam) Chairman, Question (I move we vote on the motion).” The Chairman then asks, “Shall debate be closed and the motion voted on?” If this is adopted by a 2/3 majority, the motion is immediately voted upon. If not, dis-cussion continues.

Point of Order: This motion is always in order, but can be used only to present an objection to a ruling of the Chair or some method of parliamentary procedure. The form is “Mr. (Madam) Chairman, I rise to a point of order.” The Chairman: “Please state your point of order.” After the member has stated the objection, the Chair answers either “Your point of order is sustained” or “Your point of order is denied.”

The Chair’s decision may be appealed. If appealed, the Chair addresses the assembly and says, “Shall the decision of the Chair be sustained?” This is debatable and voted on like any other motion. A majority or tie vote sustains the decision or reverses the decision of the Chair.

Point of information: Request that is made when a member desires clarification of details. The member may inter-rupt a speaker and need not obtain the floor.

repeal: Motion to revoke a former action by the group. It may completely remove the motion that originated the action. It may or may not include that the former motion be “struck from the records.”

Parliamentary Procedure in brief

1. securing the floorMember raises hand or rises.Member addresses the chair.Chair recognizes member.

2. introducing the businessMember makes a motion.

Another member seconds the motion.Chair states the motion.

3. voting on the questionChair takes the affirmative vote.Chair takes the negative vote.Chair announces the result.

Figure 5: Roberts Rules of Order and Parliamentary Procedures (See other resources: Roberts Rules Online and Parliamentary Cheat Sheet. A little humor: Bob’s Rules of Disorder and Cartoon.

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ing of support for a proposal, the question “Are there any unresolved concerns?” speaks directly to them and provides an opportunity for them to speak.

Formal Consensus provides a creative way to integrate conflicting views. Adopting this approach achieves a much higher degree of “buy in” by those who are subject to the decision. Being heard is the key and this process strives to make sure that all are.

For more on Formal Consensus, see www.con-sensus.net.

Perfecting PraiseThere is a myth hanging around that association vol-unteers are scarcer than hen’s teeth, and those that are there must be loonier than a toon for stepping up. In reality, volunteerism is at the very core of the commu-nity association concept. The neighbors-governing- neighbors concept will work best when volunteers over-see the hired guns (manager). And why is this? Com-munity associations were conceived to give authority to small private communities. That authority includes being able to customize the community according to the wishes of the members. By definition, a non-own-ing manager can only execute the wishes and desires of the client. That leaves the authority in the hands of the community association. To avoid an unavoidable conflict of interest, boards receive no compensation. People who work for no pay are called volunteers.

So, volunteers make or break a community associ-ation. The need for them is mandatory, not optional. Fortunately, not all members are required to volun-teer at the same time. (Whew, what a relief!) But the need is still there and there must be a conscious and continuing effort to draw them in.

Job satisfaction consistently rates highest on rea-sons people work. Even where money would seem to be the prime driver, it’s not. With volunteers, money isn’t even on the list, which makes job satisfaction all the more important. This is the key to attracting and holding volunteers: make the job rewarding. How, you say?

Get organized. Community association boards with-out a plan are boards without a clue reacting to crises. Who wants to serve in chaos? Get organized by estab-lishing a meeting, social, and maintenance calendar. Setting dates is setting deadlines for action. Action begets results. Results are what successful people are all about. Success attracts volunteers who are success-ful in their personal and business lives.

Plan ahead. Reserve studies forecast major renova-tion projects and provide a funding plan to pay for them. Looking far into the future reassures the mem-bership.

Recognize effort. (This is the praise part.) Recog-

nition can come in plaques, kudos, and a pat on the back. Do it often to build job satisfaction. But a key element of praise is trust. Trust is allowing volunteers autonomy over some area of authority, be it large or small. Resist the urge to micromanage and reinforce trust by saying things like, “You make good decisions” and “I trust you in this”. Then let them do their best.

Limit criticism. When giving constructive criticism, consider carefully before delivering it. Constructive criticism is helpful when given on occasion and in the proper tone. Serial criticism (weighing in on every aspect of performance) delivers the message loud and clear that you have no confidence in their perfor-mance. Who wants to serve for free and be harangued at the same time? Praise takes practice. The more you do it, the better you get at it. Be sincere. Don’t gush. Phoniness is worse than no praise at all. Praise makes perfect sense since it encourages performance and attracts volunteers. Volunteers are what every success-ful community association is about.

PrObLeM sOLving

Pluralistic ignoranceCommunity associations sometimes come under attack for suppressing Bill of Rights freedoms. Sometimes the accusation is one of principle (I’m not allowed to do what I want) rather than a specific instance (I’m not allowed to post signs). While the media makes it appear that this phenomena is pervasive, in reality, they are isolated cases caused by an overly aggres-sive board, member, or both, who lock horns. Most community associations actually enjoy an incredible amount of consensus. And why is that? Is it a herding mentality?

According to ChangingMinds.org:Groups all have norms of attitude and behavior which are shared and which help form the identity of the group. Adopting these norms, even if you do not agree with them, is a part of the individual sacrifice that people accept as a price of group membership. It is thus possible for groups to have norms which hardly anyone agrees with, but with which everyone conforms. These situations typically occur when the norms are older than all members of the group or when one member or a small group is dominant and can force their attitudes on the rest of the group.

This phenomenon is called pluralistic ignorance (PI) by social psychologists. It is a state of mind in which people mistakenly think their own thoughts and feelings are different from those of people around them and look to others for cues instead of trusting their own instincts.

PI is particularly vexing when the situation involves imminent danger. When the danger appears to be ambiguous (unsure if the danger is real or per-

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ceived), the social rules of belonging and acceptance trump looking different or alarmist. Once the situa-tion is correctly interpreted as dangerous, pluralistic ignorance fades and logic takes hold: RUN!

But can PI explain what goes on in some com-munity associations? Do the associations really adopt norms that few agree with but with which most con-form? Well, yes and no. Norms come in all shapes and sizes. Some are contentious and others really don’t matter that much. Most issues in community associa-tions simply aren’t worth fighting over. There have to be some standards and while no standard will reflect everyone’s standard, some standards are better than no standards. The driving consideration is whether the standard is “reasonable”.

Humans seem to possess an innate sense of fair play. It’s sometimes described as live and let live. Part of that sense is the willingness to sacrifice a personally held belief for the greater good, as long as that sacri-fice doesn’t land too close to home. So, if the board enacts a policy that is “reasonable” (not hot, not cold but juuuuuust right), most will accept it and move on.

On the other hand, those that have their closely held beliefs challenged or denied often respond aggressively, even taking the matter to court, or in a few extreme cases, resorting to killing. This much is clear: challenges to matters of principle can trigger disproportionately large responses. There are numer-ous court cases where extensive time and money (BIG money) has been expended to validate those matters of principle. But when the judge’s gavel has fallen, win or lose, the adversaries will return to being neighbors trying to find a way to get along. Only now, a wall of pride usually takes the place of the contested prin-ciple. The feud isn’t over by a long shot.

A survey once stated: “It’s said that the 2 greatest problems in America are ignorance and apathy. What do you think?” Answer: “I don’t know and I don’t care”. There is a degree of those attitudes in commu-nity associations. It’s not malicious. Some folks just aren’t interested. That leaves association matters in the hands of the few that are. The rest mill around in the stockyard of apathy chewing their cud.

Of the few that remain, some serve on the Board and others watch what the Board does. Again, the watching generally is just that because most com-munity association Boards do pretty well avoiding controversy. But sometimes the Board isn’t handling business properly or at all. In an effort to avoid con-frontation, some Boards neglect to collect money or enforce the rules. Board watchers are quick to blow the whistle.

But is anyone listening? Is pluralistic ignorance getting in the way? Or is it a lone voice crying wolf in the wilderness by throwing stones at glass houses? Holy mixed metaphor! Clearly, how well the Board

manages business has a profound effect on the mem-ber home values and community livability. Whether the other members are engaged or not, it behooves the Board to strive for excellence.

board Under attack!From time to time, a homeowner will launch a take-no-prisoners war against the Board because of some deeply felt issue. To these folks, the Board represents the Devil Incarnate and is untrustworthy, domineer-ing, irresponsible, and worst of all, in control. This is intolerable to someone who wants what they want and they want it NOW! Sometimes, the individual is actually serving on the Board which makes matters considerably more onerous.

The blitzkrieg tactics can be relentless. They harangue at Board meetings, are personally abusive, write poison pen letters to other owners which detail the Board’s crimes in great detail. They are unyielding and uncompromising. Their objective is clear: to get rid of the Board so that something better (them) will take its place.

Boards under such attack get understandably apprehensive. (Hey, I’m a volunteer...I don’t need this kind of grief!) Most folks so attacked either flee from confrontation, despair, or react angrily. Since this is war and not a simple difference of opinion, there are a variety of retaliations Boards under attack may take:

Appeasement. Even though the attacker’s demands may be unreasonable, there may be an inclination to give him what he wants so he’ll go away. Remember when England and France gave Hitler Czechoslova-kia’s Sudetenland to make him go away? It’s important to consider the consequences. Know who you’re deal-ing with and whether this is a one-issue or a multi-pronged attack. By appeasement, the Board may well open the door for future assaults. Appeasement didn’t work with Hitler and won’t work in this situation either.

Concession. A concession is different than appease-ment. It recognizes give and take within issues without running roughshod over principles. When conceding, the Board should get written agreement on the terms. An example would be allowing a special exception archi-tectural change like a ramp for disability access. The concession is granted only until the resident moves.

Compromise. When an issue is viewed in extremes, there is room in the middle for both sides to save face. Compromise may require professional dispute reso-lution when emotions run high. Dispute resolution is also useful for defusing vendettas (revenge for a perceived wrong). Professional arbitrators can assist warring factions to “make nice”. This is extremely important considering neighbors are involved. While

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��0 Bert Rodgers Schools

you may not end up friends, establishing mutual respect is essential.

Don’t return the volley. One strategy is to refuse to fight. After trying reason, stop responding to inflam-matory comments. Fight fire with silence or a state-ment like, “We obviously disagree on this matter but the Board has voted, and we intend to move on to other matters. We hope you will as well,” pretty much says it. Prepare to ride out the storm. Most typhoons blow themselves out.

Responding to threats. Depending on whether a threat is legal (I’m gonna sue) or physical (I’m gonna punch your lights out) the response is different. An owner or director suing the Board is like shooting yourself in the foot. Assuming that the association has Director & Officers Liability Insurance (which it should), the coverage will pay for a lawyer to defend the Board. The appropriate response might be, “Sue if you must, but insurance covers our legal defense. Who pays for yours?” However, when it comes to physical threats, waste no time. Call the police. This kind of behavior needs to be stopped cold.

Fire when ready. Sometimes, reason “took the last train to the coast” and it ain’t comin’ back. If the attack is coming from a Board director, the Board majority may need to consider stronger alternatives. A ren-egade director can virtually destroy the whole Board with ongoing strife and conflict. While all directors need not agree on every issue, it is important to yield to the majority opinion. If a director gets stuck and refuses to move on, he may need to be culled from the ranks. Once the deed is done, it’s important to com-municate to the remaining owners about the reasons the action was taken.

Call the bluff. If the attack persists, call a special owner meeting to get it all out in the open. The purpose of the meeting should not be to humiliate or point fingers. Often the attacker is shown to be a Lone Ranger and not supported by a majority of own-ers. Ask for a vote of confidence.

Bailing out. Boards under attack may feel the urge to cut and run—resigning “en masse”. Sometimes this may be a strategic move to get an owner show of confidence. However, wholesale resignation generally plays right into the attacker’s hand and opens the door for all kinds of radicals to jump on the Board. The welfare of the association depends on level headed and concerned volunteers. Letting a tyrant take control is the last thing you want. Resist the temptation to take the easy way out. Remember your property is at stake. Hold the high ground.

Regardless how you respond, strive for compas-sion, as difficult as it may be. A compassionate atti-

tude will usually lead to the best resolution for all concerned. Kill the attacker with kindness.

bogged Down board“Now I saw in my dream that...they drew near to a very miry slough that was in the midst of the plain; and they being heedless, did both fall suddenly into the bog. The name of the slough was “Despond.” Here, therefore, they wallowed for a time, being grievously bedaubed with the dirt.” From The Pilgrim’s Progress by John Bunyan.

An interesting phenomenon that occurs from time to time in a community association is a Board’s inabil-ity to break with the mistakes of the past. Longtime infighting and discontent has created malevolent stag-nation. Recrimination abounds, credibility is lost, and the Board flounders in its own Slough of Despond. This association is stuck in quicksand that is sucking the life and joy out of the community.

To those so entrenched, it may just seem business as usual. Another Board Meeting, another shouting match, and little gets done. Adrenaline pumps, hearts and fists pound. It’s Friday night at Pro Wrestling. It’s Gettysburg with brothers and neighbors locked in mortal combat against each other.

Okay, quick! Show of hands. Who wants to volunteer to serve on the Board? (sound of crickets) No, really! We need you to step up. (sound of pin dropping) Nobody? I’ll never get off the Board!

Effectively, a community association like this plays out a self-fulfilling prophecy. And tragically, get-ting bogged down like this is not all that uncommon. Some folks love to dwell on the past to keep others off balance. It’s a form of control that keeps things in a brouhaha. But who in their right mind wants to play the game for long?

In this slough of despondency, however, is a great opportunity. Learning from past mistakes is some of the best education there is. Dwelling on them is fatal. If the Board is in a dwelling place, it will take a strong deci-sive action to break free. Here are some of the ways:

Mediate. Get some objectivity into the mix with a trained mediator. These folks can often sort out heated issues and personalities to forge compromise. There are usually a number of inexpensive media-tion alternatives in every city, some are even free. See Regenesis.net Links for Dispute Resolution options.

Board retreat. Having a retreat to discuss concepts can be helpful in getting repointed. It’s advisable to include a facilitator who ensures that all get heard and that the discussion doesn’t degenerate.

List of goals. Having written goals helps the bogged-down Board stay focused on its mission.

Written agenda. If your Board Meetings are agenda-

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Board Operation, Teamwork, and Problem Solving ��

less, they can easily be twisted into personal agendas. Have a written agenda and a tight time limit for get-ting it done. Stick to it and opportunities for disorder will vanish.

Purge the old guard. Some people simply are too inflexible to change. They should be encouraged to step down. If they refuse, a member recall can force removal. Or, start campaigning for the next annual meeting election.

The Board has significant responsibilities to grap-ple with. Making them as pleasant as possible is the only way to attract and keep good volunteers. If your Board is bogged down with infighting and personal agendas, it’s time to redirect the action. Learn, not burn, from past mistakes.

rx for board burn-Out?“How can the board avoid the burn-out that comes with the job?”

Getting and keeping dedicated board and com-mittee members is one of a community association’s greatest challenges. Here are some of the ways to pre-vent burn-out:

Have a plan. Handling community business effi-ciently and effectively can be an enormous stress reliever. One great tool is the Management Plan Cal-endar which establishes dates for meetings, regular maintenance (like gutter cleaning, etc.), administra-tive events (like tax return filing, etc.), major main-tenance (like painting, etc.) a year in advance. The Management Plan Calendar evens out the work load and demonstrates that the Board is acting proactively, not reactively. This, in turn, reduces complaints that contribute to burn-out.

Communicate regularly. Keeping association busi-ness open and above board reduces suspicion that leads to criticism (no closed meetings). Distribute regular newsletters, monthly financial information, and meeting minutes. Ask for feedback on issues by circulating surveys.

Protect your privacy. Board members have the right to peaceful enjoyment of their homes. Don’t accept association calls after hours, especially abusive ones. Deal with association issues whenever possible only at scheduled board meetings.

Get it in writing. Members who constantly complain can be very wearing. Insist that comments be put in writing. Several things will happen: Either the prob-lem isn’t important enough to put in writing and they will go away or they will put it writing so it can be dealt with properly at a Board meeting.

Use the board. Board presidents often feel that they have to do everything themselves because no one else

will do it. This attitude can be a self fulfilling proph-esy. It is not the president’s job to solve all problems but to lead and delegate. The board structure was designed to spread out the load. Resist the temptation to take carry the burden alone.

The board as administrator. A fundamental error that many Boards make is doing office and mainte-nance work for free that would otherwise be hired out. Doing this undermines the Board’s true pur-pose...to administrate association business. An admin-istrative position that should only take a few hours a month rapidly escalates to a full time unpaid job. Who wouldn’t burn-out? Remember the Board’s true purpose and stick to it.

Reward the volunteers. The most widespread rea-son for burn-out is because it’s a thankless job. In job satisfaction surveys, recognition and appreciation consistently rank way above pay. Find ways to reward directors, committees, and other volunteers through awards, recognition in newsletters, and certificates. They cost little or nothing but address the human need for significance. Volunteers who receive appre-ciation in small but regular ways stay enthusiastic.

keeP yOUr Manager Hat On!

Managers are invaluable to board members. Their multitude of roles includes developing effective meet-ing agendas, protecting the association from litiga-tion, increasing proxy returns, orchestrating seating arrangements, familiarizing new members with parlia-mentary procedure and motions, and fostering team-work among board members. Managers can help the board deal with threats and disputes, break free from mistakes of the past and prevent member burn-out. In summary, managers are vital to ensuring smooth board operation and teamwork.

HOMeOwner aDvOcacy

Popular belief is that the solution to community asso-ciation problems lies in better education and respon-sible self regulation. Some advocate strong federal and state regulation or optional membership. We include this section because there are lessons to be learned from other viewpoints. Following are Advo-cacy Groups, News Sources, and News Articles links.

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Board Operation, Teamwork, and Problem Solving ��3

Final assessment board Operation, teamwork, and Problem solving




1. Good business practices for community associations include fiduciary duty, clear communications, long range planning, financial stewardship, avoiding conflict of interest, and seeking wise counsel for informed decisions. T F

2. Volunteer boards typically don’t devote a lot of time to getting educated. T F

3. Unfocused and lengthy board meetings are one of the main reasons good volunteers serve as directors. T F

4. Continuity is one of a board’s greatest challenges. T F

5. The purpose of community association minutes is to subjectively record business that takes place at homeowner, board, and committee meetings. T F

6. Proxies are used to achieve the quorum required to hold and transact business at an annual or special meeting. T F

7. For motions that are highly sensitive, such as election of officers, a motion by voice may be appropriate. T F

8. Types of Motions include a Main Motion, a Motion to Amend, and a Motion to Amend the Amendment. T F

9. The Board Manual is a collection of nonessential association information that can be slowly accessed to respond to questions and emergencies. T F

10. A goal of Formal Consensus is to engage the silent majority which typically do not or will not express an opinion. T F

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bert rodgers schools community association Management continuing education

instrUctiOns/graDingOnline

Study from the courses in this book and take the Final Assessments online! Get immediate results and print your official Certificates of Completion. Go to www.BertRodgers.com, complete the registration and pay-ment information. It’s that easy!

student informationThe license number you provide on the enclosed Registration Form is the number our school will use to report your continuing education to the Department of Business and Professional Regulation.

tuitionWe offer four 4-hour courses and the 2-hour 2008 Legal Update. Choose the courses you wish to complete and pay individually or select the Special Offer, a total of 18 hours including the 2008 Legal Update, for maximum savings.

grading servicesStandard Grading-Correspondence

Fax or mail your Registration Form/Answer Sheet(s) and payment information. Upon receipt, we process your answer sheet(s) and send your official Certificate(s) of Completion to you by First-Class Mail.

Priority Grading ServicesSame-Day Priority Grading by Return Email or Fax – $10Fax both your Registration Form and Answer Sheet(s) with payment information to us any business day by 3pm est. We will email or fax your certificate(s) of completion the same business day. The original certificates will be mailed the next business day.

Next-Day Priority Grading by Return Email or Fax – $7Fax your Registration Form and Answer Sheet(s) with payment information to us any business day by 5pm est. We will email or fax your certificate(s) of completion by 11am est the next business day. The original certificates will be mailed the next business day.

Priority Grading Notes• Priority Grading is only available to those with a fax number or email address.• Fax your Registration Form and Answer Sheet(s) to 941-378-3883. You must provide a legible fax number

or email address.• BRS will attempt to fax your Certificate(s) of Completion 3 times.• For email priority service, your Certificate(s) of Completion are sent as a PDF attachment(s). You must

have the free program Adobe Acrobat Reader (www.acrobat.com) to view and/or print your certificate.• Make [email protected] a trusted source to prevent your email certificate from going

into your junk email.• Please call our office if you have not received your Certificate of Completion by 5pm est. • The priority grading fee is not per individual course, but for all courses received, completed, and paid on

the same registration form at the same time.

Grading PolicyA passing score is 70% or higher (7 or more correct out of 10).

Payment MethodBert Rodgers Schools accepts checks, money orders, Discover, Visa, MasterCard, American Express, and Visa or MasterCard check cards. Note: Your course registration will not be processed unless complete payment is received. There are additional charges for Priority Service.

��4 Bert Rodgers Schools

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1

Association Financial Management and Insurance #9625407 4 Hours $35

2008 Legal Update #9625416 2 Hours $25

REGISTRATION FORM S T U D E N T I N F O R M A T I O N

Name___________________________________________ CAM License # _______________________

Address_________________________________________City/State/Zip__________________________

Email ___________________________________ Day Phone (_______)__________________________

C O U R S E T U I T I O N

G R A D I N G S E R V I C E S Need your results in a hurry? Choose Email or FaxBack Grading Service:

$10 Same-Day Priority Grading* (In by 3PM EST, M-F, back the same business day) +$ _____________

or $7 Next-Day Priority Grading* (In by 5PM EST, M-F, back by 11AM next business day) +$ _____________

Email or Fax my Certificate(s) of Completion to: ______________________________ TOTAL $ ______________ (your return email address or fax number)

MM E T H O D O F P A Y M E N T Please check the appropriate box below. Enclose your check or money order in the reply envelope.

Check (enclosed) Check # ___________ (payable to Bert Rodgers Schools) Money Order (enclosed)

MC Visa Amex Discover

Card# Exp Date - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 (month) (year)

Signature of Cardholder ________________________________________ (required)

ANSWER SHEET

1. T F 4. T F 7. T F 10. T F 2. T F 5. T F 8. T F 3. T F 6. T F 9. T F

Course Evaluation Poor Good Excellent1. Learning objectives were clearly stated. 1 2 3 2. Course content was clear and organized. 1 2 3 3. Course material was relevant to my profession. 1 2 3 4. I felt prepared for the final asessment. 1 2 3


Course Evaluation Poor Good Excellent1. Learning objectives were clearly stated. 1 2 3 2. Course content was clear and organized. 1 2 3 3. Course material was relevant to my profession. 1 2 3 4. I felt prepared for the final assessment. 1 2 3

Attest StatementBy signing my name, I certify that I personally completed the course and final examination without assistance from others.

_____________________________ __________ Signature Date

Special Offer (All 5 Courses)———————————————————————— 18 Hours ——— Group Price $199 2008 Legal Update (MANDATORY) ————————————————————— 2 Hours ——— Single Price $24.99 Association Financial Management and Insurance —————————————— 4 Hours ——— Single Price $39.99 Operation of the Association’s Physical Property ——————————————— 4 Hours ——— Single Price $39.99 Communication Skills and Tools ——————————————————————— 4 Hours ——— Single Price $39.99 Board Operation, Teamwork, and Problem Solving ————————————— 4 Hours ——— Single Price $39.99

Total Hours ______ Total Tuition__________

Attest StatementBy signing my name, I certify that I personally completed the course and final examination without assistance from others. _____________________________ __________ Signature Date

o Special Offer (All 5 Courses - SAVE $36) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Hours . . . . . . . .Group Price $129o 2008 Legal Update (MANDATORY) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Hours . . . . . . . . Single Price $ 25o Association Financial Management and Insurance . . . . . . . . . . . . . . . . . . . . . . . . .4 Hours . . . . . . . . Single Price $ 35o Operation of the Association’s Physical Property . . . . . . . . . . . . . . . . . . . . . . . . . .4 Hours . . . . . . . . Single Price $ 35o Communication Skills and Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Hours . . . . . . . . Single Price $ 35o Board Operation, Teamwork, and Problem Solving . . . . . . . . . . . . . . . . . . . . . . . . .4 Hours . . . . . . . . Single Price $ 35

Total Hours ________ Total Tuition __________

+$ ________________

+$ ________________

TOTAL $ ________________Email or Fax my Certificate(s)of Completion to: ______________________________________________________ (your return email address or fax number)

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Attest Statement

By signing my name, I certify that I personally completed the course and final assessment without assistance from others .

_________________________________ _______________Signature Date

Attest Statement


_________________________________ _______________Signature Date

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2

Communication Skills and Tools #9625409 4 Hours $35

Operation of the Associationʼs Physical Property #9625408 4 Hours $35

Board Operation, Teamwork, and Problem Solving #9625410 4 Hours $35

General Evaluation

ANSWER SHEET Student Name:_____________________________________________ Daytime Phone:_________________________________


Course Evaluation Poor Good Excellent1. Learning objectives were clearly stated. 1 2 3 2. Course content was clear and organized. 1 2 3 3. Course material was relevant to my profession. 1 2 3 4. I felt prepared for the final assessment. 1 2 3

1. T F 4. T F 7. T F 10. T F 2. T F 5. T F 8. T F 3. T F 6. T F 9. T F Course Evaluation Poor Good Excellent1. Learning objectives were clearly stated. 1 2 3 2. Course content was clear and organized. 1 2 3 3. Course material was relevant to my profession. 1 2 3 4. I felt prepared for the final assessment. 1 2 3


Course Evaluation Poor Good Excellent1. Learning objectives were clearly stated. 1 2 3 2. Course content was clear and organized. 1 2 3 3. Course material was relevant to my profession. 1 2 3 4. I felt prepared for the final asessment. 1 2 3

Poor Good Excellent N/A

1.Overall satisfaction with online learning experience. 1 2 3 �2.The instructor responded to my inquiries in a reasonable amount of time. 1 2 3 �3.The instructor demonstrated knowledge of course content. 1 2 3 �4.The information provided to contact the instructor was adequate. 1 2 3 �5.The teaching / learning method was effective. 1 2 3 �6.Technical support sufficiently handled my inquiries. 1 2 3 �7.Technical support issues were handled in a quick manner. 1 2 3 �8.Administrative support met my overall needs. 1 2 3 �

Please help us serve you better by taking a few moments to share your comments about our course(s). Thank you!

Fax your Registration Form and Answer Sheet(s) to: (941) 378-3883 or mail to Bert Rodgers Schools, P.O. Box 4708, Sarasota, FL 34230 • Call 800-432-0320 or 941-378-2900




Attest Statement


_________________________________ _______________Signature Date

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1 2 3 ¨1 2 3 ¨1 2 3 ¨1 2 3 ¨1 2 3 ¨1 2 3 ¨1 2 3 ¨1 2 3 ¨

Attest Statement


_________________________________ _______________Signature Date

Attest Statement


_________________________________ _______________Signature Date

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