What are some good HOA fundraising ideas?

Here are some ideas HOAs can consider: culinary events, amenity rentals, game nights, festivals, sporting events, online shopping, converting unused parking lots and buildings, and installing vending machines.

Can the HOA impose political yard signs rules?

There are two main things to consider: State Law and the Governing Documents. Some state laws protect people's right to place political signs on their property. However, more often than not, states will allow HOAs to place reasonable restrictions on political signs. Also, homeowners associations often have architectural guidelines that dictate what homeowners can and cannot do with their property. For this reason, many HOAs will implement rules stating where and when homeowners may post political signage.

How do you manage HOA reserve fund accounts?

HOAs should: perform a reserve study periodically, set a goal, create a separate account, look for a secure place, prioritize return and liquidity, be transparent in accounting, and educate the board.

Does HOA cover plumbing?

The HOA is likely responsible for repairing plumbing systems contained within the common areas. In addition, most HOAs are in charge of maintaining shared pipes like sewage lines and main water lines that connect several properties.

How Can Homeowners Ask the HOA for Help with Plumbing?

Here are some things you can do: review the governing documents, document the problem, submit a formal request, try arbitration or mediation, talk to a lawyer, and take legal action.

Can Homeowner Fight an HOA Fine?

Yes, here is how you can do just that: review the rules, document the case, check for enforcement errors, request a variance, and file an appeal.

What are the best practices to handle HOA social media?

Here are some social media best practices for HOAs to keep in mind: define your goal, choose good platforms, develop a social media policy, appoint administrators, understand the law, adjust your privacy settings, do not invite complaints, handle negative comments with grace, deliver useful content, stick to facts, and do not post private information.

What are the responsibilities of HOA security guards?

Here are some of the most common inclusions you can expect: access control, visitor verification, entry log, regular patrol, and emergency response.

Why should you hire HOA security guards?

Here are the top reasons why your community may need them: crime deterrent, access control, parking rule enforcement, respond to domestic violence, stop unsafe or unapproved activity, and vandalism prevention.

admin, Author at HOA Management Software

How To Make HOA RFP For Vendors

admin on November 11, 2024

Homeowners associations require help from various vendors to function correctly. However, finding the right vendors can be a long and tedious task. Instead of asking for quotations, many HOAs choose to create and send an HOA RFP to the vendors of their choice.

What is an HOA Request for Proposal?

An HOA Request for Proposal (RFP) is a document the HOA provides to potential association vendors. It includes all the information involving a project’s specific details, scope of work, and quotation requests. The HOA RFP for vendors serves as a guide for companies interested in working with the association.

Typically, RFPs also indicate the process the HOA wants partners to follow. An HOA RFP also asks for custom information from the vendor to ensure they can meet the association’s requirements. This helps the board quickly assess whether the vendor is the right fit. Generally, RFPs achieve two things:

Introduction of the HOA. RFPs for association management services and other jobs introduce the community to the vendor. The vendor no longer needs to learn more about the association’s goals and requirements and adjust accordingly.
Better Understanding. RFPs allow HOAs to understand better how a prospective vendor operates. It unveils their processes and whether or not their operations are compatible with the HOA.

Unfortunately, there is a lot of negativity surrounding RFPs. Vendors dislike them because they prefer to invest time in customizing a proposal only when they’ve already won the client. An RFP demands more time and effort from the vendors even though it does not guarantee that they will work with the HOA.

Nonetheless, RFPs are a useful tool for large projects. Many vendors will still respond to RFPs instead of sending a generic proposal if they see the benefit in the project. If a vendor responds, the HOA will know they’re serious about their work and building a good relationship with the association.

How to Make an HOA RFP

Understanding RFPs and their importance is just half the battle. Once the board has decided to create an RFP for HOA management services or other jobs, it needs to create a thorough RFP to send to vendors. Here are some things HOAs should include in every RFP, whether for landscaping services, HOA management, or construction.

1. Overview

An HOA RFP must include an overview or summary of the request. The overview should describe the job and the vendor’s engagement with the association. Ensure the description is clear and provides a picture of what the HOA expects, where the project will take place and other requirements. Vendors will use the overview to determine whether or not they are the right fit for the job.

2. HOA Information

Every HOA RFP template should include the association’s information. Doing this allows the vendor to understand the HOA’s context and situation. It will also help them determine the project’s scope and requirements. Include the following information:

HOA location
Size of the community
Amenities and other facilities
Current staff and organizational structure
Present challenges within the community
Other information that would help the vendor understand the HOA

3. Project Goals

Homeowners associations shouldn’t just send an RFP detailing the project’s scope of work. They should also provide a clear objective for the project. After all, the deliverables and scope of work may change if the project’s overall goals and trajectory change.

Include the project’s purpose and the board’s vision for the community. Remember to outline it clearly so the vendors understand what the HOA is trying to achieve.

4. Scope of Work and Deliverables

Every RFP should include the scope of work. This helps the vendor understand the HOA’s expectations and obligations. Typically, this section is one of the lengthiest parts of the RFP.

There is no standard template for the scope of work. The important thing is that HOAs make their expectations clear. Here are some things the board should include in this section:

Reasons the HOA is looking for a vendor
Current HOA situation
List of services required from the vendor
Additional responsibilities the HOA may ask from the vendor
Projected timeline for the project
People responsible for decision-making

5. Vendor Information

RFPs should also include a section specifying the information the association needs from the contractor. As you might expect, this section will vary from job to job. Here are some things to include:

Vendor history (e.g., how long they’ve been operating, how many other associations they work with, previous work history, etc.)
List of staff
Specializations and processes
General scope of services
Any software the HOA must download to avail of the service
Budget and price breakdown
Support options

6. Submission Process

HOA vendors need to know what the application process is like. In this section, tell the vendor where and when they must submit the proposal. It may also include any next steps they can expect from the HOA after receiving the bid.

The board should explain their timeline for vendor selection. Doing this prevents vendors from needlessly waiting for a response. It saves everyone time and shows respect to the vendors as well.

In addition, make sure to outline how the HOA will choose a vendor. Most contractors will be interested in learning the HOA’s qualifications and how they will decide. This way, they can prepare a customized proposal that hits all the marks. HOAs should also let them know whether additional meetings or interviews will occur.

7. HOA Documents

Depending on the service, the HOA might also need to include additional documentation about the association. This will provide a clearer picture of the association’s circumstances and needs. Here are some of the documents the board may need to attach:

HOA CC&Rs and bylaws
Policy Manual
Membership application
Annual reports
HOA meeting minutes
Most recent financial statements
Year-end audit
Meeting brochure
Advertising rate card

Finding the Right Vendors

An HOA RFP is a useful tool for planned communities. It allows the board to fine-tune vendor requirements and find the most appropriate contractor. Preparing it in advance saves time for both the HOA and potential contractors.

Condo Manager is an excellent HOA management software tailored for HOA management companies and self-managed associations. Call us at (800) 626-1267 or contact us online for more details!

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8 HOA Fundraising Ideas For Extra Income

admin on October 22, 2024

Homeowners associations often rely on HOA fees as their main source of income. However, delinquencies and economic downturns can often make HOAs unstable or unable to make ends meet with just HOA fees. How can HOAs remain financially healthy despite economic hardships? The answer: through HOA fundraising activities.

HOA Fundraising Ideas for a Financially Healthy Community

Homeowners associations have many options to get extra cash to cover their expenses. They can raise HOA fees, levy special assessments, or obtain an HOA loan to cover the costs. However, while these strategies may be helpful, they are not always feasible or acceptable for the community residents.

What can the board do, then? One good idea is to raise the community’s income by hosting HOA community fundraisers. Here are some ideas HOAs can consider.

1. Culinary Events

HOA fundraising programs do not have to be boring or burdensome for the residents. They can even serve as community bonding activities. One good idea is to host culinary events like potlucks and cookoffs in the spring or fall.

In a cookoff, homeowners can register as chefs or attendees to taste the meals prepared. The HOA can charge the chefs to register and charge the attendees upon entry. During the event, people from all over the neighborhood — or even those outside the HOA — can come and taste food from various home cooks.

Meanwhile, the cooks and chefs can even sell some of their dishes to the participants. It’s a win-win because both the chefs and the HOA can raise funds. The HOA can even invite bands, food stalls, and other outside vendors to the event for more proceeds.

If the HOA is strict about outside visitors, they can also throw a potluck. Residents can bring a dish of their choice and pay a small fee to enter. Those who want to attend without bringing a dish can pay a higher entry fee.

2. Amenity Rentals

Many HOAs provide amenities like parks, gyms, pools, and co-working centers. Consider renting these out as part of HOA fundraising. The money HOAs can make from renting them out can be significant, especially if the amenities are nice or the HOA is in an area with high demand.

In addition, HOAs can host events in these amenities like camps and courses. For instance, they can invite schools to host a camp in the community park and clubhouse. If there are no schools in the area, the HOA can host an adult learning program like a gardening or cooking class.

Alternatively, HOAs can rent out the clubhouse for small events like birthday parties or class reunions. Consider advertising the space in local newspapers or social media.

3. Game Nights

HOAs can host game nights and charge a small entry fee. For example, the board can host bingo, poker, or board game nights every Thursday for the community residents. These games are fairly low-maintenance and can bring a lot of income, especially if they’re hosted every week.

However, make sure to check state law before hosting anything gambling-related. State laws may vary when it comes to gambling regulations. For instance, Flordia law allows penny-ante games wherein winnings for each round do not exceed $10. However, a person cannot receive commissions for conducting the game in their dwelling.

4. Festivals

HOA festivals are fun and lively events that invite people from all around the area to the community. The board can invite food vendors, game stalls, and local craftsmen to the event. They can then sell their goods and services during the festival. Moreover, the festival can have a highlight event like a battle of the bands or a silent auction.

Hosting festivals is a great way to raise funds while also supporting local artists, craftsmen, and businesses. The HOA can even prioritize residents who want to participate. It also fosters a better sense of community for the residents living there.

5. Sporting Events

Athletic activities are a great way to bring the community together while also raising some funds on the side. Consider hosting a sporting event where residents can participate in various sports for a small fee. The event can include sports like basketball, tennis, badminton, and even marathons or walk-a-thons. HOAs can also invite other vendors, like food or drink vendors, to raise more funds.

In addition, the HOA can incorporate other ways to raise money during the event. They can host a text-to-give donation event where residents and participants can donate what they can from their phones. Raffles are also a good way to convince participants to stay until the end of the event, thus driving more traffic and sales. Participants can purchase a raffle ticket for a chance to win a good prize.

6. Online Shopping

HOA fundraisers don’t always have to be physical. In fact, an online shopping fundraiser can sometimes be enough to cover additional expenses. The HOA only needs to partner with an online platform where people can purchase goods and services. Retailers can join in and post their listings and products through the platform. The HOA then gets a cut from every purchase made on the website.

7. Converting Unused Parking Lots and Buildings

Some HOAs may have unused parking lots or buildings that they can convert into a profitable business. For instance, if there’s a lot of unused land in the area, consider converting it into a pay-parking space. Outsiders (or even the residents’ guests) can pay for parking. It’s a good idea if the HOA is near any commercial establishments or offices.

Meanwhile, empty buildings can be converted into storage units used by the community residents. It’s a great way to put the building into good use without too much preparation or overhead.

8. Install Vending Machines

Vending machines can make the HOA a decent amount of extra income without breaking the bank. The community only needs to install them at convenient, high-traffic spots near the gyms, pools, or clubhouses. Vendors are often more than willing to pay a fee to use these spaces.

The HOA can also purchase vending machines and manage them in-house. They can cost anywhere between $1,200 to $10,000, depending on the model. The board should conduct a cost-benefit analysis to ensure they purchase the right one.

Prioritizing Financial Stability

At times, HOAs cannot rely on fees and assessments alone. Homeowners associations can host HOA fundraising events to ensure financial stability. It’s especially useful during economic downturns or when there are a lot of delinquencies in the community.

Condo Manager is an all-around HOA management software for both HOA management companies and self-managed neighborhoods. Call us today at (800) 626-1267 or get in touch with us online to request a demo!

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What Are The Typical Political Yard Signs Rules In Your HOA?

admin on October 10, 2024

Political yard signs rules have been a touchy topic within homeowners associations — and for good reason. Residents will often want to show their support for their candidate of choice during election season. However, it can cause division and conflict within a neighborhood. In addition, it’s not exactly the most appealing ornament in a front yard. Can HOA ban political signs?

Political Yard Signs Rules: What Can the HOA Do?

Can HOAs prohibit political signs? Homeowners associations often have strict rules about what decorations and items they can place in their front yard. Usually, trash bins and unsightly equipment need to be hidden from view. Moreover, some HOAs even prohibit homeowners from adorning their yards with off-season holiday decor.

When it comes to political sign rules, though, things are a little more complex. A lot of homeowners argue that implementing political sign regulations can prohibit their freedom of speech. They argue it conflicts with the First Amendment. Are they right? Is the HOA violating the Constitution by imposing campaign sign rules? There are two main things to consider: State Law and the Governing Documents.

State Law

Some state laws protect people’s right to place political signs on their property. This includes everything from banners and flyers to posters. However, more often than not, states will allow HOAs to place reasonable restrictions on political signs. This means rules for placing political signs are not necessarily illegal.

For instance, while California law prohibits HOAs from banning political signs, they can employ political yard signs rules that outline what kinds of signs are allowed. Associations can prohibit signs made of building, decorative, or landscaping materials.

Moreover, they can dictate where the homeowners can post political signs. In planned communities, residents can typically post signs in yards, doors, windows, and the sides of their property. Meanwhile, condominium residents can post signs inside their windows and on balconies. They cannot, however, post signs on exterior doors, walls, and windows because those are considered common elements.

According to California law, HOAs may also prohibit non-commercial posters and signs over 9 square feet in size. Meanwhile, HOAs can limit non-commercial flags and banners to 15 square feet. They can also ban common area signs and signs with obscenity.

Given these regulations, it’s safe to assume that political yard signs rules do not necessarily violate the First Amendment as long as they’re reasonable. HOA board members should review state law and consult an attorney to make sure they’re not violating any laws.

Governing Documents

Homeowners associations often have architectural guidelines that dictate what homeowners can and cannot do with their property. These guidelines preserve the community’s harmonious aesthetic and protect property values. Political signs are often an eyesore for many onlookers as they disrupt the community’s exterior facade.

For this reason, many HOAs will implement rules stating where and when homeowners may post political signage. The HOA has a right to enforce these rules so long as they do not violate state law. Thus, residents should review the governing documents before posting flyers or banners during election season.

On the flip side, HOA board members should also carefully review the governing documents before implementing policies regarding political signs. Homeowners may take legal action against the HOA if the board imposes a rule it has no right to.

What are Examples of Political Yard Signs Rules?

Homeowners associations have a variety of rules they can impose. Of course, they should review the governing documents and state law before implementing any of them. What political yard signs rules do they often use? Here are some common examples.

1. Number of Signs

Homeowners associations may limit the number of signs each home can have. Doing this prevents homes from being littered or overcrowded with political signs. It strikes a good balance between the freedom of self-expression and prioritizing community aesthetics.

2. Sign Placement

HOAs may indicate where homeowners can place their signs. Many associations allow them on front yards or front doors and windows. Typically, they place restrictions on how the signs are held up. Many will require residents to use ground-mounted signs instead of wall-mounted ones to preserve architectural uniformity.

3. Size of Signs

Homeowners associations restrict the size of each political sign allowed. Otherwise, even if an HOA limits signage to only one or two, homeowners may take advantage of the rule and post one massive billboard-sized sign on their front yard. Consider implementing a maximum size for each type of political sign — be it flyers, banners, flags, or posters. Large signs are not only aesthetically unappealing but they can also block paths or become safety hazards for the residents.

4. Posting Period

HOAs can restrict posting to only a certain period (e.g. during campaign or election season). Doing so allows the homeowners to show their support for their favorite candidate or political party without turning the community into an overly political neighborhood year-round.

It’s crucial to review the HOA’s governing documents and state law before implementing this, though. This is because some states prohibit HOAs from banning political signs within a certain number of days before and after election season.

5. Sign Materials

Homeowners can sometimes be overly enthusiastic when it comes to showing their support. Hence, they may build outlandish signs out of lights or concrete. These signs can not only be unsightly but may also disrupt the community’s architectural guidelines.

As a result, it may be wise to ban signs made of certain materials like concrete, greenery, lights, or balloons. The HOA may even provide a list of allowable materials such as cardboard, tarpaulin, or plywood.

6. Obscenity

HOAs may ban signs that feature obscene or offensive scenes and language. Doing so protects curb appeal and ensures no conflict arises between residents. Obscene signs can have more serious consequences such as monetary fines.

Striking a Balance

Homeowners associations can implement political yard signs rules without violating people’s rights to free speech. As long as they stick to reasonable restrictions that do not violate the law, political sign rules should be safe overall. However, it’s important to strike a balance and not prohibit political signs entirely. Otherwise, it can lead to complaints, conflict, and even lawsuits.

Condo Manager is a comprehensive HOA management software fit for both management companies and self-managed communities. Call us now at (800) 626-1267 or contact us online to get a demo!

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7 Best Ways For Managing HOA Reserve Fund

admin on September 26, 2024

Managing HOA reserve fund accounts is not easy. Done poorly, homeowners associations can easily deplete their reserves to cover other expenses. However, maintaining ample reserves is crucial to financial health. The community might suffer bigger losses if it foregoes proper reserve fund management.

Best Practices for Managing HOA Reserve Fund

No matter how well you prepare for it, emergencies happen to the best of us. HOAs might face lots of different crises like earthquakes, fire, or acts of terrorism. In these cases, one way to protect the community financially is to maintain ample reserves. Here’s what you need to know about how to manage HOA reserve fund accounts.

1. Perform a Reserve Study Periodically

What is a healthy reserve fund? There is no universal amount recommended for all HOAs. It truly depends on several factors, such as the HOA’s size, amenities, and exposure to risk. To determine a specific community’s ideal reserve amount, conducting a reserve study every few years is best.

A reserve study is a financial analysis performed by a reserve analyst or specialist. The conductor examines the HOA’s foreseeable capital improvements, upcoming repairs or replacements, current reserve accounts, and the condition of all HOA property. Based on these factors, analysts recommend how much the HOA should keep in its reserve account.

Reserve studies are not one-time events. In many communities, the CC&Rs or Bylaws require the board to conduct them every year or every few years. Even without these requirements, though, it’s usually a good idea to conduct the study at least once every three years.

2. Set a Goal

How do you account for reserve funds? After conducting a reserve study, the HOA may aim to maintain a certain percentage of the ideal reserve funds to remain healthy. Ideally, reserve accounts should be fully funded. However, maintaining a 70% funded reserve account should be a decent level to aim for if the community is underfunded.

The HOA can slowly work its way toward the goal. Board members may increase the assessments incrementally to achieve their desired funding. This way, the residents won’t face sudden hikes in HOA fees.

3. Create a Separate Account

Homeowners associations tend to combine funds in one bank account. However, this is not a good idea when it comes to managing HOA reserve fund accounts. An HOA that does this risks accidentally dipping into the reserves when it isn’t necessary.

Instead of mixing the funds, consider other avenues, such as other banks or money markets, to ensure the reserves are untouched and still earn interest. HOAs can also invest in certificates of deposit (CDs) with varying maturity intervals.

4. Look for a Secure Place

Regardless of where the HOA keeps the funds, the board should ensure that it’s secure. HOAs can consider banks and institutions with Federal Deposit Insurance Corporation (FDIC) protection. Keeping the reserve funds within the FDIC limit is also good practice.

HOAs may also create deposit accounts in institutions with experience running community association deposits. For example, services like the IntraFi Cash Service (ICS) network allow HOAs to distribute their reserves among several banks to ensure they’re all protected by FDIC coverage. Despite having multiple banks, the HOA only works with the ICS to manage its reserves.

5. Prioritize Return and Liquidity

Accidents happen, so HOA reserve funds need to remain liquid. The board should be able to easily access the funds should any unforeseen expense occur. In addition, the board should consider interest or returns. The reserves shouldn’t just remain safe, depreciating in value. That’s a bad business practice.

Instead, the reserve account should earn ample interest to keep up with inflation. While security and liquidity come first, earning interest should also be a priority. The board should build a good relationship with their bank or institution of choice. That way, they can assist the HOA and explain their options for increasing the reserve funds.

It’s also a good idea to periodically review the interest being earned on the current reserve accounts and inquire about any new programs that might yield higher interest. These offerings will vary by bank and account terms, so make sure to ask them every now and then.

6. Be Transparent in Accounting

Homeowners associations must be transparent about their financial practices and decisions. The residents might not like it when the HOA has to increase their fees to account for the reserves. Nevertheless, they can understand more if they see why the community needs the money.

The board should always communicate the purpose of the reserves. In fact, they can even discuss the reserve study results with the community members so they have a clear idea of the HOA’s current standing.

Apart from this, it’s equally crucial to separate regular assessments from reserve contributions in the account books. Noting each item separately in the income sheet can paint a more accurate picture of the HOA’s current status. Homeowners can also more easily see where their money is being spent.

7. Educate the Board

HOA board members are not always legal or financial experts. They rarely have financial or legal backgrounds. Hence, they might not know why the reserves are important and how to manage the funds wisely. HOAS needs to educate the board members about proper reserve fund management.

In addition, HOAs should review the legal or regulatory requirements regarding reserve funds. For instance, California HOAs are required to conduct reserve studies regardless of size unless the replacement costs are below 50% of the HOA’s gross budget. Keeping regulations in mind will ensure the HOA operates at full capacity and protects it from liability. It may be wise to ask an HOA attorney for help in board education.

Similarly, HOA board members must know how to read financial statements, understand reserve studies, and handle HOA banking. They may ask an experienced accountant for help or attend workshops to learn the ropes.

For the Community’s Protection

Managing HOA reserve fund accounts can be difficult for inexperienced board members. Nonetheless, the time and effort it takes to learn what to do and how to maintain ample reserves will pay off. A fully funded reserve account can save the HOA from financial crises during emergencies and rainy days.

Condo Manager is the best community association management platform for self-managed associations and HOA management companies. Contact us online or at (800) 626-1267 to learn more!

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HOA Is In Debt: How Does This Affect Homeowners?

admin on September 12, 2024

HOAs are responsible for managing the community’s funds. The board allocates the funds to maintenance, operations, and regular services. However, there are times when the HOA requires more funds and takes out a loan. This can be useful in several ways but it’s also a problem if the HOA defaults on its payments. How does it affect homeowners when the HOA is in debt? What are the options?

What is an HOA Loan?

An HOA loan is a distinct financial product offered by banks and creditors to qualified community associations. For the most part, HOA loans do not require individual credit checks, real estate collateral, or personal guarantees. Instead, the debt is secured using the community’s regular assessments. The lender provides money based on the HOA’s financial profile.

Homeowners association loans are usually secure. Banks and lenders use various tools to assess the association’s ability to repay the debt. However, there are times when an HOA defaults on a loan. In this case, the lender has no choice but to use other means to collect the principal and interest.

What Happens When the HOA is in Debt?

Like all organizations, homeowners associations may sometimes take out a loan to finance operations, expecting to earn back the money through income. The board may raise dues, levy special assessments, or find alternative sources of income to pay the money back.

However, several things happen when an HOA becomes delinquent. Lenders typically try to work through short-term issues during the initial stages. The lender may understand if the HOA is facing a problem with changes in its accounting. They may also be more patient if the cause is a change in board members or management companies.

However, the bank or lender will take legal action if an HOA fails to pay its loan for several months. They will ask the courts for a judgment to collect the HOA’s monthly dues. This means the lender will have the first right to monthly payments before returning what’s left over to the HOA. Hence, the homeowners’ payments will go straight to the lender instead of maintenance, capital improvements, or operations. The legal system will designate an account where future dues will end up.

As a result, the homeowners association will have to operate at a reduced cash flow. The HOA’s regular services and operations, like landscaping, snow removal, or garbage collection, may suffer. Sometimes, the HOA may even file for bankruptcy to repay the debt. Regardless, the homeowners will be the most affected by the default.

Can HOAs Still Sell Homes?

Homeowners associations may still sell homes or even purchase property while it’s repaying the loan. The community’s daily life will likely continue, albeit with fewer services and perks. Moreover, the homeowners’ credit scores and home mortgages will not be affected even if the HOA is in debt. Lenders cannot collect homeowners’ properties as they are not put up for collateral.

What Causes an HOA to Default on a Loan?

Banks and lenders rarely approve a loan if they think the HOA is unqualified. However, even an HOA in good standing can default for several reasons. If your community is considering a loan, be careful of the following pitfalls.

Delinquencies. Homeowners may fail to make monthly payments and default on their assessments. While the HOA can take measures to reduce delinquencies or collect unpaid debt, unexpected delinquencies may cause the community to default on its loan payment.
Poor Planning. HOAs without a clear financial plan may have trouble paying back the loan’s principal and interest. The HOA may also spend money on items that won’t provide a return on their investment.
Misuse of Funds. The HOA board may misuse the funds for frivolous spending or personal gain.

Can the HOA Declare Bankruptcy?

Homeowners associations may legally file for bankruptcy like other organizations. There are two main kinds of bankruptcies a community can file for:

Chapter 7. Bankruptcy under Chapter 7 is less common and requires the HOA to liquidate its assets to settle debts.
Chapter 11. Bankruptcy under Chapter 11 allows the HOA to reorganize and manage daily proceedings. However, big decisions will need approval from the court. HOAs that file for bankruptcy under this chapter must devise a repayment plan and follow through under a court trustee’s supervision.

How to Avoid Defaulting on an HOA Loan

Homeowners associations should take several measures to avoid defaulting on a loan. Here are some things an HOA can do to ensure it can pay its debts.

1. Increase Dues

A lot of HOAs take out loans precisely so they wouldn’t have to increase monthly assessments. However, increasing the monthly dues is usually a good idea anyway so the community doesn’t default on the loan. Consider gradually increasing the dues over time. This way, homeowners won’t be shocked by a sudden jump in fees, allowing them to adjust their budgets to meet the loan repayments.

2. Cut Down on Expenses

One good strategy to adopt is to temporarily cut down on expenses to remain current on loan payments. Consider pausing non-essential activities such as capital improvement projects, renovations, and new constructions. In addition, the community may try to renegotiate some vendor contracts to obtain a discount. The board may also look for other vendors that offer the same service at a lower price to reduce monthly spending.

3. Consider Other Sources of Income

Homeowners associations primarily obtain income through member assessments. However, while it’s a good idea to increase monthly assessments, HOAs may also consider other sources of income. For example, the community might consider renting out certain amenities like the gym or clubhouse. Rental income can relieve the HOA and community members as it may compensate for a slight assessment increase.

4. Create a Financial Plan

Good financial planning is key to staying financially stable. Make sure to consider how the loan will be used seriously. Moreover, a plan must be devised to obtain more funds to repay the loan. The board may pick one or two of the strategies above or even combine all the strategies to reduce the odds of default effectively.

Responsible Financial Management

Homeowners will be significantly affected if their HOA is in debt. For this reason, it’s best to come up with a good financial plan before taking out a loan. Otherwise, homeowners will suffer as the HOA may fail to provide its promised services.

Condo Manager is an industry-leading management tool for planned communities and management companies. Let us help you with everything related to community management and financial planning. Call us now at (800) 626-1267 or contact us online to get a demo!

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HOA Plumbing: What Is The HOA Responsible For?

admin on August 27, 2024

Homeowners associations are generally responsible for repairing and maintaining the common elements. However, what if a common element — such as the plumbing system — encompasses the common areas and individual units? Is the association responsible for HOA plumbing?

HOA Plumbing Repair and Maintenance

Does the HOA cover plumbing? The HOA is likely responsible for repairing plumbing systems in the common areas. Moreover, the board should conduct periodic inspections and regular maintenance activities on the plumbing system.

In addition, most HOAs are in charge of maintaining shared pipes, such as sewage lines and main water lines, that connect several properties. The HOA collects dues from every homeowner to cover the cost.

However, maintenance responsibilities can become more complex if special circumstances or conditions exist. For instance, some lines are shared between only a few properties. Depending on the HOA’s governing documents, the cost may need to be distributed between those homes alone. The units that do not share that water line may not need to contribute.

What are Homeowners Responsible For?

Are homeowners ever responsible for HOA plumbing repairs? Generally speaking, homeowners are responsible for water lines and pipes entering their property. This is true even if the breakage causes damage to several other units. However, it’s best to check the governing documents to see if there are special conditions that hold the HOA responsible.

Who is Responsible for Plumbing Leaks?

What happens when the plumbing system causes water damage to the common elements or units? Is the association accountable, or are the homeowners responsible for repairing the damage?

HOA plumbing responsibilities depend on several factors. First, it’s important to check the governing documents for any water intrusion policy. In condominium associations, the governing documents often dictate whether the association is responsible for water damage or not. They may even specify the kinds of situations where the HOA should be held responsible.

For example, many condominium documents specify that the unit owner is responsible for water damage to interior units. Meanwhile, the association will cover damage to the exterior.

It may also depend on who is at fault. If the HOA neglected its duty to maintain the neighborhood’s plumbing and drainage system, it may be responsible for the water damage that results from that negligence. Likewise, homeowners may be responsible for any water damage resulting from their negligence, misuse, or oversight.

In addition, homeowners should understand that modifications and improvements to their homes may change who is responsible for plumbing leaks. If a homeowner alters their unit’s plumbing system during a renovation, the alternation might implicate the homeowner should any problems arise. The association could argue that the homeowner’s alterations caused the damage, even if the HOA is typically responsible for maintaining those lines.

Insurance and Water Damage

The HOA and the homeowners are responsible for purchasing insurance to protect their properties. However, while homeowners are responsible for property damages, insurance providers may offer differing policies. Homeowners must understand the scope of their coverage and whether it includes damage from plumbing-related problems.

Insurance providers may also examine the issue’s circumstances to determine whether the policy covers it. Often, they look at what caused the water damage in the first place. Some policies may also offer limited coverage for specific scenarios. It’s essential to consult your insurance agent and clarify the coverage before purchasing a policy.

How to Ask the HOA for Help

Plumbing leaks are not only inconvenient, but they can also damage other parts of the property and even lead to mold. This health hazard might prompt homeowners to fix the issue even if the HOA might be responsible. What steps can homeowners take to help their case and take care of HOA plumbing? Here are some things you can do.

1. Review the Governing Documents

To determine responsibility, check the governing documents, specifically the Declaration of Covenants, Conditions, & Restrictions (CC&Rs). The bylaws and HOA rules may also indicate who’s responsible for what and under what circumstances. Homeowners may raise this with the board or HOA manager if the HOA is responsible.

2. Document the Problem

Homeowners and HOAs should document the problem in detail. Describe the situation, take photos and videos, and document all the attempts to resolve the issue. It may also be helpful to ask a professional to help you pinpoint the cause of the problem. This may determine the cause and who is responsible for the issue.

3. Submit a Formal Request

Homeowners should submit a formal request to the association explaining the issue. They can include why they think the HOA is responsible by quoting the governing documents. Make sure to submit the request in writing so there’s a paper trail of all your attempts to reach out to the board.

4. Try Arbitration or Mediation

Third-party dispute resolution is a good option if the HOA still refuses to resolve the issue. Some states and organizations offer arbitration and mediation services that help homeowners and HOAs resolve conflicts. The HOA governing documents may also outline what steps you need to take for arbitration and mediation.

5. Talk to a Lawyer

Homeowners may consult an attorney to communicate with the HOA on the unit owner’s behalf. They can also provide legal advice regarding the issue.

6. Take Legal Action

Homeowners may file a lawsuit against the HOA if the association still refuses or neglects to fulfill their HOA plumbing duties. The lawsuit could compel the association to meet its obligations. However, filing a lawsuit takes time, effort, and money. Make sure to use it only as a last resort.

Understanding Maintenance Responsibilities

HOA plumbing issues can be tricky to navigate as most pipelines run through the entire community. It’s even harder when some pipes only serve a few residences and not others. Both homeowners and board members must review the governing documents to understand their scope of responsibility.

Condo Manager is industry-leading HOA management software for self-managed neighborhoods and management companies. Call us today at (800) 626-1267 or contact us online to request a demo!

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What Happens If You Don’t Pay HOA Fines

admin on July 26, 2024

Homeowners are bound by the community’s governing documents, which means they must follow its rules. One of an HOA member’s responsibilities is to abide by the community’s regulations and pay their dues on time. The HOA may impose a monetary fine when they fail to fulfill their obligations. However, what happens if you don’t pay HOA fines? Are there any consequences? Let’s find out.

Are Homeowners Required to Pay HOA Fines?

Homeowners can be fined for several reasons. It could be a penalty for overdue HOA fees or a charge imposed because of a rule violation. Regardless of the reason, fines exist to enforce rules and penalize the homeowner for some sort of infringement of the HOA’s guidelines and regulations. After all, homeowners are more likely to comply with the rules if a violation results in a monetary penalty.

That said, are homeowners required to pay HOA fines? In most cases, yes. HOA fines are legally enforceable, so homeowners are generally required to pay them. HOAs typically have the right to impose them to penalize homeowners for violations. Homeowners may face several consequences When they refuse to pay HOA fines.

What Happens if You Don’t Pay HOA Fines?

Fines are serious business, and non-payment can lead to severe consequences. What happens if you don’t pay an HOA fine? Here are some things the homeowners association can do if you refuse to pay a fine.

Place a Lien on the Property

What happens if you refuse to pay HOA fines? Usually, homeowners associations will notify the homeowners in writing of the violation, how to cure it, and the associated penalties. HOAs will often leave the member alone once the violation is corrected or the penalty is paid.

However, if the violation persists and the homeowner refuses to pay the fines, the HOA may send a “Notice of Lien” to the homeowner. A lien is a claim against a member’s property to collect unpaid fees. HOAs typically have an automatic lien on the home the moment the homeowner’s payments become overdue. They often do not need a court judgment.

Specific state laws reinforce this right. For example, California Civil Code Section 5675(a) states that the fees, plus collection costs, late charges, and interest, shall constitute a lien against the homeowner’s property after recordation with the county recorder’s office.

A lien can cause complications in several ways. First, homeowners may have problems refinancing their mortgages should they ever need to. Potential lenders will be less likely to cooperate with the homeowner. In addition, homeowners who want to sell the property may run into issues, too. Buyers are usually on the lookout for properties with clean titles, and a lien on the property can deter interested buyers.

Legal Action and Foreclosure

Once a lien is placed on the property, the potential for foreclosure opens up. The homeowners association can foreclose the property to collect all the unpaid charges. This means the HOA can sell the home to pay off your debt.

The foreclosure process varies significantly by state. In some states, the HOA has to file a lawsuit and initiate a judicial foreclosure to collect the money. The board has to get legal approval first, requiring them to attend hearings, file paperwork, and obtain a court order to sell the home.

However, some states allow HOAs to use a nonjudicial foreclosure process. In this case, the HOA does not have to go to court to initiate foreclosure. They will only need to comply with the process outlined in state law and the HOA’s CC&Rs. It’s a faster and more affordable process.

Can HOAs Impose Fines Without Evidence?

Homeowners associations are not allowed to fine members without cause. They only have the authority to levy fines if the resident breaks a rule. As such, the HOA is usually responsible for providing evidence of the violation. They must provide proof should the homeowner ever contest the violation.

The best kind of evidence includes documentation and photo/video evidence. If a homeowner is fined because of overdue fees, the HOA may use the homeowner’s statement as evidence. Meanwhile, if the fine is because of a rule violation, the HOA should provide photo or video evidence of the act. However, don’t underestimate the value of eyewitness statements and testimonies. They can also serve as sufficient evidence during a dispute.

Can a Homeowner Fight an HOA Fine?

If a homeowner thinks they were fined unfairly, they may fight the charges. Here is how you can do just that.

1. Review the Rules

First and foremost, homeowners should read and understand the governing documents. This will help them determine whether their fight is justified or whether they need to pay the money.

Make sure to review the rule you have allegedly violated and see whether it’s enforceable. Moreover, if the HOA has a collection policy or schedule in place, the HOA must follow it.

2. Document the Case

It’s important to gather evidence and document everything related to the case. Compile all the evidence, including emails, letters, and photographs, that can reinforce your argument. For example, if the HOA fines you for violating a driveway parking rule, it may help to get the footage from your home’s CCTV camera to prove your innocence.

3. Check for Enforcement Errors

Homeowners associations must enforce the rules uniformly. They cannot pick and choose when and who to penalize when a rule is broken. If you believe the HOA is enforcing the rule on you but not on others, gather evidence of this fact and raise the concern with the board.

In addition, HOAs may sometimes discriminate against certain individuals for specific characteristics such as race or religion. If you think the HOA’s fines are discriminatory, it may violate the Fair Housing Act.

Finally, it’s best to review specific state laws regarding restrictive covenants. Many states protect certain homeowner rights. For instance, many states prohibit HOAs from banning satellite TV dishes, solar panels, and electric vehicle charging stations.

4. Request a Variance

In some cases, governing documents will permit a variance to homeowners who don’t comply with specific rules. For instance, some municipal governments allow zoning variances to homeowners depending on their surroundings and property.

However, remember that variances are the exception and not the rule. HOAs cannot give variances simply because the homeowner wants it. There needs to be a justifiable reason.

5. File an Appeal

After researching and preparing your plan, file an appeal with the board. This usually involves sending a letter disputing the fine to the board.

Homeowners should compile and send the evidence along with the dispute letter. If possible, consider asking a lawyer to help you write the letter.

Is There an Alternative to Paying Fines?

Now that you know what happens if you don’t pay HOA fines, you might think: is there no alternative? What if I cannot afford to pay the penalties? In this case, homeowners may negotiate with the board and work out a payment plan. The board may extend grace and allow the member to pay the charges in installments.

What Happens if You Don’t Pay HOA Fines? Answered!

HOA fines are an essential part of rule enforcement. Homeowners associations use them to keep homeowners in check. Otherwise, rule violations would be more common, and the HOA would have no way of ensuring compliance. It’s only natural that homeowners must pay fines — and that nonpayment has consequences.

Condo Manager is a powerful HOA management software for management companies and self-managed communities. Call us today at (800) 626-1267 or contact us online to book a demo!

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HOA Social Media Account Best Practices

admin on July 15, 2024

Gone are the days when homeowners associations had to rely on HOA websites to post announcements and reach members. Nowadays, disseminating information is as easy as posting on HOA social media. However, just because social media is robust and accessible doesn’t mean it’s infallible. HOA board members must learn how to use these platforms wisely to be effective.

The Complexities of HOA Social Media

Social media has provided many benefits to homeowners associations. HOAs can post announcements, meeting notices, and event reminders. Meanwhile, community members can share their feedback and engage with their neighbors. However, while social media is helpful, it can quickly devolve into chaos.

For instance, HOA members might spam promotional posts about their business or post the same critical feedback every other day in the Facebook group. Some might use it to promote harmful ideas that invoke fear in the community. Board members might choose to delete all these posts, but if your HOA is large, this can be time-consuming. In the worst-case scenario, these posts can damage the community’s well-being. They can sow discord among members, undercut HOA rules and authority, and even lead to legal claims and lawsuits.

Conversely, the HOA social media might not take off. Members might not engage or even check the association’s social accounts, resulting in neglected announcements and ineffective communication.

Best Practices to Handle HOA Social Media

How do you bring order to an otherwise chaotic social media platform? Moreover, how can you bring value to the community using social media? Here are some social media best practices for HOAs to keep in mind.

1. Define Your Goal

A homeowners association should know why they are creating a social media account. Is it to disseminate announcements quickly? Does the HOA want to build a stronger sense of community? Regardless of the purpose, an HOA should clearly define its goal for the social media account. This goal will help you develop guidelines about how to use the platform and provide direction in the content you post.

2. Choose Good Platforms

Should a HOA have a Facebook page? Is it better to create a Twitter or Instagram account instead? The answer will depend on the community’s goal. Creating an HOA Facebook page and public Instagram account may be the best choice if you aim to promote the neighborhood to potential buyers. However, if you want to disseminate short announcements, using Twitter quickly might be the best option.

A chat group can also be beneficial, depending on your needs. Private group chats can encourage organic communication between homeowners and foster a sense of community. But they’re harder to review, and you cannot moderate content as easily.

In addition, it’s important to consider your demographic. Older homeowners might be more familiar with Facebook and LinkedIn. However, Instagram and Twitter might appeal to younger members. Generally, most homeowners associations opt for Facebook and LinkedIn as they can foster a good sense of community.

3. Develop a Social Media Policy

An HOA social media policy defines who can access the website, what information is allowed, and what kinds of posts are prohibited. The policy establishes the rules of etiquette in the HOA’s online accounts to ensure peace and order. Here are some questions you can consider while developing your policy:

Will the social media page be public or exclusive to residents?
Who can post on the social media group or page?
What kind of content is allowed, and what is prohibited?
Will the HOA screen content before publishing? How?
What authority does the board have to penalize violators?
What are the homeowners’ privacy rights?

A social media policy will protect the association from liability and make social media use more effective. We recommend posting these guidelines on a separate HOA Facebook group rules post. Moreover, be clear about when and how to delete posts violating your guidelines.

4. Appoint Administrators

HOA board members on social media are usually appointed as administrators of these platforms. However, appointing only a few people — maybe two to three individuals — to manage the accounts is best. These administrators are responsible for posting, monitoring posts or comments, and responding quickly to homeowners. They should also bring any concerns to the board’s attention.

Administrators need to be able to handle conflict gracefully. They should also be wise enough to discern permitted from prohibited content. Sometimes, the lines can be blurry. Finally, they should know what and how to post on these platforms. Who you choose to be an administrator can make or break your association’s reputation and determine whether you achieve your goals.

5. Understand the Law

HOAs should be aware of any relevant laws. For example, plagiarism, copyright infringement, privacy violations, and posts that cause emotional distress could easily lead to a lawsuit. Posts and comments made online remain there forever. Even deleted posts can find their way back into the internet through screenshots. Be mindful of the law before you post anything.

6. Adjust Your Privacy Settings

It’s always important to determine your privacy settings before doing anything. Typically, it’s a good idea to keep your social media page or group private. This keeps non-members from joining and causing distractions. Moreover, it ensures all content remains relevant to the community.

7. Do Not Invite Complaints

Homeowners associations will sometimes sponsor a forum where homeowners can post their complaints. While this seems like a good idea, it usually doesn’t end well. This is because forums like these invite defamatory statements that the HOA might not like.

8. Handle Negative Comments with Grace

All too often, homeowners associations penalize members who post negative comments. Some may even file a lawsuit for critical feedback. This begs the question: can an HOA sue you for social media posts? While an HOA may try, some argue it could violate the First Amendment. The HOA’s action may also be invalid if the homeowner posts on their personal social media account.

Penalizing homeowners for negative comments, unless they are outright defamatory or actionable, may reflect poorly on the association. It’s usually best to handle negative comments and posts with grace. Take the time to respond and hear the residents out. Let them know you know where they’re coming from and acknowledge their grievances. Doing this shows how much the HOA cares about the community. If possible, move the conversation to a private space.

9. Deliver Useful Content

Engagement is an integral part of social media. The HOA’s social media account might become useless if it isn’t engaging. What use is there to post announcements on a website nobody looks at or sees?

To drive engagement, focus on posting helpful content for the homeowners. Share relevant photos, such as those of meetings and community events. You can also publish a blend of administrative and social content. For example, some posts might involve policy updates, road closures, and meeting dates. This is necessary information for homeowners to be aware of.

However, your social media page shouldn’t solely consist of this. To boost engagement, it’s also best to post about birthdays, events, parties, and resident accomplishments. Aim to deliver a variety of useful content.

10. Stick to Facts

Social media should not be used to promote opinions, editorials, and political ideals. Doing so could put the HOA in hot water and cause conflict. Instead, post only factual information. Examples include weather alerts, holiday notices, lost pet alerts, event information, meeting dates and times, parking rules, and construction announcements.

11. Do Not Post Private Information

When posting on social media, avoid violating people’s privacy. Avoid posting healthcare data, personal information, and financial information at all costs. If you’re unsure whether a post violates privacy laws, it’s best not to post it.

The Bottom Line

HOA social media can be a powerful tool. It can foster a stronger bond between the community’s residents and quickly disseminate essential announcements. However, social media comes with many risks. Board members should familiarize themselves with these risks and employ these best practices to avoid liability.

Condo Manager is a robust HOA management software for HOA management companies and self-managed associations. Call us today at (800) 626-1267 or contact us online for a demo!

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Should You Hire HOA Security Guards?

admin on June 27, 2024

Safety is a growing concern in the United States. For this reason, many communities are doubling down on security by hiring HOA security guards. However, this choice is not always suitable for every neighborhood. When should a community hire private security?

What are HOA Security Guards?

The role of HOA private security is precisely as it sounds. Security guards exist to guard the community from potential criminals. They watch over the neighborhood and are on the lookout for criminal activity. Typically, their very presence can reduce the number of incidents within the HOA.

In a gated community, security guards are often stationed at the guardhouses of each entrance. They also sometimes patrol the community, depending on the community’s needs. Moreover, they can respond quickly to incidents such as theft and vandalism. They are often also trained to de-escalate conflict and contact emergency services.

HOA Security Guards Responsibilities

The roles and responsibilities of a security guard will depend on your contract agreement. Here are some of the most common inclusions you can expect:

Access Control. Security guards may guard entry points to ensure only those authorized can enter the community.
Visitor Verification. Security guards may manage and verify the identities of visitors to ensure safety.
Entry Log. Security guards may maintain a detailed entry log to record everyone who has entered or exited the community.
Regular Patrol. Security guards may patrol the community on foot or using vehicles to monitor the area for suspicious activity, safety hazards, or security risks.
Emergency Response. Security guards may be available to respond to potential threats and emergencies.

Who Pays for HOA Security Guards?

HOA security falls under the association’s regular services. Hence, homeowners associations will often include their services in HOA fees. While the HOA technically pays the security guards or companies, the money is taken from member assessments.

The board must include the cost of security services within the HOA budget. This will help them divide the cost among all the residents and reduce the individual burden. However, it’s best to clarify why the community needs security guards in the first place. Raising awareness will help the homeowners understand what they are paying for and reduce conflict.

Why Hire HOA Security Guards?

HOA security guards have several benefits. Here are the top reasons why your community may need them.

1. Crime Deterrent

Over 3,000 burglaries happen every day in the United States. A large majority of those have happened when no one was home. Moreover, properties without security are 300% more likely to be burglarized.

HOA security guards can reduce crime risk significantly. This is because their very presence often scares off potential criminals. Moreover, they can prevent crimes like burglary, auto theft, vandalism, and illicit drug use.

2. Access Control

Access control benefits condominiums and gated communities greatly. However, even non-gated neighborhoods can benefit from this type of security when they hire private guards. Guards can control access to community facilities and amenities and prevent trespassing and unauthorized use.

3. Parking Rule Enforcement

Apart from security, guards can help the community enforce parking rules. They can stop unauthorized cars from entering the community and regulate who can park where and during which hours.

4. Respond to Domestic Violence

Domestic violence is a common occurrence. Security guards can respond to these instances and defuse the situation. They can also call law enforcement and help ensure the victim’s safety until the police arrive. Moreover, they can serve as witnesses and aid in the police’s investigation when they ask for evidence.

5. Stop Unsafe or Unapproved Activity

Homeowners may sometimes get into fights, throw unruly parties, or behave in a way that threatens the safety of community residents. Security guards can stop these activities and prevent them from escalating. They can also report illegal activities to the police.

6. Vandalism Prevention

Vandals often target residential neighborhoods. They might trespass into residents’ homes, break objects, or spray paint buildings. Sometimes, even the homeowners themselves can be vandals.

Security guards can prevent vandalism by patrolling the neighborhood. They can watch out for suspicious individuals and to avoid property damage.

The Alternative: HOA Security Cameras

While an HOA security patrol is undoubtedly useful, it can also be costly. This is especially true for large communities with multiple entry points. However, just because a community cannot afford security guards does not mean they should give up on enhancing safety and security.

As an alternative, HOAs with a smaller budget can choose to install security cameras. These cameras are often easy to install and configure, allowing the board to continuously monitor the neighborhood and even store relevant footage.

Like security guards, HOA security cameras can deter crime. Criminals are afraid of being caught even after the fact. They are less likely to act out when they see a security camera around. Otherwise, they risk being caught by the police and facing jail time.

On the other hand, security cameras also have their flaws. For one thing, they can be disabled or covered. Criminals may also study their blind spots and stay out of their line of sight while engaging in illegal activity.

Of course, this does not mean hiring security guards is the best choice for all communities. Apart from the budget, communities must consider their size, needs, and nature. Security guards also have downsides such as cost, capacity, and potential for human error.

Ideally, homeowners associations will employ security guards and cameras to ensure safety. However, it will ultimately be a balancing act. The board must consider the community’s needs, budget, and what the residents are comfortable with.

A Good Investment for Safety and Security

HOA security guards can be a good investment, especially if the community is in an area with a high crime rate. Security guards can make homeowners feel safe and prevent criminal activity. However, HOAs must consider the cost of their services and weigh it against the potential benefits.

Condo Manager is a reliable HOA management software for self-managed communities and HOA management companies. Call us at (800) 626-1267 or contact us online to request a demo!

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Can Homeowners Get Speeding Tickets In HOAs?

admin on June 13, 2024

Are speeding tickets in HOAs allowed? Can homeowners associations regulate how fast you can go within the community? While HOAs can generally create and enforce rules, speeding is a little more complicated.

Can an HOA Issue Speeding Tickets?

Law enforcement is typically responsible for regulating traffic and issuing penalties for traffic violations on public roads. However, they are legally not allowed to control traffic on private roads. Controlling speeding within private community roads is often left to the homeowners association.

The association can regulate traffic by adding rumbles and speed bumps. It can also add an HOA speeding camera to catch offenders. Perhaps the most controversial tactic is the HOA’s ability to set speed limits. Yes, HOAs can impose and enforce speed limits, even if they are stricter than county limits. They can do this as long as the limits are considered reasonable. These rules are often found under the nuisance clauses within HOA governing documents.

Despite this power, many people still ask: can you get a speeding ticket in an HOA community? Generally, HOAs are not allowed to issue tickets for HOA speeding — at least, not how the police would issue speeding tickets. Instead, homeowners associations will treat speeding as a regular violation.

What About Private Officers?

Association board members may sometimes hire private guards or officers to issue speeding tickets in HOAs. However, only law enforcement has the authority to issue speeding tickets. Communities that ask private officers to issue citations may be at risk of liability. A resident or guest may sue the association for unlawful arrest.

In addition, private officers usually do not have the skills or experience to apprehend moving vehicles. Things could get messy if they do attempt to arrest someone driving. Overall, it’s best to leave issuing speeding tickets and arresting speeding violators to the police.

How Do HOAs Enforce Speeding Rules?

When a resident exceeds the speed limit, the HOA will enforce the rules using the normal violation process. Associations usually send notice to the violating homeowner and issue a warning.

On the second offense, the HOA may impose a monetary penalty. The association may also suspend the homeowner’s rights and privileges or, in extreme cases, file a lawsuit.

However, homeowners associations can only penalize homeowners if they have made the rules known. This makes posting visible speed limit signage very important to planned communities. Without them, the board may not have grounds to fine a homeowner.

Furthermore, associations generally need to allow residents to be heard before they issue penalties. HOAs often hold a hearing before the board (or a committee) where the accused may present their case.

What About Violating Guests?

Homeowners are not the only ones who use private roads. Guests can also drive along these roads and violate the community’s speeding rules. However, visitors are not subject to the community’s CC&Rs. How can an HOA enforce the rules if they don’t have authority over guests?

Firstly, it’s important to check the governing documents. Some governing documents allow the board to impose penalties on the homeowner for guest and tenant violations, passing the burden of responsibility on to the actual HOA member.

State law may also address this issue. In California, a similar rule exists, allowing associations to penalize homeowners for their tenants’ or guests’ driving violations.

No Authority Over Public Roads

It may be tempting to penalize the residents for violating parking rules and speed limits on public roads adjacent to HOA property. However, associations typically do not have authority over public roads. They cannot install speed bumps, set limits, or impose fines for speeding on these pathways. Instead, the HOA should pass the issue to local law enforcement.

How to Keep Speeding to a Minimum

While associations cannot issue speeding tickets in HOAs, they can enforce the speed limit in other ways. Here are some ways boards can limit the number of speeding violations in their community.

1. Post Signage

Speed limits must be communicated with the community — that is a rule. Otherwise, how would homeowners know what not to exceed while driving to and from their homes? Post large, visible signs wherever possible to remind the residents.

In addition, HOAs can also post signs that support the speed limit, such as “Children at Play” or “Pedestrians Crossing.” These signs are often enough to deter residents from speeding because they know the risks.

Finally, use standard formats and proper placement when posting signs. Local authorities may sometimes assist with traffic violations but may be unable to do so if the signage is incorrect.

2. Send Reminders

Apart from signs, HOAs may also periodically send emails to residents to remind them of the rules. Board members can also use other communication channels, such as their community website, social media page, or newsletter, to limit violations.

3. Install Rumbles and Speed Bumps

Rumbles, speed bumps, humps, and cushions are effective ways to reduce speed and limit traffic accidents. If the community does not already have these, consider asking a civil engineer to identify the optimal places to install them.

HOAs may also ask the local municipal department to abide by local building ordinances and codes.

4. Use a Speed Camera

An HOA speed camera is a good way to deter residents from speeding. It may be expensive, but it can help the board catch violators and enforce the rules consistently. Moreover, they can give the board hard evidence of the violation if a homeowner contests the penalty. Install them strategically to record speeds, license plates, dates, and times.

5. Hire Traffic Officers

Large gated communities may want to hire private traffic officers to record speeding cars. These officers cannot issue tickets but can report violations to the board.

A Serious Problem

Speeding is dangerous regardless of where it happens. While associations cannot issue speeding tickets in HOAs, they can regulate traffic rules and impose fines. Board members should also take a proactive approach and reduce the likelihood of speeding within the community to prevent accidents.

Condo Manager is an effective community management tool that helps homeowners associations and management companies streamline their operations. Call us now at (800) 626-1267 or contact us online to book a demo!

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