It is proven that more than 25% renter occupancy in a condominium complex is risky to new buyers. Many financial institutions will not finance new buyers if the renter occupancy is over 25%. Also, renters do not have a personal stake in the buildings or common areas, and there is a risk of them not keeping the property clean and in good condition.
With hurricane season upon us, the author explains 10 mistakes that homeowners make when faced with a hurricane. Good advice for those living in these areas.
The author of this Q & A addresses renters attending board meetings and common areas being rented out to outside the association for storage.
A homestead exemption is explained in this Q & A. The author explains that the state of California provides an exemption as a way of protecting some, if not all, your equity.
A man who claims to have not been given notice of a hearing regarding establishing unity of title, is appealing the ruling because he wants the opportunity to present his case.
A homeowners association claims their wastewater bill is more than double what they usually pay. The city has agreed to help them pay the bill until they find out if there is a malfunction in their system.
New Reserve Study Standards Issued by International Group
Written by Gary Porter
The International Capital Budgeting Institute (ICBI) announced the adoption of new professional reserve study standards effective April 16, 2015. These standards, known as Generally Accepted Reserve Study Principles and Generally Accepted Reserve Study Standards, represent the culmination of a year-long effort by ICBI to provide standards for reliable, consistent reserve studies for the community association and timeshare industries. These standards represent the biggest change in the reserve study process in twenty years and will result in better reliability and consistency of reporting in reserves.
ICBI formed a team of 16 industry professionals from six countries for this process. The ICBI standards committee included a broad spectrum of industry professionals that were able to provide a perspective reflecting all stakeholders in the industry. These are truly global standards and are already being applied in several countries.
The primary differences of the new ICBI standards as compared to previously existing standards are best summarized in four broad categories:
1) A more comprehensive definition of components – The standards expand and clarify the definition of components to reflect the true maintenance responsibility of the association. This results in greater consistency and reliability in reserve studies.
2) A more definitive description of service levels – ICBI provides for three service levels; independent study, reserve management plan (collaborating with the association), and consulting.
3) A requirement for consistent calculations – ICBI standards establish requirements for consistent calculation methods and software capable of making accurate calculations. Standards also require consistent terminology definitions.
4) A consistent and uniform approach to reporting on reserve studies – ICBI standards require specific, consistent reporting formats on a summary basis, generally with a report of no more than 20 pages. Supplemental schedules providing the detail are generally separated from the basic report.
The result to the public is a reliability and uniformity that benefits all users of reserve studies.
There are articles providing a more complete description of these standards in the Linkedin groups “Condo and HOA Finances” and “Condo and HOA Reserve Studies.” Another financial related group is “Condo and HOA Taxes.” All are open groups, but you have to be a member of Condo and HOA Finances before you can join the other two.
The President of a homeowners association wants the state attorney's office to get involved and have the property management company investigated for the mishandling of funds. He believes there is at least $2 million missing.
Residents were told when they purchased their homes that an equestrian center would be built to accommodate their horses. Some residents paid additional fees to live closer to the center. After 7 years, the equestrian center has not been built and homeowners want compensation.
A woman, whose husband is deployed with the US Navy, was asked to remove her flag because it does not conform with the neighborhood standards. The association is receiving a lot of backlash.
