Newsbreak

Paul Mengert 4/14/23 Paul Mengert 4/14/23

Co-op and Condo Boards Are Wondering: Is Our Money Safe?

Co-op and condo boards across the country are worried about the safety of their money in the wake of one of the largest bank collapses in U.S. history. The Federal Deposit Insurance Corporation protects all deposits made up to $250,000, meaning the federal government promises that the taxpayer will bear no losses associated with the resolution of the banks. Banking, legal and property management experts believe that the boards’ banks of choice are most likely safe but strongly recommend having the property manager confirm a bank’s financial health before depositing the money there. Other financial specialists also advise Boards not to select a bank nobody has heard of or to look solely at the interest rates a bank offers when deciding. The key is to find a conservative bank that provides quarterly financial reports, at a minimum, to show its profitability and stability. Let us know your thoughts by leaving a comment.

Paul Mengert 4/14/23 Paul Mengert 4/14/23

Pasco HOA Takes Steps to Curb Rental Growth

In an effort to decrease short-term rentals, an 821-home HOA in Tampa, FL, has amended its governing documents to state that buyers cannot rent out their homes until they have lived in them for at least two years. While only 4% of the homes are corporate-owned rentals, they account for 25% of rule violations. Corporate rentals are hard to track down and do not maintain their properties to the same level as owner-occupied homeowners. A Redfin analysis shows that in the last quarter of 2021, investors, which can be any institution or business that purchases residential real estate, bought 18.4% of homes purchased in the U.S. Still, Tampa's percentage was even higher than that national number at 24.2%. It is also likely that investor purchases could increase this year due to mortgage rates coming down from last year's high. Let us know your thoughts on corporate-owned rentals by leaving us a comment.

Paul Mengert 4/14/23 Paul Mengert 4/14/23

Condo Board Wrestles With Ways to Pay for $7 a Million Facade Project

A condo board in Upper East Side Manhattan with 300 units faces challenges when planning the best way to pay for the $7 million needed in facade work. With loan interest rates increasing, the association is looking at about $72,500 in monthly mortgage installments that would be spread among all the owners. If the association decides against taking out the loan, the homeowners will have to pay a little over $23,300 each for this project. The board has a few other options, including offering different payment plans, but realistically would become an accounting nightmare for the association to keep track of every unit and option. The association could also have the owner pay the principal portion due then. Still, they must immediately pay the bank after collection to avoid paying the interest rate. Lastly, the board can present one or two payment plan options to owners and assign the loan to each unit, meaning if the unit sells, the owner can negotiate a payoff amount and have the buyer continue to pay the fees. Let us know which payment option you would choose by leaving a comment.

Paul Mengert 4/5/23 Paul Mengert 4/5/23

New deconversion threshold to combat corporate investors

With the hopes of making it more difficult for corporations to buy up units to eventually take full control of the property, an HOA in Skokie, IL has voted to raise the condo deconversion approval threshold from the state’s required minimum of 75% to 85%. This makes Skokie the first Illinois municipality outside of Chicago to increase the percentage of condominium unit owners in a building who must consent to the forced sale from individual ownership to an apartment building with a single owner. This process will help keep Skokie affordable for potential renters. Let us know your thoughts on deconversion, by leaving a comment.

Paul Mengert 4/5/23 Paul Mengert 4/5/23

HOA Found to Have No Control Due to Developer's Oversight

A Delaware HOA was recently found to be without powers after fining a homeowner that build a shed without obtaining board approval. It then came to light in court that the HOA failed to properly transfer control from the developer to the Association, meaning it never actually had control over its homeowners. Luckily, the loophole in state law that previously allowed issues like this to happen has since been closed, but this court case is used as a reminder to HOAs to be vigilante on meeting with developers to accurately document the handoff of control. Let us know your thoughts by leaving a comment.

Paul Mengert 4/5/23 Paul Mengert 4/5/23

Hundreds Of Aging Georgia Dams Sit Upstream of Homes and Major Roads—and Are in Urgent Need Of Upgrade And Repair

Despite Georgia’s law requiring dams to stay safe and up to code, nearly two hundred dams were found to be as “high hazards and in poor condition.” With over 5,400 dams, Georgia is home to the fourth-highest number of dams in the country, with statewide upgrades and repairs costs to prevent failures in the millions per dam. The dams failing could cause major flooding to occur in HOAs, causing homeowners to investigate other alternatives, including removing their dams all together, even if it means eliminating the lakes nearby and lowering property values.

Paul Mengert 11/4/22 Paul Mengert 11/4/22

Va. Program Helps HOAs with EV Charging Accessibility

Fairfax County, VA is looking to implement their “Charge up Fairfax” program, where the county would provide support to install electric vehicle (EV) charging stations. Under the proposed program, the county would work with HOAs, large multi-family apartment buildings, and condo associations to install EV charging stations in publicly available locations, such as parking garages and designated parking spots owned by an HOA. The county hopes that by 2030, 15% of all light-duty vehicle registrations in the county will be electric vehicles. Let us know if this is a program you would be interested in your HOA implementing by leaving a comment at HOASolutionsToday.com

Paul Mengert 11/4/22 Paul Mengert 11/4/22

Greensboro, NC Homeowners Have Dispute with HOA Regarding Flags in their Yard

A married couple in Greensboro, NC were able to keep their flags in the yard after a dispute with their HOA. The homeowners displayed eight small American flags and were told they had to be removed. It had been reported the HOA allowed the flags for a short period of time but eventually sent a letter asking them to be taken down because they do not allow “political” flags. The wife stated that American flags are not considered political and that she had them up in support of her dad, who served in the military. After taking a closer look at the HOA covenants & guidelines, the couple discovered flags could indeed be displayed in front of homes. To read the full story, go to HOASolutionsToday.com.

Paul Mengert 11/4/22 Paul Mengert 11/4/22

HomeownerFaces Artificial Turf War with HOA

WBGN reports a homeowner in Paradise Valley, AZ installed artificial grass to her front and back yards in an effort to cut down on her water bill. While Arizona is currently in a drought, the homeowner stated they were saving around $1,100 a month, in water bills, by having the artificial grass. The HOA reportedly said, “they are an elite community and do not want artificial turf,” and fined the homeowner. This battle caught the eye of many state lawmakers, including, House of Representative, John Kavanagh, who proposed a bill that would stop HOAs from banning artificial grass. The bill passed through the committee and is headed to the full House for a vote. Let us know your opinion on having artificial grass, by leaving a comment at HOASolutionsToday.com.