Seeking information

Read more of the threads.

The largest issue is membership apathy.

I should have also asked, what would you suggest to resolve the problem?

I would love your thoughts on what you think are the largest issues facing an association today

Today? Statistically speaking 'money'.

Apathy's been mentioned and to me, it's the domino that begins the fall of everything else, which has already been mentioned (boards running amok, lack of transparency, people ignoring CCRs, etc.)

The other problem is money - people want dozens of services, but don't seem to be willing to pay for it. Boards then have to use limited resources to take care of the property as best it can while chasing the delinquent homeowners - some of who play the system like Wynton Marsalis plays jazz trumpet to delay paying or to drag out payments.

As treasurer of my HOA board, it really gets frustrating when you see the same people become delinquent time and again - they catch up, fall behind, start to catch up and then fall even further behind. We try every legal tactic possible to collect, but too often the homeowner declares bankruptcy and walks away or the mortgage company swoops in, gets whatever it can out of the property and walks away. No one does anything about the association fees, the board is forced to write them off - and begin the process anew with someone else. Meanwhile costs go up and our vendors expect to be paid in full and on time.

How to resolve it? Well, different things work for different associations, but I think education is the first step. People really need to understand what they're getting into when they buy a home in a homeowner association community - if they don't like the idea of being told what they can or can't do with the exterior of their property or don't want to pay fees, that's ok - just don't move into that community and think the rules and paying fees is for everyone else except them.

The legislatures also need to be educated. They like the idea of homeowner associations that can take care of streets and sidewalks (less time and money for them), but then someone comes running with stories about "Nazi" boards who won't let them fly the US flag from their rooftop (although the community has rules allowing flags to be posted next to a window). Or who have the gall to file liens and force them out of their homes because they didn't pay fees and have now run up a bill of several thousand dollars. The legislatures believe it and pass more rules that make it very difficult for good boards to do their jobs.

Finally, people are going to have to get more involved and stay involved in their communities. When I hear about secretive board members, embezzling management companies and such, my first question usually is "where are the rest of the homeowners and why weren't they paying attention all along?' If I'm paying several hundred or thousands of dollars in association fees, you better believe I want to know where the money's going and why, and who authorized it.

As for my own board, I think we've been pretty lucky so far - yes, we have money problems like everyone else, but I'm really glad that everyone's willing to work together and since I also write the newsletter (and sometimes hand deliver the thing), I know we try to keep the homeowners informed. They may not like everything we do, but they know the who, what, when, where, why and how. I've always believed that as long as I tell you where I stand, admit when I make mistakes, fix them and learn from them, we'll get along. If you think someone else can do the job, I won't take it personally if you vote me out (I'll probably make it easier for you and simply step down!)

Now we are getting some feed back.

HoaC,
Forget about everything I said. You do not deserve any explanation or any opinions because you have not even bothered to describe your circumstances. I saw your other post where you brag about increasing your dues only by 3% annually and being perfectly happy about it. Either you are living on a different planet or making fun of us. And, that is my opinion. Yes, I am upset.

OK, I have been called out. So I feel I must respond.
Our Association was first established in Sept. 1975. We have over 1950 units in our association. We have 3 owner access lakes with parks to maintain, an office and civic center and 22 miles of roads to maintain.
We have endured all the hardships everyone else has endured. As of approx. 4 years ago, we had meetings with owners like I read about here. We had the law involved to remove angry homeowners out of the meetings, to break up physical confrontations, and to quell screaming matches.
We had self serving BODs and misappropriation of funds. We even had a president take all the records and then sue the association for not disclosing the information. We could not keep one BOD a full term before they bailed.
We had severe financial difficulties to the point of over fifty percent of the home owners stopped paying dues and nothing was done about it.
I joined the board 5 years ago, when all this was happening and I had to question myself, what was I thinking? We had used CABs and Cams and found they had no interest in helping, all they wanted to do was collect their money. They never enforced CC&Rs or collections of past due monies. Each time we approached them about it, they basically said it was our problem. So, we decided to find a solution to our dilemma.
A slow process began and we decided to peruse a different course. We hired a consultant to help us resolve this issue. After numerous meetings and countless hours of research, a solution was recommended. We met with the consultant and they laid out numerous options. We looked at each one and went back to the consultant to discuss further options. It took us almost 2 years to find the solution that best met our needs.
Our solution was to terminate the CAB / CAM contract and go with a simple program, hosted in the clouds, with ... It was a simple point and click program.
The program gave us a web presence so every member could visit. It gave us a forum so everyone had a voice, and the BODs read it. Each BOD is able to be contacted directly regarding a topic Each owner can view their personal account balance and transaction history. Each owner can view their history of CC&R notices and any other communication the BODs have had with them, as the records are stored on the server. Our Articles of Incorporation, By Laws, Covenants and restrictions, and all amendments are online 24/7 for all to have access to. We post our BOD meeting minutes, secretaries report, and monthly financial report on line so any owner can see it at anytime.
Speaking of CC&R violations, with the forum and the ability to make direct contact with a BOD, the community has al but became a self policing community, as we investigate any and all complaints logged. And there is a history for us to review on the system, regarding topic or owner.
Now everyone can make their payments online or send the check. They have flexibility to make payments as they want in the amounts they want, as they know what they need to pay by the year’s end. The system tracks and reports when the unit sells or changes owners with an alert, so we can decide what we need to do, whether send a welcome package or peruse past due amounts. The system does all the mailing of the statements, the billing, the second notice, the demand for payment intent to lien / foreclose statements. If that is ignored, the system generates a lien on the property immediately and send the form, completely and legally filled out, to the attorney to file with the courts.
We send out E-Mail blast letters to remind people of meetings, and important issues that they need to be made aware of.
Since we made the decision to move forward with this software and become a self managed association, our income has increased 4 fold.
We have several thousands of dollars in reserves in invested CDs, our roads are being improved, our community properties have been repaired and improved. And I feel it is because of the decision to become self managed with the proper tools, the software.
We have only had the dues raised 3 times in the existence of the association for reasons as apathy, thinking the CAB/CAM would take care of the problem, and the lack of leadership.
Since the software applies interest monthly, applies collection and legal fees automatically, the software has paid for itself and made the association money, so to speak, by deferring the cost to the rightful place.
We have had the rash of foreclosure issues with banks, but since the software recognized the dues / fees were delinquent and filed the liens, we have had the banks paying off the liens. This is because a lien filed before Bank foreclosure withstands the foreclosure.
We now have quite and peaceful meetings monthly.
This is my second term as the president.
And when it comes time for me to be removed, I can hand over the reigns with all documents and history with all the owners accounts in tack.

So, please do not think I have not been there or done that. I am on planet earth and live in Florida. I feel the mere $1800 or so, a year we pay for the software has been well worth the investment. In fact, the consensus of our BODs is the software has paid for itself by assigning responsibility where it needs to be placed. Furthermore, it has allowed the BODs to focus on enforcing CC&Rs, repairs, and other issues that to sit and worry about the accounts receivables, since it is basically in auto pilot.

I am not trying to promote this software, even though we think it is the best, easiest and most cost effective, as there are numerous companies selling software services such as Promis, Jenark, 212 (aka TOPS), and several more.
So, I have seen about everything I read here. I personally feel communication and transparency has brought our community back together and has generated anew the pride and interest in our community.
One last thought, Since the data is our data and it is stored in the cloud, I do not need to sit behind a desk and computer monitor any longer. I can be in the field and access the data standing in the owners yard from my Laptop, smart phone, or tablet to discuss any issue or topic there may be that needs to be addressed.

So, I am not making fun or ridiculing anyone. I am sharing my experience and my solution to the problems of
Money, Apathy, Collections, Communications, Accountability, and Transparency.
Armed with knowledge and experiences I read on the forum allows us to foresee future issues we had not prepared for and try to prepare for them before they get here.
I am wondering if I missed some adversity that we are not prepared for.
BTW, I heard ... is giving free trials to their software for a limited time.

We continue to strive in "fixing" issues. I would venture to say our #1 problem to date is communications with our attorney. We left one due to his lack of correspondence. The new attorney seems to lacking that skill also. Our collection process has become so streamlined, as I said almost auto pilot, and the communications / transparancy has reduced our monthly meetings form 4 - 6 hour shouting matches with 50 - 75 people all screaming about something, down to a handful of people that come to discuss and offer suggestions for improvements in our community.
So, I guess communications with our attorney, or the lack of, seems to be our largest stumbling block at the moment. But, we are interviewing another attorney and possibly will be moving our association business to them.
As far as the interest. That is what is permissible and a standard acceptable in Florida statutes 720.3085(3). And, we feel, in light of this, that we should not raise dues to compensate for the lack of funds. Those that do pay should not have to have their dues increased to offest the the lack of funds. So, we charge 18% APR computed monthly on the priciple owed. We also charge administrative and legal fees, along with all mailing cost applied to the owners' account.
Also, one last note. We actively seek other funding sources. Our software company alls us to share in advertising on the site and we also have the right to collect all money on local businesses advertising on our website to our members. This company has allowed us to discover new means to generate funds and off set expenses. They have always been there to support us and offer advise, and have always answered in a timely fashion to any questions or suggestions we have.

To be honest, ... has showed us innovation. They taught our board how to think outside the box of solving a situation in the standard way, that doesn't work well. They have spent a lot of time teaching our BODs and training them in the use of the software and advising us along the way, or offering suggestions for us to consider in our venture. None of the BODs were per say professional accountants or any on especial.
When Communication and transparency took place, it resolved some of the issues alone.
So, as I said before. I have no vested interest in the ... software company. But, I know what they did for us and I can recommend them to others. As you read our testimony, we have came along way as a result of using their software primarily. If it is true, they are offering their software free for a short time, i would recommend trying them. What do you have to use. Also, if you are using a CAB / CAM and use their software, the CAB / CAM can use it as well. It is set by permissions and is very secure. And then the entire association can monitor the CAB / CAMs proficiency. Just a thought.
I would like to further seek information on issues that may come forth. We have modified our bylaws to allow voting online on issues, as the software logs date, time, answer of the individual voting, identifies the voter and stores the date in the event we have to produce it in the future. ...'s attorney and ours seems to think the data stored would with stand a courts scrutiny.
I hope you will continue to share your thoughts and issues with me here, as we all strive to find a better solution to our problems.

Hello,
I am new here and stumbled across this subject and read it.
I would like to share this with you that read this.
Our association is being turned over from the developer to our community. So, we decided to get some expert opinions, at least we hope they are. And he claims to be un biased.
Here is in part the report he delivered to us regaring what issues are among the top of most associations troubles list.
1) Collections of fees - Not enough man power, backlogged with collection efforts, can not keep up with ownership of homes or properties due to housing markets.
2) Frustration of fielding questions about payment history, statements etc...
3)Critical information not being conveyed to the members in a timely manner.
4) problems in tracking insurance payments and policy lapses or coverage slipping.
5) can not follow up on liens and foreclosure status, when filed and when to follow up
6) No way to follow through work orders
7) everyone is not privy to the same data at the same time to make crucial decisions causing confusion.
8) Dealing with incomplete financial reports that do not track income and expenses.

That was our report in a nut shell. Hope this helped.

I am trying to be positive