HOA swim clubs

Started by PatM8 • 8 replies • 1886 views

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PatM8 (Indiana)
Posts: 2

Posted:

We have a swim club at our HOA swimming pool. I would like to know how HOA swim teams are run. Are they a part of the association, and governed by the Board? Are they a seperate entity with their own finances, and submit a report to the board?
Do they have their own insurance, or are they covered under the associations insurance coverage for the pool? If they are their own organization within the HOA, do they pay rent for the pool use? Do they have any control over the snack shack?
We currently have a swim team and have had for years, but the running and managing of this activity is in question. Need all the help I can get.
Thank you.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

If it's an organized swim club that you pay dues to, they should be separate, have their own finances and swim club insurance. Nothing needs to be reported to the board except their insurance is current and they are covering the hoa pool. They should be renting the pool, even if its $1. First step... does your current HOA insurance cover an organized club renting your pool without insurance to indemnify them? It's likely you don't have the proper coverage if something happened.

I have no idea what the snack shack control means.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Pat

If they are not residents and/or guests, then it can get real sticky about income, insurance, etc.

I am assuming they are outsiders. Am I correct?

BrianB (California)
Posts: 2,820

Posted:

I don't wish to appear flippant, but Pat, those questions need to be directed to your HOA board of directors.

Unless someone here actually sits on your HOA board, there's no way we can know the answers to your questions.

PatM8 (Indiana)
Posts: 2

Posted:

Thank you. It is a resident only swim team. Currently they are separate from the HOA in that they collect the fees, hire the coaches and lifeguards, and use the facilities for free. I am just trying to find out what other HOA's do. Some on the board feel that everything should be done as part of the HOA, with an accounting of the finances. I think the current way it is done, is okay if there is a better accounting of what monies they collect and for what it is spent. They do pay for their insurance.

The snack shack is a concession stand. It is run by the HOA with paid high school kids in attendance. All monies come to the HOA, but it is not a profit making venture. When the swim team meets are held at our HOA pool, the swim team parents provide the supplies in the "concession stand", use volunteer parents to manage, and keep the monies for the swim team.

When I put all this down in writing, it seems that the thing we need to get a handle on is the openness in their finances, whether they are separate from the HOA or part of it probably makes little difference.

AnnH5 (Florida)
Posts: 304

Posted:

For our HOA, it is our understanding that 1) such activities must be preapproved by the insurance company and 2) such activities must be approved by the Board. Any outside instructors have to carry their own liability insurance and must present such to the Board (and possibly to the insurance company). I would think any swim club lifeguards would fall into the category of needing to provide their own liability insurance. In some cases, it may also be necessary to have waivers for the participants (depending on the activity).

AnnH5 (Florida)
Posts: 304

Posted:

And no, I would NOT tie the swim club to the HOA. Why assume extra liability? If you did tie the HOA to the swim club, you could be sued even more so in the event of a death or injury. If it isn't necessary then why do it?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

When I put all this down in writing, it seems that the thing we need to get a handle on is the openness in their finances, whether they are separate from the HOA or part of it probably makes little difference.

Pat, why do you feel you need to control the swim team's money? I just dont understand. Do you feel the HOA should make money on the rental of the pool? Or do you just feel like you should be in control all things money?

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By PatM8 on 11/18/2013 3:45 PM
The snack shack is a concession stand. It is run by the HOA with paid high school kids in attendance. All monies come to the HOA, but it is not a profit making venture. When the swim team meets are held at our HOA pool, the swim team parents provide the supplies in the "concession stand", use volunteer parents to manage, and keep the monies for the swim team.

This sounds like complicated tax issues to me. I hope whoever is responsible for this knows what they are doing.

Paid high school kids = employees (with all the reporting and tax issues that go with that)

"all monies come to the HOA" Is that income being reported? Profit-making or not, it still has to be reported. It can also affect 1120-H filing qualifications.

Is a vending license required?

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