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TracieS (Colorado)
Posts: 460
Posted:
Our townhome association was built/turned over in the early 80s. After a few years of neglect, there's quite a bit to be done on our grounds.

With the economy the way it is...I'm tossing an idea around in my head, and I wanted to get feedback before I present it to the BOD.

What if the BOD identified various tasks to be done around the property (pulling weeds, painting house numbers on the curb, replacing the house numbers, cutting down some very small trees, touching up some painting...) and allowed owners/members to complete the tasks in lieu of paying a month of assessments?

Our very small association doesn't have a lot of money, but we're hanging in there. Our maintenance/lawn care is definitely the biggest item on our budget. I'm just thinking that it would create a sense of community. As far as the financial impact...if I don't have to pay a maintenance guy to do it, then to me, it's a zero impact idea.

I know I would need to consider the following:
- Workers comp
- Bylaws??
- "pay" rate?

What else do you think? Is this another one of my weirdo ideas, or is there a bit of value here?
MaryA1 (Arizona)
Posts: 7,043
Posted:
Tracie,

Since you asked, I think it's a "weirdo" idea. First of all, I doubt your CCRs allow the BOD to exempt anyone from paying assessments. Secondly, how are you going to pay the assn's bills if everyone chooses to become exempt from paying assessments by simply pulling a few weeds? You state yourself the assn doesn't have a lot of money and you want to propose cutting the income even more????
RobertG (Arizona)
Posts: 505
Posted:
Even though I don't think this would really work, I would suggest a different approach if you want to go this route. Make a contract with those people who you want to have this arrangement with. The contract would be just like any other vendor, like a landscaper. Have the HOA pay a reasonable rate. Then the homeowner has the money to pay the assessment. The work gets done, the assessment gets paid.

Mary is correct, you may be required to collect the assessment in money.
RogerB (Colorado)
Posts: 5,067
Posted:
Tracy, you could ask for competitive bids to do this "handyman" work and allow members of your association to submit a bid. They would need to provide insurance. This has been done by one small association we manage.
TracieS (Colorado)
Posts: 460
Posted:
Quote:
Posted By RogerB on 07/20/2009 7:07 AM
Tracy, you could ask for competitive bids to do this "handyman" work and allow members of your association to submit a bid. They would need to provide insurance. This has been done by one small association we manage.

Thanks, Roger. Is this (submit bids as you describe) how the small association did it? Do you know if they had any people actually submit bids? Did it work out ok? What type of insurance are you saying they would need to provide?

I'm not thinking of doing this as a long-term solution. More of a one-time, "let's get the grounds beautified" type of thing. I am thinking that owners/members couldn't do it for more than one month's assessment (for us, this is $75).

I just combed through my By-Laws and there is NOTHING that says an assessment must be paid in cash. If I'm going to look through my documents, can anyone recommend where I might find if assessments need to be paid in cash? My docs are about 10 pages each, so I'm thinking it doesn't exist for my docs (written in 1983 - never updated).

Just as an FYI to compare to other documents, the section on insurance in my CC&Rs is just ONE paragraph! My insurance agent is astounded, since he usually looks at several pages of insurance language in the documents.

Like I said, I appreciate the comments, because right now, this is just an idea bouncing around my head.
RogerB (Colorado)
Posts: 5,067
Posted:
Tracie, It does not replace any payment of assessment; assessments must be paid by every owner. The example I gave was a person hired as an independent contracor who is paid based on the contract's specifications. It is not a one month deal; it is a long term ongoing commitment by an independent contractor. The person needs to have liability insurance and have a signed waiver or workers comp insurance. Also, the association carries workers comp insurance.

For what you describe it might be better to have a neighborhood cleanup day in the spring and have the managing agent do other miscellaneous "grounds beautification" under a management agreement which provides it at an hourly rate.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Tracie,

I don't think anyone said the assessments must be paid in cash. What I said is that each member is liable for paying assessments and I doubt the assn has the authority to waive the assessments even if it's in lieu of work performed. If a member were to "contract" with the assn as Roger proposes, that member would have to be paid so I don't know how that would solve anything. What's the difference in paying a member or paying another contractor?
RogerB (Colorado)
Posts: 5,067
Posted:
Mary posted "What's the difference in paying a member or paying another contractor?" The member is acting as a contractor. Some of the differences can be less cost; better quality; and better and more prompt services. We are partial to the small independent contractors because we have found they do all of the above. That includes our company
TracieS (Colorado)
Posts: 460
Posted:
Quote:
Posted By RogerB on 07/20/2009 2:03 PM
Mary posted "What's the difference in paying a member or paying another contractor?" The member is acting as a contractor. Some of the differences can be less cost; better quality; and better and more prompt services. We are partial to the small independent contractors because we have found they do all of the above. That includes our company

Exactly what I was going to say. Our contractor charges more money than the association would probably pay. Better care, higher quality...

PLUS...I'm hoping for more owner/resident ownership/pride for our community.
SusanW1 (Michigan)
Posts: 5,202
Posted:
We paid a member (who was behind in membership/water assessment) to do a number of chores at the going rate per hour. She was overseen by a committee member. It was decided how many hours she would work. The check was made out to the member AND the HOA and was simply turned over to the HOa to be posted against her account. So she never did get any cash in her hand.

This can be a sticky venture. It smacks in the face of all those people who do volunteer work, for no pay, around the HOA.
MarianneG (Indiana)
Posts: 170
Posted:
Tracie,
I guess I don't see any reason for any exchange of money at all. If the community needs some minor repairs done, why not just convene a volunteer group to do the work. A couple of years ago, our BOD established a Mail Box Task Force group to repair and repaint our mail boxes, which are individual and on posts at the street. The association paid for the materials, about 5 men volunteered to do the work, and if they wanted to, some residents contributed $$ to help defray the costs. It all seemed to work out well. The mailboxes and posts look good, and the community was pleased with the process.

The development next door to ours uses a similar process to pull weeds and tidy up common area landscaping. On a designated morning, volunteer residents meet at a designated spot and go about the neighborhood improving the landscaping. Coffee and donuts are served to the workers. These kinds of activities DO help create a sense of community. The idea of work in lieu of one month's fee is an incentive, but pride in community can also serve as an incentive.

I think there's quite a bit of value in your thinking up ideas (weird or not) about ways to help your community. Keep it up!!

MaryA1 (Arizona)
Posts: 7,043
Posted:
Marianne,

The idea of work in lieu of one month's fee may be an incentive, however, it may be a direct violation of the gov docs. Most, docs state all members must pay assessments. If the BOD grants a waiver because the h/o has performed some small chore that equates to not paying the assessment. That is the reason for suggesting the h/o be paid.
TracieS (Colorado)
Posts: 460
Posted:
Hmmm...I do appreciate the comments! I think I'm going to consider this one further before approaching the board. I still think it's a good idea, but the mechanics/details need a lot more fine-tuning.

I think I'm going to see if the BOD will spring for new house numbers, though. Just a little spruce up.

I do notice that when I go outside and walk around the complex with a garbage bag picking up trash, I seem to "shame" a few people into bringing their own bags out. It's a slow process trying to build community in an apathetic area.
RogerB (Colorado)
Posts: 5,067
Posted:
Tracie,
More HOAs need people like you
TracieS (Colorado)
Posts: 460
Posted:
Thanks, Roger! Sometimes we need a little pat on the back!

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