Condo Association Management Blog

Our association has been in trouble for the last 2/3 years. We couldn't even get a meeting until I got a petition going. NO we were never told this stuff and was never given a financial report yearly to speak of. A small piece of paper with a few bills paid and what was taken in. Until the petition, we all now know that we are $17,000 in the red on 3 condo unit holders. So to your question yeah the board thinks that they can hold back information, get their own contractors and do whatever they please. Our soulation now is to get rid of them and go with management service where we will (I HOPE) be given all of those figures and account to where our money is being spend. I feel very sorry for the associations that man handle the books and I only hope that I can be comfortable with going with the management service. Oh BTW they all stepped down at our meeting a couple of weeks ago and this is why we were forced to seek help from management, But now the president (ex) wants to stay on the board as the liason for the association. First she bails now she wants to stay. HUM what a joke. Good luck but you need to step up and not let them scare you, get the figures before it's to late 
 
Sometimes I think the by-laws are a waste of paper they are printed on. Most associations do as they darn well please so why have them.

Send me an email I will send you an excel sheet with a form on how you can do the reserve for the association

Our Financial Summary every month that is mailed to all Board Members and is available to all homeowners consist of every line item in the operating budget,such as utilities, landscaping,etc.. all fees collected, money market accounts with full disclosure,Interests received, and all Reserve Accounts, amount paid into monthly and also total amount in each reserve account for each item. It is very easy to read and very open for all! It also list delinquency amounts.

Let's start with the basics... 
 
 
 
Transparency first. You will need to revert back to "first principles" of checking the governance of your condo corp. to find out what is or is not allowed. Typically (for the jurisdiction I am in- Ontario, Canada), owners are allowed to request access to the corporoation's records with reasonable notice and for a fee for the cost of printing/photocopying the documents, except for in-process legal proceedings with specific owners, discussions or documentation related to employees, and details about issues specific to owners.  
 
 
 
Once the process is known how to access the records, then you will get a sense what you can/not see. Be proactive, polite and professional at all time will make this request easier and make sure to put your request in writing. Create the "audit trail," so that if there is something "fishy" going on, you have a record of the excuses, delays, etc., that they are giving you along with the timeline. 
 
 
 
Avoid escalating, but if you have to, then so be it. Again, within Ontario, there is a provision in the Condo Act to demand a meeting with the Board to discuss issues as long as the meeting recquisition process has been followed. This meeting can even be demanded to force the board members to resign and elect a new board. 
 
 
 
So... unfortunately, dealing with you issue is not easy, but by slowly educating yourself as to your rights as an owner, will allow you to take full advantage of the democratic process built-in to condo living. 
 
 
 
Robert Buckler, B.A., M.Ed., R.C.M. 
 
Condo Consultant 
 
Toronto, Ontario

In California an HOA's annual operating budget must outline all operating expenses, and typically there is a line item for an annual transfer to reserves.  
 
 
 
The reserve "budget" is not really a budget at all and is not outlined in the operating budget. Rather, it's a "guestimmated" amount required to replace building components over time. Because it assumes the useful life of each component - which is in some cases rather arbitrary - and outlines replacement cost in future dollars, it's more a planning tool than a functional budget. Reserve expenses should be outlined in a full "reserve study," which an HOA is required to have prepared once every 3 years, and updated once every year.  
 
 
 
As with the operating budget, California law requires that the reserve study be approved by the Board and mailed to all HOA members in the annual disclosure package.  
 
 
 
You may want to check with your management company, and you can probably also review online the relevant State civil code affecting condos in your state. 
 
 
 
Good luck! 
 
Allison Cease 
 
President / Founder 
 
I-Beam Management Associates 
 
www.ibeamsf.com 
 

Reserve contributions are typically 15-40% of an association's budget, meaning one of its largest budget line items. It is therefore worthy of annual review.  
The services of a professional on a periodic basis are warranted, but annual review and disclosure is a fundamental part of fiscal responsibility. 
D&O Insurance carriers and lenders are more and more looking for a current year Reserve Study. Your ownership deserves an annual update on the status of its largest financial asset. important.