Enjoy

Accounting Methods

 Financial statements vary greatly depending on the accounting method used in their preparation. To understand the association’s financial position, board members must know which method was used.

The US Environmental Protection Agency (EPA) has new lead paint laws going into affect on April 22, 2010. The new lead paint laws require any renovation work performed on houses built before 1978 to be performed by a certified contractor. Obviously his new law is causing some serious moans and groans from both home owners and contractors. Contractors will be required to provide home owners the Renovate Right Brochure which contains useful information about the new law.

 Lead Renovation, Repair and Painting Law

The new lead paint laws that goes into affect on April 22 involves training and certification of remodelers, safe work-site practices, verification and record keeping. It’s very important to understand that the new law pertains to projects on any house built before 1978 with a few exceptions as follows:

• The home or child occupied facility was built after 1978.
• The repairs are minor, with interior work disturbing less than six sq. ft. or exteriors disturbing less than 20 sq. ft.
• The homeowner may also opt out by signing a waiver if there are no children under age six frequently visiting the property, no one in the home is pregnant, or the property is not a child-occupied facility. This is no longer true. The EPA just removed this waiver. (Ref).
  
• If the house or components test lead free by a Certified Risk Assessor, Lead Inspector, or Certified Renovator.

What Does The New Law Mean To You?

You’re probably wondering what this new law might mean to you and your next remodeling project. The obvious answer is a healthier home for you, your family and people that perform renovations to your  home. The other obvious answer is an increased cost for contractors to adhere to the new rules which ultimately means an increased cost to you.

Over the last few months I’ve heard several small contractors say they will steer clear of and avoid older home renovations. A significant amount of small replacement window contractors will most likely go out of business and stop providing inexpensive window replacement services. While we think the new law is important in protecting public safety we also know it will result in much higher prices for consumers and less competition for consumers.

If you hire a contractor to do a renovation in your home that was built prior to 1978 be sure you hire a certified contractor. You should ask to see your contractors RRP certification prior to hiring them. Contractors performing work without the certification face penalties of $37,500 per day!

New Law Will Take Time To Work Effectively

With over 38 million homes containing lead paint in the US no one can argue the importance of good lead paint laws. However, from the few meetings and conversations I’ve had it’s clear to me that this is going to take some time before it’s very effective. Most of the literature and training has left contractors confused, upset and frustrated. However, with time these new laws will become part of everyday routines for contractors and ultimately help save lives. We certainly hope the EPA works quickly to fill in the blanks and help contractors implement this new law.

For a quick video, click here

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A lobbyist group has taken up the fight against exorbitant HOA collection fees that illegally threaten homeowners with foreclosure and negatively impact Nevada consumers, coalition leaders said Tuesday.

Homeowners association residents have seen $200 in delinquent dues turn into a $5,000 bill through collection companies, an unrealistic expectation for people struggling to pay their mortgage in the first place, broker Joseph Eaton said at a meeting with Review-Journal editorial staff.

“They file a delinquent assessment and threaten to take your property, but they have no intent to foreclose. That violates federal law, which is an act known as Fair Debt Collection Practices,” Eaton said.

Concerned Homeowners Association Members PAC, or CHAMP, was formed to represent the interests of individuals and entities in reining in what they consider an unregulated and egregious HOA collection process.

Collection agencies, often in tandem with community association management firms, rack up $50 million to $100 million in collection fees every year, Rutt Premsrirut of Valtus Real Estate said.

“You have a homeowner in default and a couple hundred dollars ends up being $5,000,” he said. “These collectors run up fees and hardly ever take it to sale. They wait until Freddie (Mac) or Fannie (Mae) forecloses. You have to ask, ‘Who’s left holding the bag?’ The homeowners.”

Guidelines for Freddie Mac and Fannie Mae state that they will not lend in states that allow HOA collection fees beyond six months. Nevada statute allows for nine months of back due fees, but HOA collectors are illegally going around the law and have been able to churn out significantly more fees, none of which go back to the HOA, Premsrirut said.

Once a homeowner’s file is turned over to an HOA collection company, the fees start adding up , said Eddie Haddad, who buys and sells foreclosed homes.

An example of fees charged by Nevada Association Services included $308 in assessments; $270 for the demand letter; $325 for notice of lien; $400 foreclosure fee; $300 title report; $152 postage; $250 escrow demand; $175 to the management company; $175 transfer fee; and $325 on the second lien. In all, the bill came to $3,140.

 Premsrirut said CHAMP is working on a couple of proposed bills in the Legislature, one of which is a modification of a failed bill by former Assemblywoman Barbara Buckley on collection fees.

Deborah Ogilvie, principal of Terra West property management, said HOAs must rely on collection agencies to collect legitimate assessments.

“You know how impactful it would be to any HOA unable to collect the owed assessments on a property — whether owned by a homeowner or a bank trying to complete a sale to an investor — to maintain financial solvency if they don’t have the superpriority (lien) status,” Ogilvie wrote in an e-mail. “It isn’t the superior status that is the problem. It is that some of the assessment collection companies have charged egregious fees.”

Leslie Carver of Prudential Americana Group said the cap on fees — whether it’s six months or nine months — doesn’t kick in on short sales, or sales that require lender approval.

“That causes the whole deal to fall out over $50 a month,” she said. “Times 12 months, that’s $600, not $10,000. That forces a home into foreclosure because nobody can deal with $10,000.”

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.

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The president and security director of a Bluffton homeowners association have been replaced after a shooting in the neighborhood last Christmas Eve that left one man dead and one in jail. The Island Packet of Hilton Head reports members of the Edgefield Homeowners Association on Tuesday voted out board president John Mack and safety and security director Ed Snyder. Some residents complained the leaders didn’t communicate effectively following the shooting. Authorities have charged 27-year-old Preston Oates with manslaughter in the shooting death of 34-year-old Carlos Olivera. The shooting happened when the two argued about a parking boot Oates put on Olivera’s minivan.

Information from: The Island Packet, http://www.islandpacket.com

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The members were engaged with the program and asked several questions at the end.

The program was coordinated by Dori Kagan of U.S. Bank and James Harkin, Esq. of Cane, Walker & Harkins, LLP.

- Article from the O.C. View Jan/Feb 2011 Vol XXXVI. NO.1 -

Article by Charles Antis

When it rains, roofing contractors are flooded with complaint phone calls regarding leaky roofs. But while it seems that the leaking originates from the roof, this is not always the case. More than 20 percent of all leaks originate from poorly installed alumi¬num-framed windows and doors. Let’s examine the components of an aluminum sliding-frame window. The best way to conceptualize the window frame is to compare it to a picture frame, like the one hanging on your living room wall. Notice the corners are cut at an angle and fastened and/or glued together. The aluminum frame on your window or sliding door is built the same way. A mitered cor¬ner is screwed together and then glued with butyl rubber. The design of this window or door allows water to enter the inside of the mitered corner joint, causing many aluminum-framed windows and doors to leak. Sealant failure is exacerbated by the fact that windows and doors are seldom truly level. They are either bowed from the middle to the corners or one corner is lower than the other. This happens due to poor installation, house settlement or sagging in load-bearing walls. When a corner sits lower than the rest of the frame, it causes the rainwater to pool at the lower ends and leak into the wall cavity from the tiniest imperfections in the frame. Water damage usually shows up on the sill plate, on the carpet or in the wall of the ceiling directly below the leaking window. Another exacerbating factor occurs when weep holes are clogged or poorly positioned. Weep channels or holes are the little cutouts in the frame that allow the trapped moisture to “weep” back out onto the exterior wall or patio deck.

SLIDING WINDOW AND DOOR FAILURE SOLUTIONS

Option 1:

 Replacement Window replacement requires removal of the wall siding system in order to correctly overlap the win¬dow flashing flanges within the wall flashing system. Due to the amount of labor necessary, plus the cost for replacement windows, this option is recommend¬ ed when aesthetics and window functional¬ity is the major concern.

While it seems that the leaking originates from the roof, this is not always the case. More than 20 percent of all leaks originate from poorly installed aluminum-framed windows and doors.

Option 2:

Rehabilitation Window rehabilitation can be a cost-effective repair option. Sliding aluminum window rehabilitation is successful in al¬leviating moisture intrusion more than 90 percent of the time. Proper window repair incorporates the following procedures:

1. New weep channels must be installed in window frame corners. Factory-installed weep channels are often inadequate in size or they are positioned away from the corners where leaking occurs. By installing new quarter-inch weep channels a half inch from the corners, proper drainage is facilitated.

2. All debris must be removed from the window track. Debris caused by corrosion, dust, silt from stucco, bugs and dilapidated sealants often impede water flow within the tracks and blocks the factory-installed weep channels. The simple act of vacuuming out the tracks can help facilitate better window drainage.

3. Mitered corner joints at track transitions are altered and resealed. Since most window leaking is traced to failure at this location, it is critical that a reliable seal is facilitated. Factory sealants often consist of butyl rubber, fail. In order to allow for a complete mitered corner seal, it is critical that the window be disassembled and all unnecessary extruded metal be removed from the corner on the jamb and sill plates. The entire corner is then wire-brushed and resealed using low-module urethane rubber.

4. The dam bar must be thoroughly sealed. When window rehabilitation fails in eliminating leaking, it is often because the dam bar is not properly sealed to the jamb plate. This vertically extruded, 1-inch-high section of the sill plate on the window frame creates the dam that keeps the rain water within the frame from dripping onto your sill. It is critical that both ends of this frame be properly cleaned and sealed to the vertical sections of the window frame.

5. Mounting bolt penetrations and frame alterations must be properly sealed. When the sliding window section is removed, mounting bolt penetrations or alarm installation penetrations are often visible within the bottom of the window frame. All penetrations must be completely sealed or leaking will occur.

6. Frame openings surrounding window must be properly sealed. Although most window leaks originate from frame failure, installation failure is also a common source. By eliminating large gaps between the window frame and adjacent siding system using urethane injection, flashing installation failure can be discouraged.

The average cost for the procedures listed above is usually between $250-$450, and it often takes properly trained techni¬cians several hours to complete. In some instances, a more brief specification can eliminate most window leaking, which in¬cludes only installing new weep channels in window corners and injecting frame openings with urethane. During the next rainy season, remem¬ber that the leaks that show up on floors, lower-level ceilings, walls and window sills may not be coming from the roof, as is typ¬ically assumed. When window leaks occur, make sure that you contact an experienced vendor who is qualified to facilitate the re¬pair of window flashing failure.

Charles Antis is the president of Antis Roofing and Waterproofing. He also currently serves on the Community Leadership Training Committee for the Orange County Chapter of Community Associations Institute. For more information about Antis Roofing, visit there website by clicking here.

LAGUNA WOODS – Residents in Laguna Woods Village’s largest homeowners association who are suspected of having excessive clutter in their homes could be compelled to allow the HOA to inspect their homes for hoarding and to remove the clutter under a new policy.

The United Mutual board gave initial approval last week to a policy that prohibits hoarding in the association’s 6,323 units. The board would rely on residents to report those suspected of hoarding, after which an inspection would be ordered, according to the policy.

What is clutter?

According to the HOA policy, clutter could be large quantities of books, magazines, broken appliances, furniture, rotten food, human waste and clothing kept in a disorganized manner.

The HOA board can choose to report the clutter to local law enforcement, the fire department or health and safety officials, the policy states.

The policy is aimed at preventing safety hazards and protecting HOA property. In United Mutual, residents are part of a corporation, which owns all real property such as the residential units and carports.

“It’s a question of whether the property is being damaged. Our fiduciary duty is to take care of the property,” United Mutual board president Gail McNulty said. “Our whole job is to make sure that United stays as healthy as it can.”

Marcia Wilson, manager of the Social Services Department in Laguna Woods Village, said the department typically follows up on two to three reports of hoarding each month.

“It’s a growing problem,” Wilson said. “It’s putting everybody at risk. They don’t need this stuff, but it gives them peace of mind.”

Hoarding is the failure to discard a large number of possessions that appear to be useless and take up living spaces that can’t be used because of clutter, according to the Orange County Health Care Agency’s task force on hoarding.

Once a hoarding complaint is filed, an inspection could be ordered. The board must get residents’ permission to enter units. Residents who refuse inspections will be called before the board for a disciplinary hearing.

If the board determines the hoarding policy has been violated, the resident would have 15 days to remove the clutter. If a resident refuses, the board could seek a court order to force the resident to remove the clutter, fine the resident, suspend the resident’s privileges in the community or proceed with eviction.

The policy requires a final vote in February before it goes into effect.

- For the full article click here –

Posted on February 15, 2011 at 11:45 PM

HOUSTON – The debate over how much power should be given to neighborhood homeowners associations is heating up again at the Texas state capitol.

On Tuesday, Houston-area groups, both for and against HOA reform, traveled to Austin to give lawmakers an earful.

It’s part of a national push to regulate HOAs, which critics say have way too much power.

“They take advantage of people because they know they can,” said Harvella Jones, an outspoken opponent of HOAs who has started the National Homeowners Advocate Group.

In the mid-90s, 11 News reported how she fought to keep her Kingwood home after her HOA kicked her out. She eventually countersued and settled out of court. But she’s been fighting HOAs ever since, including her new one in Rosenberg.

“It’s horrible,” Jones said. “It’s absolutely horrible because I get these horror stories from across the state.”

Among those horror stories is Sandy Terry, who says her HOA in Houston hiked her maintenance fees by hundreds of dollars a month…for no apparent reason.

“That was s shock to me,” Terry said. “So I want to get the word out to my community.”

Jones’ group is planning rallies in Houston and Austin in the coming weeks to ask lawmakers to stop allowing HOAs to foreclose on people’s homes if they don’t pay maintenance fees. A separate advocacy group from Sugar Land went to Austin Tuesday to lobby for other HOA reforms.

On the other side, the Greater Houston Chapter of the Community Associations Institute held its own rally outside the state capitol.

“Homeowner’s associations provide a lot of benefits,” said Terry Thomas, an HOA president. “They do landscaping. They do deed restrictions. Make sure the property values stay up.”

Others within the group argue that if homeowners don’t want to deal with an HOA, they have the right to move to another subdivision without one. But they say without strong zoning laws in the Houston area, HOAs are necessary.

“I believe that we should protect our property values,” said Gloria Cruz, an HOA board member from Harris County. “That’s very important to me.”

This debate could be on the ballot this November.

There’s a bill in committee calling for a constitutional amendment to stop HOA foreclosures.

Opponents say those foreclosures are extremely rare.

 - For the full article/video go  here -