Creating A Board for Your HOA or Condo Association in Georgia

WHO SHOULD BE ON THE BOARD?
The board should be composed of a diverse group of individuals who are interested in working toward the organization’s mission and have the particular skills that will help to contribute to a well-run organization. For instance, you may want to seek out people with financial, marketing, or legal backgrounds. You may want to consider bringing on someone with an entrepreneurial
background, or someone who is proficient with emerging technologies. You may
also want to recruit members who have influence in the community, work at similar types of organizations, or are representative of the community you are serving. Having this collective knowledge from the beginning will help you make informed decisions. You will also find that as your organization matures, your board composition needs may be very different from those of your founding board. The role of the board tends to change over time as the organization
develops and matures. Early in an organization’s life, the primary need for the board may be individuals who are prepared to give a great deal of time and energy. Later, you may find that as paid staff are brought on, the board focuses primarily on the governance functions of the organization and is less involved with the smaller details of bringing the organization up to speed.
HOW BIG SHOULD THE BOARD BE?
Boards can vary in size from three to more than 50 members.  Each state has regulations that determine the minimum size of the board, but the optimum number of people who sit on the board should be determined by the needs of the organization. Assess the list of tasks that the board needs to accomplish and plan your board around the jobs that need to be done. There should be enough meaningful tasks for the board to accomplish without leaving board
members feeling overburdened or uninvolved.
HOW OFTEN SHOULD THE BOARD MEET?
As with the size of your board, the number of board meetings each year should be determined by the work that needs to be accomplished. For logistical and practical reasons, larger boards often meet less frequently, leaving much of the work to the board’s committees.
Regular attendance at board meetings is one of the individual responsibilities of board members. Your organization’s bylaws should include an attendance policy that clearly states the number of meetings that can be missed by an individual board member before he or she is asked to leave the board. Develop an annual schedule of meetings determined a year in advance. Circulate clear and thorough information materials, including an agenda, to all members
two to three weeks before each meeting. Maintain complete and accurate minutes of all meetings, and keep meetings brief and well focused. An organization’s bylaws should also state the number of board members required to constitute a quorum. Without a quorum, the board is unable to conduct its official business.
WHAT KIND OF TERM LIMITS SHOULD BOARD MEMBERS SERVE?
There are no hard-and-fast rules for determining board members’ tenure. Many organizations
do, however, limit members to two consecutive terms and require a hiatus of one year before a
board member may be reappointed. Many organizations also stagger terms of service so that
one-half or one-third of board members are elected every one or two years for terms of two to
six years. Such policies encourage institutional renewal because a board can profit from the
experience of veteran board members while welcoming the fresh perspective that new members
offer. Board members on hiatus can remain active in committee service or serve in an
advisory capacity. Term limits are a painless mechanism for rotating inactive or ineffective
members off the board. These policies should be written into the organization’s bylaws.

Build a Better Board for Your HOA, POA or Condo Association

WHO SHOULD BE ON THE BOARD?
The board should be composed of a diverse group of individuals who are interested in working toward the organization’s mission and have the particular skills that will help to contribute to a well-run organization. For instance, you may want to seek out people with financial, marketing, or legal backgrounds. You may want to consider bringing on someone with an entrepreneurial
background, or someone who is proficient with emerging technologies. You may
also want to recruit members who have influence in the community, work at similar types of organizations, or are representative of the community you are serving. Having this collective knowledge from the beginning will help you make informed decisions. You will also find that as your organization matures, your board composition needs may be very different from those of your founding board. The role of the board tends to change over time as the organization
develops and matures. Early in an organization’s life, the primary need for the board may be individuals who are prepared to give a great deal of time and energy. Later, you may find that as paid staff are brought on, the board focuses primarily on the governance functions of the organization and is less involved with the smaller details of bringing the organization up to speed.
HOW BIG SHOULD THE BOARD BE?
Boards can vary in size from three to more than 50 members.  Each state has regulations that determine the minimum size of the board, but the optimum number of people who sit on the board should be determined by the needs of the organization. Assess the list of tasks that the board needs to accomplish and plan your board around the jobs that need to be done. There should be enough meaningful tasks for the board to accomplish without leaving board
members feeling overburdened or uninvolved.
HOW OFTEN SHOULD THE BOARD MEET?
As with the size of your board, the number of board meetings each year should be determined by the work that needs to be accomplished. For logistical and practical reasons, larger boards often meet less frequently, leaving much of the work to the board’s committees.
Regular attendance at board meetings is one of the individual responsibilities of board members. Your organization’s bylaws should include an attendance policy that clearly states the number of meetings that can be missed by an individual board member before he or she is asked to leave the board. Develop an annual schedule of meetings determined a year in advance. Circulate clear and thorough information materials, including an agenda, to all members
two to three weeks before each meeting. Maintain complete and accurate minutes of all meetings, and keep meetings brief and well focused. An organization’s bylaws should also state the number of board members required to constitute a quorum. Without a quorum, the board is unable to conduct its official business.
WHAT KIND OF TERM LIMITS SHOULD BOARD MEMBERS SERVE?
There are no hard-and-fast rules for determining board members’ tenure. Many organizations
do, however, limit members to two consecutive terms and require a hiatus of one year before a
board member may be reappointed. Many organizations also stagger terms of service so that
one-half or one-third of board members are elected every one or two years for terms of two to
six years. Such policies encourage institutional renewal because a board can profit from the
experience of veteran board members while welcoming the fresh perspective that new members
offer. Board members on hiatus can remain active in committee service or serve in an
advisory capacity. Term limits are a painless mechanism for rotating inactive or ineffective
members off the board. These policies should be written into the organization’s bylaws.

Creating A Board for Your HOA or Condominium Association

WHO SHOULD BE ON THE BOARD?
The board should be composed of a diverse group of individuals who are interested in working toward the organization’s mission and have the particular skills that will help to contribute to a well-run organization. For instance, you may want to seek out people with financial, marketing, or legal backgrounds. You may want to consider bringing on someone with an entrepreneurial
background, or someone who is proficient with emerging technologies. You may
also want to recruit members who have influence in the community, work at similar types of organizations, or are representative of the community you are serving. Having this collective knowledge from the beginning will help you make informed decisions. You will also find that as your organization matures, your board composition needs may be very different from those of your founding board. The role of the board tends to change over time as the organization
develops and matures. Early in an organization’s life, the primary need for the board may be individuals who are prepared to give a great deal of time and energy. Later, you may find that as paid staff are brought on, the board focuses primarily on the governance functions of the organization and is less involved with the smaller details of bringing the organization up to speed.
HOW BIG SHOULD THE BOARD BE?
Boards can vary in size from three to more than 50 members.  Each state has regulations that determine the minimum size of the board, but the optimum number of people who sit on the board should be determined by the needs of the organization. Assess the list of tasks that the board needs to accomplish and plan your board around the jobs that need to be done. There should be enough meaningful tasks for the board to accomplish without leaving board
members feeling overburdened or uninvolved.
HOW OFTEN SHOULD THE BOARD MEET?
As with the size of your board, the number of board meetings each year should be determined by the work that needs to be accomplished. For logistical and practical reasons, larger boards often meet less frequently, leaving much of the work to the board’s committees.
Regular attendance at board meetings is one of the individual responsibilities of board members. Your organization’s bylaws should include an attendance policy that clearly states the number of meetings that can be missed by an individual board member before he or she is asked to leave the board. Develop an annual schedule of meetings determined a year in advance. Circulate clear and thorough information materials, including an agenda, to all members
two to three weeks before each meeting. Maintain complete and accurate minutes of all meetings, and keep meetings brief and well focused. An organization’s bylaws should also state the number of board members required to constitute a quorum. Without a quorum, the board is unable to conduct its official business.
WHAT KIND OF TERM LIMITS SHOULD BOARD MEMBERS SERVE?
There are no hard-and-fast rules for determining board members’ tenure. Many organizations
do, however, limit members to two consecutive terms and require a hiatus of one year before a
board member may be reappointed. Many organizations also stagger terms of service so that
one-half or one-third of board members are elected every one or two years for terms of two to
six years. Such policies encourage institutional renewal because a board can profit from the
experience of veteran board members while welcoming the fresh perspective that new members
offer. Board members on hiatus can remain active in committee service or serve in an
advisory capacity. Term limits are a painless mechanism for rotating inactive or ineffective
members off the board. These policies should be written into the organization’s bylaws.

Budgeting and Reserves for Condominiums

Most covenants for condominiums require that the association include as part of the annual budget, an allocation for  reserves.  Reserves should be set aside for roof replacement, pavement resurfacing, building painting, and any other item of association responsibility with a replacement cost or deferred maintenance expense of $10,000.00 or more.

Traditionally, the reserve schedule accompanying the proposed budget has used the “straight line” method of calculating required reserves. For example, assume that the roof on a condominium building has a twenty year useful life, is ten years old, and will cost $100,000.00 to replace. Further assume that the current amount of money in the roof reserve is $50,000.00. The association will need to collect $5,000.00 per year, over the next ten years, to accumulate another $50,000.00 so as to “fully fund” the roof reserve. This is traditional, “straight line” funding of reserves.

Similar calculations are then made for all other required reserve items (building repainting, pavement resurfacing, and other items with a replacement cost or deferred maintenance expense in excess of $10,000.00), and the annual contribution required to “fully fund” the reserve account is thus arrived at.

When reserves are funded on the straight line method, whether fully funded or partially funded, they should only be used for their intended purposes. For example, money should not be taken out of the roof reserve account to pay for painting the building. However, the association can use reserve funds for non-scheduled purposes if approved in advance by a majority vote of the unit owners.

The concept of “cash flow” or “pooled” reserve funding differs from “straight line” reserve funding.  Under pooled reserves, it is still necessary for the reserve schedule which accompanies the annual budget to set forth required reserve items (roofs, painting, paving, and other items with the replacement cost/deferred maintenance expense of more than $10,000.00). Further, the “cash flow” reserve schedule must still disclose estimated remaining useful life and replacement costs for each reserve component. The main difference in the cash flow presentation of reserves is that instead of each reserve line item having its own fund balance, there is a “pool” of money in the reserve fund, which is available for costs affiliated with any item in the reserve pool. For example, the painting and roof reserve monies are “pooled” into one fund, so a vote of unit owners is not required for expenditures from the fund, as would be the case in a straight-line reserve scenario where monies from one reserve account would be used for another reserve purpose.  As with “straight line” reserve funding, with pooled reserves, a vote of the unit owners is should be required to use reserve funds for operating purposes, or for any expenditure involving items that are not part of the “pool”.

The pooling method of reserve funding attempts to predict when a particular item will require replacement or deferred maintenance, and reserves are scheduled and funded so as to insure that a necessary amount of funds are on hand when the work needs to be done. Theoretically, monthly or quarterly reserve contributions can be lowered, while still avoiding special assessments.

Of course, what works in theory does not always work when placed in human hands. In addition to needing a crystal ball to predict exactly when a reserve expenditure will need to be made, reserve contributions may be substantially higher in certain years, such as when the fund is depleted for the replacement of a required item, and there is a short useful life for the next asset that needs to be replaced.

A condominium reserve fund helps associations pay for maintenance and upgrade costs as they become due.   As a property owner, you will be well aware of the benefits which accrue from setting aside sufficient reserve funds.   The  association will better maintained over time and you will lessen the need for special assessments to make up future budget deficits.

A list of Do’s and Dont’s for Community Management:

Community Associations

• Customer service. Answer your calls and emails within 24 hours of receipt. Even if you don’t have an answer, let your client/homeowner know that you are working on it.
• Know your community. Set your goals to be proactive, not reactive.
• Be respectful. Treat that nasty, arrogant man or woman with respect; they may be your next Board President.
• Maintain your cool. If a homeowner is calling you names and yelling, don’t take it personally. Nine times out of ten, they are just having a bad day and you have been chosen to take it out on. Surprisingly, after they have vented, they will often call you back to apologize.
• Support staff. Acknowledge and appreciate those that are there to support you. It only takes a second to add a line to your email after they have gathered information for you to say, Hey, I appreciate all you do for me.
• Never, ever lie. If you have forgotten or not completed a task given you by the Board, tell them I am sorry. I overlooked that directive but I will follow up immediately. The Board will understand that sometimes unforeseen things happen. If you are straight forward and provided you don’t make a habit of overlooking your assignments, they will understand.
• Rumblings of dissatisfaction. Working for a management company means client retention. If you feel, hear or suspect any dissatisfaction, then you need to address this issue with your supervisors. What begins as a tempest in a teakettle ultimately could lead to a hurricane. Less clients for your company can mean cuts backs in the work force.
• Ask questions. No one has all the answers all of the time. Ignorance is not bliss if you have read the documents wrong or given your Board misinformation. Better to say, I don’t have an answer at this time, but I will research the issue and report back promptly.
• Stay focused. On the days that every call you get is from a cranky homeowner, every email seems full of hate, you feel sure that your supervisor appears to be looking at you with thoughts of terminating your employment, and you are ready to just give up. . . you might be surprised that the next call is from a homeowner or Board member telling you how much they appreciate you, the next email is one giving you a glowing reference on a job well done, or you are paged to come to the reception desk and find a floral delivery from a grateful Board/Homeowner, and you see your supervisor in the hallway and well, three out of four ain’t bad.

Riverside Property Management in Kennesaw works with homeowner and condo associations providing a variety of management, code enforcement, consulting and educational services, reserve studies, budgeting assistance and maintenance planning expertise.

Creating A Board for Your HOA, POA or Condominium Association

WHO SHOULD BE ON THE BOARD?
The board should be composed of a diverse group of individuals who are interested in working toward the organization’s mission and have the particular skills that will help to contribute to a well-run organization. For instance, you may want to seek out people with financial, marketing, or legal backgrounds. You may want to consider bringing on someone with an entrepreneurial
background, or someone who is proficient with emerging technologies. You may
also want to recruit members who have influence in the community, work at similar types of organizations, or are representative of the community you are serving. Having this collective knowledge from the beginning will help you make informed decisions. You will also find that as your organization matures, your board composition needs may be very different from those of your founding board. The role of the board tends to change over time as the organization
develops and matures. Early in an organization’s life, the primary need for the board may be individuals who are prepared to give a great deal of time and energy. Later, you may find that as paid staff are brought on, the board focuses primarily on the governance functions of the organization and is less involved with the smaller details of bringing the organization up to speed.
HOW BIG SHOULD THE BOARD BE?
Boards can vary in size from three to more than 50 members.  Each state has regulations that determine the minimum size of the board, but the optimum number of people who sit on the board should be determined by the needs of the organization. Assess the list of tasks that the board needs to accomplish and plan your board around the jobs that need to be done. There should be enough meaningful tasks for the board to accomplish without leaving board
members feeling overburdened or uninvolved.
HOW OFTEN SHOULD THE BOARD MEET?
As with the size of your board, the number of board meetings each year should be determined by the work that needs to be accomplished. For logistical and practical reasons, larger boards often meet less frequently, leaving much of the work to the board’s committees.
Regular attendance at board meetings is one of the individual responsibilities of board members. Your organization’s bylaws should include an attendance policy that clearly states the number of meetings that can be missed by an individual board member before he or she is asked to leave the board. Develop an annual schedule of meetings determined a year in advance. Circulate clear and thorough information materials, including an agenda, to all members
two to three weeks before each meeting. Maintain complete and accurate minutes of all meetings, and keep meetings brief and well focused. An organization’s bylaws should also state the number of board members required to constitute a quorum. Without a quorum, the board is unable to conduct its official business.
WHAT KIND OF TERM LIMITS SHOULD BOARD MEMBERS SERVE?
There are no hard-and-fast rules for determining board members’ tenure. Many organizations
do, however, limit members to two consecutive terms and require a hiatus of one year before a
board member may be reappointed. Many organizations also stagger terms of service so that
one-half or one-third of board members are elected every one or two years for terms of two to
six years. Such policies encourage institutional renewal because a board can profit from the
experience of veteran board members while welcoming the fresh perspective that new members
offer. Board members on hiatus can remain active in committee service or serve in an
advisory capacity. Term limits are a painless mechanism for rotating inactive or ineffective
members off the board. These policies should be written into the organization’s bylaws.

Membership Benefits for HOA and Condo Board Members in Georgia

Georgia Chapter of:

Click Here for an APPLICATION and INFORMATION!

•Educational Seminars

These seminars provide association board members and homeowners that provide valuable information on issues affecting associations.

•The Community Association Volunteer Leadership (CAVL) Workshop

Designed for association board members and homeowners, this comprehensive training program provides a great overview of the different aspects of running a community association.

•Mini Expo Tradeshows and Educational Programs

Each year we are excited to offer Mini Expo tradeshows in conjunction with our homeowner programs, which offers an opportunity to network with other association leaders and professionals in the industry.

•The Georgia Commons

Our quarterly magazine provides up-to-date information on the operation of associations.

•The CAI Service Directory

Our membership directory features a complete list of service suppliers and professionals who work with associations. We have over 750 members and are growing every day!

•Educational Seminars

These seminars provide association board members and homeowners that provide valuable information on issues affecting associations.

•The Community Association Volunteer Leadership (CAVL) Workshop

Designed for association board members and homeowners, this comprehensive training program provides a great overview of the different aspects of running a community association.

•Mini Expo Tradeshows and Educational Programs

Each year we are excited to offer Mini Expo tradeshows in conjunction with our homeowner programs, which offers an opportunity to network with other association leaders and professionals in the industry.

HOA Board…Wake Up!

The board of a homeowners association has several different tasks. To understand what these tasks should be, it is essential that the Board understands that the HOA “thing” is. It is often not what most think it is. Here are some of the myths.

FOR IMMEDIATE RELEASE

PRLog (Press Release) – Sep 01, 2011 -

The board of a homeowners association has several different tasks. To understand what these tasks should be, it is essential that the Board understands that the HOA “thing” is. And it is often not what most think it is. Here are some of the myths.

Monthly fees are kept low.

The board is elected to the HOA to maintain assets properly. There is a difference between being a good administrator and a tightwad. Stingy boards skip routine maintenance services and tend to erode the value of homes. It takes money to make things right and the board should spend the money necessary to accomplish tasks.

Volunteer Councils are not subject to the same standards as professional property managers.

Volunteers they are, yet are saddled with the task of conducting business for the Owners Association in an informed and businesslike manner the same way a community manager would. This means that they should be taking care of things in a timely manner, planning to anticipate problems, receiving and acting on good advice.

The HOA is small and so are the needs.

The lower the HOA poulation, planning is more-so important because the cost increases for the smaller owner’s association.

We are too small to professional management.

In areas such as financial management and enforcement, all homeowner associations should have the professionals out front. Collecting money from neighbors and control of their antisocial behavior is bound to cause problems for a volunteer. It’s even worse when you live next to the abuser. There are professionals who perform these tasks management 24 / 7 and get paid for it.

The board is chosen to be the director.

The board is elected to hire and supervise competent service providers. When properly organized, the work of the general meeting should only take a couple of hours a month.

The board is responsible for most valuable asset most people own. The responsibilities of a HOA board are not unlike those of any Fortune 500 board. In both cases, physical and human assets are maintained by the board. Careful planning and effective communication to shareholders (owners) is needed.

Is your board is asleep?  Does it understand the true scope of Board Member work?

So, heed this wake-up call, and call Riverside Property Management, TODAY! (678) 866-1436 or (404) 788-7353.
http://www.youtube.com/watch?v=UayzInP1tp4

 

Riverside Property Management, Inc. offers this information for educational purposes only and not as legal advice. The information provided in this article does not create a client relationship between you and Riverside Property Management, Inc., nor is this article a substitute for legal advice. The contents of this article are subject to change without notice. You should not rely or act upon the contents of this article without seeking advice from your own attorney. Riverside Property Management, Inc. is not a law firm.

How to Organize a Fall Festival for Your HOA or Condo Association

Many Homeowners Associations plan fall festivals. Some celebrate the end of the harvest, while others use a fall festival to provide a safe alternative to traditional Halloween trick-or-treating. Whatever the reason for thecommunity activity, with a little bit of planning the festival can be a lot of fun for all home owners.

Instructions

1. • 1

     Decide who is eligible to participate. For a project like this, the more community involvement you have, the more likely that the event is fun and successful.

   • 2

     Set a location and time. Advertise it on the street corners. Schools regularly host fall festivals, as do churches. In larger communities, the neighborhood holds the fall festival in one of its parks or grassy areas. Whatever location you choose, secure a backup location in case of bad weather.

   • 3

     Check out any insurance coverage you might need. Also, apply for any legal permits.

   • 4

     Enlist volunteers. This is sometimes the trickiest part of the equation. Recruit dependable people for key positions so you don’t have to scramble to do their job at the last minute.

   • 5

     Arrange for food kiosks. You might have apple pie stands, pumpkin bread stands and chili booths. Or, you might just decide to have a potluck-type meal where everyone brings a covered dish or two. Rent a cotton candy or hot dog machine.

   • 6

     Decorate your fall festival site. It can be as simple as setting out some pumpkins or more elaborate.  A decoration committee is well advised for this chore.

   • 7

     Set up games. Carnival-type games, such as cake walks and fish ponds.  Rent a bounce house…these are great for children. Going along with the fall theme, pumpkin carving competitions are fun as well.

Enjoy!  But alas, make sure there is a clean-up committee designated to tidy up after all of the fun!

HOA Cash Management Programs

Cash management programs for Community Associations

Council members have a fiduciary responsibility not only to track revenue and expenses of the association, but also to use procedures that provide security for the assessments collected from homeowners and cost control. If your community association or management company has not recently revised its payment processing and cash management systems, you may not be aware of the innovations that can make your Board more efficient, save money and help increase your investment earnings.

Lockbox services designed for Community Partnerships
Does your staff still handles accounting manual assessment payments? If your association or management company is the opening of envelopes, posting payment information, preparing deposit slips and bring them to the bank, these activities consume a significant amount of management time and also increase the risk of theft and error . There is a solution: an automated treatment.
Automated processing services include a lockbox. A “lockbox” is a cash management tool that is a cost effective way to outsource most of the obligations associated with payment processing, saving time and money partnership.
Lockboxes have been available since the 1930s. They were designed to expedite the processing of payments by mail. Payments were sent to a PO box, closed and a delivery service could collect payments and transport it to their customers. The delivery of the contents of the box directly to the association eliminated the time lost by the post office to sort and deliver the payments. Computer imaging technology improved the process dramatically in the 1990s, making possible the creation of electronic payment files.
Today, the assessment payments are mailed directly to the lockbox, not the office of the association or management company. The controls are read by electronic scanners that reduces read errors, and payments are processed faster than it would be manually. Payments are credited to the account faster for the homeowner as well. The department of the association or management company accounting can upload files directly on your payment of accounts receivable system, eliminating manual entry of payments. The payment information is available to you online immediately.
Using a lockbox, associations often find they are able to reduce the time spent in processing payments and may be able to use staff to work on other tasks necessary to meet the daily needs of the association . How to find a lockbox service that meets the needs of your association?

1. Get recommendations from other professional associations or management companies what works for them and why.

2. Ask detailed questions about the technology used by the lockbox. The answer “using the latest technology” is not enough. Your questions should focus on specific services offered by the lockbox:
• Do you see a diagram and picture coupon?
• Are your electronic files compatible with your accounting system?
• Is the lockbox in use of their own software or licensed by third party? The costs are usually higher if the lockbox does not use its own software, because they must pay licensing and maintenance fees.
• What is the cost, if any? Most banks do not charge for the service in exchange for maintaining certain balances in checking and / or savings accounts.

3. Ask specific questions about what is working with the vendor to ensure that lockbox services fits your needs. Lockbox is held within the company or outsourced? How to handle errors? What kind of reports do you offer? How do you handle payments with on-line services to pay bills?

Cash Management Services Associations
It is important for all associations to ensure that financial institutions use to understand their needs. If they do, you may not be receiving advice and guidance you need to maximize the profitability of the funds of the association. In reviewing the cash management process, which should ask the following questions:

Are my reserve accounts performing as well as they could be?
I’m making the maximum rate of return on my money market accounts?
Do I have FDIC coverage on my CDs?
Do I have an investment manager we can trust to recommend investments that meet the regulations of my association and the investment policy?
Are all financial institutions that hold money for my association ensuring the highest level of protection of the funds?

If you are unsure, look for a financial services company specializing in industry owners’ association and work closely with them to implement an effective program management for an effective and efficient partnership.