Review of 2009 Court Cases Regarding Community Living

A list of case listings on community living and the archived summaries can be found here:

Before you say hello to the New Year, say goodbye to the old one with the Community Association Law Reporter 2009 Index, which features alphabetical listings of all cases in Law Reporter in the last year, with case citations classified by subject.

Driving on Ice

Weather.com has excellent tips on driving in icy conditions. Their best advice for driving in bad winter weather is not to drive at all, if you can avoid it.

Winter Safety Reminders

As snow contractors continue the ongoing job of removing snow and ice from sidewalks, roadways and parking lots, please remember that the weather will continue to be harsh this week. With freezing temperatures and sleet expected throughout the week, please remember the following:

Add the following supplies to your disaster supplies kit:

• Rock salt to melt ice on walkways
• Sand to improve traction
• Snow shovels and other snow removal equipment.

Prepare your car

• Check or have a mechanic check the following items on your car:
• Antifreeze levels - ensure they are sufficient to avoid freezing.
• Battery and ignition system - should be in top condition and battery terminals should be clean.
• Brakes - check for wear and fluid levels.
• Exhaust system - check for leaks and crimped pipes andrepair or replace as necessary. Carbon monoxide is deadly and usually gives no warning.
• Fuel and air filters - replace and keep water out of the system by using additives and maintaining a full tank of gas.
• Heater and defroster - ensure they work properly.
• Lights and flashing hazard lights - check for serviceability.
• Oil - check for level and weight. Heavier oils congeal more at low temperatures and do not lubricate as well.
• Thermostat - ensure it works properly.
• Windshield wiper equipment - repair any problems and maintain proper washer fluid level.
• Install good winter tires. Make sure the tires have adequate tread. All-weather radials are usually adequate for most winter conditions. However, some jurisdictions require that to drive on their roads, vehicles must be equipped with chains or snow tires with studs.
• Maintain at least a half tank of gas during the winter season.

Place a winter emergency kit in each car that includes:

• a shovel
• windshield scraper and small broom
• flashlight
• battery powered radio
• extra batteries
• water
• snack food
• matches
• extra hats, socks and mittens
• First aid kit with pocket knife
• Necessary medications
• blanket(s)
• tow chain or rope
• road salt and sand
• booster cables
• emergency flares
• fluorescent distress flag

Dress for the Weather

• Wear several layers of loose fitting, lightweight, warm clothing rather than one layer of heavy clothing. The outer garments should be tightly woven and water repellent.
• Wear mittens, which are warmer than gloves.
• Wear a hat.
• Cover your mouth with a scarf to protect your lungs.

Winter Storm Warning Issued for DC Metro Area

The National Weather Service has issued a Winter Storm Warning for the Washington, D.C. metropolitan area, including the City of Alexandria. The warning is in effect beginning 12 a.m. on Saturday through 6 a.m. on Sunday.

Snow is expected to begin after midnight tonight, and continue through Saturday evening. Accumulations of five to ten inches are possible. Temperatures will range from the upper 20s to the lower 30s, with winds from 10 to 20 miles per hour. A Winter Storm Warning means that significant snowfall is likely to occur, which could cause travel difficulties.

The City urges residents to be prepared for slippery road conditions and limited visibility. Vehicles parked on snow emergency routes should be moved to alternate locations so crews can effectively clear snow from the roads. City crews are standing by to respond as the storm moves through the area. To report a weather-related road condition, or report potholes, please call 703.746.4488.

Residents and business owners should maintain an adequate supply of shovels, salt or sand for their sidewalks and driveways. The City Code states that driveways and entrances are the responsibility of the residential owner, occupant, community association, or business for snow removal. Snow and ice should be cleared from the paved sidewalk in front of, or abutting, property within 24 hours of the end of the snowfall. Snow should be cleared around fire hydrants and storm drains. Snow should not be shoveled into the sidewalk or street. According to City Code, if snow is not properly cleared, the City could charge a fine for snow removal services.

Volunteer “Snow Buddies” are available to assist those who need help clearing snow, but residents must sign up in advance by calling 703.746.4800. If you would like to volunteer to become a Snow Buddy, please call Volunteer Alexandria at 703.836.2176.

Executive Session

Can votes be taken in executive session?

Yes, the only restriction on executive session is that the proceedings are secret.

Annual Meeting Season

With Annual meetings comes proxies. In many scenarios, the question of should a proxy be counted is posed.

What is a proxy anyway...? A "proxy" is a means by which a condo or HOA unit owners who expects to be absent from the Annual meeting authorizes someone else to act in his or her place at the meeting, either by voting for them or by participating through quorum only.

Quroum only means that the unit owner is "present" for the purpose of meeting quorum, or the required level of unit owner participation required before business can legally be conducted.

When a proxy is for quorum purposes only, they are only tabulated on the sign in sheet.

When a person gives their proxy to a specific person or to the Board of Directors, that person or Board has the right to vote on behalf of the absent person.

When should a proxy be counted or put aside? Simple answer is that it depends on how the bylaws read. Generally speaking, if a proxy is legible, witnessed (if required) and does not choose more than one option, it can be counted. When in doubt, ask your legal counsel.

Did you know?

75.3 million housing units were owner-occupied in the third quarter of 2009. This is lower than the peak number of owner-occupied units, 75.9 million, reached in 2006, but the number has stabilized after a general decline in 2007 and 2008.

The 39th Annual Scottish Christmas Walk Parade

The St. Andrew's Society of Washington, D.C. partners with The Campagna Center and the City of Alexandria to host the 39th Annual Scottish Christmas Walk Parade on Saturday, December 5, from 11 a.m. to 1 p.m., in historic Old Town. As the centerpiece of the Scottish Christmas Walk Weekend, the parade celebrates the City's Scottish heritage, featuring more than 100 Scottish Clans, pipe and drum bands, Scottish dancers, re-enactment groups, Scottie dog groups, dignitaries and, of course, Santa Claus will march through the streets of Old Town. This year's Grand Marshal is the City's Chief of Police, Earl Cook.

The parade starts at the intersection of Wilkes and South Saint Asaph Streets. The parade will head north on South St. Asaph Street to Queen Street, turn right on Queen Street to North Fairfax Street, then turn right and head south on North Fairfax Street. The parade will turn right on King Street, passing Market Square, to the termination point at the intersection of King and Pitt Streets.

The St. Andrew's Society of Washington, D.C. partners with The Campagna Center and the City of Alexandria to sponsor the annual parade. Consistently ranked by the Southeast Tourism Society as one of the top 20 events in the South, the Scottish Christmas Walk Weekend draws nearly 30,000 individuals and families to the parade. Tourists travel from throughout the Mid-Atlantic region to participate in this celebrated community event. For more information about the parade and all of the other weekend's festivities, visit www.scottishchristmaswalk.com.

All proceeds from the Scottish Christmas Walk Weekend support the Campagna Center's programs, which help children in Alexandria arrive at school ready to learn and ensuring they are academically successful at each grade level. For information on The Campagna Center, call 703.549.0111 or visit www.campagnacenter.org.

What's so great baout Condo/HOA living? Part 5

Community associations offer one of the best opportunities for Americans to own their own homes. They are for the 21st century what land grants were in the 19th century, and what the New Deal and GI Bill were in the 20th. Why?

Community Associations Make the Market Efficient

Many community associations—especially condominiums—have greatly reduced urban sprawl. Because of their collective management and protective covenants, they are precisely what the Housing Act of 1949 intended when it called for “decent home(s) and suitable living environments.” Community associations, as alternatives to traditional single-family homes, are shining examples of free-market efficiency.
The factors that make community associations great places to live are easily ignored or misunderstood. Critics prefer to look at a few sensational issues instead of the whole picture. But for many community associations are affordable, enjoyable, efficient places to live.

FHA Releases Revised Condo Guidelines

On Friday, November 6, 2009, the Federal Housing Administration (FHA) issued two documents related to FHA mortgage insurance requirements for condominium associations. These two documents: HUD Mortgagee Letter 2009-46A and Mortgagee Letter 2009-46B provide an overview of the FHA-proposed transitional criteria and successor criteria for condominium association requirements for FHA mortgage insurance.

These letters replace earlier proposals issued by FHA that triggered a strong response from affected industries. CAI provided FHA with its feedback on the earlier drafts of the criteria. The new transitional criteria and the successor criteria found in these documents demonstrate a positive movement by FHA in areas in which CAI provided comments, but will continue to pose a challenge for condominium associations. Read more ...

CAI has also prepared a short FAQ for condominium associations on this matter. That document may be viewed here.

What's so great baout Condo/HOA living? Part 4

Community associations offer one of the best opportunities for Americans to own their own homes. They are for the 21st century what land grants were in the 19th century, and what the New Deal and GI Bill were in the 20th. Why?
Community Associations Minimize Social Costs

Community associations also minimize social costs. Because they have mandatory covenants that require certain obligations from homeowners and the association, associations ensure that all who benefit pay their share and everyone is equally responsible. Community associations have sufficient enforcement authority that local government is seldom, if ever, needed to resolve assessment disputes. Many associations use alternative dispute resolution because it’s a faster and cheaper way to solve problems than legal action.

What's so great baout Condo/HOA living? Part 3

Community associations offer one of the best opportunities for Americans to own their own homes. They are for the 21st century what land grants were in the 19th century, and what the New Deal and GI Bill were in the 20th. Why?
Community Associations Make Owning a Home Affordable

Almost from their inception in the 1960s, condominiums have provided housing for low-to-moderate income Americans. In fact, in some areas, builders are required to include a certain percentage of affordable homes in new developments.
Also, converting rental apartments and commercial buildings into condominiums not only revitalizes many decaying neighborhoods, it’s also made ownership more affordable for those wanting to live in urban centers.
Community associations have made home ownership possible for millions of Americans partly because 21st century families tend to be smaller, the number of single-parent homes has increased, and more retirees are staying in their homes after retirement.

What's so great baout Condo/HOA living? Part 2

Community associations offer one of the best opportunities for Americans to own their own homes. They are for the 21st century what land grants were in the 19th century, and what the New Deal and GI Bill were in the 20th. Why?

Privatizing Public Service Allows Growth

Wherever a new community is built, local infrastructures are stretched. School populations, snow removal, storm water management, road maintenance, utilities, traffic, everything increases leaving the local jurisdiction unable to support new community development. Yet housing is sorely needed. Therefore, local jurisdictions often require community associations to assume many responsibilities that traditionally belonged to local and state government.
This privatization of public services has allowed local jurisdictions to continue developing needed housing without increasing local taxes. Instead, the developer must build the infrastructure and create an association to maintain it after it’s developed.

Public Forum: City of Alexandria’s Strategic Goal for Transportation

The City of Alexandria’s Strategic Goal for Transportation to Be Discussed at November 9 Public Forum

Residents are invited to speak at a public forum about the City of Alexandria’s strategic goal for Transportation tonight November 9, 7:00 p.m. – 9:00 p.m., City Council Workroom, City Hall, 301 King Street. Community input is important to the City’s current strategic plan review and will help shape implementation moving forward. William D. Euille and Councilman Paul Smedberg will lead the discussion on the transportation goal, which focuses on Alexandria as an integrated, multimodal transportation system that efficiently and effectively gets people from point “A” to point “B”.

Residents are encouraged to give feedback in advance by submitting their comments online at www.alexandriava.gov/StrategicPlanning, by fax to 703.519.3356 or in writing to the Department of Transportation, Room 4100, City Hall, 301 King Street, Alexandria, VA 22314.

In written and/or oral comments, participants should address the following questions:
1. What two specific, measurable objectives should the City use to achieve its transportation goal?
2. What two specific projects or programs should Alexandria undertake in the next 10 years to accomplish its objectives?
3. What indicators will allow the City to measure progress toward its overall goal?
4. What opportunities should the City seek to capitalize on in pursuit of its goal?
5. What constraints should the City consider?

For more information, please call Yon Lambert, Principal Transportation Planner, 703.746.4081, Yon.Lambert@alexandriava.gov or visit www.alexandriava.gov/StrategicPlanning.

What's so great baout Condo/HOA living? Part 1

Community associations offer one of the best opportunities for Americans to own their own homes. They are for the 21st century what land grants were in the 19th century, and what the New Deal and GI Bill were in the 20th. Why?
Collective Management Protects Value

Americans have accepted, for the most part, the collective management structure of community association living. Covenants and rules are no longer a new concept to most of us: renters are used to lease agreements with restrictions; single-family, detached-home owners are used to zoning ordinances and building codes. The difference is that in traditional, single-family housing, restrictions are administered by public bodies rather than by private boards.
Most Americans have accepted private governance because they understand that collective management and architectural controls protect and enhance the value of their homes.

FTC Red Flag Rule

On November 1, 2009, the Federal Trade Commission (FTC) implemented new regulations designed to address identify theft issues related to consumer transactions. The rules are referred to as "Red Flag" rules, as they require a covered organization to put in place procedures for addressing any "red flags" related to a consumer account when there are indications that the security of a consumer’s identity has been compromised.

Election Day!

It is Election Day in Virginia! Go Vote!

Who Lives at a Condo?

Empty nesters: People without children or whose children have grown up and moved out are attracted by the low-maintenance, amenities and security of community association living.

Working couples: Double-income couples can afford traditional homes, but many prefer community association living because they don’t have to spend as much time on maintenance.

Singles: Community associations offer affordable homeownership for those with a single income.

Retirees: Low-maintenance, security, lifestyle and amenities are all aspects of community association living that appeal to senior Americans.

First-time buyers: Many first-time buyers find it easier to enter the real-estate market with the relatively lower cost of co-op, condominium and planned community units.

Investors: Community associations appeal to investors because they often compensate for shortages in the local rental markets.

Tips to Discourage Burglars

The association makes every effort to maintain a secure environment in our community, but there is only so much we’re authorized to do. Unfortunately, illegal entries into homes in our area—and others—happen from time to time. Residents can do more to protect themselves and their property than the association can do. Here are a few common-sense suggestions for reducing your chances of being the target of burglary.
*Install double-cylinder, dead-bolt locks on your outside doors and include a reinforced strike plate to strengthen the doorframe.
*Lock all doors and windows no matter how briefly you’ll be out of the house.
*Install bars or lock pins on sliding doors and windows. These are available at local hardware or discount stores. Some mechanisms allow you to lock a sliding window or door in a partially-open position so you can enjoy fresh air securely while you’re at home. However, if you go out, close the window and lock it.
* That old trick of hiding a key somewhere outside your home is a bad idea. Burglars—or anyone who may have seen you hiding the key—will know where to find it. Instead, give a key to a neighbor or leave one with the association management office.
*“John, I’ve gone to pick up your sister. I’ll be home at 3:30.—Mom” This note also means, “Burglar, this house will be unoccupied for 45 minutes. Help yourself.” Don’t ever leave notes like this.
* If you’re going to be out of the house for a short time, leave a television or radio on to create a sense of activity and presence.
* If you’re going to be away for a longer time, such as a vacation, take a few simple precautions to keep your home from looking empty. Ask a neighbor to collect your mail and keep the door and porch clear of delivery notices, newspapers and fliers. Pick up several electric timers at the local discount store, and use them to turn lights, a television or radios on and off at various times during the day and evening. Let your neighbors and the manager know how to reach you in case there’s an emergency.
* Marking your valuable personal property won’t prevent it from being stolen, but it will help you get it back if it is. Engrave your driver’s license number on items in a hidden area. Check with the local fire department, police station or library to borrow an engraver. They’re also available at large discount stores and are worth the investment if you have many items to mark. Photographing the item (and the engraved marking, if possible) will make it easier to retrieve your items from the police if they are recovered, and will aid in making an insurance claim if they aren’t.
It doesn’t take much to discourage a burglar. He succeeds on opportunity, and if your home doesn’t offer a good opportunity, he’ll move on to one that does.

GDP Rises in 3rd Quarter

CNN is reporting that the economy grows for the first time in a year, with the GDP rising 3.5% in the thirds quarter.

Congratulations to our Newest CMCA!

Over the past several months, NBC-CAM recognized hundreds of professionals who completed the requirements to become Certified Managers of Community Associations. The CMCA credential demonstrates that this manager has passed NBC-CAM's national exam and met requirements for managing condominium, cooperative, and homeowner associations.

Ms. Cristin Patti, CMCA
CMS Services, Inc.
Alexandria, VA

Consumer Handbook Available

Find everything from tips on buying a car to building a good credit rating in the 2009 Consumer Action Handbook available for free from the Federal Citizen Information Center. The handbook is available online at www.consumeraction.gov. A Spanish-language version is available at www.consumidor.gov.

To order a free copy, visit www.consumeraction.gov and click on “Order Handbook,” or send your name and address to Handbook, Pueblo, CO 81009. Or you may call toll free (888) 878-3256.

National Neighbor Day

Today is National Neighbor Day. Thats a great excuse to get out and meet some of your neighbors. Meeting people now is a great way to build community at your HOA/condo. It also helps with any future problems- its easier to ask someone you know to quiet their dog, rather than turning a stranger into to management for a noise violation. Happy Neighboring!

Reduce Home Energy Bills

U.S. homeowners can lower home energy bills, lower federal income taxes and increase home comfort by making energy efficiency home improvements that qualify for up to $1,500 in federal income tax credits.

Consumers who make energy-efficient upgrades can also reduce their personal carbon footprint because using less energy at home means emitting less pollution too.

The federal income tax credits for specific home improvements are available now through 2010, thanks to the American Recovery and Reinvestment Act (ARRA) of 2009.

While the tax credits are similar to those in effect a few years ago, consumers should be aware of some changes, according to Steve Nadel, executive director of the American Council for an Energy-Efficient Economy (ACEEE). Consumers must install the specific products and equipment that qualify for the 2009-10 tax credits. Some important details on the home improvement tax credits include:
· For each type of qualifying equipment, the credit is for 30 percent of the cost up to $1,500.
· It is a one-time tax credit that can be claimed in part or in whole for tax year 2009 and/or tax year 2010.
· Homeowners who claimed the $500 credit available in 2006-7 can claim the remaining $1,000 credit for additional products bought and installed in 2009 and/or 2010.
· There are two basic categories of qualifying equipment—“building envelope” products and heating and cooling equipment.
· Building envelope products are replacement windows (including storm windows, storm doors, and skylights), certain ENERGY STAR asphalt and metal roofs, insulation and other sealing products.
· Heating and cooling equipment includes furnaces, boilers, ground source or geothermal heat pumps, gas or propane water heaters, central air conditioning systems (but not window air conditioner units) and biomass stoves.
· Installation costs are not covered for building envelope products.
· Installation costs are covered for heating and cooling equipment.
· For some products, the qualifying criteria are more stringent than they were in prior years. For example, all ENERGY STAR windows no longer qualify.
For detailed information on what qualifies, visit www.energytaxincentives.org.

Bats, Be Gone

The Washington Post offers a look at the increasing number of bats in Northern Virginia that are testing positive for rabies. Click here to read the article.

Important Information for Landlords

If you are an owner who leases your unit, we’d like to make the leasing experience successful and positive for everyone by informing you of your responsibilities. This will help preserve your property value specifically and maintain the association’s property value in general.

Your tenants may not be familiar with common-interest community living. Please take a few minutes to explain to them that living in a community association is very different from living in a rental apartment community. Specifically, your tenants, like all residents, are subject to the rules and regulations of the association, and it’s up to you to educate them and see that they comply. The association will assist you in this area, but the responsibility lies with you. We recommend you provide your tenants with written copies of all policies and rules and advise them on the proper use of the association’s facilities. You can obtain copies of these and other useful documents from the manager.

We strongly recommend that you have a written lease agreement with your tenant. As a lessor (landlord) of a home in a community association, the lease you use must require tenants to comply with the association’s governing documents. In the event your tenant fails to comply with these documents, including the bylaws, or its rules and regulations, a representative of the association will first contact your tenants in an attempt to remedy the problem. The association will send you a copy of any notice sent to your tenant.

If the tenant does not correct the violation, the association will contact you and expect you to remedy the violation using the recourse available to you through your lease agreement. If you are unable to correct the violation, the association may pursue appropriate legal action against the tenant, and possibly against you.

The association asks that you provide the manager with the names and contact information of your tenants. The association will add your tenants to its mailing list, and they will receive the newsletter, invitations to participate on committees, notices of social activities and general association-related information. This information will also be used in case of emergency.

Follow these simple steps and you, the tenants and the association will all have a positive community association living experience:
· Provide your tenants with copies of association rules.
· Educate tenants about the need to follow association rules, and see that they comply.
· Advise tenants on the proper use of association facilities.
· Use a written lease agreement.
· Make sure your lease requires tenants to comply with all association governing documents.
· Provide the association with contact information for your tenants.

Renters: If you don’t have a copy of the association rules or you’d like more information about the association, please contact a board member or manager.

HOA Litigation article

Realty Times has posted a good article on the litigation home owner associations deal with in this economy. Check it out here.

Wild Dues Chase

Great article about collection efforts and dealing with the effects of the economy. The article discusses:

• Collection of assessments
• IOUs
• Fair Debt Collection Practices Act
• Debt collector rules for operating
• Handling disputes
• Violations of federal law

It is important to collect monies owed to associations, but doing so correctly will save you from potential fines and damages. Wild Dues Chase is worth reading.

Fall Maintenance Tip: Leaves

As leaves pile up in front yards, don't forget that you can compost your leaves! Here are a few links that will help you master the process.

How to Compost Leaves

Making Mulch from Leaves

Composting Leaves Without a Bin

Stabler-Leadbeater Apothecary Museum

In recognition of October’s designation as National Pharmacy Month, the Stabler-Leadbeater Apothecary Museum will host a free open house on Saturday, October 3. From 1 p.m. to 5 p.m., the Apothecary Museum will offer free admission, tours, and hands-on activities. Visitors will learn about the special curative properties of plants in their own backyard, while discovering the important role the apothecary played in early Alexandria.

The Stabler-Leadbeater Apothecary Museum is noted for its outstanding collection of shop furnishings, apothecary bottles and equipment, many still in their original location. It also has a spectacular collection of archival materials, including journals, letter and diaries, prescription and formula books, ledgers, orders and invoices. The names of famous customers appear in the documents, including Martha Washington, James Monroe, Nelly Custis and Robert E. Lee.

The Apothecary Museum is located at 105-107 South Fairfax Street in Alexandria. Its hours through October are Sunday and Monday, 1 p.m. to 5 p.m., and Thursday through Saturday, 10 a.m. to 5 p.m. Winter hours (November 1 through March 31) are Wednesday to Saturday, 11 a.m. to 4 p.m., Sunday, 1 p.m. to 4 p.m. and closed on Monday and Tuesday.

For more information, please call 703.838.3852 or visit www.apothecarymuseum.org.

CAI Launches Board Member Education Initiative

Board members and other community association homeowner volunteer leaders can now take advantage of a free, online education unit to get the guidance and perspective they need to govern their communities effectively and responsibly. CAI’s new initiative, Board Member Basics, consists of six online elements, each applicable to leaders in virtually any common-interest community. Developed under the auspices of CAI’s Center for Community Association Volunteers (CCAV), the curriculum includes a Model Code of Ethics for Community Association Board Members, a new CAI resource that addresses board authority, decision-making, conflicts of interest, elections, confidentiality, professional relationships, harassment and more.

Tips for Writing Community Newsletters

Community newsletters can take on different outlooks and speak the voice of the association. With that in mind, it is important to decide as a group what will be the focus of the Board's newsletter. Come to an agreement and make sure all Board members are aware of the decision. If the volunteer heading up the newsletter is not a Board member, spend time with that person to ensure they have a complete understanding of the Board's goals.

With that in mind, a few tips:

• Decide if the newsletter with have an editorial aspect or if it will be facts about the community.
• Plan on regular intervals for publishing. Seasonal, monthly or in conjunction with condo/HOA payments.
• Give writers who want to contribute guidelines. What is an acceptable piece?
• Who has final say? Does the Board need to vote on the newsletter? Can the President make changes?
• What are the costs associated with the newsletter? Will you send it out with an already planned mailing, post it in the mailroom, deliver door to door, send out electronically or snail mail it?

With good planning and consistency, residents will appreciate and use the information in your newsletter.

Agenda Builder

Keep in mind the following items when building your Board Meeting agenda:

• Location, date and time: who can be there, how will participants gain access?
• What time restrictions do you want: 3 minutes to discuss the agenda, 5 minutes per topic?
• Resident Forum: If residents attend, it is best to have them discuss their issues at the beginning of each meeting.
• Old and New Business: what action is on the table and what decisions are needed?
• Information: No action is needed, but updates are provided.
• Executive Session: This allows you to discuss legal, financial and contract issues privately.

External Options for Enforcing Rules

1. Health Department
2. Zoning Department
3. Police Department
4. Fire Department
5. Housing Authority
6. Animal Shelter

Internal Options for Enforcing Rules

1. Suspension of owner’s voting rights
2. Suspension of the use of recreational facilities and common areas
3. Fines
4. Eviction
5. "Self Help" meaning the community takes its own action. Talk to your legal counsel first.

Architectural Guidelines

Community associations frequently develop architectural guidelines that address:

Fencing
Location of improvements upon lots
Decks and patios
Exterior materials
Exterior lighting
Color of exterior surfaces
Landscaping
Outdoor equipment, such as play sets
Doors
Roof protrusions, such as skylights
Window treatments

Rules Communities Develop

Community associations frequently develop rules that address:

Pets
Noise
Children
Garbage and trash
Parking
Use of common areas and facilities
Solicitation
Renting and leasing of units
Maintenance of units

Benefits of Incorporation

There are a number of benefits to incorporating a community association. Incorporation:

• May help to limit the liability of individual owners for acts of the community association
  
• Entitles the community association to the rights granted to all corporations under state law—this could be useful in areas such as obtaining financing, obtaining insurance, or bringing suit against another party
  
• May make it easier to deal with other parties, such as utility companies or vendors

Hierarchy of Authority

For operating a community association, the general hierarchy of authority among governing documents consists of:

• Recorded map, plat, or plan (to show the precise location of units, lots, and/or common area)
  
• Declaration, CC&Rs, master deed, proprietary lease, or occupancy agreement (Note that the master deed, proprietary lease, and occupancy agreement apply only to cooperatives.)
  
• Articles of incorporation (if incorporated)
  
• Bylaws
  
• Board resolutions

Air Conditioner Filters

The importance of air conditioner filers cannot be overlooked. In addition to improving the air quality of the home, it also allows the air conditioner to work at the best level and use energy efficiently. The dirtier the coils are, the harder the system has to work. Frequent or scheduled cleaning or replacement of filters is vital to the continual performance of the equipment.

Schedule visual inspections and maintenance for all units. This will save you future costs for repairs and replacement of machines that die an early death.

Hydro-Jetting or High Pressure Water Cleaner

It is the quickest, simplest and most effective drain cleaning method that depends on the type of blockage. The cleaner will fire a continuous jet of water to blast away the deposits and blockages out of the pipe.

What is in a Resale Package?

The resale package (both certificate for resale and association disclosure packet) must contain the following information:

• The name of the association and the name and address of its registered agent in Virginia, if the association is incorporated.
  
• Information pertaining to expenditure of funds which requires an assessment in addition to the regular assessment during the current or next fiscal year.
  
• The amount of assessments and other mandatory charges imposed by the association for the property being purchased, and the status of the seller’s account.
  
• Information regarding any other entity of facility to which the owner may be liable for fees or other charges once he or she purchases the lot.
  
• Association financial information, including the current budget, most recent financial statement, and status of reserve funds.
  
• A description of pending suits or unpaid judgments of a material nature.
  
• Insurance information, both association and individual owner coverage requirements.
  
• Information concerning compliance by the seller with the governing documents, including copies of any notices provided to the seller.
  
• A copy of the current governing documents, and any rules and regulations or architectural guidelines adoptee by the association. Failure to receive copies of these documents does not relieve the purchaser of the obligation to comply with their provisions.
  
• Certification that the association has registered with the Virginia Real Estate Board.

Do I need a license to be a condominium or homeowner association manager in Virginia?

No, Virginia does not require a license to be a manager. It is, however, a good idea to get as much relevant education about the industry as possible, including some certifications available through trade associations.

Fair Housing

Both the Virginia Fair Housing Law (39-96.1 et seq.) and Federal Fair Housing Amendments Act of 1988 (42 U.S. C 3601 et seq.) prohibits discrimination, mandates accessibility, permits building modification at tenant's expense, and increases enforcement. It affects every one of us. Those who disregard FHA do so at their own peril.

The Fair Housing Acts prohibit discrimination in housing because of:
Race or color
National origin
Religion
Age
Sex
Familial status (including children under 18 living with parents or legal custodians; pregnant women and people securing custody of children under 18).
Handicap (Disability)
Elderliness is an additional protected class in Virginia, which applies to individuals over 55

Did you know?

The biggest U.S. cities have seen their growth rates increase in recent quarters as unemployment and the real-estate slump have slowed migration to the suburbs.

HOA Reserves

Worth a read:
Photo Op HOA Reserves by Richard Thompson

Employee Dishonesty Insurance

What is employee dishonesty insurance?

This insurance protects the employer from financial loss due to the fraudulent activities of an employee or group of employees. The loss can be the result of the employee’s theft of money, securities or other property of the employer.

What is covered under an employee dishonest policy?

Stand alone policies are designed to cover employee thefts, robbery and safe burglaries. Coverage can also include:
1. Forgery or alteration
2. Funds transfer fraud
3. Computer fraud
4. Credit card fraud
5. Money order and counterfeit fraud

Water Conserving Tip #2

Wash clothes only when you have a full load. It can save you up to 600 gallons per month!

Water Conserving Tip

Listen for water running or dripping. Fixing a leak can save up to 500 gallons of water a month.

Dealing with Graffiti

• If you happen to see someone defacing property, don't try to stop it yourself. Call the police immediately and report a vandalism in progress. Make a mental note of as many details as possible about the perpetrators—how many, what age, male or female, distinctive clothing—that will help police.

• Encourage your neighbors to do the same—watch for and report graffiti vandals.

• When graffiti appears on your property, photograph it before removing it. Record when and where it appeared, when it was removed, the cost and other relevant information. Share your documentation with the police and insurance agent.

• Remove graffiti immediately. "Taggers" gain more notoriety the longer the graffiti remains. Removing it quickly sends a message that you care about our community.

• Install good lighting in areas vulnerable to graffiti.

• Plant shrubs or climbing vines in graffiti-prone areas. Or, replace walls with hedges.

• In problem areas where graffiti reappears regularly, try applying a layer of clear paint or silicone coating over painted surfaces. This will make cleaning future graffiti much easier.

Why Do We Need Reserves?

Equipment and major components (like the roofs) must be replaced from time to time, regardless of whether we plan for the expense. We prefer to plan and set the funds aside now. Reserve funds aren’t an extra expense—they just spread out expenses more evenly. There are other important reasons we put association monies into reserves every month:

“Whether or not” to me is like “over” to you (and me).

1. Reserve funds meet legal, fiduciary, and professional requirements. A replacement fund may be required by:
i Any secondary mortgage market in which the association participates (e.g., Fannie Mae, Freddie Mac, FHA, VA).
i State statutes, regulations, or court decisions.
i The community’s governing documents.
2. Reserve funds provide for major repairs and replacements that we know will be necessary at some point in time. Although a roof may be replaced when it is 25 years old, every owner who lives under or around it should share its replacement costs.
3. Reserve funds minimize the need for special assessments or borrowing. For most association members, this is the most important reason.
4. Reserve funds enhance resale values. Lenders and real estate agents are aware of the ramifications for new buyers if the reserves are inadequate. Many states require associations to disclose the amounts in their reserve funds to prospective purchasers.
5. The American Institute of Certified Public Accountants (AICPA) requires the community association to disclose its reserve funds in its financial statements.

Assessments: The Best Bargain in Town

Some people question why they have to pay what is commonly known as the member assessment when they move into a condominium or homeowner association. While assessments may be a technically correct term, the fact is that they are actually property maintenance fees. When the collective buying power of the entire association is factored in, they prove to be a real bargain for individual homeowners. These fees cover exterior maintenance, snow removal, landscaping, trash removal, and sometimes utilities, security, recreation facilities, and more. They also include savings for future big-ticket items like roofs, hot water heaters, and repaving—which means homeowners will not be hit unexpectedly with a special assessment or loan payback when the roof needs to be replaced in a few years.

Surviving Job Loss

It's never a good time to lose your job. However, the current economic environment has resulted in business closures, downsizing and layoffs for many in our community. The National Foundation for Credit Counseling offers the following tips for surviving a layoff:

• Allow yourself to be upset or even afraid. These are natural reactions. However, if they become intense, seek professional help. Talking things through and hearing another person's perspective can bring relief and restore your positive outlook.

• Resist the urge to tell your boss what you truly think of him or her. Remember, you may need him or her as a reference for a future job.

• Take advantage of any assistance your workplace offers. Many companies provide placement assistance, job retraining and severance packages. Make sure you are aware of all benefits offered.

• Apply for any applicable government benefits. Your HR representative at work will be a good resource.

• Resist the urge to solve your problems by spending recklessly. It may feel good for the moment, but the high of spending won't equal the low of dealing with additional debt when there is no income.

• Don't be tempted to live off of your credit cards. Someone with a good line of credit could actually support the family at the current standard of living by using credit, but there's no guarantee a new position will materialize any time soon. Expect one month of job search for each $10,000 of annual income you hope to replace. In other words, if you seek a $50,000 salary, it may take you five months to land that job.

• Take a personal inventory. Consider all assets, income and expenses. No one wants to liquidate assets to survive, but it is good to know what you have to fall back on.

• Drastic times call for drastic measures. Nothing is off-limits. Consider selling the second car or recreational vehicle, real estate holdings, rental properties or jewelry.

• After you review your income versus debt obligations, if you don’t have enough money to make ends meet, calculate how much you’ll need for basic household expenses. Your goal is to pay everyone, but if you must make a choice, keep food on the table and your home life stable by paying your rent or mortgage, association assessments, utilities, childcare, insurance premiums and health care.

• Have a family meeting that includes the children. You don't want family members pulling in different directions, and a joint effort yields a better result.

• Make cutbacks wherever possible, knowing that your austere lifestyle will only be temporary. Resolve to stop all non-essential spending immediately.

• Tracking your spending is always a good idea, but when money is tight, it's essential. Write down every cent you spend. After 30 days, review where the money went and decide where to cut back. You'll be amazed how much you can save without feeling the pinch.

• Contact your creditors to arrange lower payments. Most major credit card issuers have help programs. Explain your situation and what you're doing to resolve it. The creditor may be able to temporarily lower your monthly payment and reduce interest.

• Inform your mortgage lender of your situation. Be prepared to provide documentation of your setback, and have a resolution plan in mind. Since the average consumer doesn't know all the loan modifications available, sit down with a certified housing counselor and map out a plan best suited to your situation.

The National Foundation for Credit Counseling is a national nonprofit credit counseling organization. For more information, visit www.DebtAdvice.org or call (800) 388-2227. En Español, dial (800) 682-9832.

Thieves in the Waste Basket

Most—but not all—identity theft now occurs electronically. But your identity can still be easily scored by thieves who make use of what you toss in your waste basket, too.

Trash facilities and recycling centers can be gold mines of personal information for enterprising dumpster divers. That is, unless you shred documents that contain identifying information—charge receipts, credit applications, insurance forms, physician statements, canceled checks and bank statements and even expired charge cards.

Beware also of those bothersome credit offers you get in the mail and toss unopened into the trash—particularly the pre-approved variety. Clever scammers complete these blank applications, obtain a credit card in your name, charge it to the limit and close the account before you receive the first billing statement. To protect yourself, all you have to do is tear the unopened envelop in half once or twice before tossing it in the waste basket.

Better yet, you can eliminate these prescreened credit offers from your mailbox by calling 1-888-5-OPT-OUT (1-888-567-8688) to opt out. You’ll be asked to provide your Social Security number so the consumer reporting companies can match you with your file.

Also, deposit your outgoing mail containing personally identifying information in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Promptly remove mail from your mailbox. If you're planning to be away from home and can't pick up your mail, contact the U.S. Postal Service at 1-800-275-8777 or online at www.usps.gov to request a vacation hold. The Postal Service will hold your mail at your local post office until you can pick it up or are home to receive it.

The Federal Trade Commission has more information on identity theft and prevention tips at www.ftc.gov/bcp/edu/microsites/idtheft/.

How many board meetings do we need to have?

How many board meetings do we need to have?

Unless your documents require a certain number of meetings, the best answer is as few as you need to take care of business. Associations tend to fall into the habit of monthly meetings, but once the association is running smoothly, there might not be enough business to hold one. If things are dragging at your meetings, try holding them to every 45 days, or take July and December off. You might just to need to experiment a little to find out how many meetings you really need. (VA Community Answer Network)

Fair Housing And You

Both the Virginia Fair Housing Law (39-96.1 et seq.) and Federal Fair Housing Amendments Act of 1988 (42 U.S. C 3601 et seq.) prohibits discrimination, mandates accessibility, permits building modification at tenant's expense, and increases enforcement. It affects every one of us. Those who disregard FHA do so at their own peril.

• The Fair Housing Acts prohibit discrimination in housing because of:
• Race or color
• National origin
• Religion
• Age
• Sex
• Familial status (including children under 18 living with parents or legal custodians); pregnant women and people securing custody of children under 18).
• Handicap (Disability)
• Elderliness is an additional protected class in Virginia, which applies to individuals over 55

All Residents Welcome at Annual Meeting

The association’s annual meeting is the best opportunity for you to learn about this year’s events and get caught up on everything happening in the community. Here are a few agenda items and meeting activities you won’t want to miss:

· Meet board and committee members and the manager.
· Learn about the association’s mission statement.
· Get an update on all current and future scheduled projects.
· Review the proposed budget, and hear the association treasurer explain how your assessments are being used and reserves are being invested.

Be an active community resident and attend the annual meeting. Come introduce yourself to the board, the manager and your neighbors and find a wealth of information about your community!

What The Accountant Does for the Condo

The accountant is a vital part of the association’s professional team. A staff member may take care of the bookkeeping for the association and a CPA is needed to conduct an audit at the end of the year. In addition, the accountant may:

• Reviews financial data, answers financial questions and provides financial advice
• Participates in reserve studies and advises on reserve funding strategies
• Assists with budget preparation and long-term financial planning
• Develops accounting policies and procedures and recommends internal controls
• Prepares monthly or quarterly financial statements
• Educates board or committee members on financial matters
• Makes presentations at meetings
• Prepares association tax returns
• Helps obtain financing
  

The association accountant is a valuable partner who works closely with the manager and the board to ensure your assessments are managed and invested wisely and legally.

New Maryland Elevator Safety Third Party Inspections Law: Effective July 1, 2009

Currently, state law requires that periodic annual inspections be performed on all elevator units and the owner of an elevator unit has the option of contracting with an authorized third party inspector or utilizing State resources to comply with the annual inspection requirement.

As of July 1, 2009, state inspectors will no longer perform periodic annual inspections on privately owned elevator units. The owner must hire an authorized third party elevator inspector to perform the required periodic annual inspection.

Energy Efficiency: Clothes Dryers

When shopping for a new clothes dryer, look for one with a moisture sensor that automatically shuts off the machine when the clothes are dry. Not only will this save energy, it will save on the wear and tear on your clothes caused by over-drying. Also keep in mind that gas dryers cost less to operate than electric dryers. Specifically, the cost of drying a typical load of laundry in an electric dryer is 30 to 40 cents compared to only 15 to 25 cents in a gas dryer.

To get the maximum efficiency out of your clothes dryer, dry towels and heavier cottons in a separate load, clean the lint filter after every load to improve air circulation and periodically check your dryer vent to ensure it is not blocked. Not only will checking the vent save energy, but it may prevent a fire.

Freddie Mac Report: National Home Price Decline Decelerated in Q1 2009

Freddie Mac announced yesterday its Conventional Mortgage Home Price Index (CMHPI) Purchase-Only Series registered a 5.3 percent annualized decline in U.S. house prices during the first quarter of 2009, following a downward revised 18.5 percent annualized drop in the fourth quarter. Over the year ending with the first quarter of 2009, U.S. home sales prices fell 8.4 percent in the CMHPI Purchase-Only Series – less than the 9.7 percent annual decline recorded between the fourth quarter of 2007 and the fourth quarter of 2008.

“The improvement in house-price change from a steep decline to a more moderate one is consistent with other housing market data that point to the highest level of home-purchase affordability in at least 40 years and a stabilization in existing home sales and single-family construction in the first quarter, albeit at low levels of activity,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This pattern was consistent across all nine regions of the U.S., with the rate of depreciation lessening in seven regions, and switching to modest appreciation in New England and the East North Central states.

“Local markets that currently experience high levels of vacant-for-sale homes will continue to experience declines in prices over the coming year. This will likely cause some further decline in the CMHPI Purchase-Only series for the U.S. over several more quarters. Nonetheless, it is important to realize that some local markets will experience stable or modestly rising prices even though the national metric may decline.”

The CMHPI Purchase-Only Series excludes all refinancings in its calculation. Freddie Mac also produces a CMHPI Classic Series that includes data from both home purchase transactions and mortgage refinancings, with the latter values based on appraisals. Generally, because appraisals are backwards looking through the use of recent comparable property transactions, the Classic Series will typically lag changes in the Purchase-Only series. The CMHPI Classic Series indicated that over the year ending with the first quarter, home values depreciated 4.0 percent in the U.S. measure, less than the 5.3 percent decline over the year ending in the fourth quarter of 2008.

South Atlantic Division (DC, DE, FL, GA, MD, NC, SC, VA, WV): fell 0.3 percent (–1.3 percent, annualized) in the first quarter of 2008. Over the last 12 months, home values decreased 9.6 percent, and during the last five years, home values increased 13.1 percent.

Info on Reserve Studies

Types of Reserve Studies
Reserve studies fit into one of three categories: Full; Update,With-Site-Visit/On-Site Review; and Update, No-Site-Visit/Off Site Review (listed from exhaustive to minimal).
• In a Full reserve study, the reserve provider conducts a component inventory, a condition assessment (based upon on-site visual observations), and life and valuation estimates to determine both a fund status and a funding plan.
• In an Update, With-Site-Visit/On-Site Review, the reserve provider conducts a component
inventory (verification only, not quantification), a condition assessment (based on on-site visual observations), and life and valuation estimates to determine both a fund status and a funding plan.
• In an Update, No-Site-Visit/Off Site Review, the reserve provider conducts life and valuation
estimates to determine a fund status and a funding plan.

Contents of a Reserve Study
A reserve study should include the following:
• A summary of the association, including the number of units, physical description, and the financial condition of the reserve fund.
• A projection of the reserve starting balance, recommended reserve contributions, projected reserve expenses, and the projected ending reserve fund balance for a minimum of 20 years.
• A tabular listing of the component inventory, component quantity or identifying descriptions, useful life, remaining useful life, and current replacement cost.
• A description of the methods and objectives utilized in computing the fund status and in the development of the funding plan.
• Source(s) utilized to obtain component repair or replacement cost estimates.
• A description of the level of service by which the reserve study was prepared and the fiscal year for which the reserve study was prepared.

U.S. existing home sales rose 2.9 percent in April

The National Association of Realtors said sales climbed to an annual rate of 4.68 million from a 4.55 million pace in March. That was slightly higher than market expectations for a 4.66 million-unit pace. This means sales of existing homes in the United States rose 2.9 percent in April.

Case Law: Condominium Association Has Right to Ban Dogs

Stamford Landing Condominium Association, Inc. v. Lerman, 109 Conn. App. 261, 951 A.2d 642 (2008)

Covenants Enforcement: A condominium association's rule banning dogs fell within the association's power to promulgate the rule, as enumerated in Connecticut's Common Interest Ownership Act.

Principal Residence

What’s the definition of "principal residence?"

Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as "owner-occupied" housing. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.

Memorial Day

"Memorial Day Order"

General Orders No. 11, Grand Army of the Republic Headquarters.

I. The 30th day of May, 1868, is designated for the purpose of strewing with flowers, or otherwise decorating the graves of comrades who died in defense of their country during the late rebellion, and whose bodies now lie in almost every city, village and hamlet churchyard in the land. In this observance no form or ceremony is prescribed, but Posts and com­rades will, in their own way arrange such fitting services and testimonials of respect as circumstances may permit.

We are organized, Comrades, as our regulations tell us, for the purpose among other things, "of preserving and strengthening those kind and fraternal feelings which have bound together the soldiers sailors and marines, who united to suppress the late rebellion." What can aid more to assure this result than by cherishing tenderly the memory of our heroic dead? We should guard their graves with sacred vigilance. All that the consecrated wealth and taste of the nation can add to their adornment and security, is but a fitting tribute to the memory of her slain defenders. Let pleasant paths invite the coming and going of reverent visitors and fond mourners. Let no neglect, no ravages of time, testify to the present or to the coming generations that we have forgotten as a people the cost of a free and undivided republic.

If other eyes grow dull and other hinds slack, and other hearts cold in the solemn trust, ours shall keep it well as long as the light and warmth of life remain in us.

Let us, then, at the time appointed, gather around their sacred remains, and garland the passionless mounds above them with choicest flowers of springtime; let us raise above them the dear old flag they saved; let us in this solemn presence renew our pledge to aid and assist those whom they have left among us a sacred charge upon the Nation's gratitude—the soldier's and sailor's widow and orphan.

II. It is the purpose of the Commander‑in‑Chief to inaugurate this observ­ance with the hope that it will be kept up from year to year, while a survivor of the war remains to honor the memory of his departed comrades. He earnestly desires the public press to call attention to this Order, and lend its friendly aid in bringing it to the notice of comrades in all parts of the country in time for simultaneous compliance therewith.

III. Department commanders will use every effort to make this Order effective.

By Command of: John A. Logan, Commander in Chief, May 5, 1868

VA Condo Act: Insurance

§ 55-79.81. Insurance.

A. The condominium instruments may require the unit owners' association, or the executive organ or managing agent on behalf of such association, to obtain:
1. A master casualty policy affording fire and extended coverage in an amount consonant with the full replacement value of the structures within the condominium, or of such structures that in whole or in part comprise portions of the common elements.
2. A master liability policy, in an amount specified by the condominium instruments, covering the unit owners' association, the executive organ, if any, the managing agent, if any, all persons acting or who may come to act as agents or employees of any of the foregoing with respect to the condominium, and all unit owners and other persons entitled to occupy any unit or other portion of the condominium.
3. Such other policies as may be required by the condominium instruments, including, without limitation, workers' compensation insurance, liability insurance on motor vehicles owned by the association, and specialized policies covering lands or improvements in which the unit owners' association has or shares ownership or other rights.

B. When any policy of insurance has been obtained by or on behalf of the unit owners' association, written notice of the obtainment thereof and of any subsequent changes therein or termination thereof shall be promptly furnished to each unit owner by the officer required to send notices of meetings of the unit owners' association. Such notices shall be sent in accordance with the provisions of subsection A of § 55-79.75.

C. Except to the extent otherwise provided in the condominium instruments, any insurance deductible under the master casualty policy shall be paid by the unit owners' association as a common expense if the cause of the damage to or destruction of any portion of the condominium originated in or through the common elements or an apparatus located within the common elements. However, a unit owner shall pay such deductible if the cause of any damage to or destruction of any portion of the condominium originated in or through a unit or any component thereof without regard to whether the unit owner was negligent. (1974, c. 416; 2000, c. 906; 2003, c. 360.)

FDIC News Alert

FDIC News Alert

The Wall Street Journal reported that on Tuesday May 19, 2009, Congress “signed off on allowing the Federal Deposit Insurance Corp. to borrow as much as $100 billion from the Treasury Department and extending the agency’s new deposit-insurance limit of $250,000 through 2013.”

The extension of the $250,000 insurance level through 2013 is significant both for protecting assets but also providing more flexibility in investment decisions as to amount and timing.

VA Condo Act: Onsite Management Office

§ 55-79.74:2. Management office.

Unless the condominium instruments expressly provide otherwise, the unit owners' association shall not be prohibited from maintaining a management office on common elements or in one or more units in the condominium. (1982, c. 545.)

Debt-to-Income (DTI) Ratios

Teaching Homeowners the Importance of DTI Ratios by Ralph Roberts

Good read on debt ratios and how they effect homeowners.

Plans to Rent Unit Out in Association

Things to keep in mind if you plan to rent out a unit purchased within a homeowners or condo association:

• The homeowner is still responsible for monthly and special assessments, no matter how the lease is written. If your renters do not pay, you as the homeowner are liable.
• Your tenants' behavior is your responsibility. If they break the condo bylaws, rules or regulations, the homeowner is responsible.
• Know the restrictions, if any, your association places on renters or rental units.
• Know if you need to send the management company a copy of the lease. Without it, your tenants may not be able to get parking or pool permits, or you may be fined. All depending on the bylaws and regulations.

How can we get rid of officers we don't like before their term is up?

If the bylaws just state a fixed term for the officer, such as "three years," or if they say the officer serves for a specified term "and until [the officer's] successor is elected" (or words to that effect), then the Board must use formal disciplinary proceedings, which involve the appointment of an investigating committee, preferral of charges by such a committee, and the conduct of a formal trial.

On the other hand, if the bylaws state a term for the office but add "or until [the officer's] successor is elected," or contain other wording explicitly indicating that the officer may be removed before the term expires, then the election can be rescinded and a successor then elected for the remainder of the term.

If the bylaws themselves establish a procedure for removal from office, that procedure must be followed.

Maintenance Costs

Deferring maintenance to avoid an assessment increase, special assessment or decreasing the amount in the operating account can do more harm than good. Regular upkeep helps maintain property values, protects the community from safety hazards, wards of a domino effect in maintenance problems that spiral into a larger problem and avoid irritated homeowners. Regular maintenance and upkeep is worth the price you pay today if you receive good quality work and have a good follow up plan.

Playground Equipment

Safety tips to keep in mind when dealing with children's playground equipment:

Make sure equipment is made for a community- high usage- and not a personal residence.

More than half of playground injuries come from "climber" equipment, such as ladders, monkey bars, etc. It is recommended that at least 9 inches of wood much is under play equipment that is 7 feet high. First installation should get 12 inches of mulch.

Make sure that equipment is age appropriate before letting children play. Preschool kids should avoid equipment 4 feet and over, while bigger kids can handle equipment up to six feet.

Bigger kids can play on climbing equipment, while younger children should stick to shorter slides and easy access equipment that focus on parent interaction.

**These tips are provided by US Consumer Product Safety Commission, Community Association Institute, ASTM International, and the National Program for Playground Safety.

Getting to Know Pia Trigiani

Michael Lee Pope of the Alexandria Gazette Packet interviewed Pia Trigiani, a prominent condominium and homeowner association attorney in the DC Metro area, on the problems and issues associations and their boards run into and how to deal with misconceptions. Click here for the link directly to the article.

Getting to Know … Pia Trigiani
By Michael Lee Pope Wednesday, April 23, 2008

Pia Trigiani graduated from Saint Mary’s College Notre Dame and received a law degree from the University of Richmond School of Law in 1983. She is a charter member of the College of Community Association Lawyers, and she currently serves as a member of the Board of Governors of the Virginia Bar Association, Virginia Board of Health Professions and Board of the Foundation for Community Association Research. Last year, she and David Mercer formed MercerTrigiani, a five-attorney firm provides corporate, litigation and public policy legal counsel to more than 350 condominium and property owners associations, real estate developers and individual owners located throughout Virginia and Washington, D.C.

Why did you decide to open a new firm in Old Town?
David and I have practiced together for more than 20 years. He is a native of Alexandria, and he was a football player at Hammond High School. He has been working in and around condominiums since he began his practice in 1973. I worked for the Virginia Real Estate Board until I came to Northern Virginia in the mid 1980s, and my work there was to regulate condominium sales in Northern Virginia. David and I started working together 20 years ago, and we have built this practice of representing condominium and homeowners associations. We probably represent about 400 different communities throughout Northern Virginia.

What kinds of problems do these groups run into?
Soup to nuts. It’s the full gambit of things that you’d expect a small business or a big business to address — from employment issues to contract negotiations, and then there are the special issues of how to conduct contract meetings. There are parts of the Condominium Act and the Virginia Property Owners Act that are very similar to the Freedom of Information Act. They require boards to meet in the open and to be transparent in their governance. There are due process procedures for rule enforcement and architectural violations. It really runs the gamut, and it’s pretty broad in scope.

What kind of challenges are presented by representing condominium associations?
It’s very akin to representing a town or a city and a small business. One level, these associations are businesses but they also have governmental characteristics. They have the authority to adopt and enforce rules and collect assessments. But they are also businesses. Condominiums are typically unincorporated associations, but the associations for property owners are incorporated as corporations. So they have the same challenges as a business. They have to develop a budget, hire employees and enter into agreements.

What kind of people become a part of a condo association?
Surveys have shown that people who live in community associations — condominiums and homeowners associations — are more invested in their community and tend to vote in greater numbers. So from a politician’s perspective they are a force to be reckoned with. They tend to vote more than people who don’t live in community associations. Most people purchase in a condominium association or a homeowners association because they like those restrictions. They know that it will protect their property values.

What’s the biggest misunderstanding about condo and homeowners associations?
There’s a commonly held view that condominiums are a bad thing because they are overly restrictive in what you can and cannot do in your unit and the common element. You see this all the time in the media. There was an episode of the "X Files" that talked about the crazy homeowners association president. Just this past season the "Desperate Housewives" had a homeowners association issue when a couple moved into the neighborhood and put in a tacky fountain that nobody liked. Homeowners associations and property-owner associations are often portrayed by the press as bad people, but I can tell you rule enforcement and protecting homeowners is important. Everybody likes the homeowners association when its time to get them to enforce a rule against their neighbor. But they don’t like it when it’s time to enforce the rule against them.

Speeders on Private Streets

A major complaint is the danger that speeders prove to be within communities. The private streets are not patrolled by police and community owners, particularly parents, feel the stress of safety concerns. How do you slow speeders down?

Here is a list to start with:

Radar signs
Employing off duty police
Speed humps and cushions
Rumble strips
Posted speed limit signs
Yellow striping
Chain and Post fencing to narrow streets
Speeding fines
Create partnership with local police department

What is EAB?

EAB stands for Emerald Ash Borer. In the summer of 2008, three infestations of the Emerald Ash Borer insect were discovered in Fairfax County. EAB larvae kills ash trees by feeding on the inner bark and disrupting the tree's ability to transport water and nutrients.

Because of the insect infestation, a number of local areas are quarantined for EAB, including: Fairfax, Arlington, Fauquier, Loudoun & Prince William counties and the cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park.

All hardwood firewood, ash nursery stock, ash green lumber, and any other ash material, living or dead, cut or fallen, including stumps, branches, roots and un/composted chips from any species of ash.

These insects have the potential to do millions of dollars of damage to homeowners and associations. You may see EAB traps throughout the area. They are puprle in color, triangualr in shape and measure 14" wide by 24" long. The traps are baited with natural plant oil and covered in a non-toxic glue.

This information was provided by Fairfax County. If you have further questions, you can call 703-324-5304.

Loss Assessment Coverage

Loss assessment is a feature of condominium insurance. Under most condo association's bylaws, each owner will be assessed a proportionate share to cover major property and liability losses.

For example if the building and commonly shared areas are destroyed by a disaster such as a hurricane or tornado and the losses are not fully covered by the master policy, your association may assess a certain amount to all unit owners to cover the loss. Your condominium unit owners policy's loss assessment coverage would help pay for your share of these assessments.

The standard coverage for loss assessment is $1,000, but higher limits may be available.

Builders Transfering Control to Owners: What Documents?

What documents do I have to provide the condominium association when I transfer control to the owners?

Section 55-79.74:1 of the Condominium Act

Long but informative.

Condo owners: 7 tips for getting your neighbors to pay up

MSN's Real Estate section has a good articles on delinquencies and their effect on the association. Click here to read the article.

A highlights from the article:

But as a board member, you also know that your association has to keep collecting dues in order to stay afloat. Board members "have an obligation, a fiduciary responsibility to collect assessments and continue to provide the services and amenities that residents expect," says Frank Rathbun, spokesman for the Community Associations Institute.

City of Alexandria Board Vacancies

The Alexandria City Council is seeking applicants to fill the following vacancies on City of Alexandria boards, commissions and committees. Council will act on these vacancies at the May 26, 2009 City Council meeting. All applicants must complete a Personal Data Record Form and return it to the Office of Citizen Assistance or file the form electronically via the City’s website no later than 5:00 p.m., Friday, May 15, 2009. Applications received after this deadline will not be forwarded to City Council.

ALEXANDRIA AFFORDABLE HOUSING ADVISORY COMMITTEE has one vacancy for a representative of a civic association due to an expiring term. The Committee meets on the first Thursday of the month at 7:00 p.m. Approximately four hours per month are required of Committee members.

ALEXANDRIA-GYUMRI SISTER CITY COMMITTEE has one vacancy for a citizen member due to the resignation of Sueko Kumagai. The Committee meets on the fourth Tuesday of the month at 7:30 p.m. Approximately three hours per month are required of Committee members.

ALEXANDRIA ARCHAEOLOGICAL COMMISSION has one vacancy for a citizen member from Planning District III due to an expiring term. The Commission meets on the third Wednesday of the month at 7:00 p.m. Approximately five hours per month are required of Commission members.

ALEXANDRIA COMMISSION FOR THE ARTS has one vacancy for a member who represents arts education or business expertise relative to arts and cultural development, including such perspectives as marketing, finance/funding, tourism promotion and organizational development due to the resignation of Sylvia Saborio. The Commission meets on the third Tuesday of the month at 7:00 p.m. Approximately nine hours per month are required of Commission members.

ALEXANDRIA COMMISSION ON EMPLOYMENT has one vacancy for a citizen-at-large due to an expiring term. The Commission meets on the second Tuesday of the month at 8:00 a.m. Approximately five hours per month are required of Commission members.

ALEXANDRIA COMMISSION ON HIV/AIDS has one vacancy for a member from and representing the Alexandria Chapter of the American Red Cross due to an expiring term. The Commission meets on the third Monday of the month at 7:00 p.m. Approximately three hours per month are required of Commission members.

ALEXANDRIA ENVIRONMENTAL POLICY COMMISSION has one vacancy for a member from the field of environmental sciences (e.g. environmental/sanitary engineering, ecology, geology, botany, hydrology, chemistry) or who have Alexandria waterfront expertise, provided that at least four members shall have scientific expertise due to the resignation of Ernest Lehmann. The Commission meets for a work session on the first Monday of the month at 7:30 p.m., and a regular meeting on the third Monday of each month at 7:30 p.m. Approximately 15 hours per month are required of Commission members.

ALEXANDRIA GEORGE WASHINGTON BIRTHDAY CELEBRATION COMMITTEE has one vacancy for a representative of the business community nominated by the Alexandria Chamber of Commerce. The Committee meets on the third Monday of each month at 7:00 p.m. Approximately two hours per month are required of Committee members.

ALEXANDRIA HUMAN RIGHTS COMMISSION has two vacancies as follows: one citizen-at-large due to an expiring term, and one representative from the Alexandria Landlord-Tenant Relations Board due to an expired term. The Commission meets on the third Tuesday of the month at 7:30 p.m. Approximately five hours per month are required of Commission members.

ALEXANDRIA LANDLORD-TENANT RELATIONS BOARD has one vacancy for a minority resident of the City that is neither a landlord or a tenant (homeowner) due to an expired term. The Board meets on the first Wednesday of the month at 7:00 p.m. Approximately five hours per month are required of Board members.

ALEXANDRIA SOCIAL SERVICES ADVISORY BOARD has one vacancy for a citizen member due to the resignation of Saida Musse. The Board meets on the third Monday of the month at 7:30 p.m. Approximately six hours per month are required of Board members.
All applicants must comply with City Ordinance No. 2452, which states that no appointee shall reside outside of the City of Alexandria unless a residency waiver is granted, and City

Ordinances No. 2641, which states that City employees may not apply for vacancies on boards, committees or commissions that relate to the responsibilities of the department in which they are employed.

Members of the Human Rights Commission are available to assist any person or attend any meeting to explain the board and commission application process. To request such assistance, contact Jean Niebauer at 703.746.6390.

For further information about the vacancies or responsibilities of these boards and commissions, contact Rose Williams Boyd or Kathryn Mendenhall in the Office of Citizen Assistance on 703.838.4691.

Gardening Resource

The National Gardening Association offers numerous free online newsletters to homeowners covering urban and small-space gardening, vegetable and fruit gardening, craft and cooking projects and specific gardening information by geographical region. Newsletters include feature articles, tips and resources. To sign up go to www.garden.org/subscriptions.

Starting Strong, Moving from the Developer

The Virginia Real Estate Board posts the following information on Taking Those First Steps- A newly elected homeowner board should take several steps when transitioning from the developer's management to identify and preserve potential claims. These steps include:

Select Independent Legal Counsel

Select Independent Management

Collect All Relevant Documents

Determine the Physical Condition of the Property

Determine the Financial Condition (check that developer has paid all required capital contributions and all regular and special assessments that it owes, including any accrued interest and/or penalties.)

Evaluate additional Transition Areas (in particular any contracts entered into by the Developers)

Assert Claims stemming from Audits and Inspections

Determine Potential Defendants with any Issues Relating to the Developer

Parking Policy- Questions to think about!

When sculpting a parking policy, here are a few questions from different perspectives that it will be important to think about:

The Association's Perspective
*Is the parking policy working?
*Why don't residents appreciate the value of compliance?
*Do all residents know about the parking rules?
*Has the need to provide handicapped parking places further limited the number of available spaces?

The Owners' and Residents' Perspective
*Why don't we have reserved parking?
*Why can't I park my service van in front of my own home?
*Where are my guests supposed to park?

Keep these considerations in mind as the association embarks on either drafting new rules from scratch or revising outdated rules. Understand that the association may be saddled with built-in parking problems--it seemed like a good idea at the time to the developer or a former board--but, the current situation isn't meeting the association's needs.

Consider the various perspectives and needs of those involved--the association, the owners, the residents, and their guests. With these things in mind, the association is now ready to solve its parking problems.

Accounting: Accrual versus Cash

Accural Accounting is a method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term "accrual" refers to any individual entry recording revenue or expense in the absence of a cash transaction.

Cash Basis Accounting is an accounting system that doesn't record accruals but instead recognizes income (or revenue) only when payment is received and expenses only when payment is made. There's no match of revenue against expenses in a fixed accounting period, so comparisons of previous periods aren't possible.

Beyond Lawn Care

Wooded areas, meadows, streams, and ponds are features that add value to communities. These features enhance property values, increase aesthetic appeal, improve environmental quality, eliminate noise and wind, and reduce energy bills.

The responsibility to maintain the natural areas goes beyond the capabilities of the lawn care provider, so it’s up to us to properly maintain all our common ground—-landscaped and natural.

That’s why the association pays attention to water resources and quality, wildlife habitats,
and species diversity. Proper maintenance and management will benefit the local ecosystems and save the association money.

Important to remember:
* Use a licensed contractor with references
* Make sure your contactors has insurance
*Have a detailed contract signed with your contractor
* If you have homeowners that want to help out, make sure you have worker's compensation insurance and a waiver approved by your legal counsel.

Why Do We Need Reserves?

Equipment and major components (like the roofs) must be replaced from time to time, regardless of whether we plan for the expense. We prefer to plan and set the funds aside now. Reserve funds aren’t an extra expense—they just spread out expenses more evenly. There are other important reasons we put association monies into reserves every month:

1. Reserve funds meet legal, fiduciary, and professional requirements. A replacement fund may be required by:
*Any secondary mortgage market in which the association participates (e.g., Fannie Mae, Freddie Mac, FHA, VA).
* State statutes, regulations, or court decisions.
*The community’s governing documents.

2. Reserve funds provide for major repairs and replacements that we know will be necessary at some point in time. Although a roof may be replaced when it is 25 years old, every owner who lives under or around it should share its replacement costs.

3. Reserve funds minimize the need for special assessments or borrowing. For most association members, this is the most important reason.

4. Reserve funds enhance resale values. Lenders and real estate agents are aware of the ramifications for new buyers if the reserves are inadequate. Many states require associations to disclose the amounts in their reserve funds to prospective purchasers.

5. The American Institute of Certified Public Accountants (AICPA) requires the community association to disclose its reserve funds in its financial statements.

Why Scoop the Poop?

Besides being a nuisance, uncollected dog waste is a serious problem for our association. Next time you’re tempted to leave your dog’s droppings on the lawn, please remember these facts:
1. The Environmental Protection Agency is becoming aggressive about enforcing the Clean Water Act. Our association could be fined if dog waste goes uncollected.
2. Uncollected dog waste may lead to a special assessment. If fined by the EPA, the association could face a potential special assessment that would be levied against all members—not just dog owners.
3. The appearance and quality of the common areas are known to affect home sales—not just whether and for how much they sell, but how quickly.
4. The more residents complain about dog waste, the more time the manager must spend on enforcement rather than serving the association.
5. Uncollected dog waste spreads disease and attracts rodents who feed on pet waste.

Ten Reasons to Volunteer for the Association

Here are 10 great reasons to give your community when you make the volunteer pitch:

1. Protect your self-interests. Protect your property values and maintain the quality of life in your community.
2. Correct a problem. Has your car been towed, or do you think maybe maintenance has been neglected?
3. Be sociable. Meet your neighbors, make friends, and exchange opinions.
4. Give back. Repay a little of what’s been done for you.
5. Advance your career. Build your personal resume by including your community volunteer service.
6. Have some fun. Association work isn’t drudgery. It’s fun accomplishing good things with your neighbors.
7. Get educated. Learn how it’s done—we’ll train you.
8. Express yourself. Help with creative projects like community beautification.
9. Earn recognition. If you would like a little attention or validation, your contributions will be recognized and celebrated.
10. Try some altruism. Improve society by helping others.

Here’s What HOA Residents Have to Say

Americans who live in community associations are overwhelmingly pleased with their communities, expressing strong satisfaction with the board members who govern their associations and the community managers who provide professional support.

More than seven in 10 community association residents expressed satisfaction with their community experience, according to a survey conducted by Zogby International, a leading public opinion research firm. Almost 40 percent of community association residents say they are "very pleased," with only 10 percent expressing some level of dissatisfaction. Almost 20 percent express neither point of view.

An estimated 54 million Americans live in some 274,000 homeowner associations, condominium communities, cooperatives and other planned developments.

Here’s what community association residents say:

88 percent believe their governing boards strive to serve the best interests of the community.
90 percent say they are on friendly terms with their association board members, with just 4 percent indicating a negative relationship.
86 percent say they get along well with their immediate neighbors, with just 5 percent reporting a negative relationship. Of those who reported issues with neighbors, the most common problems were pets, general lifestyle, noise, and parking.
78 percent believe community association rules "protect and enhance" property values, while only one in 100 say rules harm property values. About 20 percent see no difference.
88 percent of residents who have interacted with professional community managers say the experience has been positive.

The research was sponsored by the Foundation for Community Association Research, a non-profit organization created in 1975 by Community Associations Institute (CAI). Based on telephone interviews conducted in August 2005, the survey has a margin of error of +/- 3.5 percentage points.

Order of Power: Governing Documents

When a community is governed by a master association policy and the community association policy, the question of which association policy supersedes the other is bound to come up. The basic rule of thumb is the higher document, being that of the master policy, overrides the lower document, the community policy. The exception is if the lower document is more restrictive than the higher document.

For example, if the master policy says that dogs are allowed in the community, but the community policy says that dogs 30 pounds and less are allowed in the community, then the lower document, the community document, trumps the master document.

As always, the association’s attorney can shed light on specific issues beyond this general rule of thumb and its exception.

Votes During Executive Session

Can votes be taken in an executive session?

Yes, votes can be taken in executive session. Proceedings in an executive session are secret, but are not restricted in any other way.

Spectrum of Motions that Stall or Stop

Withdraw/Modify Motion: Applies only after question is stated; mover can accept an amendment without obtaining the floor.

Commit /Refer/Recommit to Committee: State the committee to receive the question or resolution; if no committee exists include size of committee desired and method of selecting the members (election or appointment).

Lay on the Table: Temporarily suspends further consideration/action on pending question; may be made after motion to close debate has carried or is pending

Take from the Table: Resumes consideration of item previously "laid on the table" - state the motion to take from the table

Postpone Indefinitely: Kills the question/resolution for this session - exception: the motion to reconsider can be made this session

With Springtime Comes Flags

Spring time means that flags are going up across communities.

If your community fals with the Property Owners Act (POA): § 55-513.1. Flag display; necessary supporting structures; affirmative defense.

A. Unless specifically prohibited by the association's rules and regulations or architectural guidelines provided in the disclosure packet required pursuant to § 55-512, the association shall not prohibit any lot owner from displaying the flag of (i) the United States, (ii) the Commonwealth, (iii) any active branch of the armed forces of the United States, or (iv) any military valor or service award of the United States.

B. In any action brought by the association under § 55-513, the lot owner shall be entitled to assert as an affirmative defense that the required disclosure of any limitations pertaining to the display of flags or any flagpole or similar structure necessary to display such flags was not contained in the disclosure packet required pursuant to § 55-512.


If you are subject to the Condo Act:

Dog Expelled by Condominium

The Commonwealth of Virginia has an interesting article regarding a dog that was removed from a property adn reinstated damages to the owners.

Check it out here.

Balance Sheet Components

Balance Sheet Components

A balance sheet provides detailed information about a company’s assets, liabilities and members’ equity.

Assets are things that a community owns that have value. This typically means they can either be sold or used by the community to provide services that can be sold. Assets include physical property, such as plants, trucks, equipment and inventory. It also includes things that can’t be touched but nevertheless exist and have value, such as trademarks and patents. And cash itself is an asset. So are investments a community makes.

Liabilities are amounts of money that a community owes to others. This can include all kinds of obligations, like money borrowed from a bank, vehicle leases, money owed to suppliers for materials, payroll, environmental cleanup costs, or taxes owed to the government.

Members’ equity is sometimes called capital or net worth. It’s the money that would be left if a community sold all of its assets and paid off all of its liabilities. This leftover money belongs to the members, or the owners, of the community.

The following formula summarizes what a balance sheet shows:

ASSETS = LIABILITIES + MEMBERS' EQUITY

A community's assets have to equal, or "balance," the sum of its liabilities and members' equity.

Treasurer Duties

Healthy finances are critical to the sound operation of a community association. The association treasurer is responsible for maintaining the finances and ensuring financial growth. The community’s governing documents outline the specific duties of the position within the structure of the Board.

To highlight a few key responsibilities of a community treasurer:
•The treasurer is the financial voice of the board and the community.
•The treasurer is the board's liaison to the association's auditor. He or she should monitor the progress of the annual audit. Make sure that appropriate tax returns are filed on time.
•The treasurer should implement a reserve program based on an engineering study and make sure it has adequate funding.
•The treasurer should ensure the implementation of an annual operating budget.
•The treasurer should implement safeguards to protect association assets.
•The treasurer may oversee issues such as: insurance, financial records, investment of funds

The treasurer should rely on the management office’s accounting department and controller to provide accurate reports and summaries. The accounting department and controller should also be available for training sessions. Reading the details within a monthly financial statement and understanding the cash flow and balance sheets will help the treasurer have a firm handle on the communities financial well being.

Resale Package 101

With recent reports of a slight increase in pending home sales and mortgage applications in the Washington Metro area, communities can expect to see a corresponding slight increase in resale packages orders. While buyers are required to receive resale packages prior to settlement, few understand the importance of reading all of the material and gaining a strong understanding of the financial reports, audits and governing documents.

Simply put, the resale package is a document prepared by the management company that dictates the financial health of a community and the rules a resident must live by.

The resale package (both certificate for resale and association disclosure packet) must contain the following information:

*The name of the association and the name and address of its registered agent in Virginia, if the association is incorporated.
*Information pertaining to expenditure of funds which requires an assessment in addition to the regular assessment during the current or next fiscal year.
*The amount of assessments and other mandatory charges imposed by the association for the property being purchased, and the status of the seller’s account.
*Information regarding any other entity of facility to which the owner may be liable for fees or other charges once he or she purchases the lot.
*Association financial information, including the current budget, most recent financial statement, and status of reserve funds.
*A description of pending suits or unpaid judgments of a material nature.
*Insurance information, both association and individual owner coverage requirements.
*Information concerning compliance by the seller with the governing documents, including copies of any notices provided to the seller.
*A copy of the current governing documents, and any rules and regulations or architectural guidelines adoptee by the association. Failure to receive copies of these documents does not relieve the purchaser of the obligation to comply with their provisions.
*Certification that the association has registered with the Virginia Real Estate Board.

The certificate for resale for a unit in a condominium association must contain all of the above information, plus:

*Whether the documents create a right of first refusal.
*Whether the condominium is located within a development subject to the Property Owners’ Association Act.
*Information concerning any limitation on the number of persons who may occupy a unit.
*The association disclosure packet to a townhome or home in a property owners’ association must also contain:
*A copy of the cover sheet developed by the Virginia Real Estate Board.

*Information concerning use restrictions, specially related to “for sale” signs and flag display.

Important Questions and Answers

Are the seller’s financial obligations current?
Taking title to a unit with unpaid assessments, fines or other charges may subject the purchaser to liability for paying those outstanding amounts. The purchaser will want to be aware of any fees prior to settlement for payment purposes.

Are the Capital Reserve accounts fully funded?
Reserve funds are collected to replace capital assets (i.e. streets, sidewalks, roofs, etc.) when they reach the end of their useful life. Every five years a reserve study is conducted and measures the life span and anticipated cost of these repairs. The funding for the repairs is acquired by regular payments into a capital reserve account. Inadequate funding can result in special assessments- charges that must be paid in addition to the regular assessment.

What does the Association’s master insurance policy cover?
Who pays the deductible, the unit owner or the Association? Is your personal property, (i.e. furniture, wardrobe, etc.) covered? Have there been many claims in the past? How high is the association’s deductible- meaning what will you have to cover before the insurance kicks in. Ask your insurance agent to evaluate the insurance section of the condominium instruments to determine what coverage you need in addition to that covered by the master policy.