Condo Media - May 2010 - 26

OPERATIONS

by Robert Kravets, CMCA, PCAM

More Questions than Answers
Homeowner and Trustee Food for Thought
o you live in a community association? Are the homes in your community made of straw, wood or brick? Has Mother Nature become the big, bad wolf? What is the total value of the homes in your community? How large is the business for which you work? Are you friends with your neighbors? Do you attend your association’s annual

meeting? Are your trustees’ “appointed” because there is never a quorum for a proper election at the annual meeting of your association? Do you investigate the issues to be brought up at an annual meeting of unit owners before arriving at the meeting? Do you think it is appropriate to discuss a personal issue at an annual meeting? Have you ever been on the board of trustees (directors) of your association? Would you be willing to serve as a trustee if you were required to take a course that outlined your responsibilities? Shouldn’t such a course be required? Have you ever participated on a community association committee? Do you belong to CAI-NE? Would a vegetarian wear fur? Should a veteran accept a rule that prevents him from placing an American flag on his balcony? Should a unit owner be allowed to leave their shoes or their grocery basket outside their unit door in a hallway? Is Frosty the Snowman considered a holiday icon? If ostriches do not actually bury their heads in the sand, one cannot be likened to an ostrich — so where is your head? Under the Fannie Mae, Freddie Mac and FHA guidelines, if not only 10 percent of an associations budget is required to be put into the trust’s reserve account each year, but also the value of the trust’s insurance deductible as well, should the trust continue to have high deductibles in order to avoid small claims? If a board knowingly decides not to meet the Fannie Mae, Freddie Mac and FHA guidelines,

do the trustees’ become personally liable to unit owners that cannot get financing? Is it fair for an association to be required to put 10 percent of its annual operating budget away each year if the board has decided that the trust’s reserves are “adequately” funded? If special assessments may prevent mortgage approval and temporary increases in fees will require additional reserve funding, which is the bigger detriment to the association? Is a board of trustees legally discriminating against a class of people by not securing project approval for FHA financing? Will attorneys be able to categorically offer an opinion that an association meets “all applicable laws” in order to secure FHA project approval? If the proposed storm water regulations become law, will your association be able to afford to meet them? If it can’t, will that mean the end of FHA financing in your community? Why don’t you know about these new guidelines and regulations? If these new guidelines prevent some potential homeowners and developers from getting financing and selling their units, does that mean that the financial crisis has another round yet to be played out? If these new guidelines add liability to those that would otherwise volunteer to be at the helm of these communities, will the condominium experiment unravel? Can the men behind the curtain be stopped from blowing legal ink in our faces? Are you sure you want to be on the board? Can you rely on your managing agent? Do you think of your manager as a professional? Is your manager designated as a PCAM (Professional Community Association Manager)? Does experience and training equal professionalism or is an

CONDO MEDIA • MAY 2010

Condo Media - May 2010

Table of Contents for the Digital Edition of Condo Media - May 2010