Appreciating HOA Community Team Members

Communities Thrive When Team Members are Appreciated

As an HOA Board member, it’s important to tap existing resources that make your housing association strong. The first place to look is your human resources… How many people contribute to making your HOA a success? There are the obvious folks: Board members, your Arizona HOA Management company, and leaders… but consider who you may be overlooking!

Consider the employees you depend on to keep your landscape beautiful and the accountants who ensure your Arizona Community Association is in good financial shape. Does your HOA have volunteers or advocates (both formal and informal) who have a positive impact? What about nearby businesses and nonprofit organizations who contribute to the well-being of the overall community? The first responders who keep your members safe? Once you begin a list of all of the necessary members of your community, in addition to members and leadership, you might be surprised at how long your list becomes! Don’t forget the media, neighbors with beautiful gardens and walkers who pick up trash!

Once you’ve identified all who make up your Community Association team, make the time to recognize the importance of recognizing each member’s distinct contributions. This is time consuming, yes, but consider the benefits of gratitude for your community as a whole, and for the leaders who practice it. (This is a task for the entire HOA Board!)

  1. Get creative! One of the easiest things to do is to bring a stack of thank you notes with addresses to your next meeting. Have everyone contribute to your existing list, then sign a card addressed to each person. (Hint: everyone who provides a name should be responsible for making sure the card gets to the recipient). Make it a competition! Consider a nice bottle of wine or a gift basket for the winner at your next meeting.
  2. Post your list on your website and promote it on social media. This is a great way to recognize assets in your community, plus if you tag a person or business, your gratitude gets wider visibility. Create a ripple effect!
  3. Consider creating a physical or online community appreciation Board. A physical landmark featuring a photo and note of appreciation once a week is a public way to make sure that all of the people who make your community a great place to live know they are appreciated.

We have 10 other great ideas for showing appreciation located here:  10 Ways To Thank a Volunteer, With Little (or No) Budget

What other ideas do you have? Please share in the comments!

by /Building Community, Employee Recognition
Leveraging Diversity in the HOA Board

Strength in HOA Board Diversity

Communication is key to strong teams, and learning how to communicate effectively with your team members will be an asset to your HOA community.

HOA Board leaders that invest time in relationship building and understanding  the different types of people and personalities on your team are likely to benefit the Board and your community.

The time and energy you invest will help you understand how one communication strategy works well with one team member, but is not as effective with another.

Learning the true human resources on your team not only benefits your HOA as a whole, but Board members, too: Being seen and heard for who we really are is a great motivator.

Below are some thoughts to consider in regards to communication with team members, and leveraging the diversity that the individuals on your team bring to your HOA Board strategy:

  • Team members thrive when different communication styles are accommodated and appreciated for what they bring to the table.
  • Introverted and extroverted people will have different communication styles and preferences. While this may seem like a burden at first, consider that your Arizona Community Association members are comprised of introverts, extroverts and various cultural backgrounds.
  • Multi-lingual team members are a huge asset!

Understanding and accessing the cultural, linguistic, and communication-style diversity of your team members will positively impact your ability to effectively build a thriving HOA Community.

A leadership team that is in harmony and mirrors your community is an investment that may take time to build, but will be an asset to all members of the HOA, leadership and members alike.

Take time to invest in cultural competency and your HOA Board diversity. Learn what communication styles work best for each team member, and apply what you learn in everyday communication practice.

Discovering the untapped resources that different personalities bring to your Arizona Community Association will be an adventure that adds tremendous value.  Enjoy the results! If you’d like to learn more about effective personality types to recruit, visit our blog, 5 Effective Personality Types for the HOA Board.

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by /Beginners Guide for Rookie Board Members, Building Community, HOA Board Meetings

Preventing Theft and Fraud of HOA Funds

NOTICE: This article is important to the health of your HOA!

As Board Members you have more than likely heard the term fiduciary duty more than you care to remember. However, fiduciary duty is of the utmost importance, especially as a Board Member.  As a fiduciary your obligation to the association is to act in the best interest of the association, show good faith and act diligently.  Association management companies and Community Association Managers also have a fiduciary duty to the association and Board of Directors.

Most Board Members take their roles as community leaders seriously with integrity and understand their responsibility to the association. The same can be said for association management companies and Community Managers.

Unfortunately, there are and have been individuals that represent these groups with little or no semblance of integrity.  Theft of association funds is becoming somewhat commonplace.  News reports detail misappropriation of funds, a management company closing after employees made off with funds from several associations and a Board Member disappearing with a million dollars from an association.

If you are reading this, as stated earlier, you more than likely, have a firm grasp on your fiduciary duty to the association and Board you serve.

This notice is not meant to alarm it is meant to provide encouragement for your commitment to the Board and association and to give you confidence that Planned Development Services has controls in place to prevent theft and fraud in your Association.  

The following financial controls are standard practice for PDS:

  •  Association records are kept up to date.
  •  Monthly Financials and a Budget Variance Report are available for Board
  •  Bank Statements are reconciled monthly and provided to the Board
  •  Treasurer upon request.
  •  Operating Funds and Reserve Funds are kept separate.
  •  Funds are not co-mingled between associations.
  •  Invoices are approved by both the Community Manager and an  Accounting Team Member before processing.
  •  Vendors are verified for accuracy, licenses, bonding and insurance.
  •  PDS is bonded as well as each PDS employee.
  •  Delinquency Reports are provided monthly.
  • Annual review/audit/compilation of financials is conducted by third party CPA’s.
  • Insurance and Reserve Studies are reviewed annually with industry professionals and applied according to each association’s governance.

The community manager and accountant are available any time you have questions or need support regarding your association.

As a Board Member you are encouraged to review the monthly financials, review the delinquency report and ask questions.  Remember you are an integral part of the association you serve and PDS is committed to providing you everything you need to serve your community.

by /Beginners Guide for Rookie Board Members, HOA Directory and Officer Liability, Uncategorized
What You Need To Know About HOA Insurance

What You Need To Know About HOA Insurance

You’ve probably heard that there’s no such a thing as a stupid question, and that’s especially true in regards to HOA insurance. The only foolish move would be NOT to ask. Asking questions like, “Is our HOA covered?” or “What kind of insurance do we need?” are essential to ensuring that your HOA is fully and appropriately covered.

 

If you are on the HOA Board, these are HOA insurance coverages & terms you MUST get familiar with:

 

• D&O Insurance: D&O insurance – or directors and officers liability insurance – is one of the most overlooked and misunderstood policies among HOA boards. Non-monetary and discrimination cases take the lead in lawsuits among HOA boards, and most commercial insurance packages do NOT cover these claims. Find out what your board needs, including coverage for non-monetary damages/claims and breach of contract, and why a stand-alone D&O policy is the only way to go.

• Non-Monetary Claims: Non-monetary claims are the second most common types of lawsuits brought against HOAs. They can be confusing, but they essentially deal with plaintiffs who file a claim that does not have a monetary value to it. Read about an example non-monetary claims here.

• Workman’s Compensation Insurance: Sometimes, your HOA may sign contracts with smaller vendors who may not carry appropriate insurance on their own. Workman’s “comp” will help that employee or vendor with compensation for wages and medical bills, in the case that they are injured on the job.

• Varying Coverage: There are an enormous array of coverage for what kinds of insurance you could purchase, from general liability (which has subcategories of its own) to flood and earthquake insurance, automobile insurance, and even golf course insurance! Every HOA is different, and only your board and community members will know the specific criteria that your HOA meets. Make sure that you carefully consider all of your needs and options.

Learn these, ask about these coverages, and never hesitate to pick up the phone or drop an email to a PDS Community Manager for more assistance – neither you nor your homeowners association will regret it.

by /HOA Directory and Officer Liability, HOA Law, Uncategorized
Better Improved Relationships in the HOA

Less Stress & Better Relationships: A How-To Guide for the HOA Board

Can the HOA improve relationships within the board, and with the community?

  1. If Board Members aren’t communicating, you’re doomed from the start. Strive for respectful, responsible communication.
  2. Communicate with homeowners and residents through the HOA website, email blasts, newsletters, and social media. Be sure to read our series on Social Media in the HOA to ensure the HOA Board is using the platforms responsibly.
  3. Enforce the rules, guidelines, and governing documents uniformly and equitably. However, be reasonable to certain circumstances when and if possible while still upholding the community governance.

How can the HOA Board reduce stress for individual members and/or overall board stress?

  1. Step one – Breathe!  When a board member or community resident is heated at a board meeting, remember that the topic at hand may not be the real issue. Take a deep breathe and try to understand where the individual is coming from, or if there are previous disruptions, ineffective communication, or a strained relationships at play.
  2. Don’t take anything personal. When residents or board members are upset about a new rule, for example, remember that you didn’t personally make that change. Decisions were made through due diligence of the board. You may feel like the punching bag sometimes, but you are not the problem. Oh, and see above – breathe!
  3. Enroll homeowners to serve on a committee. Homeowners that serve on association committees become part of the bigger picture. Service may invoke a sense of pride, accomplishment and community. Be sure to recognize your volunteers.
  4. Remember to rely on your HOA Professionals such as: community manager, HOA management team, HO accounting team, HOA attorney, HOA Collections support, association contractors and governmental representatives.Contact Planned Development Services for more guidance on improving the internal communications of your HOA Board.
by /Uncategorized
Managing Debt in the HOA Community Association

How to Get the HOA Out of Debt (and Start Saving)

Can it be done? Absolutely.

Here’s how to cut costs in the HOA (also known as Community Association) and get out of debt:

  1. Review the HOA collections policy. Can the policy be revised to allow a shorter timeframe between collection letters while upholding state statutes?
  2. Review current vendor contracts. Are the Community Association vendors providing all services as outlined in the contract?
  3. Can contracts need to be renegotiated? A longtime vendor may be willing to provide the HOA with an annual credit for the services. For example; a landscape contractor may credit the HOA for annual flowers or the pool company may provide one month of credit after 12 months of service. Possibly your vendors would be also willing to help the community offset some resident event costs.
  4. When was the last time HOA assessments were increased? Keeping community assessments stagnant while the association costs are increasing, may potentially put the HOA at risk for a special assessment to cover costs.
  5. Understand how (and why) your reserve study is completed. Are reserves funded enough to support capital repairs and replacements as necessary, or per the verbiage within the reserves study?

The Community Association can make a few changes, to put money back into the HOA:

  1. Change outdated irrigation components to smart water controllers.
  2. Change irrigation heads to pressure regulating heads to save water costs with a modest return on investment timeframe.
  3. Convert areas of turf to xeriscape. Check with your city first, there may be a rebate available!
  4. Check with your city if any preservation grant matches exist for Community Association improvements.

Take these steps to start turning the tide on your HOA’s debt management. Contact us if you’d like help from our HOA Accounting department.

by /Uncategorized
Organizing the HOA Board. HOA Checklist

Feeling Disorganized? The Ultimate HOA Board Organization Checklist

At the start of the year, many HOA Board members feel pressure to get organized. Brand new HOA Board members are trying to acclimate and learn their roles, in addition the veteran members are tying up loose ends from the year prior. Getting organized is an overwhelming task, but the pay-off is vital to the health of the HOA (also known as Community Association).

Here’s a checklist to get the HOA Board organized:

 

  1. File the Associations Annual Report. Follow your Corporation Commission requirements. Failure to file with the Corporation Commission may cost the HOA fees. Failing to file could lead to administrative dissolution which means the state will no longer recognize the Community Association is a legal entity.
  2. Consolidate HOA Common Area Tax Parcels. This may save the Community Association money. Check your county assessor website for additional information and FAQ’s.
  3. Review Insurance Requirements. Take a careful look at your governing docs and ensure the HOA has enough coverage. Conversely, do you have too much? If you aren’t sure, contact an insurance expert or the Community Association attorney to review the governing docs and insurance policies. For example, Directors and Officers Liability Insurance. is one type of coverage that is sometimes overlooked.
  4. File Correct Tax forms. Most not for profit associations file an 1120H vs. 1120. An 1120H filing (click link to IRS form) will allow an HOA to take advantage of certain tax benefits.
  5. Complete an Annual Audit. Sometimes called a “review” or “compilation” of year end financials. Follow review guidelines set by your governing docs and state statutes.
  6. Ensure Minutes are Accessible. Are your resolutions, amendments, and meeting minutes on file and accessible? This is the last item on your checklist. Having these organized at start of the year will decrease headaches when trying to locate information to resolve a situation, or review a previously made decision.

 

That’s it! 5 easy steps that will surely get the HOA organized for the new year.

by /Beginners Guide for Rookie Board Members, HOA Board Meetings, HOA Directory and Officer Liability
HOA Spring Landscaping

HOA Spring Landscaping: It’s Not Just Trimming the Trees

Spring is just around the corner. How’s your landscaping?
Now is the best time to look at the “spring cleaning” matters in landscaping.

 

As a homeowner in an HOA, look around your property’s landscaping, then ask yourself……

 

Do your plants just need trimming maintenance? Arizona Municipal Water Association gives these easy tips for how to prune which plants, properly. They also have a handy maintenance schedule you can follow.

Have you applied appropriate chemicals for a weed-free yard this summer? Non one wants to pull weeds when it’s over 100 degrees! Consider visiting the local home improvement store for product recommendations, and ask for options, such as pre-emergents, that are safe to use near children and pets.

As water rates continue to increase, an irrigation audit will be helpful to make sure you are watering plants efficiently. If you haven’t yet, update your irrigation system to operate on a smart controller, which uses local weather data to water plants appropriately, can be a great way to reduce water wastage (azcla.com).

Do you meet the minimum plant requirements in your HOA? Do you need to add plants to bring your lot into compliance? If unsure, check with the Community Manager for the approved plants and process to make changes needed. Your manager is there to help you! Take advantage before making unnecessary costly changes. Your HOA may have the tools you need already at your disposal.

Do you have enough decomposed granite? The Arizona Landscape Contractors Association reminds us that now is the time to replenish bare or sparse areas of decomposed granite. Maintaining 2” helps reduce evaporation from soil, reduces erosion and suppresses weed germination. It also provides a ‘finished’ background for your plants!

 

What’s happening with the HOA landscaping?

 

You may have noticed landscaping companies completing “Renovation Pruning” during this time of year. This type of pruning can be done in the winter or early spring to help rejuvenate shrubs and ground covers to encourage growth after the dormant period. It can also help manage plants that have outgrown the space, are encroaching over sidewalks, or are obstructing lines of sight.

Here are a few additional benefits to help better understand why renovation pruning is taking place in your neighborhood (provided by azcla.com):

  • Promotes healthy plants by eliminating frequent pruning schedules
  • Frequently pruned shrubs are in a continuous state of stress, requiring more water to recover
  • Allows for natural seasonal flowering
  • Plants that are not sheared resist stress better than plants routinely and excessively pruned
  • Promotes sustainability by reducing waste that goes into landfill

There are a number of reasons why the HOA Board prunes common area plants and trees; however the ultimate goal is to encourage natural growth, form, and flowering of plants in our Arizona landscape. Promoting healthy plant growth and maintenance in our landscape is one of the first steps to help preserve our precious natural resources, as well as protect HOA’s landscape investment and maintenance budget.

by /Beginners Guide for Rookie Board Members, HOA Spring Landscaping
How the HOA Board Uses Social Media

Facebook Vs. Nextdoor: Why Your HOA Needs to Know the Difference

Did you know that almost 50% of Americans don’t know the names of their neighbors? (Reference: CAI – July 2017 Newsletter) As an HOA management company, it’s our responsibility to support and encourage communication within the community association. We have always encouraged getting to know your neighbors.

But like the rest of us, when we go home at night, it’s very common to jump on social media as ways to connect with people. For the HOA communities, social media networks such as Nextdoor© and Facebook© have replaced inviting the neighbors over for a barbecue.

It’s inevitable. Social media is here to stay as community homeowners are using these online forums more and more to have ongoing discussions with other community members. Should HOA Board use social media to communicate with homeowners?

Officially, social media isn’t the place for official HOA Board communications. However HOA Board Members should participate so they may keep a pulse on any online discussions issues in the community, complaints, and anything else that could cause harm to the community. Vice versa, these tools are a great way to post reminders about social events that encourage positive community involvement.

We will get into liability for communications in the next blog. For now, let’s understand how these social media networks function, so you can make the best decision on what to post, and where!

 

Why Should My HOA Board Care About the Difference between Facebook and Nextdoor?

 

Nextdoor© focuses on specific neighborhoods, and uses a thorough verification process (by postcard or email) to prove physical residence before a member can join any discussion on the community association level. The exclusivity has created a safe space for residents to openly discuss opinions regarding the community association, share recommendations for local services, and much more. The platform is completely administered by Nextdoor©.

Facebook©, on the other hand, uses a “Pages” model, meaning a page administrator creates the page and can monitor, delete comments, and authorize whom can join the page (as long as the settings are set to PRIVATE). It’s at the discretion of the administrator how to use their page. Also, anyone with a Facebook account, can create a page. A neighorhood may have a page started by a concerned resident, a neighborhood watch leader, or quite possibly an HOA board member (if the HOA Board agrees to it). Once a member of the page (after administrator accepts your request), you are able to view the admin information in the “about” section.

HOA Board members need to take into account how these social media platforms function, as they are very different.

For example, when an HOA Board member posts in Nextdoor©, the communication will automatically be posted in his/her community board. HOA Board members are residents alike, so communications may be intended as “just a homeowner.” However, residents (not on the board) may perceive otherwise. It’s a fine line to walk if you are an HOA Board member posting in Nextdoor©.

Lesson here; HOA Board members must be acutely aware of how you are commenting/initiating in each social media platform. When homeowner issues arise, encourage complaints or recommendations be sent to the Board or HOA Management company directly. We hope you take this valuable lesson on “how” these two platforms differ in function, to your next board meeting. Stay tuned for part II of this blog, where we will discuss the HOA Board’s liability for online communications.

by /Beginners Guide for Rookie Board Members, Building Community, HOA Law
Best Practices for Passing an HOA Budget

Best Practices for Passing an HOA Budget

Has your 2019 HOA budget passed?

 

If not, what needs to happen to pass the budget? Does the HOA Board just need a consensus vote? Is it time to increase assessments?

 

First, check your governing documents. These describe the manner in which the HOA budget is adopted each year. In most associations, the governing documents provide that the budget is adopted by the board or by vote of the owners. However, even when the documents give the board the right to adopt the budget, a vote of the owners may be required to adopt a budget that would require a large increase in regular homeowner dues/assessments.

Hopefully, your HOA Board is current on the reserve studies, as these provide clear analysis of the future repair and replacement needs of the HOA (based on the condition of the property elements it maintains), a projection of the remaining useful life, and future cost to repair (or replace) them, and the amount of money the HOA has in its reserve fund.

Once a homeowners association has gone through the exercise of developing a budget to fund their plans for the coming year, the assessments can be set.  Depending upon the  governing documents, assessments will be determined in one of two ways.  First, the assessment may be charged to each property owner equally.  Second, the assessment may be charged to each property owner according to the percentage of the property their unit represents.  Ultimately to arrive at the assessment, the budget is simply allocated to the owners and paid accordingly.

 

What best practices can my HOA Board employ for next year’s budget?

 

Share newsletter articles about water conservation restrictions (check the Department Of Water Resources website) at meetings, Nextdoor, or community websites. Enforced water cost increases may clue residents in that installing the winter lawn may not be financially feasible this year.

Negotiate contracts with vendors! You don’t have to accept the first estimate or terms given to you.

Research Community Grants, such as the AACM Hope Grant.

Practice transparency. The more your community can review and be involved, the easier budgets become to pass (as well as mitigating any other issue disgruntled homeowners may have with your HOA). You may think about appointing a budget committee of a representative number of homeowners that can survey the community on what changes they would like to see in the annual budget. The committee may have new cost-saving (or revenue generating) ideas that your HOA Board hasn’t yet discovered!

Lastly, send out a copy of next year’s budget, increase or not, to show the homeowners exactly where their assessments are being spent. Not communicating, or communicating false expectations for next year, is a recipe for disgruntled homeowners.

For more detailed information on HOA Budgets, read “HOA Budgets, The Insiders Guide” and “Why Complete A Reserve Study.”

by /Beginners Guide for Rookie Board Members, HOA Accounting, HOA Board Meetings, Reserve Studies