HOA Blog - California
Our HOA Blog is added to several times each month so please visit it often. If you would like to respond to any blog, please contact us. Our HOA Articles are also added to and updated regularly.
A suspended homeowner association means trouble. Suspension of an association’s corporate status is very serious. See: Has Your HOA Been Suspended?
With interest rates rising and home values declining, an increased percentage of home loan applications are being declined. If you are considering a real estate acquisition or refinance, see: Why Do Mortgage Lenders Reject Home Loan Applications?
Homeowner associations are required to contribute a minimum of 10% of their assessment budget into their reserve account in order to satisfy the requirements of Fannie Mae. Failure to do so could prohibit an owner form refinancing or selling their condominium. See: Calculating Minimum Reserve Contributions.
When homeowner associations accumulate reserves that are inadequate to make important repairs and replacements, borrowing money from a commercial a bank or other source may be preferred to large special assessments. Assisting associations in applying for such loans and providing prospective lenders with all of the financial information and documents they will require is not included in management agreements with HOA clients. Accordingly, the management company will charge a fixed fee for this service. If an association is in need of a loan and is considering borrowing funds, the board should contact Michael Chulak.
The law that limits the down payment to a contractor to 10% or $1,000 whichever is less applies only to home improvement contracts. Home improvement contracts are contracts for the improvement of one’s home. Therefore, condominium buildings, apartment buildings, and commercial buildings are not subject to the 10% or $1,000 whichever is less limitation. Notwithstanding, it is never prudent to permit a contractor to “front load” a contract by asking for project funds in advance. This means that owners should not pay for work before it is completed or for materials before they are delivered to the property.
Homeowners are reminded to use the Maintenance Request form on this website to report any matter where the repair is the association’s responsibility. Please provide as much detail as possible and be certain to report any situation where there is water intrusion as soon as possible.
If Coast Management of California is managing your HOA, we can provide the training required so that one of your members can provide inspector of elections services.
Secondhand smoke problems can best be addressed by associations with an amendment to their CC&Rs. The next best way is by creating an appropriate operating rule. In either case, appropriate fines must be established in order to discourage the creation of a nuisance that can lead to litigation.
Coast Management of California is pleased to announce that we have been hired to manage a 28-unit condominium association in Inglewood, California.
If you would like to respond to any of our blogs, please contact us by email. We will promptly respond.
Coast Management of California