CAI of Georgia

Transcription

CAI of Georgia

C
Third Quarter 2011
g e o r g i a
ommons
A Publication of Community Associations Institute of Georgia, Inc.
Inside:
FHA APPROVAL
A Hot Item for Condo Buyers
Can Debt Collectors Leave
PHONE MESSAGES
For a Delinquent Homeowner?
PROTECT YOUR
ASSOCIATION
Ensuring Proper Review
of Contractor’s Insurance
© istockphoto.com
...and more!
Congratulations!
Quarterly Quote
“Twenty years from now you
will be more disappointed by the
things you didn’t do than
by the ones you did.” Christy Barber, CMCA, AMS, PCAM of Homeside Properties for obtaining
her PCAM, which is the highest level designation that CAI awards to community
association managers
Tim Huffman, CMCA, AMS, PCAM of Colony House/Piedmont Management
for obtaining his PCAM, which is the highest level designation that CAI awards to
community association managers
2 0 1 1
Magazine
Ashley Miller Lanier, Esq., Chair
Gaddis & Lanier, LLC
Scott Douglas, Board Liaison
National Cooperative Bank
Kimberly Addison
PDQ Services
Elina Brim, Esq.
Lueder Larkin & Hunter, LLC
Gary Caruso, PE, RS
Criterium-Caruso Engineers
Jennifer Cheek
SERVPRO of North Fulton
Amy Davidson
Aquascape Environmental
Elizabeth Frey, Esq.
Winter Capriola & Zenner, LLC
Chris Hartzog
Ironstone Bank
David Hill, CMCA, AMS, PCAM
Access Management/Peachtree Lofts On-site Manager
Pam Irwin
Community Management Associates
Joe Larkin, Esq.
Lueder Larkin & Hunter, LLC
Michael Leavey, Esq.
Dorough & Dorough, LLC
John Mitchell, CPA
Owens & Mitchell, P.C.
Faith Ossman
Tower Roofing
Robin Phillips, Esq.
Weissman, Nowack, Curry & Wilco, P.C.
Marilyn Ratzel, Esq.
Lazega & Johanson, LLC
Michael Rome, Esq.
Rome & Associates
RC Shanks, CMCA, AMS, PCAM
GW & Associates
Whitney Stuckart
NatureScapes
Stephanie Triplett
P3 Painting & Renovations
Lisa Turner, CMCA, AMS
Silverleaf Management Group
Eddie Womack
AAA Painting
Fundraising
Jessica Hartmann, Chair
ValleyCrest
Laura Lazar, CMCA, AMS, PCAM, Board Liaison
Eagle Management
Ken Baggs, CMCA, AMS, PCAM
Homeside Properties
Ashlie Bisig
Cherida Claffey
Homeowner Management Services
Barry Coleman
BB&T Association Services
Jeff Creecy
Greenwood Group
Dana Davis, Esq.
Weinstock & Scavo, P.C.
Sara Hicks
Parker Young Construction
Kimber Kirkland
Fitness Resource
Traci Lettsome, Esq.
Lipshutz, Greenblatt & King, P.C.
Mary Masi
Brian Motter
Carpetex
Robin Phillips
Morlee Sillesky
Instar Services
Alisa Steinberg, Esq.
Lazega & Johanson LLC
Ryan Stoll
Ironstone Bank
Ian Stone
Chris Taylor
Sutter, McLellan & Gilbreath, Inc.
Mike Tolley
Backyard Realty
Jamal Williams, Esq.
Golf
Ashlie Bisig, Chair
Teddy Russell, Board Liaison
Russell Landscape Group
Education
Neal Bach, CPA
Jane Beasley, CMCA, AMS, PCAM, Chair
Bach, James, Mansour & Co.
Sentry Management
Sandy Depa, CMCA, AMS, PCAM, Board Liaison Kevin Carnes
Arborguard Tree Specialists
Jay Fraiser, Esq.
Ashlie Bisig
Kim Gaddis, Esq.
Glenda Bromer CMCA, AMS
Jeff Gray
Jennifer Cheek
Phoenix General Contracting
Shaune Huysamen
John Farrell, Esq.
Gary Kart
Noelle Larson
Kart’s Landscape
Kelley Moon
Jamie Platt Lyons, Esq.
EPIC Response
Mark Moore, Esq.
Victoria Nigorizawa
Cross Creek Condominiums
Dale Pendergraft
Kevon Oliver
Heritage Property Management Services, Inc.
Sean Ruthven, CMCA, AMS
Marisol Reyes, CMCA, AMS, PCAM
Access Management
Sentry Management
Add Rob Stein, Esq.
Olen Robinson, CMCA
Mindy Waitsman, Esq.
Colby Shear, CMCA, AMS, PCAM
Shaben & Associates
Stephen A. Winter, Esq.
Robin Steinkritz, CMCA, AMS, PCAM
Steven M. Winter, Esq.
Julie Stephens, CMCA, AMS
Exclusive Management
Marc Wise
Michael Tisma
Sweetwater Pool Service
GW & Associates
Merrill Walker, CMCA, AMS, PCAM
Advantage Community Management
– Mark Twain
CO M M ITTEES
Membership
Kerrie Napoli, Chair
Taylor Commercial
Rhonda Beasley
Cheryl Bryant
Community Club Cleaning
Kevin Carnes
Anne Dover
Team Management
Chuck Negas
Northwest Exterminating
Amy Pizzati
Ironstone Bank
Dorita Pressley
BB & T
Sarah Pritchard
Jeremy Rhett
CertaPro Painters
Ben Rosenquist
Talley Custom Painting
Robin Steinkritz, CMCA, AMS, PCAM
Beth Todd
Dave Welkner
HomeTeam Pest Defense
Programs
Nancy Allen, Chair
Kathy Dorough, Esq.
Dorough & Dorough, LLC, Board Liaison
Tom Bartolozzi, Esq.
Taylor English Duma LLP
Jeff Creecy
Greenwood Group
Mike Crew, CMCA, AMS, PCAM
Karen Focia, Esq.
Lisa Fuerst, Esq.
Pankey & Horlock, LLC
Beryl Grall-Petty
Community One
Bradley Griffin
Dan Henning, CMCA, AMS, PCAM
Tim Huffman, CMCA, AMS, PCAM
Piedmont Management / Colony House Condos
Brendan Hunter, Esq.
Lueder, Larkin & Hunter, LLC
Derek Johanson, Esq.
Clarence Lau, Esq.
Jason LoMonaco, Esq.
Steve Loudermilk
NuFlow
John Mazzei
Goldleaf Landscape
Katy Smith
G4S Secure Solutions
Sheri Stebbins
4 Seasons Landscape
Rob Stein, Esq.
Stephanie Triplett
Public Relations
Shandron Pemberton, CMCA, AMS Chair
POSolutions
Sheri Stebbins, Co-Chair
4 Seasons Landscape
Jay Lazega, Esq., Board Liaison
Marian Adeimy, Esq.
Randi Anderson, CMCA
Amy Bray, Esq.
Andersen, Tate & Carr, P.C.
Mary Beth Sierra, Esq.
Anthony Coffield
Unlimited Landscaping
Daniel Crockett
Republic Services
Kate Cunningham
Access Management Group
Laura Guilmette
Unique Environmental
Pat Hillen, CMCA, PCAM
Community Association Banc
Ron Jockers, CMCA, AMS, PCAM
Kellan Presley
Elite Landscape
Arlene Sicilano, CMCA
Management Resource Center
David Tishey
Greenwood Group
Miye Yi, Esq.
Tennis
Floyd Dickens, Esq., Co-Chair
Marisol Reyes, CMCA, AMS, Co-Chair
Sentry Management
Marian Adeimy, Esq.
Andrew Bennett
PDQ Services
Cindy Hodge, Esq.
Dan Crossland
Phoenix Painting & Renovations
Rebecca Drube, Esq.
Derry Duncan
Unlimited Landscaping
Laura Guilmette
Unique Environmental
Jennifer Hardy
Gibson Landscape Group
Kerrie Napoli
Taylor Commercial
Janette Shockley, Esq.
Green Committee
Angie Hitch, Esq., Chair
Jay Lazega, Esq., Board Liaison
Kimberly Addison
PDQ Services
Amy Bray, Esq.
Andersen, Tate & Carr, P.C.
Erin Byers
GW & Associates
Evan Carpenter
Emily Cantrelle
Kevin Copeland
JustTrashIt
Joe Depa
Boost of Nature
Leslie Fellows, CMCA
Today Management, Inc.
Barry George
Crabapple
Mark Greer
Tower Roofing
Chuck Negas
Shan O’Gorman
Integrated Lake Management
Dick Patterson
Team Pest USA
Kelvin Pipe
Contracting Concepts, Inc.
Jan Purdy
Sentry Management
Paul Slovisky
Terrence Spires
Team Pest USA
Brandon Thomas,
Bekke White, CMCA
Legislative Action
Julie Howard, Esq., Chair
Kathy Dorough, Esq., Board Liaison
Kelley Brewster, CMCA, AMS
Associa-Today Management
Sally Butler-Lewis
Insurance Marketing Group, LLC
Lanier Coulter, Esq.
Mike Crew, CMCA, PCAM
Celia Ebert, CPM
Parkside Management
Wayne Forrester
Timbers of Vinings
Dennis Hoffman, CMCA, PCAM
Julie McGhee Howard, Esq.
Brendan Hunter, Esq.
Randy Lipshutz, Esq.
Lipshutz Greenblatt LLC
Social Committee
Bob Russell, Chair
Scott Douglas, Board Liaison
Tom Bartolozzi, Esq.
David Boy, Esq.
Eleanor Burris, CMCA
Dean Donald, CMCA, AMS, PCAM
Bayview Community Services
Laura Fomby
PDQ Services
Ashley Fullenkamp
Disaster One
Gary Griffin, CMCA, AMS, PCAM
GW & Associates
Jessica Hartmann
ValleyCrest
Eric Henning, AMS, PCAM
Ken Koushel, CMCA, AMS, PCAM
Homeside Properties
Lindsey Malone, CMCA
Access Management
Tammy Quinn, CMCA, AMS
Michael Sedacca
Dawn Shaddix
Terrence Spires
Team Pest USA
Mary Ellen Sullivan
Sentry Management
Darren Thurmond, CMCA, AMS, PCAM
Atlanta Community Services, Inc.
Bill Wetter
Team Management
Community Associations Institute—Georgia Chapter • www.cai-georgia.org
A Letter from the Chapter President
Georgia Chapter of CAI
2011precious metals sponsors
PLATINUM
I hope this message
finds everyone well
and enjoying this very
hot summer!
Sandy Depa, CMCA, AMS, PCAM
W
e are looking forward to some very exciting upcoming events. Our
next speaker luncheon will be held on Friday, August 19th at the
Century Marriot Center. All of you that attended last year’s CAI
Luncheon with Terry Watson will be excited to know that Terry is returning
to present a new program on Technology and Feng Shui as an encore to his
infamous “Monkey on the Back” program we all enjoyed so much. On
September 15th there will be a program for our community association members covering Collections, Covenants and Contracts at the Century Center
Marriott from 6:30-9:00 PM. On October 13th, we are all looking forward
to the 11th Annual CAI-Georgia Golf Classic which will take place at the
Heritage Golf Links from 11 AM to 6 PM.
In an effort to create greater involvement with our very active membership, the CAI Board of Directors is pleased to announce passing a change to
the Georgia CAI Chapter’s Bylaws which will enlarge the Board of Directors
from a seven-member Board to an eleven-member Board of Directors. This
change will become effective for the 2012 year. If you are interested in
serving on the Board of Directors, please email the Nominating Committee
through Julie Jackson, executivedirector@cai-georgia.org.
The Georgia Chapter CAI would like to congratulate Christy Barber with
Homeside Properties and Tim Huffman with Piedmont Management on
receiving their PCAM designations. Congratulations Christy and Tim!
We would like to extend a special thank you to the Education Committee
for their efforts in creating the MDSP Scholarship Award Program. The
Education Committee will grant a $500 scholarship to a deserving manager
candidate based on their submission of the application to be applied toward
a PMDP course of his/her choice. More than one award may be given per
year. The first scholarship application due date has passed and the first award
will be awarded in August. Please watch for the announcement for the next
scholarship opportunity soon. Great work Education Committee!
Again, we are all looking forward to seeing everyone at our next scheduled
luncheon on August 19th at the Century Marriot Center.
On behalf of the entire CAI Georgia Chapter Board of Directors, thank you
for your continued support and volunteer efforts that make our Chapter great!
CAI-Georgia Chapter President
Mission Statement
The Georgia Chapter of CAI assists community associations and their service
providers through educational programs, networking, legislative advocacy
and publications.
Vision Statement
To be the voice of community associations throughout the state of Georgia.
CMG Management Group
Community Association Management
Community Association Underwriters
Community Club Management
EPIC Response
GW & Associates, Inc.
Heritage Property Mgt. Services, Inc.
Homeside Properties, Inc.
Nature Scapes, Inc.
Parker Young Construction
Unlimited Landscape & Turf Mgmt., Inc.
Weinstock & Scavo, P.C.
Winter Capriola Zenner, LLC
GOLD
Allsouth Renovations, Inc.
BB&T Insurance Services
Goldin Law Group, LLC
Homeowner Management Services, Inc.
Lueder, Larkin, & Hunter, LLC
Ray Engineering, Inc.
Taylor Commercial
SILVER
A Tow Atlanta
AAA Painting & Staining
Advantage Pool Management Services, Inc.
Atlanta Community Services
Bayview Community Services, Inc.
BB&T Association Services
Blueprint Painting & Renovations
Capitol Community Management
Community Club Cleaning
Crabapple Turf Management
Exclusive Association Management
G4S Secure Solutions USA
Owens & Mitchell, PC
Perimeter Landscape
RooterPLUS!
Shaben & Associates
Southern Protection Agency
Sweetwater Pool Service, Inc.
The Brickman Group
Tower Roofing, Inc.
Union Bank
BRONZE
Abacus Property Management, Inc.
Alexander Termite & Pest Control
Andersen, Tate, & Carr, P.C.
Bach, James, Mansour & Co., P.C.
Color Burst
Community One Associates
Construction Solutions of Georgia
Contracting Concepts, Inc.
Criterium-Caruso Engineers
Davis & Langford CPA
Dynamo Pool Management
Elite Landscape Services, LLC
Gold Leaf Landscape Management
GreenCare by Outdoor Expressions
Greenwood Group
Insurance Marketing Group, LLC
Jowers & Company
Luke Pool Service
Meridian Restoration, Inc.
Northwest Exterminating Co. Inc.
Preventive Maintenance and
Contracting Services
Sears Pool Management
Sentry Management Inc.
Silverleaf Management Group, LLC
SmartStreet
Team Pest USA
zumBrunnen
3
Georgia Commons • Third Quarter 2011
Green Air
By David Hill, CMCA, AMS, PCAM
Peachtree Lofts General Manager/Access Management Group
H
eating, ventilation and air conditioning systems (HVAC) accounted
for over 30% of all electrical usage in the U.S. households in 2001,
with refrigerators using another 14%. Our challenge is how we can
improve the efficiency of these systems and save money.
Both refrigerators and air conditioning systems operate the same way: They
use pressurized gas to act as a heat sponge, absorbing heat in one location and
squeezing it out at another. Some of the more modern HVAC machines are
reversible depending on the season and cool and heat your home with one system rather than using an electric or gas furnace in the winter.
There are two weaknesses with these cooling systems: The gas they use
is toxic to the environment, and the equipment that squeezes this gas into a
liquid form is susceptible to damage if all components of the entire system
are not constantly maintained. Replacing the piece that compresses the gas
is very expensive and is such a frequent problem that the industry mantra is
“Compressors don’t die; they’re murdered.”
Damage Prevention
The surest sign of a problem is the build-up of ice on the metal tubes that
connect the various parts of your air conditioner or refrigerator. The system
should be turned off immediately if you see this happening so that the ice
can melt. More importantly, it prevents liquefied gas from getting into the
compressor and damaging it. Ice appears because the gas inside the pipes is
not completely absorbing and squeezing out heat in the correct locations. For
HVAC systems, here are the typical reasons why:
• Dirty air filter – this slows your home’s air flow, and the pressurized gas
doesn’t heat up enough
• Dust on the metal fins (radiator) inside the blower located in your closet –
prevents the pressurized gas from heating up. It is dirty because the air filter
is missing or isn’t changed often enough. Use only soft-tipped brushes to
4
clean the fins. Smashing or
bending fins does not help
the situation.
• Dirty metal fins on the
equipment (condenser) outside your home – prevents
the pressurized gas from
cooling down. A water hose
works wonders.
• Blocked air vents (including the intake vents) – prevents the pressurized
gas from heating up
• Low levels of pressurized gas (due to leaks in the pipes) – have a qualified
technician repair the holes and inject the correct amount of gas. Too much
gas will flood and damage the compressor!
• Exterior door or window is left open – cooling the neighborhood means
running your system without rest
• The compressor runs nonstop 24/7 even when you turn off the thermostat
– go outside to the metal box located next to the compressor to cut the
power immediately. A technician likely needs to replace the thermostat
inside your home or an electric contact on the compressor.
• The blower in your closet isn’t running while the condenser outside is – a
circuit breaker (in the blower or your main electrical panel) may need to be
reset, or a technician may have to replace an electrical part in the blower.
Promising Solutions
To address the two weaknesses of HVAC and refrigerator systems (toxic
gas and compressor damage), alternatives have been developed for military
and commercial applications, with plans to reach residential use in the near
future. Turning back the calendar, some compression systems are once again
using carbon dioxide (CO2) as done a hundred years ago. CO2 operates
under higher pressure and was once only usable in large systems for places
such as theaters. Stronger metal tubes now permit smaller systems to handle
greater pressure. Gaseous ammonia is another alternative, with the interesting trait that it automatically cools down when pushing past an internal
turbine (spinning the turbine also generates additional electricity).
However, to rid ourselves of compressors completely, viable choices such
as geothermal, magnetocaloric, and thermoacoustic are also being utilized:
• Geothermal requires drilling deep into the earth to take advantage of the
temperature differences via circulating water. Most likely to be used by
communities as a whole rather than individuals due to setup costs and
government permits.
• Magnetocaloric systems take advantage of heat naturally generated in
certain metals when they pass through a magnetic field. Particles of these
metals float in liquid solution (most likely antifreeze), with heat absorbed
and released as they enter and exit magnetic regions. General Electric
(GE) is testing refrigerators with this system, which use 30% less electricity
than traditional fridges.
®
• Thermoacoustic systems use sound waves inside an enclosed canister to
generate and transfer heat along a set of internal metal fins (no moving
parts). Rather than using off/on cycles to maintain a constant temperature,
the sound waves increase/decrease to slide the temperature smoothly up
or down as needed.
Waiting for the day that these and similar options become available, we
homeowners should take advantage of existing HVAC advances that are
far more efficient than equipment from those built seven or ten years ago.
Various tax incentives exist to encourage the effort. Replacing an old HVAC
system and providing proper maintenance may reduce your electric bill 15%
or more! Go online or consult with HVAC specialists to make an informed
decision in a worthy investment. n
G e o r g i a C h a p t e r o f C AI
2011 Board of Directors
President.................Sandy Depa, CMCA, AMS, PCAM
President-Elect....... Laura Lazar, CMCA, AMS, PCAM
Eagle Management
Past President...............................Kathy Dorough, Esq.
Vice President........................................................Dan Ross
Sutton Pines Condominium Association
Secretary.....................................................Jay Lazega, Esq.
Treasurer..........................................................Scott Douglas
Board Director............................................... Teddy Russell
Executive Director.......................................... Julie Jackson
www.criterium-engineers.com
®
PO Box 2943
Peachtree City, GA 30269
Tel (770) 736-7233
Fax (770) 736-7232
E-mail: juliejackson@earthlink.net
Our Mission:
The Georgia Chapter of CAI is the voice of the community association industry in the state. Our purpose is to facilitate the professional
creation and operation of community associations through the delivery of high quality education for our multidisciplinary membership.
We are committed to building cohesion, integrity and respect.
■■■
The materials contained in this publication are designed to provide accurate, timely and authoritative information with regard to
the subject matter covered. The opinions reflected herein are the
opinion of the author and not necessarily that of CAI. Acceptance of
an advertisement in Georgia Commons does not constitute approval or
endorsement of the product or service by CAI. CAI-Georgia reserves
the right to reject or edit any advertisements, articles, or items appearing in this publication.
■■■
To submit an article for publication in Georgia Commons, contact
Julie Jackson at (770) 736-7233.
5
FHA Approval –
a Hot Item for Condo Buyers
By Marilyn M. Ratzel, Esq.
T
he Atlanta condominium market particularly has been hit hard by the
recent housing crisis, and even with the positive news and predictions
for the housing market, we still have a long road to recovery. Already
saturated when the real estate market crashed, the condominium market in
particular is struggling to recover, with the downturn in the economy leaving
both condominium unit owners and condominium associations in a bind.
Condominium associations and unit owners alike are looking for any means
to attract new buyers. In this market, being “FHA Approved” is quickly
becoming one of the hottest amenities a condominium can offer, allowing
buyers to qualify for low down payment loans.
However, being “FHA Approved” is not as easy to achieve now as it was
for condominiums in years past. As a result of the real estate crisis, and
as part of the Housing and Economic Recovery Act of 2008, the Federal
Housing Administration has implemented stringent new guidelines for
approving FHA-backed loans in condominium communities. The new
guidelines, which went into effect in February
2010, drastically changed the requirements for
“No more than
FHA approval on condominium units.
Under the new FHA guidelines, spot loan
10% of the
approval is no longer permitted, and loans are only
approved for units in condominiums which have
units may be
received project approval. Spot approval, which is
the practice of approving a specific loan for a specific
owned by one
unit, one unit at a time, was the norm throughout
the 1990’s and early 2000’s. Project approval is
investor.”
the approval of the condominium property as a
whole. Under the current FHA rules, a loan on a
specific unit will not be approved unless the
APPR
entire community is approved under the
OVED
new guidelines.
The Department of Housing and Urban
Development is tasked with the review and approval
of condominiums for FHA-backed financing. In order for HUD to process a
request for project approval, a condominium association must submit documentation showing that the condominium meets all HUD Condominium
Project Eligibility Requirements. Some of the more significant condominium
eligibility requirements for approval are:
• Delinquent Assessments: No more than 15% of the units can be
more than 30 days’ past due in the payment of assessments.
• Owner Occupancy Ratios: At least 50% of the units must be owneroccupied or sold to owners who intend to occupy the units.
• Budget: The annual budget must include line items to ensure sufficient
funds are available to maintain all amenities and features unique to the
condominium, provide for capital reserve funding in an amount representing at least 10% of the budget, and provide adequate funding for insurance
coverage and deductibles. If the budget does not meet these standards,
then a capital reserve study, no more than 12 months old, is required to
demonstrate that the budget sufficiently funds reserves.
• Insurance Requirements: The condominium must be covered
by hazard and liability insurance and, when applicable, flood insurance.
Existing condominiums of 20 units or more also must carry a fidelity bond
or fidelity insurance covering all officers, directors, employees or agents
Swimming Pool Management
for Community Associations
Customized Weekly Service • Chemicals
Repair and Renovation
Pool Supplies • Safety Equipment
Leak Detection
Phone: 770-992-4322 Fax: 770-650-0078
Service@AdvantagePoolManagement.com
6
handling association funds, in an amount equal to at least three months’
assessments on all units plus the amount of reserve funds.
• Commercial Space: No more than 25% of the condominium’s total
floor area can be used for commercial purposes.
• Investor Ownership: No more than 10% of the units may be owned
by one investor.
To show that the condominium meets these criteria, a condominium
association must provide HUD with several supporting documents, including a complete list of members of the association, a list of all leased units,
delinquency reports, budgets, insurance policies, flood maps, management
agreements, and governing legal documents. Once approved, FHA loans are
permitted on up to 30% of the units. Approval is valid for two years. After
two years, the condominium must be re-approved.
Shortly after these FHA guidelines were implemented, it became apparent that there were issues with the review process for FHA approval. There
is proud
was no standardized approach for the processing centers across the nation
in to announce that our company has been recently awarded the property management contracts
for
reviewing FHA applications for approval. Some of the processing centers
were disapproving any condominiums that had very common leasing or
MILL CREEK HOMEOWNERS ASSOCIATION, INC
occupancy restrictions, based on the opinion that these restrictions violated
VICTORIA HEIGHTS CONDOMINIUM ASSOCIATION, INC
We
proud
to announce
that our
THEare
ASHFORD
CONDOMINIUM
ASSOCIATION,
INC
eligibility guidelines for FHA mortgages. Other processing centers were
approving the condominiums with the same leasing or occupancy restriccompany hasin been
awarded
Atlanta, recently
Georgia
tions.
To address these concerns, in March 2011, the FHA issued a temporary
the property
Junemanagement
2009
waiver, which expires on March 18, 2012, to allow approval for condominifor since 1982
Proudly serving contracts
Community Associations
ums with leasing or occupancy restrictions. This helped many condominiums that do have these restrictions, but it is likely that there are more changes
Heritage Property Management Services, Inc
to the FHA guidelines to come. In the meantime, many condominium
BELCREST
HOMEOWNERS
associations and condominium buyers and sellers are finding FHA approvalCorporate
Midtown
South Metro
Savannah
th
aSSOCIATION,
INC.
to be a valuable amenity. n
500 Sugar Mill Road
360 14 Street
795 Lanier
Avenue
138 Canal Street
Here We Grow Again
Suite 200 B
Atlanta, GA 30350
Suite 201
Atlanta, GA 30318
Suite C
Fayetteville, GA 30269
CANNON GATE CONDOMINIUM
(770) 451-8171 INC.
ASSOCIATION,
Suite 107
Pooler, GA 31322
gcobb@heritageproperty.com
www.heritageproperty.com
“Experience the difference”
REUNION PLACE COMMUNITY
ASSOCIATION, INC.
in Atlanta, Georgia
September 2011
Proudly serving Community
Associations since 1982
Corporate
500 Sugar Mill Road
Suite 200 B
Atlanta, GA 30350
South Metro
795 East Lanier Avenue
Suite C
Fayetteville, GA 30269
SALLY LEWIS-BUTLER
“Experience the difference.”
(770) 451-8171
gcobb@heritageproperty.com
www.heritageproperty.com
7
How to Prepare a Budget
in 5 Simple Steps
By R. C. Shanks, PCAM
GW & Associates
S
Sample budget format:
ome people think preparing an association budget is a daunting task. Truthfully,
when it’s broken down, it’s really not that bad. Budgeting can be done in five
steps. Drafting a budget for an association is actually often easier than doing a
personal budget. For a personal budget, the starting point is your income. From
there, you determine what you actually need and can afford. For an association, you
generally start with the total expenses and divide that by the number of association
members to determine the assessment amounts, which in turn collectively gives you
the total income for the association.
Remember, good budgeting is crucial to the association’s financial health.
As prices rise and delinquencies increase, the importance of a good budget rises
equally.
With proper tracking and planning, many pitfalls can be avoided. The other thing
to remember is that a budget is not static. This is an active process that requires revisiting. You need to have an active interest in your budget, keeping an eye on it and
watching for necessary adjustments. It’s the best way to stay on track as things change.
INCOME
Association Fees
TOTAL INCOME
How to Prepare a Budget - Step 1
Calculate the expenses
This is a great way to figure out if the assessment money is being spent on things that are
really necessary. First, list the expenses that stay the same every month: things like contracts
for lawn service, pool service, management fees, and insurance. These are “Fixed Expenses.”
Next, total up items that generally vary slightly from month to month, such as utilities,
postage, and copies. Use paid invoices (historical data) if you have it. Otherwise, just
average the annual cost to get the monthly expense. Make sure you include every
item separately in subcategories. For instance, each utility expense such as water,
electricity or sanitation would be an entry in the “Utility” subcategory. Then, add up
each expense subcategory and add them together to get your “Total Expenses” for the
month. Then, total the months and you have your annual expenses.
GROUNDS
Ground Contract
Irrigation Repairs
Seasonal Flowers
Pine Straw
Grounds Maintenance
Tree Work / Trim
Detention Pond Maintenance
Sub-total
Figure the association’s income
For an annual-paying association, the vast majority of assessments will be paid in the first
quarter of the year. For associations where assessments are paid semi-annually, quarterly or
monthly, then the income should be shown in the month(s) where payment is anticipated.
If the association has more than one source of income, such as clubhouse rental or
another source, list those separately. Then add up the assessments to arrive at your
total monthly income.
Many associations are now trying to determine the number of owners who actually
will pay and adjust the anticipated income accordingly, rather than calculating the
income on the actual number of homes in the community. This provides a much more
realistic picture of anticipated income.
Compare the monthly income to the monthly expenses
This is where you start to draw “The Big Picture.” Subtract your total monthly expenses
from your total monthly income. The result will either be positive or negative.
If it’s positive, this is a surplus and great news for you! This means you have discretionary income. It’s called this because you can use it at your discretion. Perhaps some
of the funds can be allocated for a special project or a capital project. My suggestion is
to earmark as much of it as you feel comfortable for reserves (savings). The more an
association can save, the closer the association can come to financial independence and
avoid the dreaded “Special Assessment.” If the result is negative, then you have problems. You are outspending your income and you may be going into debt. Debt is a
guarantee that you will never be in a positive financial situation. You have two choices:
increase your income or reduce your expenses. The best thing would be to do both.
“If it’s positive, this is a
surplus and great news for
you! This means you have
discretionary income.”
8
GENERAL EXPENSES
Administrative Expense
Postage
Legal
Accounting
Insurance
Management
Newsletter
Website / Internet
Association Events
Sub-total
RECREATION
Property Monitor
License / Fees
Pool Contract
Pool Furniture
Tennis Courts
Pavilion
Maintenance / Repair
Cleaning / Supply
Janitorial
Playground
Sub-total
BUILDING MAINTENANCE & REPAIR
Termite Bond
Building Maintenance
Sub-total
UTILITIES
Telephone
Electricity
Street Lights
Water / Sewer
Sanitation
Sub-total
TAXES
Property
Sub-total
TOTAL OPERATING EXP.
RESERVE FUNDING
Transfer to Reserves
TOTAL EXPENSES
Get your budget in balance
If your calculations show that expenses are in excess of income then,
you might need to cut back on spending. You will need to cut at least the
amount being overspent, and cutting more is even better. The first place to
look is in your variable expenses. These can be adjusted more easily than
your fixed expenses. Go through each item in your expenses and see what
can be reduced. Eliminate what you can and renegotiate contracts where
possible. Now, if it is still impossible for the income to cover the annual
expenses, assessments will need to be increased or a “Special Assessment”
must be imposed.
Repeat monthly
Every month, you must balance your budget. You must add up your
income and your expenses, and figure the difference between the two. How
you do this is up to you.
You can use pencil and paper: get a ledger and fill out your information every
month. Keep former months so you can track your process. Review these
sheets every month. This is the most time consuming way to keep track of
your money.
You can set up a spreadsheet, using a computer program such as Excel.
This will allow you to make better side-by-side comparisons and figure averages using formulas. You will save time over the pencil and paper method,
and have fewer math mistakes.
Most management companies and self-managed associations now use
some type of accounting or budget software. These packages will greatly
reduce the time you spend on your budget every month, and most give you
suggestions and graphic representations of your budget and your progress.
To the left is a sample format showing the basic categories and sub-categories for an association budget. This suggested format can be customized for
most associations by adding or deleting categories. n
9
CAI-GA Social, June 30, 2011...
(left) Bob Russell of Russell Landscape
Group & Ken Koushel of Homeside
Properties
(below) Scott Douglas of Community
Funding Corporation and Kerrie Napoli
of Taylor Commercial
(above) Ben Rosenquist & Jarrod Talley of Blueprint Painting and
Sandy Depa & Jackie Wilkins of Homeowner Management Services
(below) Denise Griffith, Lindsey Malone, Tracy Umphenour of
Access Management & Ashley Fullenkamp of DisasterOne
(below) Terrence Spires of Team Pest USA,
Bob Leftwich of Access Management and Bill
Wetter of Team Management
(above) Dan Ross of Sutton Pines Condominiums
and Stephanie Triplett of P3 Painting & Renovations
(above) Michael Sedacca of P3 Painting & Renovations and
Mike Tolley of the Backyard Realty Group
(above) Celeste Ramos of Realm Condominiums,
Julie Ketner of Community One Associates &
Jay Lazega of Lazega & Johanson LLC
(below) Angela Forrester of Ironstone Bank and
Michael and Kristi Walser of Jumptastic
(above) Laurence Smith & Danielle Oliva of
Neighborhood Management Associates
(above) Teddy Russell of Russell Landscape
Group and Mary Masi of Community Management
Associates
(left) David Hill of Access Management Group/
Peachtree Lofts & Dawn Shaddix of Northwest
Exterminating
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Can Debt Collectors Leave Phone Messages
For A Delinquent Homeowner?
By Michael Rome, Esq.
Rome & Associates, PC
T
he federal Fair Debt Collection Practices Act (“FDCPA”) regulates collection agencies, in addition to law firms that collect debts on a regular
basis. The FDCPA requires a collector to disclose the following in all
communications: “This is an attempt to collect a debt by a debt collector and
any information obtained will be used for that purpose.” This disclosure is
also required for all verbal communications, such as a phone call.
Another section of the FDCPA prohibits a collector from disclosing the
existence of a debt to third parties, without the prior consent of the debtor. It
does not matter whether the collector has actually spoken to the third party
when disclosing the existence of the debt, as in a phone message. This is a
problem because the collector has to verbally give the disclosure that they are
attempting to collect a debt as part of the voicemail message. Therefore, the
question is whether or not a collector can ever leave a message since it could
be received or overheard by a third party.
This is the issue the federal court of appeals addressed in the 2009 case of
Edwards versus Niagara Credit Solutions, Inc. [Edwards v Niagara Credit Solutions,
Inc. 2009 11th appeals] The collection agency, Niagara, had a policy of leaving phone messages that did not identify the caller as a debt collector. They
did this so that they would not accidentally disclose the existence of the debt
to a third party. The consumer brought a suit against the collection agency
for violating the portion of the FDCPA that requires the following disclosure:
“This is an attempt to collect a debt by a debt collector and any information obtained
will be used for that purpose.”
The collection agency argued that in order to leave phone messages
they had to violate one part of the FDCPA (not disclosing they were debt
collectors) in order to avoid the risk
of violating another provision (disclosing the existence of a debt to a
third party). They also complained
to the Court if they had to identify
themselves as debt collectors the result
would be that they could never leave a
phone message. The Court was not sympathetic to their plight and stated that
“…the Act does not guarantee a debt collector the right to leave answering machine
messages.”
The findings by the Court do appear in effect to prohibit collectors from
leaving phone messages for debtors. However, the Court did not address the
specific situation of leaving a phone message when the debtor himself has
initiated contact and requested a return call. With no clear court guidance
on this issue, debt collectors may handle this issue differently. My firm has
developed a telephone recording warning system that notifies delinquent
homeowners who call our firm first that if they request a return call, and we
have to leave a phone message, we will identify ourselves in the message as
debt collectors.
Given the above, Board members should be wary of collection agencies or
law firms who claim to aggressively initiate phone calls to debtors if the calls
include leaving phone messages. Even though the FDCPA only regulates the
collection agency or law firm and not the association, it is a good idea for
boards to discuss collection strategies with their chosen agency to ensure that
its actions are FDCPA compliant. n
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CAI Message to Congress: “Mortgages Matter!”
C
AI members are taking their concerns over the restructuring of the
federal mortgage finance system to Congress. In response to challenges from federal regulators on transfer fees, the Federal Housing
Administration’s (FHA) condominium underwriting guidance and Qualified
Residential Mortgages, CAI is forming Mortgage Matters Teams in targeted
states to meet with key federal legislators during the August recess. The goal
of the meetings is to provide key legislators with an overview of CAI member
concerns on federal mortgage issues and to ask for their support in protecting
community associations.
CAI Legislative Action Committees in ten states have begun to assemble
teams to meet with key legislators during the August recess. Congressmen
from these targeted states serve on the Senate Banking Committee and the
House Financial Services Committee, which have jurisdiction on mortgage
issues. CAI members will address concerns related to the Federal Housing
Finance Agency’s proposal to prohibit Fannie Mae, Freddie Mac or any
Federal Home Loan Banks from buying mortgages with deed-based transfer fees, new FHA condominium underwriting guidance, and the pending
rewrite of the rules applying to all mortgages – the so-called Qualified
Residential Mortgage (QRM) regulations.
The recently issued FHA guidelines for condominium mortgage insurance
will be the top issue that the Mortgage Matters Teams will discuss with legislators.
The new guidance, issued on June 30, 2011, contains provisions that will make it
more difficult, if not impossible, for many associations to qualify for FHA financing, which now accounts for over one-third of all condominium mortgages. The
issue with the new guidance is not that the intent of the new criteria is improper,
but the manner in which FHA has implemented the requirements does not
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comport with the reality of how condominium associations are operated or
governed. FHA developed the most recent guidance without any public notice
or input, and as a result it has created needless problems for associations. These
issues include assessment delinquencies, fidelity bonding requirements, project
certifications, and leasing restrictions. CAI will ask Congress to direct FHA to
revisit the guidance and to undertake oversight hearings on FHA’s process in
developing its guidance.
CAI members will also express concerns over the so-called QRM regula“A study issued by
tions. These regulations will apply to
the Mortgage Bankers
all mortgages. The draft regulations
impose overly strict criteria that include
Association indicated that
a mandatory 20 percent down payonly 30 percent of current
ment, cash payments for financing costs
and realtor fees, as well as provisions
buyers would meet the new
that would disqualify any buyer who
lending standards.”
was 30 days late on any installment
payment in the last three years. A study
issued by the Mortgage Bankers Association indicated that only 30 percent of
current buyers would meet the new lending standards. Close to three-quarters
of CAI members surveyed indicated the new regulations went too far and
would have a negative impact on the already depressed housing market.
CAI Mortgage Matters Teams will speak up to protect your community
and ensure the ability of qualified buyers to purchase homes in community
associations now and in the future. You can follow our work and share your
thoughts at www.caimortgagematters.org. n
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15
FDCPA ISSUES:
Acosta vs. Campbell
By Jonathan Benator, Esq.
Weissman, Nowack, Curry & Wilco, PC
The Fair Debt Collection Practices Act (FDCPA) makes
it clear that if you are a debt collector, as defined in
the Act, then you cannot contact third parties, such as a
consumer’s friends, neighbors, relatives, or employer to
try to collect a debt.
W
hen the FDCPA was passed in 1977, the House Report stated that
“[s]uch contacts are not legitimate collection practices and result in
serious invasions of privacy, as well as the loss of jobs.”
But what happens when a community association forecloses on a property
and becomes the new owner? If the community association is a condominium or subject to the Property Owners Association Act (POAA), the property
would be owned subject to the first mortgage. In these situations, the underlying loan is most likely delinquent and the lender may refuse to speak to
the community association or its attorneys due to concerns about violating
the FDCPA. The community association after all is not the borrower on the
underlying loan. The underlying loan is still the personal obligation of the
previous owner.
Fortunately, a recent case decided by the Eleventh Circuit of the U.S.
Court of Appeals sheds a little light on this point. In Acosta v. Campbell, 309
Fed. App. 315 (C.A.11 (Fla.)), the owner claimed the Defendants violated the
FDCPA because the first mortgage holder sent a confidential pay off letter
to the second mortgage holder. The Court held that communication from a
foreclosing party to a second mortgage holder about the upcoming foreclosure was not subject to the FDCPA.
Congress enacted the FDCPA in order to protect consumers from unfair
debt collection practices. In particular, “[a] debt collector may not engage in
any conduct the natural consequence of which is to harass, oppress, or abuse
any person in connection with the collection of a debt.” See 15 U.S.C. §
1692(d). Additionally, the legislative history makes clear the FDCPA has an
ancillary purpose in protecting the privacy interests of debtors.
The Court in Acosta stated that the communication between the attorneys
for the two creditors did not implicate Acosta’s privacy interests because the
second mortgage holder would know about Acosta’s default through the foreclosure proceedings. When a first mortgage holder forecloses on property, it
is required under the law to notify parties that have an interest in the property
because the foreclosure may wipe out their interest if not adversely affect it.
The Court also pointed out that the communication was not for the purpose
of harassing or embarrassing Acosta, nor did it jeopardize his employment.
Following that logic, a community association that foreclosed on property
subject to a first mortgage should be able to contact the first mortgage holder
(i.e., the bank) to find out what is owed on the loan and try to work out a payment plan without authorization from the borrower (i.e., the original owner).
That is because such communication would theoretically not implicate the
owner’s privacy interest, nor be made for the purpose of harassing or embarrassing the owner. Rather, the communication would be for the purpose of
preventing foreclosure by the bank.
Of course, the Court specifically limited its holding in the Acosta case to
apply to only mortgagees in foreclosure actions. How broadly this case is
interpreted and other consequences of this ruling are yet to be understood. I
would recommend that you speak to your attorney about any and all FDCPA
concerns you might have. n
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Meet the President:
An Interview with Sandy Depa
By Whitney Stuckart
NatureScapes Landscape Services
A
ccording to Sandy Depa, “Community association management is not
a warm fuzzy job, but it is an interesting and rewarding job.” As VicePresident of Homeowner Management Services and current President of
the Georgia chapter of Community Associations Institute, Sandy wasn’t always in
the community association management business. With a background in banking and non-profit club management, Sandy had taken time off to raise her three
children and, while serving on her community’s homeowner association board,
decided it was something she enjoyed and had a passion for. Dipping in her toes
part-time in accounting at Homeowner Management Services in 1999 set her on
the path to where she is today: Vice President of the company.
“The diversity of the job is what keeps it interesting! But you do have to
have a bit of a ‘tough shell’ to be in the business.” Sandy shared with me that
“the average work span of a property manager is about three years, but for
those who make it past the third year, you think ‘they are going to make it.’”
Sandy is a likely proponent in helping to push those fledgling property managers on to the next level of their careers. As a manager, she said she compliments her community association managers regularly because she knows
they aren’t always getting that from the outside the company. “Unfortunately,
the managers sometimes see the worst side of people. They have to have
internal gratification and know that they are doing a good job.” She helps
them to do this through education and “lots of compliments!”
Being in the business for a while, Sandy also has her share of funny stories
to tell. “I once had a gentlemen of a different culture misinterpret my notice
that he had ’weeds in his bed.’” He called me up and said ’How do you
know? How do you know I have weeds in my bedroom?’ The stories never
stop when you have a career in community association management and this
is one of the things she loves about it. “You never get bored!”
Although Sandy is currently serving as
CAI’s Board President, she has also, in the
past, served on the Education, Fundraising and
CAI-Georgia Chapter President
Tennis Committees, but says her real passion is
the education of the organization and its members. Her main goal as President is to continue
“to raise the professional standard of managers through education so that the
industry is recognized professionally and given the respect that it deserves.”
And bringing back the CAI Trade Show this year after a ten-year absence was a
huge excitement for her. “I want to build on that success [of the trade show] and
towards general growth within the organization and towards making more of a
presence in the community for CAI as a whole.”
An avid Georgia Tech football fan who is not a believer in the offensive
coaching “Running Option Play,” Sandy and her family enjoy tailgating and
cheering on the Yellow Jackets in their downtime. Also an ALTA tennis
coordinator, she stays active in that organization when not running a board
meeting or renovating a house. The one thing many people may not know
about Sandy is that she “would love to be a Ty Pennington.” She has a vision
for renovation and has renovated several houses of her own.
In closing I asked Sandy what one word that she would use to describe herself. She responded with “fair,” and I realized in our conversation that Sandy
has a sincerity that clearly underlines her accomplishments in her personal
and professional presence. She is easy to talk to and genuinely interested in
people and their success. So if you haven’t had the opportunity to meet her
or speak with her directly, you should say hello at the next meeting!
A special thanks to Sandy for being an interviewee in our feature segment
of Georgia Commons! n
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Concierge Service
The Front Desk Solution in a Down Economy
By James Bailey
The Cosmo Group
C
oncierge service has been a staple amenity in luxury high rise
condominiums for decades. In a time of abundance, concierge
services are an obvious choice, and, during the real estate
boom, it saw a particular resurgence. Now that the “boom” is over,
and residents struggle to pay their mortgages and HOA dues, the
question arises- are concierge services still a cost effective amenity to
offer? Some may even consider concierge services to be an expendable “perk” that is not essential to the proper functioning of your
property and therefore not worth keeping or adding. In actuality, hiring a professional concierge service can not only increase the overall
image of your building, but it will increase your efficiency, attract and
retain residents, and, in some cases, even decrease your expenses.
A concierge service provider can also provide unique benefits and
discounts to your residents that won’t cost the HOA any money, and
won’t take up any of the property manager’s time. Concierge services
can be an affordable asset, not only to the residents, but also to the
manager and board.
Let’s look at three main reasons why a concierge service provider
may help your association, despite cut backs and foreclosures- 1) It
may save the association money 2) It may save the community association manager time 3) Residents will be happier, and your association may attract more buyers.
1. It may save the association money by allowing a properly trained and managed concierge staff to take on time-consuming tasks that the community
association manager would otherwise have to attend to. For example, these
tasks might include stuffing envelopes, collecting resident information,
20
directing phone calls, making photo copies,
programming the call box, and facilitating
move ins and move outs. The concierge can
also handle travel arrangements, dog walking, and
social schedules.
2. It may save the community association manager time. What are some of
the biggest time wasters of the board and community association manager’s
time? Usually, conflict resolution and miscommunication fit into that category. Hiring a concierge service can help with that as well. When you hire
a concierge service, you are employing a company that is focused on communication and customer service. Concierges usually understand that their
job is conflict resolution and customer satisfaction. This can go a long way in
resolving issues so they never even have to reach the community association
manager. A concierge can communicate policies and resolve issues, but they
can also be instrumental in helping define and revise front desk procedures.
3.Your residents will be happier, and you’ll attract more buyers. Hiring a
concierge service is a fantastic way not only to attract new buyers, but to
keep your current residents happy. Aside from the customer service element that a concierge service brings to the property, residents like to feel
that their money is going to good use. A concierge service gives them the
option and convenience of having a personal errand service. Whether
or not they use the service, they like to have the option! This is a valuable amenity to residents that doesn’t cost the association any money.
Residents will also enjoy the socials and discounts to local restaurants that
are usually offered by concierge services. n
Unusual Co-housing Community in Metro Atlanta
By Pamela J. Irwin
“C
o-housing” is perhaps not a new term but it’s an unusual
concept for a community in the heart of a metropolitan
area. Many folks who live in homeowners’ associations
neither know their neighbors nor care to know them. With that
being the norm, now consider an unusual group of people who have
voluntarily opted to live in a community where they share meals,
childcare, guest rooms and community gardens. It may sound a little
idealistic, as if these people are in search of their own utopian society.
It’s more than just a dream — it is reality for those who live at East
Lake Commons.
East Lake Commons is a co-housing community built on 20 acres
and located only four miles east of downtown Atlanta, between East
Atlanta and Decatur. It is a community that emphasizes resource sharing, community involvement, sustainable living, and diversity. It is an
intergenerational community of people with diverse religious, ethnic,
cultural, and racial backgrounds who are bound together through
actively caring about their neighbors.
East Lake Commons features 67 townhomes, with a large community center that is used for group meals, meetings and social events.
Residents sign up online for weekly community meals, with all food
preparation and clean up done by resident volunteers. The community also has two guest rooms as well as ten rental apartments.
The community is justly proud of Gaia Gardens, a five-acre organic
garden, orchard, greenhouse and pond. A work-share program allows
produce discounts in exchange for a weekly work commitment.
Group tours are offered Sunday through Friday, and school and
community groups are welcome. On-the-farm work projects can be
incorporated into each individually-arranged tour. Inquiries about
tours, fees and scheduling can be made by contacting Rachel Kaplan,
the garden’s manager, at gaiagardenerelc@gmail.com.
Gaia Garden’s produce is marketed through a 60-member Community Supported Agriculture Program (CSA), at the
Morningside Organic Farmers’ Market and the East Atlanta Village
market and has been featured
in Emory Magazine and Edible
“Residents sign up
Atlanta.
The community’s layout was
online for weekly
designed to promote social mincommunity meals, with
gling, safe spaces for children to
play, inclusion of disabled peoall food preparation and
ple, and visual beauty. Vehicles
clean up done by resident are parked in a parking lot and
owners walk to their homes.
volunteers.”
The buildings themselves are
constructed of ecologically
sound materials with an eye toward using natural resources efficiently, including residents’ skills, energy and time.
East Lake Commons is a self-governing community, using a consensus decision-making process, with financial management support
from their community association management company. Each adult
is expected to volunteer a minimum of four hours each month for
routine maintenance. Homeowners are expected to attend meetings,
serve on committees and take an active role in the life of the community. All issues are discussed openly and honestly with the residents.
Jeff Hope
President/Owner
Atto
orneys at Law Representting Comm
munity Asso
ociations
W
We provide cosst‐effective guiidance in: Transition fro
om Developer C
Control Board
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Prep
paration and In
nterpretation o
of Governing Documents nt Covenant Enforcemen
Collection of Assessments Contract review, ne
egotiations and
d preparation
2987 Clairm
mont Rd., Ste. 440 Atlan
nta, GA 30329 Office
e 770‐457‐7000
www.mo
ooreandreese.com
m Hutch Moore Mindy Waittsman Julie Liberm
man Clay Reese
Sarah Wheeler Chris Sinclair 22
P.O Box 1656
Dallas, GA 30132
(O) 770-443-2391
(C) 404-583-6734
www.ActionCommunityMgmt.com
jeffhope@ActionCommunityMgmt.com
New homeowners are provided with a copy of the “Book of
Commons” as a policy and procedures manual for life at East Lake
Commons. It starts out with the following:
“We come together to nurture self, neighbors, neighborhood and earth.
We want to love more; to do good, accept others and give
unconditionally.
We practice our core beliefs by living simply and responsibly and
give life to our dreams by trusting consensus, recognizing that
harmony is individuality and community in balance.”
There are six core principles that guide the East Lake Commons
residents:
1)Community: We want to know, interact, and enjoy living here with our
neighbors.
2)Affordability: We strive to keep ELC affordable to people of limited
means. We try to keep our Homeowner Association assessments low
by sharing community work, upkeep and maintenance of our common
resources.
3)Consensus: A decision-making process that is inclusive of dissent, where
all points of view are considered.
11th Annual CAI-Georgia
GOLF CLASSIC
October 13, 2011
Heritage Golf Links, Tucker, GA
Please contact the chapter office for further information.
(770) 736-7233 or www.cai-georgia.org
4) Diversity: We value our differences and learn from each other.
5)Sustainability: Conservation + regeneration + stewardship.
6)Visitability: Homes and our Common House are easily accessible to
residents and visitors who use wheelchairs, walkers or have other forms of
mobility impairment.
As most would agree, this is an unusual living arrangement for the
twenty-first century. But as more and more people move away from
family and friends for their jobs and career, co-housing is an option
for a more connected living experience.
East Lake Commons has developed outreach programs, including summer camps for kids and yearly neighborhood festivals. East
Lake Commons’ website at http://eastlakecommons.org provides
more information. To learn about co-housing please visit http://www.
cohousing.org. n
P o s i t i v e C o m m u n i t y
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675 Seminole Avenue, Suite 109
Atlanta, GA 30307
404-389-0090
404-249-8092 (fax)
manager@positivemgmt.com
www.positivemgmt.com
23
Speed Up Mother Nature, or Else.
By Jennifer Cheek
S
tructures damaged by drying water require a prompt response and
precise action to help prevent additional damage. Structural water
damage will invade ceilings, floors, and walls to the lowest point,
the damage following the water as it falls, and it can do so in a short
amount of time. The average person’s response is probably to grab
towels and a box fan to dry out the affected area. Unfortunately, there
may be hidden moisture that remains. Did you know that it takes less
than 48 hours for mold to start growing on a surface with the proper
amount of moisture?
Surfaces such as wood, drywall and carpet can pull water away from
plain sight and transmit it into the interior areas throughout a structure.
A trained industry professional will be able to minimize any secondary
damages by having the proper equipment to:
• Inspect the structure and determine every wet component (even if not
visible to the eye)
• Measure how much moisture is in wet materials
• “Speed up Mother Nature” by using professional drying equipment
When materials are saturated, moisture will move to drier air at the
surface of the material naturally, but only if the air is, indeed, drier. The
only problem is that under normal circumstances, like humid Georgia,
nature takes too long, thus allowing time for secondary damages, commonly including mold, to take hold while the building is drying out.
It’s important to keep in mind, when facing water damage of any kind,
that calling a professional to properly “speed up Mother Nature” will
avoid much more expensive and complicated repairs down the road. n
“Unfortunately,
there may be hidden
moisture that
remains.”
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• Construction/Renovation Financing
Barry Coleman
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(770) 712-0493
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24
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Cai-georgia
calendar of events
*Tentative Calendar for the Georgia Chapter of the Community Associations Institute
January
Networking Luncheon
01/21/11
Loews Atlanta Hotel
11:30 AM-1:30 PM
February
Community Association
Volunteer Leadership Class
02/03/11
Doubletree Hotel - Roswell
3:00 PM-9:00 PM
March
Casino Night
03/04/11
Northwood Country Club
3:30-8:30 PM
Speaker Luncheon
03/25/11
Maggiano’s Buckhead
11:30 AM- 1:30 PM
April
CAI-Georgia Trade Show
04/16/11
Waverly Hotel
October
11th Annual CAI-Georgia
Golf Tournament
10/13/11
Tennis Tournament
04/29/11
Windward Lake Club
11 AM-5 PM
Social Event at Wild Bill’s
10/15/11
May
Networking Luncheon
05/13/11
Parkside Tavern
11:30 AM-1:30 PM
August
Professional Luncheon
08/19/11
Century Center Marriott
11:30 AM-1:30 PM
September
HOA Class & Mini Expo
09/15/11 (tentative)
Location TBD
Wine, Whiskey & Beer
Fundraising Event
Old Blind Dog Pub
10/27/11
november
Speaker Luncheon
11/4/11
The Metropolitan Club
December
Annual Awards Banquet
12/09/11
Georgia Tech Conference Center
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What Goes Up Must Come Down —
HOA’S Liability for Falling Trees in Georgia
T
By Andrew Weegar & Ashley Miller Lanier, Esq.
rees are an important natural resource for our society: they absorb carbon monoxide, they are used to
make numerous consumer and commercial goods,
they give us shade from the unrelenting heat of a
Georgia summer, and they provide an aesthetically pleasing
view to break up the “concrete jungle” of our urban centers.
However, for homeowners’ associations, trees can raise a
myriad of legal issues and questions when they (or their large
branches) fall and cause damage to neighboring property.
When this scenario occurs, the most basic question is: Who is
liable for the damage caused by the tree?
OWNERSHIP
The first step in answering this question requires a determination of who owned the tree at the time the damage
occurred. In Georgia, the law bases ownership of a tree on the
location of the trunk, regardless of where the branches and
roots grow. Nevertheless, the law does allow a property owner
to trim branches and roots that encroach onto his property
regardless of whether or not he owns the tree. However, he
can only trim the roots and branches of the tree as far as the boundary line of his own property, and
he may not take any action that could seriously injure or kill the tree.
Trimming a tree’s roots is not only allowed, it is also a responsibility. Tree roots can grow into
sewer pipes, blocking them and causing damage to the property that
they serve. When a sewage pipe is blocked by tree roots, the landowner
most likely cannot be held responsible for the damages. Therefore, the
“The first step in
cost of these damages necessarily falls on the homeowners’ association.
answering this
question requires a
determination of who
owned the tree at
the time the damage
occurred.”
TREE TRUNKS LOCATED ON A PROPERTY LINE
When the trunk of a tree is located on a property line, ownership of
the tree rests with any person who owns land containing any portion
of the tree trunk. In this situation, both adjoining landowners have a
property interest in the tree, similar to that of a party wall, in which the
landowner actually owns the portion of the tree located on their property. Along with an ownership interest, the adjoining landowners have
identical easements of support from each other, and each landowner
also has the right to demand that the other not use his part of the tree to
unreasonably injure or destroy the tree as a whole.
LIABILITY
Liability for a downed tree or limb is based on general negligence principles. So, for a landowner
to be liable for any injuries, there must have been a duty on the part of the owner of the tree to act in
a certain way (regarding the tree), and the landowner must have failed to act in that way.
Generally, in urban areas, a landowner does have a duty to inspect trees on the boundary line for
visible signs of disease, decay, or rot, and to remedy the situation should any be present. However,
the law does not require consistent and constant inspection, nor does it require the inspection be done
by a professional arborist; although, if a landowner cannot determine the health of a tree, an arborist
or landscaper can make the determination for the landowner. Also, no inspection need be done for
non-visible signs of disease, decay, or rot.
When reviewing negligence, the law uses a “reasonable person” standard. The court will examine
the situation through the eyes of a (hypothetical) rational, reasonably intelligent person in order to
determine what such a person would have done in the given situation. In the case of fallen trees, this
essentially means the court will ask the question: “Would a reasonable and rational person have discovered the dangerous condition through a reasonable inspection of the tree?”
So if a tree has visible signs of disease, decay, or rot, and it falls, the landowner has most likely
been negligent and will most likely be held liable for the injuries the tree causes. If a tree with no
visible signs of disease, decay, or rot, falls, this will most likely be considered an “act of God” and the
landowner will likely not be held liable for the injuries it causes since a “reasonable person” would
not have foreseen the tree falling.
Therefore, it makes sense for an association to invest a little time and money in periodic inspection
of the trees that are its responsibility, and in reminding property owners to do the same. Trees go up
painlessly, but seldom come down the same way. n
27
Protect Your Association
Ensuring Proper Review of Contractor’s Insurance
By Jon Nordin, CPCU
Pritchard & Jerden
“I cannot imagine any condition which would cause a ship to
founder. I cannot conceive of any vital disaster happening to this
vessel. Modern shipbuilding has gone beyond that…”
— Edward John Smith, Captain of the Titanic
M
any years ago when first starting my career in insurance I heard a
saying that the only time an insurance policy is actually interesting is
after a claim occurs. Having now seen every imaginable claim and
liability scenario under the sun, I can emphatically say that it is much better
to ensure the proper coverage is in place prior to a “vital disaster” occurring
that you never thought possible.
This is especially true if you are a board member or property manager and
are charged with properly protecting an association. Proper insurance for an
HOA or COA is very important. Equally so is ensuring that the vendors and
subcontractors you hire are properly insured.
Not all insurance policies are created equal. The consequences of
inadequate insurance coverage can be extremely costly and in some
cases catastrophic. If a vendor or contractor that an association hires
does not have sufficient insurance or fails to cover the association, the
association may then be required to defend a claim or lawsuit by a third
party. Furthermore, an association can be held liable for injuries sustained
by a hired subcontractor if they do not carry Workers’ Compensation
coverage. In Georgia, companies that employ fewer than three people
are exempt from the requirement to carry Workers’ Compensation. This
does not mean that a company cannot purchase this coverage if they have
fewer than three employees, and we recommend an association only hire
contractors who carry Workers’ Compensation. Otherwise, if a contractor’s employee is injured on your property the contractor may look to the
association to foot the bill.
Certificates of insurance are protective documents. The association has no
other way of being certain that a tenant or vendor has the proper insurance,
or to assure that the insurance coverage cannot be cancelled by the insurance
company without notifying the association.
In the exhibit below you will find standard language that can be used in
contracts and service agreements to describe minimum coverages for contractors and vendors. If the association is preparing a contract for high-hazard
work, greater coverages may be required.
INSURANCE:
During the term of this agreement, Contractor shall, at Contractor’s sole
expense, prior to commencing the services, procure and maintain policies of
insurance set forth below and issued with a minimum A.M. Best rating of “A-,
VII” that is admitted to do business in the state.
a)Property: Contractor will insure Contractor’s property for its full value
including loss of use and hereby releases the Association from any and all
liability for such property.
b)General Liability: Commercial General Liability Coverage will
include Personal Injury, Products/Complete Operations, Independent
Subcontractors, and Contractual Liability. The liability limits will not
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be less than $1,000,000 for each Occurrence and $2,000,000 General
Aggregate. The coverage will be provided on an occurrence basis.
apartment/condominium repaint specialists
c)Automobile Liability: Automobile Liability Coverage will include
coverage for all owned, non-owned, and hired vehicles. Coverage will be
limits of not less than $1,000,000 combined single limit each occurrence
for bodily injury and property damage.
d) Workers’ Compensation: Statutory Workers’ Compensation and
Employers’ Liability insurance in the amounts of not less than $1,000,000
each accident, $1,000,000 disease policy limit, and $1,000,000 disease each
employee.
e)Umbrella Liability: Umbrella Liability with limits of $2,000,000 per
occurrence and aggregate, with such coverage to include Employers’
Liability, General Liability, and Automobile Liability.
f)Professional Liability: If contractor is providing design, engineering
or consulting services, or lifeguarding services, Professional Liability
Coverage with a minimum limit of $1,000,000 should be procured.
Associations shall be included as “insureds” under the Commercial
General Liability policy and Contractor/Vendor shall provide Association
with certificates of insurance evidencing such insurance prior to commencement of work under this contract. Contractor/Vendor shall provide notice
of cancellation or nonrenewal of any of the above referenced policies to the
Association within two (2) days of such notice from insurance carriers. It is
further agreed that any coverage extended by reason of this agreement shall
be primary and that any similar insurance maintained by the Association
for their own protection shall be secondary or excess and not contributing
insurance.
It may be time for your association to pull out your contractor agreements
and review certificates of insurance. You may be surprised to find that many
of your trusted subcontractors are underinsured, and thus leaving the association exposed. In most cases it is worth a little extra money on the front end to
hire a reputable, properly insured contractor, to avoid a potential catastrophic
uninsured event later. n
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29
Oops….We Violated the Covenants
By Marvin P. Pastel, II, Partner, Winter Capriola Zenner, LLC &
Clarence K. Lau, Associate, Winter Capriola Zenner, LLC
I
t’s bound to happen that the Association approves a project that violates
the restrictive covenants. With the fast pace of today’s society, coupled
with the fact that board members are volunteers, mistakes will happen. A
homeowner seeks approval of a fence that he doesn’t realize is off his property line and on the association’s property. The association approves the project, likewise unaware of the violation, and the fence is erected. Now what?
It may be that the covenants are unclear as to whether a project violates
the covenants. Take an example: play-gyms must be behind the house.
Someone has a corner lot and submits a plan for the play-gym behind the
rear-house line but off to the side. Does “behind the house” mean only
behind the house (such that you cannot see the play-gym from the front), or
does it simply mean behind the rear house line?
What is the authority of the association to either rescind approval of a
project that it previously approved or to approve a project that may or may
not violate the covenants? Let’s start at the beginning, with the underlying
guiding principles for community association living and specifically, the
restrictive covenants.
Mass urbanization has resulted in people living closer together.1 Inherent
in the community association concept is the principle “to promote the health,
happiness, and peace of mind of the majority of the unit owners since they
are living in such close proximity and using facilities in common, each unit
owner must give up a certain degree of freedom of choice which he might
otherwise enjoy in separate, privately owned property.”2 Thus, community
associations “comprise a little democratic sub society.”3
Georgia recognizes that a community’s restrictive covenants “are a
contract that governs the legal rights between the association and the unit
owners,”4 and that restrictive covenants exist to “maintain the common
property in the subdivision for the use and enjoyment of all owners.”5 A
homeowner “is conclusively charged with notice of restrictive covenants …
recorded.”6 Courts will strictly enforce restrictive covenants to achieve these
goals. Where does this leave an association that has either violated its own
covenants or has a request that may or may not violate the covenants? Let’s
examine two cases that bookend the association’s predicament. In one case,
the association withdrew its prior approval, and in the other, the association
refused to withdrawal its prior approval in face of vociferous objection from
neighbors.
In Parker v. Peaceful Valley Property Owners Association, Inc., 271 Ga. 325
(1999), the Parkers sought permission from their association to build a garage
to store excavation equipment for their business. The board of directors initially approved the request. After a grievance
was filed, the association determined that the
storage building violated the covenant that
“Ideally, associations
“the property be used exclusively for residential purposes.” The association rescinded
should make decisions
its approval after the Parkers had obtained a
building permit, cut down trees to clear the
which comply
site, and made a $2,500.00 refundable down
with the restrictive
payment for the construction of the building. The trial court upheld the association’s
covenants; however,
rescission, and the Parkers appealed to the
the courts understand
Supreme Court of Georgia. The Supreme
Court also upheld the association’s right to
that humans make
rescind its prior approval, based on the fact
that the Parkers were made aware of the
mistakes.”
problem before they commenced work and
work had not progressed to an extensive
30
degree before the rescission was
issued.
In Waller v. Golden, 2011 WL
680179 (Ga. 2011), the Goldens
sought permission from
Eagle’s Landing Homeowners
Association to building a swimming pool in their side yard.
The request was approved.
Neither the Goldens nor the association was aware that the covenants
prohibited swimming pools in side yards.
Armed with their association’s approval, the
Goldens signed a contract, commenced construction, and made $4,000 in
payments towards the $39,500 project. At this point, several of the neighbors
lodged complaints with the association. The association met with the neighbors to discuss how to handle the situation. Despite consensus by all parties
that the project was in violation of the covenants, the association decided to
allow construction to continue, and even encouraged the Goldens to expedite
construction in order to minimize the negative impact of the pool’s construction on the community. The board of directors further decided to use association funds up to $4,000.00 to help the Goldens purchase matured shrubbery
to hide the pool from view of the street.
After the Goldens had made a $15,800.00 payment on the pool, a group
of neighbors filed a lawsuit to prohibit the pool and for misappropriation of
association funds. The trial court upheld the association’s actions, reasoning
that although the pool’s location was in direct violation of the covenants, the
neighbors waited until the pool was over half finished before filing the lawsuit. The Supreme Court of Georgia affirmed.
These two cases should help ease concerns and fears when an association
is faced with situations where (1) it has violated its own covenants; or (2) it is
considering a request that may or may not violate the covenants. Although
an association is most likely prohibited from knowingly approving a request
which violates the covenants, a court will defer to decisions made in good
faith. Even when a mistake is made and a project is approved in direct violation of the covenants, the court will support the board’s corrective decisions
as long as measures are taken in a timely fashion.
Ideally, associations should make decisions which comply with the restrictive covenants; however, the courts understand that humans make mistakes.
When mistakes happen, the lesson of the above two cases is that associations
should be proactive in making corrections and/or minimizing the effects
of those mistakes made in good faith. If a mistake is made, an association
should not refrain from taking action out of fear of a lawsuit, nor should it
brazenly proceed in the belief that it has the ultimate authority in all association-related decisions. If the association faces one of the above situations, it
should consult its legal counsel. n
(Endnotes)
1
White Egret Condominium, Inc. v. Franklin, 379 So.2d 346 (Fla. 1979). 2 Hidden Harbor Estates, Inc. v. Norman, 309 So.2d 180, 181-82 (Fla. 4th DCA 1975). 3 Id.
4 Byrd v. Wylly Island Homeowners’ Ass’n, 277 Ga. App. 218, 219 (2005).
5 Timberstone Homeowner’s Ass’n v. Summerlin, 266 Ga. 322, 323 (1996).
6 King v. Baker, 214 Ga. App. 229, 232 (1994).
Where Can Community Associations
Turn When They Need a Loan?
Has a major common element deteriorated faster than you
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Are the association’s reserve funds
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homeowners reached their financial limits for paying
lump sum special assessments? If so, then Smartstreet’s
Project Financing can help. Over the past decade,
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Contact
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(USA). ®Registered trademark of Royal Bank of Canada. Used under license. RBC Bank is a trade name used by RBC Bank
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31
Today Management, Inc.
Helping you protect the value of your home
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Today Management provides community association
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CAI-Georgia Networking Luncheon – May 13, 2011...
(left) Julie Rome of Rome &
Associates and Melissa Holmes
and Stephen Connor of CMG
Community Management
(above) Cheryl Bryant of Community Club
Cleaning & Robin Steinkritz of Heritage Property
Management Services
(right) Kathy Dorough &
Erin McConnell of Dorough
& Dorough, LLC and Celia
Ebert & Carole Hannah of
Parkside Management
(above) Allen Okas of Apex Billing, Ken Baggs
of Homeside Properties and Rhonda Beasley of
Heritage Property Management Services
(right) Ashlie Bisig
& Jennifer Cheek of
SERVPRO of North
Fulton
(above) Judy Dreher of Dreher Insurance
and Pam Conover of International Security
Management Group, Inc.
(below) Marisol Reyes of Sentry
Management, Derek Johanson of
Lazega & Johanson LLC and
Cal McShan of Sentry Management
(above) Social Committee Meeting
More photos on the next page.
33
More from the Networking Lunch, continued from previous page.
(above) Annie Metcalfe of Wyndham HOA, Terrence
Spires of Team Pest USA and Diane Kitchen of
Wyndham HOA
(above) Sheri Stebbins of 4 Seasons Landscape
& Morlee Sillesky of Instar Services
(above) Morris Zoblotsky of Heritage Property
Management Services and Glade Johnson of
Advantage Protective Services
(above) Bill Branch, Kate Cunningham, Derek
Fauntleroy, Julia Phillips and Tracy Umphenour of
(above) Leslie Fellows & Bruce Hayworth of
Homeside Properties, Robert Cairns and Kelley
Brewster of Homeside Properties
(left) Cherida Claffey of
Homeowner Management
Services, Steven M. Winter of
Winter Capriola Zenner LLC
and Mike Crew of Homeowner
Management Services
(above) Deborah Wiggins and Vanessa Applegate of
ROOTERPlus! and Vickie Johnson of Cinc Systems
34
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ATLANTA – NASHVILLE – SAVANNAH – HILTON HEAD

CAI of Georgia

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