On July 26, the city of Las Vegas and Ward 2 Councilman Steve Wolfson held an informational meeting at Peccole Ranch to take input from residents on proposed changes to streets in The Lakes, Peccole, Canyon Gate and Section 7 communities, to make them more walkable, i.e., walker-friendly. According to Homeowners Association membership records from…
What does an association do when faced with millions of dollars in repairs and inadequate funds in their reserve account? There are several options, including deferring projects, bank loans and special assessments. However, if the needs are urgent, phased planning is the key. When it is not possible to make all the necessary repairs immediately due to budgetary constraints, phased construction can be key to getting the project done with the money available.
Question: So the foreclosure has occurred and the bank now owns a property in our community. What can we do now? How can our association collect assessments now that a bank owns the property? Answer: With the increase in foreclosures it is more likely than not that your association has at least one property owned by a bank. It’s also likely that the bank isn’t paying assessments. Unfortunately, many of these homes or condominium units may remain vacant for long periods, may have yards full of weeds, maintenance issues, and assessments may not have been paid in months.
Fortunately, if your association is having problems with bank owned properties, you also have several good options for solving these problems. These include:
We recently performed a reserve study for a 40-year old condominium association and discovered an all-too-familiar scenario we’ve seen in older projects. The situation? Huge deferred maintenance obligations that should have been resolved long ago, and an assessment structure that is higher than comparable projects.
How did this association get to this place? Forty years ago, reserve studies as we know them today were rare. This association never prepared a complete reserve study. Instead, they prepared an annual budget that included reserve calculations for the major reserve categories; roofing, painting, and paving. The association then created a fixed amount reserve funding plan that fit the “political” assessment climate within the association. This was done in the very early years of the association’s existence, but that was not based on any comprehensive analysis of the actual major repair and replacement needs of the association. There was considerable reluctance to raise the assessment because this “senior” community consisted primarily of fixed income retirees.