Tag Archives: vendors

HOA Boards’ Biggest Mistakes….

Have You Made These Nine Blunders?

If you’re not careful, you can take huge missteps in overseeing your homeowner association. Here, we summarize what our experts consider the nine biggest mistakes HOA boards have made and explain what the boards should have done instead.

1. Not reading your own governing documents. “One thing I notice a lot is that boards don’t look at their own documents,” says Ben Solomon, an attorney and founder of the Association Law Group in Miami Beach, Fla., who advises more than 500 associations and also represents developers through his second law firm, Solomon & Furshman LLP. “They start operating in a way they think makes sense, that others have told them is OK, or according to what their manager says. I can’t tell you how many times I’ve found when a board first comes to us that it’s been noticing meetings incorrectly. Some boards are completely operating outside their declaration and bylaws, and the reality is that’s legally improper.”2. Not following your own rules. Some boards know what their governing documents require, but they ignore those mandates. “One of the biggest problems I see is boards not following their own governing documents on really simple stuff,” says Nancy Polomis, a partner at Hellmuth & Johnson PLLC in Edina, Minn., who advises associations. “There are some associations where the bylaws say the meeting has to be on the third Tuesday in November, and for whatever reason, they just say, ‘We don’t really want to do it then. We’ve never done it that way before.’ I really don’t like to hear that. I say, ‘You’re going to do it now because that’s what your bylaws require.’ Inevitably someone who’s a stickler for procedure will call the board out on that.”

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How and When Should You Bid Out Homeowners Association Work?

At most HOAs, bidding out work is an on-the-fly type process. It’s not uniform, and sometimes the process works better than at other times. Why does that matter? Because when your bidding process doesn’t work well, your HOA is probably losing money. 

Instead of an unplanned process, your board should have guidelines covering when it will request bids for work and how the bids will be solicited and reviewed. Here, we show you how.

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9 Steps to avoid HOA Embezzlement

How to Recognize HOA Embezzlement–and 9 Steps to Minimize Your Risk

“Creative accounting” or “cooking the books” has been on the rise in HOAs the past few years. Headlines are unfortunately full of cautionary tales. Consider these two recent cases:

  • A former treasurer of the Woodbridge Townhomes Homeowners Association in Nevada City, Calif., recently entered a guilty plea to embezzling more than $100,000 from the association.
  • HOAs that contracted with Kroger Management Group claim the Fairfax, Virg., firm stole more than $2 million from client associations.

Embezzlement is also perennially under-reported. Many cases are simply settled quietly because the victims—the HOAs—don’t want to face the bad publicity of announcing the theft.

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