Hope everyone had a Happy Halloween! In keeping with the holiday, this week in community association management was full of scares. Of course, these scares were especially designed to frighten CAM professionals! Old favorites like running out of time and not meeting quorum were joined by new scares like hostile takeovers, and dangerously low numbers of FHA loans. But don't fear! We also had some costumed heroes this week: fire fighting drones and ghostly board transparency. Read all about it this week in Community Association Management.
As an educated member of the Community Association Management industry, you already know how crucial it is to stay informed and up-to-date on the latest news, trends and happenings within the industry. Each week, we bring together our favorite reads of the week and share them with you! Enjoy the CAM Mash Up and please share it too!
FHA: Under Pressure
Lawmakers have taken notice of the fact that FHA endorsed Condo projects have seen a rather steep drop in recent years. In 2010, the agency backed over 93,000 condo loans. In 2014, that number dropped to only 22,800. Bi-partisan support for Rep. Blaine Luetkemeyer's bill " 'Housing Opportunity Through Modernization Act' would streamline FHA's certification requirements for condo projects, allow more commercial space in agency-approved condo buildings and relax owner-occupancy requirements." Thus far the Mortgage Banking Association isn't supporting the bill, and it remains to be seen if the FHA will act on it.
“Welcome, Ladies and Gentlemen to our owner’s association meeting. Unfortunately, we didn’t make the quorum requirement to vote on anything tonight, so we’ll need to reconvene this meeting for a later date. Sorry.” If you've ever found yourself saying this one, you're not alone. Failure to meet quorum is becoming a sad reality for a lot of communities these days. Here's what you can do about it.
I Can See Right Through You
Every board member is held to a standard - a series of expectations that they will make decisions based on the best interest of the community itself. This is called 'fiduciary duty' and it governs (or should!) every action a community officer takes. When conflict arises, the best thing a board can do is to be open and transparent about their actions. Learn more in this in-depth article on board transparency.
Not So Good Decisions
A Palm Beach condo is embroiled in a nasty scandal and headed toward a hostile takeover of the community. By taking control of the board, Ken Bailynson, owner of Good Decisions Sober Living, influenced the board to take on an unadvisable loan with a high interest rate. When the community couldn't pay the payments, assessments were raised - one owner's went from $613 to over $2000 monthly. Being unable to pay or sell their condos, owners are forced to foreclose or sell - to the very individual at the root of the scandal. At 75% ownership, the hostile takeover will be complete, and the owners organization can be dissolved. This is a cautionary tale, Ladies and Gentlemen. Here's what happens when the Board fails to do their fiduciary duty! (Want more on this story?)
We Need More Time!
We've all been there - there simply aren't enough hours in the day to cross everything off your endless To-Do list. And the slightest bit of drama throws the whole day off. This week, we've got some great tips for you, along with the one thing that seems counterproductive but can actually solve your time and energy management problems.
There's a lot of fear in the industry over drones and privacy rights, so it's good to see a positive story about drone use in community associations. In this case, a drone was employed by the fire department to fly into a burning condo building and identify danger areas, saving firefighters from danger and potentially saving lives. Hopefully we will see more great uses of technology like this in the future.
Do You Have Big News This Week?
If you've got big news that would be relevant to other CAM professionals, please share it with us in the comments below
*Image credit: Pixabay user SplitShire