Selecting Qualified Vendors

HOA expert Chuck Miller recently wrote about Selecting Vendors in HOA Pulse, an electronic newsletter.

“Unless an Association uses its own employees to perform ongoing services, it must generally outsource to third-party vendors to provide the necessary services. If the board of an Association is inexperienced at selecting vendors, the best first step is to select a qualified management company that has experience in the vendor selection process. With years of experience in performing the vendor selection process, such companies ensure that vendors are chosen based on their specialties, excellence in working for other communities, financial protections, and licensing, and that they have appropriate contract provisions.”

One of the benefits of working with a CMA manager is the ability to compare bids and select qualified vendors whose reputation and skills meet our exacting standards.

CMA adds value in examining and requiring insurance and standard contracts which protect your association’s interests.  From his summary or general criteria to use when selecting vendors, Miller makes these points about vendor insurance and contracts.

Insurance

“A business must carry insurance that covers injuries to residents, injuries to its employees, and damage to the property of either residents or the vendor that occurs during the fulfillment of the contract. Proper insurance protects both the vendor and the community from financial damages that occur in relation to the work performed. This is an often overlooked criteria, as too many managers assume that proper insurance is carried without ever requesting proof of insurance.”

Contracts

“Contracts should only be executed when they contain the proper provisions and information. This includes credentials of the contractor, the start and end date of the contract, compensation and terms of payment, description of work to be performed, provision for the termination of the agreement, provision for warranties for services and materials, proof of insurance, and provision for legal costs. It is generally wise to have Association legal counsel review contracts prior to execution. This is one of those areas where the saying “an ounce of prevention is worth a pound of cure” really applies.”

Board Basics: Conducting Efficient Board Meetings

While meetings are a fact of life for board members, no one wants to spend more time in them than necessary. Consistently long or ill-planned meetings will result in chronic absences and apathy, and very little will be accomplished.

Well-organized meetings can set the tone for all association business and board work. The following tips will help you and your fellow board members conduct efficient, effective meetings that get results for your community:

• Set a board meeting schedule and stick to it.
• Whether you schedule monthly, bimonthly or quarterly meetings, always meet at the same time and day of the month and—whenever possible—in the same location.
• To set a business-like tone for the meeting, select a meeting location other than a board member’s home. Most community centers, libraries and similar municipal facilities—and some local churches—rent meeting rooms for a nominal fee.
• Notify all association members—resident and nonresident—of any meeting date, time and location well in advance. Post all scheduled meetings on the association’s website and in newsletters. (Note:  Texas state law mandates a 72-hour advance notice of board meetings).
• Educate yourself about the items on the agenda before the meeting. Read committee reports, and carefully study documents like financial statements and vendor contracts. Be prepared to ask questions and make informed decisions.
• Use a timed agenda that allots specific times for approving minutes, hearing manager and committee reports, discussing unfinished and new business, and conducting a brief homeowner forum. Sixty to 90 minutes, depending on how frequently you meet, should be sufficient to accomplish association business.
• Open your meetings to association members, and include time on the agenda for a homeowner forum after other business is concluded. Allow three to five minutes for each person to speak. Once the meeting is called to order, members may observe, but they should not participate in board discussions.

From Community 411, Fall 2013 Newsletter.

Keep Water Flowing for Growth and Prosperity

Vote on November 5

This article contains information reported in the Dallas Business Journal, October 18-24, 2013, pp. 2-3, Thirsty Work.

As a Texas homeowner, you can vote to ensure the continued growth and well-being of your community.   Not only suburban lawns and shrubs have suffered through the prolonged drought; Texas business and new home growth could dry up if Texans don’t keep the tap of plentiful water flowing.

The November 5 election tees up a critical decision for North Texans.  If passed, Proposition 6 will create the State Water Implementation Fund for Texas, transfer $2 billion from the Rainy Day fund and set up a framework for a sustainable revolving fund with revenue from completed projects refilling the fund for future projects. 

If approved, Prop 6 is expected to create thousands of engineering and construction jobs. 

Municipalities are the largest users of water, selling water to residential users and businesses.  Certain types of manufacturing such as semiconductor plants also use large volumes of water.  On average it takes one-third of a gallon of water to make one semi-conductor chip.

Access to a water supply is one of the first things the Huffines brothers look for when they decide to build a residential community, according to Dallas-based Huffines communities, a builder of master-planned communities.

As one of the fastest growing metropolitan areas in the country,(according to the Dallas Regional Chamber of Commerce),  the Metroplex has much to gain from plentiful water.  Economic recession plus drought temporarily dampened homebuilding. Texas housing has staged a strong recovery in recent months, and new jobs are outpacing the national average.

To read more about Proposition 6, see these Dallas Business Journal articles. http://www.bizjournals.com/dallas/news/2013/10/14/most-texans-support-spending-2b-on.html

http://www.bizjournals.com/dallas/blog/2013/10/how-gov-perry-plans-to-address-dfws.html

Also, visit the http://www.watertexas.com website.

Expedited Foreclosures for Community Associations

 Will the name hold true after 2013?

As is the case in any collection matter, time is money; the faster the matter reaches resolution, the smaller the cost for the association and the member. With the new expedited foreclosure process borne out of the legislative session concluded in 2011, I envisioned a legal remedy that worked well for both sides. Members in arrears were given the protection of judicial review to the foreclosure process and community associations were given protections in efficiency and predictability. With plenty of time to practically apply those expedited foreclosure laws, I certainly gained some insights on how it works, the efficiency and cost of the process, and how the members in arrears and even the courts feel about the expedited foreclosure process.

Perspective on 2011 Impacts

Here’s a perspective on what our firm found as a matter of practical experience with clients since these laws were passed. 

What the application of the 2011 foreclosure laws has shown us is that the cases filed require more work up front but actually settle sooner in the process. The end result is that we find that our clients are spending less money in the long run through the utilization of the expedited foreclosure process..  In our practice, most applications for expedited foreclosure went from filing to order or settlement in less than 6 months. Given that the 2011 foreclosure laws are specific about aspects like service and default orders, we experienced a reduced incidence of the delays that are the norm in judicial foreclosure cases. These delays regularly push judicial foreclosure cases beyond 12 months.

Less than 2% of the applications we filed went all the way to the final hearing. While we had responses to the applications filed in an estimated 20% of proceedings, most respondents did so with the goal of working toward payment arrangements and filed a response, not to challenge the proceeding but to avoid default.

2013 and Beyond: Will the Process Continue to Be “Expedited”?

The 2013 changes to the foreclosure laws made additions affecting service of citation, court-ordered mediation, and forms promulgated by the Texas Supreme Court. Excepting the forms, the newest additions to the foreclosure laws may add time to the process which typically results in an inherent cost increase. Only time will tell whether the newest legislation affecting foreclosures will positively or negatively affect a system that has proven efficient and less expensive for community associations and its members.

Court-Ordered Mediation.   One new addition to the foreclosure laws provides the potential that a court can order the parties to mediate. The court may only order mediation under certain circumstances and a hearing is required as a component of ordering mediation. With a hearing about mediation and an actual mediation being part of the foreclosure process, it will certainly add time and expense to the expedited foreclosure process. The parties will share the costs of the mediator and a court will appoint a mediator if the parties cannot agree on one. While courts may not order mediation in all proceedings, for those in which they do order mediation, I expect those proceedings to last longer and cost more.

In conclusion, community associations that have not yet tested the expedited foreclosure process should consider the option if permitted by the dedicatory instruments. Given the efficiency and reduced cost when compared to the traditional judicial foreclosure process, the expedited approach should work toward improvement in the rate of collection for the association. 

The guest blogger for this post is Brady Ortego,  an attorney specializing in HOA law affiliated with Roberts, Markel in Houston, Texas.

Ranch Fest Caps 25-Year Growth of McKinney HOA

Community Pride Resonates with Festival Goers   

By Tricia Scruggs

Thousands of Stonebridge Ranch residents and friends and family, together with HOA and local officials, witnessed the proclamation of July 26 as “Stonebridge Ranch Day.”

Before introducing City of McKinney Mayor Brian Loughmiller, Stonebridge Ranch HOA Board President Jon Dell’Antonia (L in photo) acknowledged board members in attendance and thanked Association Manager Mike Lesku, the staff and anniversary committee for putting together Ranch Fest, a three-day celebration of the community’s 25^th anniversary.

Mayor Loughmiller (R in photo), read the official decree on the second day of the fest, telling an attentive crowd how he and his wife moved to Stonebridge in 1989 when the population was about 460 people.

“Today it’s more than 30,000,” he said. “So there’s been tremendous growth and the area has grown in the right way. It’s the reason that we’ve all moved here.”

According to the proclamation, Stonebridge Ranch consists of 5,000 acres, once known as the Flying M Ranch. Today, the acreage is made up of nearly 70 residential villages, six parks, 830 acres of golf course, lakes and ponds for sailing and fishing, miles of hike and bike trails, an aquatic center and a tennis and beach club.

Mayor Loughmiller thanked the HOA board for “doing a fantastic job,” managing budgets and helping ensure the development moves forward in the right direction.

Ranch Fest kicked off on a Friday evening with a beach club party, featuring a DJ, free food and games and prizes. On Saturday, classic cars filled one of the Beach and Tennis Club parking lots in the morning, while Kids Zone and a food truck court kept residents and their guest entertained and nourished from 9 a.m. to 9 p.m. A concert with live band InVersion made for a musical evening, which was capped by a fireworks display. On Sunday, a fun run and Luau-themed beach party preceded the closing ceremony. Also during the fest, residents competed in numerous events, including a golf putt challenge, volleyball and tennis tournaments and baseball and football tosses.

“I think 25 years ago, when the developers looked at this piece of land, which was just farm land at the time, and they had the vision to develop a master-planned community, I doubt that in their wildest dreams they would ever had anticipated it would turn out to be the beautiful community that it is today,” Board President Jon Dell‘Antonia said. “We should all take pride in living in one of the finest communities in the country.”

Tricia Scruggs is a freelance journalist and a Stonebridge Ranch homeowner. She and her husband Anthony enjoy spending time around the community with their toddlers Andrew and Luke. 


View Photo Album on Facebook

Flags over Lakes of Las Colinas

Project Kicks Off with a Show of Patriotism

Are you looking for a great way to give residents a way to show community pride, and great patriotic spirit?

The Lakes of Las Colinas HOA, a gated community of 136 homes (expected to be 265 when development is finished) found a project that helped community groups and the neighborhood.  Homeowner Marlee Zane chaired a committee, and worked with the Irving-Las Colinas Rotary Club and  volunteer Kathy Howard to make this happen. 

The Rotary Club and Boy Scouts sell a subscription per flag and then collaborate on the project and split profits to fund projects for both groups.  Boy Scout Troup 316 delivered and installed the flags to The Lakes of Las Colinas.  Rotary Club members put permanent sleeves in yards (or common areas) and Boy Scouts deliver, set up and remove flags for 5 holidays.

“As this is our first year kicking off Flags Over The Lakes Of  Las Colinas program, I am thrilled with my neighbors’ enthusiasm and support,” said Zane, homeowner and chairman for Flags over Lakes of Las Colinas. ”I anticipate even more homeowners joining as the community continues to develop."

The community had 87 flags flying as of July 4.  More homeowners are expected to participate and should have some good photos available for Labor Day.

“It looks really breathtaking when you see the flags as you drive through the neighborhood,” said manager Anita Handy.  “Many of the homeowners generously purchased subscriptions to decorate the common areas as well as their homes.”

For the Irving project, home flags are $35 a year.  Veteran and senior flags are $30.  Common area flags are $25 for the year.  100% of the proceeds are used to support Rotary Scholarships and youth programs of Irving.

HOA members should read their covenants for guidelines about what is allowed in common areas and yards and check to see if other Scout and Rotary clubs offer the service in their cities.

We’d love to post photos of many neighborhoods flying flags on Labor Day.  Submit them to mdunsworth@cmamanagement.com

Kids at Play

Summer is in full swing, and for many of our youngest residents that means they have the freedom to play outside to their heart’s content (or at least until mom or dad call them back inside). While we encourage kids to enjoy summer to the fullest, we also want everyone to stay safe. Here are a few guidelines to make sure these school-free months go smoothly:

• Make sure your children are proactive about their safety. Whether they’re playing at a park, swimming at a pool or riding their bikes around the neighborhood, it’s important that kids understand what types of injuries could occur during these activities and how they can best avoid them. If an injury does occur, your kids need to know what actions to take—such as alerting a trusted adult or, in the case of a true emergency, calling 911.

• Supervise your kids at the pool. While it’s always a good idea to keep an eye on your kids, it’s particularly important to make sure your children have adult supervision while they’re in the water. It only takes a second for even good swimmers to find themselves in a dangerous situation, so it’s vital that kids are supervised by someone who knows the signs of a distressed swimmer. To learn about how you can keep your family safe at the pool, visit www.poolsafety.gov.

• Slow down while driving through the neighborhood. All residents should take note of this rule. With children out and about in full-force during the summer, you’re more likely than ever to see a distracted kid chasing after a run-away baseball or skateboarding on the streets. So slow down, be extra aware of what’s going on around you, and be prepared to stop suddenly if a child runs out into the road. Parents should remind kids that they have a responsibility to be aware of oncoming cars as well, and to be extra careful when they are on the street.

• Remind older kids to check in with you when they’re playing without adult supervision. When kids are out on their own, it’s easy for them to forget to let their parents know they’re okay. So establish a set of rules, such as checking in every few hours or whenever they change locations, and be firm about enforcing them. If your child has a hard time remembering to give you a call every so often, it might be helpful to have them set an alarm on their cell phone or watch so they don’t forget. It’s a great way for kids to build a sense of independence and for you to know they’re safe even when they’re not within sight. 

While the summer can present many hazards, there’s no reason your kids can’t come out of it unscathed (notwithstanding a few minor scrapes, bruises and bug bites, of course). To learn more about how you can keep your kids from getting hurt this summer, visit www.cdc.gov/features/KidsSafety/ for a list of great articles. Stay safe and enjoy this wonderful season.

Article courtesy of CAI, Community Associations Institute.