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Monthly Insights
Jim Yost, owner of Elite Management and managing partner of Ocean Property Management, writes regular condominium association informational newsletters. These informational pieces are linked below.
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For additional advisory services on any of the information in the articles you can contact Jim Yost at 609-675-6835.
Insight Article Links
Condo Associations Need Annual Financial Statements
Preparation of annual audited financial statements are part of best practices for condominium, community, and homeowner associations, insulating a board from potential liability. Condominium, community and homeowners association boards should include an expense allowance for accounting services when preparing the annual operating budget.
Warrantable and Non-Warrantable Condominiums
These terms refer to specific activities occurring or permitted by the condominium association and the perceived related level of risk associated with financing a condominium project. Simply stated: a warrantable development meets the lending criteria and requirements established by Fannie Mae and Freddie Mac and is certified by the FHA.
Budget Preparation for Condo and Homeowner Associations
This column is an update of column #3 that appeared October 2021.
Budgeting is not a one-size-fits-all exercise. With less than 3 months until the start of a new year, it’s time for condo and homeowner association board members to prepare the operating budget for their association for the coming year.
Transition to Owner Control of Association - Part 2
A condominium association is a business, almost always a non-profit corporation. It is not a social or civic organization. The members elect the board to make decisions on their behalf and on behalf of the association. Board members have a fiduciary duty to act in the best interests of the association.
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Transition to Owner Control of Association - Part 1
Transition is the process of passing control of the condominium association board of directors from the Sponsor to the condominium unit owners. The condo owners elect members from among themselves to serve as Board members, to make decisions on behalf of the members and to lead the Association.
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Government Inspections for Condo. Assoc. - Part 2
The most effective approach taken by Associations is implementing a pro-active periodic maintenance program that includes monitoring essential building systems and equipment. A regular maintenance program may include periodic checks of the building including the exterior façade, interior common areas, facilities, fixtures, and equipment by in-house or property maintenance staff.
Government Inspections for Condo. Assoc. - Part 1
If you own a condo at the New Jersey shore, you may be aware that your building is subject to numerous building inspections performed by various governmental agencies. In New Jersey, there are many different types of inspections for various building equipment, components and systems.
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Rules & Regulations for Condo. Associations
An Association’s Master Deed and Declaration contain the Association’s primary set of rules. The Master Deed and Declaration establish guidelines for how condo owners can use the building, facilities, and common areas and in some cases establish guidelines for what owners can and cannot do in their individual condominium.
The Impact of Current Economic Conditions - Part 4
This column will review how major projects and capital reserve studies are affected by inflation and offer suggestions on what Association Boards should consider in this current economic environment.
The Impact of Current Economic Conditions - Part 3
This column will discuss the labor market, including the current labor wage spiral and housing issues affecting seasonal service level workers and increasing costs from labor-intensive service providers.
The Impact of Current Economic Conditions - Part 2
Insurance is the single largest expense item that Associations have little to no control over, and for many Associations, insurance premiums are increasing at higher rate in recent years.
The Impact of Current Economic Conditions - Part 1
What are the implications of the current economic environment for community and condominium associations? Seashore condominium associations can expect higher prices for goods & services and homeowners can expect increases in HOA maintenance fees.
Managing a Major Project - Part 4
A condo Board must have funds available before it enters into a contract. If the Association does not have adequate cash on hand but needs major work to be done, bank financing may be an option.
Managing a Major Project - Part 3
A Condo Board will need legal counsel during a major project. The attorney’s role is to ensure the Board is acting in compliance with the Association’s Master Deed and By-laws and governing law. The biggest avoidable mistake is the Board entering into a contract before the Association’s attorney has reviewed the contract.
Managing a Major Project - Part 2
For some projects, a Project Manager may be assigned to oversee the work for the Association. A Project Manager serves as the Association’s representative monitoring and documenting the contractor’s progress and performance during a major project.
Managing a Major Project - Part 1
Eventually every community and condominium association will face a major renovation, rehabilitation, or replacement project. These projects such as elevator modernization, roof replacement or interior common area renovations involve replacement of common elements.