By Meaghan Brown, EmpireWorks Reconstruction
How many times have you been forced to push a project back to the following year? This can happen as a result of weather, contractor capacity, delays in receiving the bids, the board members feeling like they don’t have enough information to make a decision; the list goes on. This article examines what causes these delays, how to avoid them, and ultimately, the importance of starting the bidding process early.
The first defense against delaying the bidding process is to provide a detailed request for proposal (or RFP). Although submitting an RFP is a near daily activity for a Community Manager, as a contractor, we see RFPs come across our desks in various forms and various degrees of detail. It is not uncommon to receive a few words scratched onto a sticky note, with the expectation of accurately submitting a bid based on that limited information alone.
A properly written RFP is important for various reasons. Not only does it help vendors understand the board’s expectations and how they would like the job to be outlined or broken out, but it also helps the Manager in obtaining apples-to-apples bids from the various contractors. This reduces back and forth questions from the contractor to the Manager, resulting in a quicker turnaround time for the estimate. It also allows the board to make a clear decision and to better understand what they are investing in. You may want to ask a trusted business partner (such as a contractor or engineer) for assistance.
The first step to efficiently developing an RFP is understanding your Board of Directors (or BOD). It is not uncommon for Board Members to change their mind during the bidding process, thus causing further delays. At a minimum, the BOD should take a physical look at the work and agree on the desired outcome. A community’s needs must be fully addressed in the scope and specifications. The BOD should be involved in the scope development, so they know exactly what they are investing in and to ensure proper expectations are set. Ideally, the BOD should walk the project with the Manager and bidding contractors to determine details prior to the formal RFP being issued.
Subsequently, to ensure everyone is on the same page, the Community Manager should schedule a pre-bid site-walk with all bidding contractors. Ideally, this happens all at once, with all bidding contractors present at the same time. By doing this, you will ensure that the same details are explained to each of the bidding contractors. Not only that, but other ideas, product recommendations, or a more efficient way to attain the desired outcome may be recommended by a contractor, which can then be relayed to everyone on the walk. For these reasons, walking the project with all bidding contractors will ensure you obtain apples-to-apples bids and make it easier for the Board to make a clear and well informed decision.
Recognizing how this process works for the bidding contractors will assist in setting proper expectations for your board and the contractors alike. Once the RFP is received by the Account Executive or Business Development Representative, the estimating team reviews the RFP and scope of work to clarify details. The estimator will then inspect the property and determine the means/methods for project execution. Once the estimating team quantifies and calculates the scope of work, the team then reviews the bid for accuracy, feasibility, schedule, exclusions, and unforeseen conditions.
Next, the Account Executive formats this information into a bid-packet presentation and delivers the proposal to the Manager. It is important to note that on average, the bidding process takes contractors 40+ hours on a $100k project. This is not including the Community Manager’s time or any revisions. During our busy season, it may take up to four weeks to turn around a bid. From there, it usually takes about 30 days to start the project from the time the executed contract is received. Not to mention, if the project requires engineered drawings, the Community Manager should allocate another three to four weeks on the front end for the drawings to be prepared. Below is a general timeline showing how this all pans out.
TASK
TIMELINE
1
Community Manager and Board of Directors (BOD) identifies the issue and agrees upon a desired outcome.
Dependent on BOD
2
If applicable, Community Manager and BOD involves an engineering firm to attain engineered drawings. The firm reviews the project and submits a proposal to the BOD for signature.
2 weeks
3
If applicable, the BOD signs the proposal and hires the engineering firm to develop the scope of work and drawings.
2-4 weeks
4
The Community Manager, BOD, and/or engineering firm submits the RFPs to bidding contactors. The bidding contactors reviews the scope, clarifies details, puts together the estimate and submits their bid to the BOD.
3-4 weeks
5
The Community Manager, BOD, and/or engineering firm reviews and compares the bids. They clarify any questionable details, select a contractor, and submit the signed contract.
6
The contactor receives the signed contract and begins planning logistics. If applicable, they will submit applications for any necessary permits (timeline on this can be several weeks or even months.) They will then order materials, and depending on the project, this can also take several weeks.
4 weeks
TOTAL: 2-4 months from RFP to Project Commencement
If the project at hand is on the larger side, it is especially vital to start the bidding process early on. For example, if you want to start the project in the Spring of 2021, you’d want to start the bidding process in Q4 of 2020. Additionally, one typically gets better pricing if the contract is signed in the off-season. This will also guarantee that the project is one of the first on the schedule once weather permits.
Lastly, upon receipt of these bids and once a general investment cost is determined, knowing where you are obtaining funding is crucial. If the cost is higher than expected or outside of the amount budgeted in their reserves, getting these bids sooner rather than later will help you to plan accordingly, whether that be getting a loan, doing a special assessment, or raising the monthly HOA dues.
Taking all of this into consideration, it is easy to see how a project can quickly be pushed back to the following year. By setting the right expectations for your board, identifying potential pitfalls, and starting the process early on, you can help to better serve your communities and board members alike.
Meaghan Brown is an Account Executive at EmpireWorks Reconstruction, working with HOAs, multifamily, and commercial properties for their exterior, community-wide reconstruction projects. As an Account Executive, Meaghan acts as the liaison between their production team, the community/property manager, board of directors, and residents throughout the course of each project. Some of their core services include roofing, carpentry, EIFS/stucco, concrete, painting, decks/walkways, steel fabrication, and construction defect services.
By Kacie Dreller, CMCA®, AMS®, PCAM®, Hammersmith Management, Inc
There are many choice words spoken when discussing a Special Assessment in a community. And no, those words do not often include “fabulous,” “fantastic,” or “fun.” Let’s face it, the need for a Special Assessment suggests, whether right or wrong, that someone failed to responsibly manage community finances at one point or another. After all, Special Assessments are imposed when reserve funds are not adequate to cover the cost of long-term repairs and replacements. For example, the replacement of siding or when an unexpected expense occurs.
The first question asked by the Membership in the discussion of passing a Special Assessment is, “How did this happen?” The response to this question can vary. Perhaps the Association was managed by a Board of Directors that for many years took pride in announcing at every Annual Meeting that once again, there would be no increase in assessments next year. Owners cheer, the Board of Directors is showered with accolades, and everyone goes home happy knowing that they will not pay an additional $3.00 per month next year. How wonderful!
Unfortunately, the reality is that the Association’s costs increase at a minimum of 3% annually. Water, electricity, management and maintenance contracts, and insurance expenses increase anywhere from 3% to 50% annually. To afford those increases, budget allocations are decreased in other areas, like reserve contributions. Year after year the contributions decrease and then, when the siding of a building is rotten and needs to be replaced, reserve funds are not adequate to fund the project. Another possibility is that the association was “robbing Peter to pay Paul” by using reserves year after year to pay operating expense overages. Or perhaps the Association was paying for repairs and maintenance that was not association responsibility, but instead the responsibility of an owner.
Whatever the reason, the Board of Directors is now in a place where they need to “sell” a Special Assessment at a time when, oh right, there is a pandemic, and many homeowners are already struggling financially. <Insert choice word that is not “fantastic,” “fabulous” or “fun”>
To ease the pain of the Special Assessment Meeting, and increase chances of the Board of Directors and Management walking out of the meeting in one piece, please accept the following constructive recommendations on how to approach this lovely task:
Research the answers to these questions and provide details to the Membership. Become an expert on the matter and enlist the support of other industry experts to assist with answering the questions where necessary. Present a historical accounting of the reserve funds. Provide owners with information as to where reserves have been used in prior years. Reference paragraphs in the Governing Documents that define maintenance of common and limited elements. Quote the Declaration section that details the power of the Board to consider a Special Assessment and the requirements for approval of said Special Assessment. The more information you can provide to the owners, the more they will see that the Board of Directors and Management are educated on the matter and have exhausted all other options to solve the problem.
Angry homeowners are often the result of our failure to educate them on the matter at hand. Homeowners do not spend their free time reveling in the awe-inspiring document called the Declaration of Covenants, Conditions, and Restrictions. In their minds, Board Members and Management were put on this earth to do nothing more than harass them about their trashcans and deny their request to paint their home chartreuse. In my many years of management, I have learned this one very important lesson; There is nothing that will deescalate an angry homeowner more effectively than providing them with education and information. Anticipate the questions, educate on alternatives, and remember that we all have our struggles.
Kacie Dreller, CMCA®, AMS®, PCAM® is a Regional Director at Hammersmith. Kacie is recognized in the industry for her expertise in community management, professionalism, ability to lead, and her desire to serve. Kacie strives to be a positive role model of Hammersmith’s Core Values: Professionalism, Excellence, Integrity, Life Balance, Education, and Partnership.
By Nicole Hernandez, PCAM, CB Insurance
I started my career in the HOA industry as a receptionist nearly 20 years ago. Since that time, I have served in many facets, including hiring and training responsibilities. Building my career and living through seemingly endless interviews has taught me a lot. Learning how to properly brand and market yourself in this unique industry is time well spent.
We live in a world where we are fortunate to have the opportunity to choose the image we wish to portray. Every day, we have control over how we want to show up in the world and how we choose to present ourselves to others. When thinking about establishing a personal brand, it’s important to consider what matters to your ideal client as well as learn from what has contributed to others’ success in the past.
A Positive Attitude
I know it is cliché but the best thing we can do for this industry is keep a positive attitude in our interactions. A positive attitude is everything. Waking up every day with the determination to approach every situation and opportunity with an optimistic attitude goes far. Of course, things are going to go wrong, and there are going to be troubles, but keeping a positive attitude and remembering that these minor frustrations are only temporary will help you keep your sanity as well as show others around you that they can rely on you to remain cool in difficult situations.
I know it can sometimes be hard but keeping the perspective that it is not personal and there is always something to learn helps re-ground me. Remember, every difficult situation is an opportunity for growth. We learn from the challenges in life. Keeping track of the bigger picture, and where I want to go, always helps me stay focused and positive.
Dress the Part, Act the Part
Professionalism looks a little different to all of us. To me, being a professional is being educated and harnessing the skills and knowledge needed to handle difficult situations while maintaining poise and integrity. Professionalism to me is looking the part and acting the part. When I say “look the part,” I don’t necessarily mean that you are in a tailored suit every day (and if you are one of those people, I salute you!), but rather that you take the time to launder your clothing and select pieces in your wardrobe that demonstrate the image you wish to portray.
Acting the part requires a little more effort…
The number one way to establish credibility and provide value is to know what you are talking about. I know, it seems like the simplest thing ever, but think about what goes into the Community Manager’s role; you need to know a lot about a wide array of subjects. Of course, an understanding of Governing Documents, CCIOA, financials, insurance, and basic construction and contracting is key, but there is so much more that goes into the role!
For example, any knowledge or training that can improve your ability to manage conflict, including improving soft skills and communication techniques, will go far in a high-energy field like HOA management. The better you can communicate with people and the quicker you can win them over will improve the customer’s experience and your reputation as a result. There is so much knowledge that you will benefit from! Topics like meeting management, parliamentary procedure, computer skills, decision making techniques and leadership skills will take you far. The services you provide will always be improved by the more you know.
Circle of Influence
Equally important to what you know is who you know. Building your circle of influence and connecting with industry leaders that you can turn to for advice, information, and guidance can do a lot to propel your career and reputation to the next level. Think about who is influential in your local community, who is a wealth of knowledge, and who is always available to help answer questions and look good with your Boards. Those are your angels - treat them well. That additional pool of expertise and connections will only improve the resources you are able to offer your communities.
Use educational sessions and networking opportunities to your advantage. Dress the part and ask the experts around you about situations you are encountering - I bet once you get them talking, there will be many take-aways that you can use for your communities… remember to take notes!
If you are not receiving a service or solution that might help you, ask your Circle of Influence. If you’ve never hired someone from a specific trade before, ask your circle what questions you should make sure the Board asks in the interviews. Depending on your relationship with your client, you can set them up to ask the correct questions or you can do it for them. Either solution results in a better exchange of information and helps you gain the confidence of your client.
Acting with Integrity
I would be remiss if I did not take this opportunity to stress the importance of behaving with integrity. You can follow every suggestion on this list, but if you make unethical decisions, you still won’t get anywhere.
Did you know that CAI has a Professional Manager Code of Ethics?!
The established Code of Ethics includes handling business in a professional manner, without unfair business practices such as duplicating proprietary information and bad-mouthing competitors and their business practices.
I have always kept true to the adage of “you don’t make yourself look good by making other people look bad” – it really is that easy.
Behave with integrity and professionalism at all times, take the time to educate yourself and connect with the right people and your career will explode faster than you can say “Community Association Management”… and by all means, have a little fun along the way!
Be The Talent Check List:
Positive Attitude
Do I demonstrate an attitude that I would want to be around?
What is one thing I can do today to make myself happier while doing my job?
Dress the Part; Act the Part
Do I make the effort to look like someone I would respect and take advice from?
What skill could I brush up on that would make my job go more smoothly?
Who are three people in the HOA world that I can turn to for advice?
Is there anyone in the industry I’d like to know better?
Have I reviewed CAI’s Professional Manager Code of Ethics?
Are there people in my circle who put my credibility at risk?
Nicole Hernandez is a specialty insurance professional in the Denver-Metro area focused on helping community associations build highly effective risk management programs. With 19 years of HOA management experience, Nicole uses her results-oriented personality to provide knowledge and expertise to help solve problems for her circle of influence.
By Ari Shore, CAP Management
Forecasting, anticipating, and addressing increased delinquencies for a Homeowners Association can feel like an impossible task for association board members and community managers alike. With so many variables at play, it is a challenge to know how and when an HOA should best respond to a larger, societal shift. There is no time better than the present to highlight the unpredictability of dues delinquencies.
Following the initial COVID-19 response and “stay-at-home” restrictions, the HOA industry was quick to anticipate a potential spike in delinquencies of monthly membership assessments – a scenario that could threaten the financial viability of the entire community. Many associations reacted with a similar urgency by quickly revising collections policies under the assumption that the majority of homeowners would be unable to pay monthly membership dues.
In reality, HOA delinquencies did not drastically increase as the industry originally expected, rather delinquency rates stayed within a normal range. This can be attributed partially to economic stimulus, and more importantly the ability to “work from home,” which has proven to be the most successful way of preserving personal income.
The true impact of the economic shutdown was of course impossible to predict in the Spring of 2020. Many associations and management companies reacted out of fear and anticipation, but with good intentions of limiting any further economic hardship for owners. Unfortunately, these associations that prematurely revised collections policies and offered additional forgiveness opportunities have been hurt the most, facing an uphill battle of revoking moratoriums or continuing operations with insufficient funds. On the other hand, associations that maintained their legal policies while expressing empathy and a willingness to work with homeowners have proven to be better positioned to rebound from economic uncertainty.
Global pandemic or not, there are a wide variety of socio-economic factors that can affect an Association’s delinquency rate. Local, City, State, Regional, Federal, and International factors could all be at play for the leading cause of a delinquency uptick. It is critical to take a comprehensive view of the monthly activities to determine if an association is particularly vulnerable to a delinquency increase. Variables like tax reforms, currency valuations, weather, unemployment rates, and a variety of other factors should all be considered in this evaluation. It is important to understand that many associations are comprised of members who are societal peers, who often share many socio-economic characteristics. Because of this similarity, an association’s owners are likely to be susceptible to the same external threats. When evaluating delinquency vulnerability, rather than attempting to make sense of every economic factor, a community manager should be hyper focused on the specific variables that would likely affect the communities they’re serving.
A community manager can effectively navigate the uncertainty of a delinquency situation by focusing on two key competencies - communication and consistency. There is no harm or shame in having empathy and a willingness to work with all members of an Association as it relates to delinquencies. If the manager is warm, welcoming, and willing to work with the members within the parameters of the collections policy, more members will reach out for resolution before the problem escalates uncontrollably.
The alternative to the compassionate approach is to be rigid, unavailable, and unwilling to work with the members facing financial hardship. The major problem with this approach is many individuals will avoid confrontation especially when it comes to financial matters. Avoidance and denial will likely emerge and could become major inhibitors to resolution, let alone the cost of pursuing remedy. Although late fees and delinquencies have their place in an association’s governance, these penalty mechanisms are rarely a motivator when agreeing to a financial resolution.
Let’s look at an example in practice: An association has quarterly dues of $25.00. Late fees are $10.00 for every 30 days late (plus interest) and lien fees are $100.00. Additionally, after 90 days the account will be forwarded to the attorney for collections with an automatic legal fee of $200.00. A $25.00 bill is now over $355.00 (plus interest) for a member who was having trouble paying $25.00. This individual will likely become elusive and the association may be responsible for covering additional costs of collections. Alternatively, if the member knows the association will follow the collections policy but is willing to come to a reasonable repayment solution, both parties will see a brighter outcome. A simple resolution could be presented to the owner, requesting a repayment schedule of $8.33 per month over 3 months, with the understanding that waived late fees and interest will only be accommodated within reason. This approach to a delinquency resolution undoubtedly requires more patience and compassion from the managers and board members, but it should be viewed as an investment into the community’s social capital, which will preserve and sustain the long-term viability of the association.
A community manager will face many challenges with an association, but the personal financial situation of a member (especially in troubling times) is by far the most challenging. The more approachable, open and empathic a manager presents themselves, the better poised they will be to lead all parties to a beneficial outcome.
Ari Shore is CAP Managements Chief Operating Officer. CAP Management is a regional organization dedicated to enhancing the sustainability and resilience of all the associations and customers they serve.
By Caitlin La Luz, Winzenberg, Leff, Purvis & Payne, LLP
In today’s day and age, associations are looking for more convenient, flexible, and safe ways to conduct association business. The ongoing pandemic has only amplified the need for associations to explore their options to conduct business virtually. The good news is the Colorado Revised Nonprofit Corporation Act (“Nonprofit Act”) under section 7-127-108 states, “Unless otherwise provided in the Bylaws, any or all of the members may participate in an annual, regular, or special meeting of the members by, or the meeting may be conducted through the use of any means of communication by which all persons participating in the meeting may hear each other during the meeting.” The Nonprofit Act also includes a similar provision for director meetings. These provisions in the Nonprofit Act authorize an association to conduct member and director meetings virtually by any means as long as all attendees can hear each other and the bylaws for the association do not prohibit this method. There are numerous platforms to choose from, both free and for purchase, that can help associations achieve this new method of meeting. It’s worth looking into the different options and price points of various platforms as some will have more features, like enhanced security and longer time limits for meetings.
It is important to remember that an association must comply not only with Colorado law but the governing documents for the association as well, whether meeting virtually or in person. Under the Colorado Common Interest Ownership Act, associations must have a policy detailing the conduct of meetings. Though associations may be conducting virtual meetings they should remember to review their meeting policy and adhere to it. An association’s other governing documents, like the bylaws, are also important to review in order to comply with the notice and procedural requirements for both director and member meetings. If conducting a meeting with an election, the board will need to be even more careful to follow all requirements in statute and in the governing documents of the association; like the potential need for a secret ballot in a contested director election. Luckily, many associations can choose to conduct an election via mail-in ballots or join the tech savvy associations now using online election and voting platforms. If an association is unsure about what procedures are required or confused by the language in the governing documents, it should reach out to the association’s counsel for advice.
Meeting virtually requires advance planning and preparation. The association should schedule meetings with enough time to send additional instructions and guidance to those attending. For instance, if a board plans on setting up a Zoom conference for a director meeting, the meeting ID and password will need to be sent out to all potential attendees prior to the meeting. It will also be helpful to provide guidelines on the procedure of the meeting to attendees (i.e. attendees must remain on mute and ask questions via the chat box). A meeting with a clear direction and procedure will run much more efficiently than one without.
Here is a quick checklist to help associations plan to meet virtually:
Caitlin La Luz is an attorney at Winzenburg, Leff, Purvis & Payne, LLP. For nearly 40 years, the law firm of Winzenburg, Leff, Purvis & Payne, LLP, has represented homeowners associations, townhome owners associations and condominium owner associations throughout the State of Colorado.
By Taylor Spiegelberg, Knott Laboratory
For HOA’s, it can be very useful to have a tool to document a house or property to view later. Often, this would entail just taking photographs of anything relevant or particularly specific on a property. However, photos can only get you so far. Say perhaps you want to have a measurement on a wall or area but it was not documented on your initial inspection, or maybe you want to look at the roof closer but it was either too difficult or dangerous to access. Through modern technology and software, photos can be taken and processed to create a digital 3D version of the property which can be used to check measurements or view items through angles that just might not be possible by the human eye.
Let’s look at one tool that can be used to assist in the documentation of roofs, and that would be the use of unmanned aerial vehicles, more commonly known as drones. Until recently, to inspect a rooftop or even higher elevated window or siding, you would need to physically go up yourself. This can cause a lot of headache, as there is the safety concern of falls as well as the extra necessary equipment such as a ladder, a lift, harnessing, ropes, and the like. Certain properties you may not even allow access to use those, which would leave the entire roof undocumented. With drones, this takes the guesswork out of how to get on the roof and stay safe. By flying a drone, you can quickly and easily navigate the entire roof area, and with many drones having high resolution digital cameras onboard, you can take high quality photographs and video of the rooftop. This imagery is actively captured by the remote-control display while flying, so on site you can view overall and target specific areas if you see areas needing more focus. Taking the guesswork out of roofing inspections is one valuable part of using the drones, but the imagery can be transformed into a useful asset for HOA’s once processed on the software side.
So you have photographs and video of the roof and other areas on location, now what?
Say you want to measure a distance or find an angle; you couldn’t find this unless you had a tape measure or other measuring tools in the photo you are concerned with. Today, there is software that allows a set of photographs to be converted into a scaled 3D representation of your property. This allows you to later look at the property from any view you’d like, such as a top down representation which can lead to an accurate floorplan. Not only does the view help, but as this is a 3D format known as a point cloud, you can grab dimensions on anything you need. This is an invaluable tool, as often you may notice things well after the fact, and the point cloud allows you to view the property again without having to physically be there.
Now not every set of photographs can be used to create these 3D point clouds. The software is looking for similar points in between photographs to be able to tell where each photo was taken from to make the point cloud. This means that the photographs need to be taken with a lot of overlap to create a high-quality point cloud of what you’re trying to capture. Drones are good at this in general, as they can be programmed to fly set paths above roofs and take plenty of photos for this specific use. For an interior space or going around an exterior, you’ll want to take a lot of photographs, maybe taking a step or two in between. Picture yourself looking at the house or room and going in a circle around it, and that’s what you want your pictures to capture. This is good for getting an overall model, and if you need more detail in spots you can take a set going in and focusing on specific areas. There is also software which can create a detailed model of an interior space using 360° cameras and taking fewer pictures by spacing the photos periodically throughout the interior.
You’ll also want to remember a tape measure while taking your photographs. This is to ensure that the resulting 3D point cloud gives you accurate measurements. You don’t necessarily need to have the tape measures in photos, however you can if you wish, but you’ll want to know several dimensions to be able to set the scale of the point cloud and check against your measurements. You only need to do this in a few spots, and don’t need to go over everything, as the point cloud scales everything together so you can measure things you did not initially measure.
These advanced tools put the freedom to explore a property well after the fact into the HOA’s hands. The value this brings is not only the ability to look at the point cloud made from the interiors or exteriors, but also the time, safety, equipment, and efficiency of looking at the property in detail. Technology moves fast, and there are more and more streamlined approaches to help HOA’s. It’s exciting to see what will come next!
Taylor Spiegelberg is a Senior Visualization Expert with Knott Laboratory, a forensic engineering firm. Mr. Spiegelberg earned a Bachelor of Fine Arts degree in 3D Graphics and Animation from the University of Colorado- Denver.
By Eric Lecky, SageWater
Are you dealing with leaks from an outdated plumbing system? Piping issues, whether defective or age-related, can be one of the worst problems a community can experience, especially given the potential damage to a building's structure and personal property that can be caused by flooding, leaks, and mold.
Facing the prospect of replacing and modernizing your piping system during COVID-19 can seem daunting. However, the pandemic has made it even more critical that you ensure your residents have access to clean, fresh water, functional drain, waste and vent piping, and efficient HVAC systems. While these have always been considered “essential,” proper sanitation and healthy air movement are critical components of minimizing the impact of this terrible virus.
Plumbing systems that were already nearing the end of their useful life have seen increased stress due to expanded use from extended quarantining and more people working remotely, using their plumbing and HVAC while they are home all day. Risking repeated or extended outages from plumbing failures when owners and residents need their plumbing to work correctly is not an option. While it may not seem easy, the best course of action is to address the issues now and not delay.
Know Your Pipe System
Most buildings have several different piping systems that should have a regular inspection to ensure they are in proper working condition and not showing dangerous signs of aging.
These systems are usually comprised of one or more different types of pipes, which range from metals such as copper, steel, and cast iron to a variety of plastics. The lifespan of each material varies considerably and is dependent on local water chemistry and climate. Knowing what's in your building, when it was installed and how well it is aging are critical data points when evaluating the length of time you may have before needing to repair or replace your pipes.
What to Look For
Sudden changes in water pressure, discolored water, or small leaks are early indicators of potentially more pressing issues. Visible signs of corrosion-such as changes in water-color, oxidization of metal pipes, or a metallic taste are equally important indicators. If water-related complaints, leaks, and other problems become more frequent, it's time for a professional inspection.
Solutions to Solving Your Piping Problems
When it comes to repairing failing pipes, there are several options, and some are better than others.
On one end of the spectrum, you can continue to have your plumber make ad hoc repairs. While each service call is not too expensive, it is a costly and time-intensive option in the long run and doesn't solve the problem.
Be wary of alternative solutions like pipe lining. While in theory the idea of lining an existing failing pipe with a plastic resin seems like a good idea, in practice it is far from perfect, and very difficult (if not impossible) to get correct. If not done properly, you will have to replace your pipes anyway, essentially paying to fix the problem twice.
Repiping represents the most permanent fix to plumbing problems. By replacing pipes altogether, you reset the clock on your building. Many new potable water supply piping products carry a 25-year warranty, so you'll have plenty of protection for years.
While some managers and owners initially believe that repiping may be too big of a project to undertake, the reality is that it can be managed very efficiently with minimal disruptions. It often costs less than you might think, given the nature of the project, and is frequently less expensive than the epoxy lining. For a solid return on investment, pipe replacement is one of the best capital improvement projects your community can undertake. Some of the realized benefits include, but are not limited to:
Waiting too long to repipe escalates your risk of catastrophic damage to your building. By acting early and planning ahead, you avoid numerous problems and gain immediate financial and structural benefits, as well as a boost to your building reputation among the real estate community.
Eric Lecky (elecky@sagewater.com) is an Executive Vice President at SageWater, North America’s leading pipe replacement contractor. SageWater is headquartered in Alexandria, Virginia, with offices nationwide. Over the past 30 years, they have replaced more than 35 million feet of pipe in over 100,000 occupied residential units.
By Jonah Hunt, Orten Cavanagh Holmes & Hunt, LLC
In today’s coronavirus climate, all community associations should consider implementing and utilizing technology to conduct community association business, including annual meetings and board member elections.
Online or electronic voting provides the ability to conduct director elections at annual meetings when a significant portion of the owners are unable to attend a live, in-person meeting. Resort and mountain communities have been successfully using this technology for years.
This year, associations throughout the state are conducting annual meetings on numerous virtual platforms (i.e. Zoom, WebEx, GoToMeeting, etc.). These virtual platforms permit owners to attend meetings by phone or videoconference and vote on director candidates while staying compliant with state and local public health orders.
Colorado law provides that associations may utilize electronic voting, unless expressly prohibited by its bylaws. Owners are permitted to participate in any annual, regular, or special member meeting by any means of communication or technology so long as the owner can be heard by the other participants. There is no statutory requirement, however, that all participants be able to see each other.
So how does an owner cast his or her vote? Any owner virtually present at the meeting may submit his or her vote by voice, raised hand, email, text, etc. While this may work fine for smaller associations, it may be cumbersome in larger ones.
To better facilitate the voting process, many associations are turning to third party service providers to handle the voting portion of the meeting. The benefits of doing so can include the following:
The mechanics of voting at meetings are flexible so long as they comply with the bylaws and Colorado law. Voting usually takes place after the business of the meeting is conducted and the Board candidates are introduced. When it is time to vote, owners log in to the account assigned to them by the association and cast their vote. The association should make volunteers available to assist any owner who may need assistance with the technical aspects of electronic voting.
Don’t forget that Colorado law requires associations to maintain ballots, proxies, and other voting records for at least one year after the election to which they relate.
If you are considering employing online voting in your community, review your governing documents and consult with your community manager and legal counsel before doing so.
Jonah G. Hunt is a partner at Orten Cavanagh Holmes & Hunt, LLC, providing strategic general counsel and litigation services to community associations throughout Colorado.
By Ashley Douglas, Reconstruction Experts
If I were to ask you to picture a thriving older HOA community near you, chances are you could bring one to mind easily. This type of community appears to age gracefully with residents who are happy to live near one another. They have flags of their favorite sports teams out front, their patios are decorated beautifully, and they have great participation in their monthly board meetings and community events. They have clearly attracted residents who want to invest in where they live.
The one that comes to mind in my neighborhood has always looked like a place that I would want to live--even before I worked in the HOA industry. Their siding is painted nicely, their roads are smooth and clear, and the landscaping is flawless. Whenever I drive by, I see a team of people working on some area of the property to keep it looking its best. In town they are known as one of the premier communities to live in, and units are always in high demand.
These types of HOAs make it look easy, but all of us know that maintaining high property values takes a tremendous amount of planning, effort, and money. And I’m not just talking about the work it takes to make things look nice.
Over the years I have gotten to know the HOA I mentioned above, and they’ve set the bar in my mind for how an HOA should approach caring for their community.
So, what have they done from a maintenance perspective to keep homes selling and residents happy over decades of time? The answer may surprise you because they do not focus most of their attention on flashy aesthetic repairs.
It’s easy to put up a coat of paint and keep the flowers looking nice, but what takes real effort and attention is what’s done regularly to keep the important systems of the building in good condition over the long haul. You know, the typical list of issues building inspectors come back with when a unit is getting ready to sell.
When I asked this community’s Board of Directors how they approach maintaining their property, I was refreshed to hear their reply. (The things I’ve included below aren’t an exhaustive list but will give you an idea of what I’m referring to.)
Life safety issues are always the top priority. Things to plan for in this category include:
Next, it’s important to consider what types of things could be causing the building damage right now. Most of these types of repairs center around keeping water out of your building.
*The ranking list of repairs should be evaluated by a reserve study specialist and a design professional that you can find through your membership with CAI. Your reserve study should be updated regularly.
Once the HOA has gotten to the point where they have maintained all the important building systems, aesthetics can then be considered. This is where fun updated paint schemes and creative landscaping plans can come into play.
The importance of taking care of deferred maintenance cannot be overstated. A community that does not properly increase dues thereby only allowing themselves the ability to make bare minimum repairs won’t attract the best buyers for their neighborhood. Things like painting over rotted siding and deteriorated wood handrails, or not repairing hail damage promptly is a recipe for disaster for home values.
Quality home buyers want to see that the HOA has a plan for taking care of the important systems of the structure. If your HOA can show prospective buyers a good track record of maintenance, or a plan to make things better if this hasn’t been done in the past, they have a much better shot at maintaining and improving home values over time by attracting good buyers who want to live in a great community and participate in keeping it a nice place to live.
As the VP of the Colorado Region, Ashley utilizes her experience to manage the overall success of the Colorado Region of Reconstruction Experts, and works closely with RE’s Senior Management of each division to ensure that our core values of Safety, Quality, Schedule, Cost and Communication are fully utilized in the procurement, planning and the execution of each project. Ashley has worked at Reconstruction Experts for 10 years serving in many different roles along the way.
By Chase Carmel and Katie Conely, OSG
What do Millennials actually want? This question has been front and center in recent years for anyone who is interested in marketing services or products to the globe’s largest rising group with purchasing power. Millennials have been accused of being “flighty” and “killing off” everything from “the concept of the starter home” to “napkins,” according to Business Insider. Millennials began their experience in building their financial savings and their resumés at a time when finding employment was difficult. As a result, they became the “Boomerang Generation,” who in large numbers found refuge by moving back into their parents’ homes or in delaying purchasing a home longer than previous generations.
To cast them in a slightly different light: Millennials are financially careful. They, along with Generation X, are the first group of adults accustomed to having the entire world at their fingertips on their mobile phones. They sift through multiple options before making decisions—they don’t mind taking the time to find the right solution, and they do their research. They believe, often rightfully so, that there might always be something better out there for whatever they are pursuing if they just keep looking. Most importantly, Millennials are wary of being taken for a ride.
So, how do Millennial attitudes and behaviors affect forward technological trends in the HOA market?
A major benefit property management companies and homeowners associations would gain from the Millennial perspective is a greater insistence on integrated, one-stop-shop, technologically savvy solutions for payment processing and reporting. Your younger homeowners and renters want options in paying their bills, from the ability to pay using any device they like to payment automation or scheduling. They already have access to multiple payment channels for utilities, online purchases, flights, insurance, and nearly anything else you can think of. Why not rent or association fees as well?
A significant factor that results in late bill payments is the level of accessibility in bill payment channels. Your customers have busy lives. They may remember to make a payment while waiting in line at the store, for instance, but get distracted on the way home before they can dig out their checkbook. An obvious benefit to creating more digital payment channel options for your busy homeowners and renters is a better likelihood of on-time payments. The customer waiting in line at the store would pay on their phone through a mobile-responsive website, a mobile app, a text-to-pay solution, or by calling in to engage with an interactive voice response menu—if they could.
Paper bills, while sometimes necessary for customers who prefer not to opt in for paperless billing, also present obstacles including mail delays, lack of visibility of when your payers receive and open their bills, and decreased communications interaction from your primarily online audience. Automated electronic billing clears every one of those obstacles and greatly increases your ability to track and make informed projections for incoming payments.
Cutting edge technology in the HOA and property management world is highly focused on digital integration right now. In consolidating information by integrating payment channels and customer details on one searchable reporting platform, your payments vendor can create a simplified command center for your company. Using this, you can access one central source of information about your customers, their preferred payment channels, the type of payments they are making, their interaction with your communications, and your incoming or outgoing payments. The chief end of all of this is to provide you with greater visibility and control over your money.
The more your customers expect from you in terms of digital communications and transactions, the more you ought to require out of your billing company. Property management is one of the last industries to digitize the payment experience for their customers, which means there is a fantastic opportunity for advancement. By streamlining your payments processes across all channels, you can spend more time growing your business and less time on billing organization.
Chase Carmel works for OSG, an international company specializing in billing and communications for multiple vertical markets, including HOA and property management. For the last 13 years he’s been working on improving technology in the HOA space, and is currently serving as the CAI Rocky Mountain Chapter Norther Colorado Committee Co-Chair to bring more educational programs to Northern Colorado.
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