Cohousing-L Mailing List: Home Owner Association Pulse

[Sharon Villines (sharon]

HOA Pulse is website for Home Owner Associations. It has an excellent 
newsletter and is also a social media site for with focused discussions for 
topics related to homeowner association management.

http://www.hoapulse.com

Cohousing at 30+ years with communities aging and growing in size is facing new 
issues. In larger communities, relationship complexities increase 
geometrically. The original  never-written-down-understandings drift and 
disappear with each new wave of members. Because cohousing isn't the financial 
risk or the oxymoron it was in the 1990s, more people are moving in expecting 
it to be the "happy condo," the one early cohousing communities feared they 
would become.

Larger populations and facilities require more organization. It is no longer 
possible to get everyone in the room and "work it out." Or to just spread the 
word to maintain clear understandings. Or to contribute another $50 to make up 
a shortfall or spend a few hours putting up new siding. Major facilities 
require expert advice, large financial expenditures, and long term planning.

The March issue of the HOA Pulse newsletter issue contains an excellent 
discussion of what causes problems between the community and a resident. (Or as 
they say the "board" and "individual homeowners." Some translation is 
necessary.) It is most often that the resident was totally unaware of community 
agreements or unaware that they were expected to be followed.

http://www.hoapulse.com/index.php/component/k2/item/12602-condo-buying-considerations

This article explains that the major cause of conflict in condominiums comes 
from a resident not understanding community agreements. And then gives a list 
of things potential buyers should do to understand the homeowner agreements and 
financial stability of the community. By extension, these are things 
communities should ensure they know. Many communities have good processes for 
orienting new members to cohousing, but not to the nitty-gritty. Buyers can 
easily assume they "know it all" after an orientation that doesn't even touch 
on these issues.

Excerpts of the recommendations of things to do before buying, for example:

> • Reserve study - Ask for a copy of the reserve study. The reserve fund pays 
> for major repairs and replacement of common building systems. What is the 
> percent funded? Are there any special assessments scheduled? Does the 30-year 
> cash flow analysis indicate that the association has adequate funding? Are 
> all significant components included in the reserve study? Although most 
> reserve studies do not provide a list of significant components that are 
> excluded, some do. If this is an older project (20-plus years old) and 
> infrastructure components such as plumbing, electrical, and wastewater 
> systems are not included (which is the norm), be aware that these components 
> do have a limited life and a significant cost - probably the highest cost of 
> all components. They are often excluded because they cannot be physically 
> "observed" during a reserve study site visit, and are assumed to have a very 
> long life cycle.
> 
> • Financial statements and budget - Request a copy of the financial 
> statements and budget. The operating fund pays for the upkeep of the 
> property’s common areas, property management fees, and other salaries and 
> expenses. See if the association has had to "borrow" from reserves to meet 
> current operating costs. If so, that is a major red flag indicating 
> inadequate operating assessments.

Sharon
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Sharon Villines
A Deeper Democracy
http://www.sociocracy.info