NBC-CAM hosts a listserv for community association managers. The listserv is intended to create a powerful, on-line community for community management professionals to share information. Recently, some questions have been sent to the listserv. Are you able to help? Leave and answer in the comment section below and NBC-CAM staff will post your answer to the listserv.
Question 1: Karen from California
I am working with an Association in the process of amending the Restrictions and the Board is trying to institute a rental cap and we are running up against major opposition from the membership. We have tried to explain the benefits of a rental cap i.e.: Clearly, the imposition of a rental cap has both benefits and burdens. We are not experts in real estate valuation but understand that a community which is primarily non owner occupied is viewed as less desirable, i.e., of a lesser value. Where the residences are occupied by owners, there is typically a pride of ownership. Landscaping and other components are often better maintained, violations of the use restrictions are less frequent, etc. Perhaps the most important factor to consider is the ability of a buyer to obtain financing to purchase a unit. If the ratio of non owner occupied units is too high, FHA will not guaranty a loan and/or a lender will not provide financing. Do any of us have any guidance to assist us in this endeavor?
Question 2: John from Florida
How often do you audit your properties? Full audit or financial statement audit only? Our bylaws are not clear whether to full audit every 3 years, yearly, full audit or only financial statement.
Question 3: Lillian from North Carolina
My association’s bank notified me that a homeowner’s check was returned for NSF. The Homeowner claims their bank paid it and debited their account. The Homeowner’s bank claimed, in a letter, that the check was paid. The Homeowner’s bank has not responded to my emails/phone messages asking for a copy of the transaction showing they honored the check. My association’s bank also has not provided me with a copy of the transaction being rejected other than their standard form for Returned Checks with a copy of the rejected check. We are at a stalemate. I have never had this happen before, in 26 years. Has anyone else had this experience? I’m not sure where to go from here.