HOA Center

Allocation of Insurance Deductibles

In our recent article titled “Water Damage: Who’s Responsible?”, we discuss the issues involved in determining responsibility when water damage occurs in a unit within a homeowners association. Another consideration when dealing with water damage in an HOA is who is responsible for the insurance deductible. Generally, if damage to an insured property is less than the amount of the insurance deductible, then the insured would likely not file a claim, as there would be no insurance payout. However, for many associations, the cost of water damage frequently exceeds the amount of the insured’s deductible. When that occurs, the parties involved need to know who will be responsible for paying the deductible. 

Association Committees and How You Can Make Yours More Efficient and Effective

The effort and resources it takes to effectively govern a homeowners association requires collaboration and cooperation from more than one person. As such, the use of committees in community associations can be a very useful tool for accomplishing the goals of the association. However, in order to be most effective, committees should be well formed with specific purposes and guidelines for their operation.

Ways to Increase Cash Flow Without Increasing Assessments

Association finances are usually on the top of the list when homeowners are asked about what concerns them the most about their HOA. Since the only way that most association boards believe they can generate revenue is through assessments, annual increases in dues and the levying of special assessments have become the norm. However, there are some ways for an association to generate additional income that many may have not thought about.

Connect With Your Membership

There are many ways to operate and govern a homeowners association. Some boards prefer to use a community association manager as an agent to interact with the membership and deal with day-to-day operations. Other boards may choose to be more hands on and active with governance and communication with their membership. While both approaches hold value, regardless of management style, one thing should always be at the top of your mind - homeowners associations are communities and the people who live there are your neighbors.

Know Your Docs! A Quick Guide to Governing Documents

In Colorado, the law treats your relationship with your homeowners association as a contractual relationship. The terms of that contract are your governing documents, supplemented by certain statutes, such as the Colorado Common Interest Ownership Act (“CCIOA”) and the Colorado Revised Nonprofit Corporation Act (“CRNA”). Accordingly, it is important for members of an association to thoroughly understand each of these documents and get professional advice on anything they do not understand.