Because most association unit owners usually pay on time, generally, association accountings are not highly scrutinized on a day-to-day basis. However, when disputes regarding payment arise with an owner, or an account becomes so far behind that litigation is necessary, it becomes increasingly important that unit owner ledgers are without flaws.
Attorneys for debtors are quick to point out any errors in accounting, as this will demonstrate how unreliable the accounting is in its totality. Moreover, errors in accounting or misapplication of payments will often cause a magistrate or judge to become critical of record keeping and the trustworthiness of the Association and its representatives in general.
The Planned Community Act (Ohio Revised Code Chapter 5312) governs homeowners association and requires reserve funds. The Act specifically states:
5312.06. (A) Unless otherwise provided in the declaration or bylaws, the owners association, through its board of directors, shall do both of the following:
(1) Annually adopt and amend an estimated budget for revenues and expenditures. Any budget shall include reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, unless the owners, exercising not less than a majority of the voting power of the owners association, waive the reserve requirement annually.
Question: Our documents require the property manager to obtain a key to each unit. A unit owner recently passed away, and a family member asked if we could let them into the unit to collect some belongings. Should we open the unit for them with our key?
Full, printable version of our November-December Newsletter!
Last month, the Supreme Court of the United States heard oral arguments about a little girl and her goldendoodle service dog named Wonder. The question was about the options open to 12-year-old Ehlena Fry and her parents when their Michigan school district denied their request to allow Wonder to go to class with Ehlena.
As some of you are aware, House Bill 390 became effective on September 28, 2016. Many of the changes will be beneficial to community associations by providing potential expedited processes in several aspects of a foreclosure action.
Full, printable version of our September-October Newsletter!
Question: We have had some fairly heated meetings because of a specific owner who is often confrontational and has tried to start fights. Can we hire private security at our next annual meeting and charge the cost of the security back to the problem owner?
It may be difficult to believe, but the Holiday Season is right around the corner. With the holidays coming up, owners will be adorning their homes, lawns, balconies, and patios with holiday decorations
As volunteer Board Members for your Association, we realize many of you have never dealt with analyzing financial reports, collecting money owed, following guidelines set forth in governing documents, or any of the numerous other duties and tasks Board Members are called upon to complete.