The HOA should only hire contractors that are licensed and insured. It is usually a bad idea to hire homeowners even when they are properly licensed. If it doesn’t work out, you not only would have to fire a contractor, you will alienate a neighbor. Plus, there is an unavoidable conflict of interest in this kind of arrangement.

 

 

It is common for replacement responsibility to fall on the homeowner. The HOA can and should dictate the standard for window and door style to maintain a consistent look and insist that replacements only be done by licensed, bonded and insured contractors.

 

However in rainy climates like the Northwest and Southeast, keeping buildings weather-tight can be a real challenge. If windows or doors leak, resulting dryrot, structural damage and mold can be very expensive to repair or remediate. Owners are seldom prepared to deal with this level of maintenance. To properly secure “building envelope” integrity, it may make sense for the HOA to assume this responsibility if a majority of members agree.

 

 

It’s wise to include “Landscape Renovation” and “Treework” in the Reserve Study. All bushes and trees have a limited life. Bushes die and outgrow their location. While trees usually have a long life, they require corrective pruning that should be done very 3-5 years and it’s expensive. Hiring an arborist to do a comprehensive inventory and report of the trees also makes a lot of sense. If each tree is tagged and referenced in the report, maintenance can be easily tracked. Consistent corrective pruning will extend the lives of the trees and keep them looking good.

 

To reduce the possibility of insect infestation, use native trees that are hardy and pest resistant. If you already have those prone to insects, consult with an arborist for the proper preventive maintenance or cut them down and replace them.

 

 

The Board should be careful about deviating from reserve study recommendations. Most reserve studies recommend a funding plan that steers the HOA away from special assessments. If the board decides to fund reserves less, the risk of special assessments grows.

 

If a special assessment is called for due to underfunding, a case could be made that the board did not fulfill its fiduciary duty and be held personally liable. And just as importantly, past owners who have sold will not have paid their fair share. Unless there is a compelling reason to deviate, the board should follow the recommendations.

 

 

It’s possible that the mold problem would be the HOAs responsibility to repair. It’s also possible that the unit owner is creating the condition. But until qualified testing is done, the answer to that question will not be known. Get the owner to agree to pay for the testing if it proves to be something that the HAO is not responsible to repair. If it turns out to be the unit owners problem, seek reimbursement and if he doesn’t pay, process the account for collection just like you would for any other sums owed.

 

 

Developers control the HOA board prior to turnover and wear two hats. If spending HOA funds, the developer should follow the adopted HOA budget. At turnover, it’s a good idea to have an independent audit of the HOA accounts by a CPA to ensure that all expenses and receipts have been property accounted for and that all members, including the developer, have made all fees owed to the Association.