Right to Dry - Legislative Alert

Please take just five minutes to help the Community Associations Institute – CT (CAI-CT) OPPOSE the reintroduced “Right to Dry” bill. (H.B. 5995) The public hearing is scheduled for Tuesday, Feb. 17 @ 1:00pm. 

 

Many members of the state legislature are under the impression that the allowance of clotheslines on community association property, no matter what your documents say, should be allowed. We are concerned that passage of this bill will do the following:
 

1 – Increase costs for maintenance and liability insurance;
 

2 – Decrease property values (Potential buyers may not be impressed with the landscape being filled with old, ratty towels waving in the breeze);
 

3 – Negate the agreement that owners had with their association with respect to control of the appearance of the property; and
 

5 – Usurp associations’ rights to self-govern. A key purpose of associations is for the community to determine what kinds of rules and regulations they choose to impose. 

A state mandate on clotheslines would take away community control on this issue today – what next?

 

We need you to ACT NOW! 
 

CAI-CT's Position on H.B. 5595: OPPOSE

H.B. 5995 states that all community associations may not impose any restrictions or regulations prohibiting any kind of clothes drying apparatus. Read entire bill here House Bill 5995.
 

CAI-CT OPPOSES H.B. 5995 because community associations by their nature are self-governing.  Homeowners who have invested in a community are in the best position to make these value judgments, whether the issues involve clotheslines, solar panels or street lighting.   

Community association homeowners adopt rules to preserve the nature and appearance of their communities, meet the established expectations of residents and protect property values. As we know, homeowners can modify a rule or even eliminate a restriction if there is enough resident support for a particular change. We believe that education about energy conservation techniques should be explored by all associations.  However, the decision about the types of energy conservation options that are most appropriate should be determined by each community, NOT the State of Connecticut.
 

Contact Energy and Technology Committee Chairs:

Sen. John Fonfara – Fonfara@senatedems.ct.gov - 860-240-0043 and

Rep. Vickie Orsini Nardello – Vickie.Nardello@cga.ct.gov - 860-240-0434
 

Contact State Representative & State Senator:   

Find Your District by 9-digit Zipcode

Find Your 9-digit Zipcode

 

February 17, 2009 - CAI-CT Testimony 

Nuisance Dogs Bill - We need your help!

If you live in a condominium association in Connecticut are you aware that animal control can not remove a dog from the property unless it has bitten someone or was hit by a vehicle?

CAI-CT has been trying unsuccessfully to get this bill to the floor in Hartford.  Our elected officials feel we simply do not care about this issue.  Please take a minute to email your state senitor and state representative letting them know that this issue is important to you as an association. 

It is especially important that you contact the following people as soon as possible to ask them to take action on this issue: 

Sen. Edward Meyer 860-240-8600 email: meyer@senatedems.ct.gov and/or Rep. Richard Roy 860-240-8585 email: Ricard.roy@cga.ct.gov

 

Issue:  Nuisance Dogs on Community Association Property

 

Summary

 

To enable animal control officers to impound roaming animals which are on community association property.

 

 

CAI-CT supports legislation on this issue.

 

The Community Associations Institute – CT (CAI-CT) is the educational and technical assistance entity for community associations and their service providers in Connecticut.  We need you to be aware about how  proposed legislation will affect the more than 3,900 common interest communities in Connecticut, and the hundreds of thousands of people who live in them.

 

Statement

 

CAI-CT supports legislation that would provide authority for animal control officers to impound the dog of a resident of a condominium association.  Many of our associations have experienced the problem of roaming animals, but in some cases, animal control officers have stated that they do not have the authority to go onto private community association property.  In several instances, vicious dogs have terrorized communities because animal control officials have felt they did not have the authority to provide assistance.   Proposed legislation would allow for enhanced public safety in all communities.

 

Purpose of the legislation.

 

The provisions of Chapter 435 of the Connecticut General Statutes were not drafted in a way that fully addresses problems of animals on the common elements of a common interest community.

 

For example, Section 22-364 provides that dog owners may not allow their dogs to roam “upon land of another.” Section 22-232 empowers animal control officers to impound dogs that are roaming in violation of Section 22-364. In 1975, the Connecticut Attorney General issued an opinion in which he concluded that animal control officers have no authority to impound the dog of a resident or unit owner of a condominium that is roaming loose on the common elements, because the unit owner shares an ownership interest in the common elements.

 

While this conclusion is technically correct, the result is contrary to public safety, and illustrates how Chapter 435 does not take into consideration animals in common interest communities.

 

Conclusion

CAI-CT believes that an amendment to Chapter 435 C.G.S. will benefit the safety of all of our communities.  If we can be of any further assistance, please contact our Executive Director, Kim McClain, at 860-633-5692.

 

 

 

 

 

 

 

 

 

The Community Associations Institute – CT provides education and advocacy for the board members, unit owners and service providers of common interest communities.

 

We are greatly concerned about the issue of roaming dogs on association property and animal control officers currently limited authority to deal with such animals.

 

Attached you will find:

 

1 – A brief summary of our position;

 

2 – Language proposed in 2007 changing the statute;

 

3 - Full explanation of the amendments which we support – from 2008.

 

 

Please contact me at 860-633-5692 if you have any questions.

 

Thank you!

 

 

 

Assigning blame in communities

Anyone who has spent time on a board of directors knows that the board or the management company is always to blame for anything that happens.  From a flooding rain to their neighbor with a wild dog if it goes wrong the leaders are thought to be at fault.

As a long time board president I was told that I:

• don’t care
• am selective with enforcement,
• negligent with maintenance
• etc.

I have to chuckle when these things are said because I am among a few people in the community that volunteer their time to the betterment of the community, so obviously I do care. 

What made me think about this post was a conversation I had with my son last night as he was in a heated argument with his mother.  I got the call as from mom as the argument was going on because he had gotten very disrespectful.  She was blaming me, he was blaming her and I was stuck in the middle blaming Verizon for selling me a cell phone.  Just kidding about the cell phone, but after about 30 minutes of calming down my son and explaining why he should not talk that way to the person who carried him for 9 months things seemed to be better all around.

It seems like an odd connection but dealing with misplaced blame everyday is just part of life as a leader.  The real message here should be accept blame when you are responsible, fluff it off as just part of life when God decides to dump 4 inches of rain in 1 hour on frozen ground and someone’s carpet gets wet.

Creating a sense of community

I was chatting with an old neighbor yesterday about working with online (virtual) communities when a light clicked on about creating a sense of community.  If we can create a sense of community in a virtual environment, why can’t we create a sense of community where there is real community which is a condominium community? 

If you lived in a planned community then you will know what I am about to write is 100% the case and that is we are quickly losing the sense of community.  People are going about their day to day lives and ignoring what is happening to their left and right. 

A planned community can have a host of benefits, including security, sharing, personal support, and networking.  Yet in today’s environment we probably can’t answer a single question about our neighbors other than possibly how many people live in the unit and what their gender is.  Chances are these same people are pouring their hearts out to strangers online in a social network.

So the question is can we merge the two environments and bring the sense of community back to our condominiums through our own social network?  I believe it is worth a try.

Are your neighbors creating a vintage car collection?

This is the title of my next article in “Common Interest” magazine.  A couple of recent incidents that happened in my complex helped me share this information with our members.  There is a delicate balance that has to be maintained when you are a member of the board of directors.  A balance between being a good neighbor and protecting everyone’s investment and quality of living.  In our complex parking is a place that really has an effect on everyone’s quality of living.  We have had residents fight harder for their parking spot than increases in monthly fees.  While other residents just thought it would be ok to take up parking spaces with an old vehicle they just could not part with.  Left unchecked the parking lot can quickly fill up with junk yard gems. 

Here are a couple of parking lot problems we face when trying to clear our lot of stored vehicles:

• The delay tactic – They have no intention of using the vehicle but have this need to hang on to the past.  They ask for time to keep the vehicle, delaying the inevitable.  Unfortunately in this instance it is at everyone else’s expense.  This the squirrel crowd, they keep gathering old things just in case.
• The two door shuffle – Once caught with a stored vehicle they keep it on the move for a while thinking you will just give up and go away.  That is until you let them know what the new storage fee is going to cost them every day.
• The Assist – When you get the person who completely ignores you, like the rules don’t apply to them.  They get a little help deciding the best course of action for their vintage vehicle from the local salvage yard.

Check out the February/March issue of Common Interest magazine for the complete story and visit our website at www.caict.org for more information about this publication.

Michael Zimmer is the President of The Meadows of Southington Condominium Association, Inc. Michael has served on the board of directors for this 166 unit complex in Southington for over 15 years and has held the position of President for the last 12 years.  He can be contacted via email at mjzimmer@bigplanet.com.  

Dealing with Live Christmas trees

Christmas is over and your residents need to dispose of their live Christmas trees. My association has 166 residents and about 1/3 of them use live trees each year, which in years past created a huge problem.  

We would find trees in hallways, behind buildings, in the woods and just as bad in the trash dumpsters. Renting a dumpster for old trees is very costly so we looked for an alternative. Our property manager suggested a solution which was to use our landscaper to dispose of the trees. Most larger landscapers have to deal with recycling trees and other landscaping foliage.  

Our current landscaper actually offers a service where they come and pick up all of the trees for a small fee per tree and haul them back to their facility where they use a chipper to recycle them.

When all you have to do is move your vehicle…

After 16 years of condominium living it still amazes me how many people have to be push started just to get them to move their vehicles after a winter storm. 

We are not asking them to do any work other than clear off the car and move it so the plows can come through.  Doesn’t sound like an unreasonable request? 

How many single family home owners would like to only have that one little responsibility after a snow storm?

What is even better is when they do finally move their vehicle at their convenience they leave the space full of snow and take one of the spaces which was cleared because their neighbor was responsible – that really sends the sparks flying…

I would love to hear feedback on this issue

Is social networking having an impact?

Over the last few months I have been doing hands on research to see what affect social networking can have on a candidate running for election.

I approached a friend, who decided to run for office for the first time and offered to manage her website and establish social networking sites.

Some positives for the experiment and negatives for the candidate:

• She was relatively unknown in city, small business women who had a few book keeping accounts and worked part time.
• She had never run for office before.
• She was running against another first timer, but his family was well known in the city.
• She was running as a Republican in what was predicted to be an election which would be dominated by the Democratic Party. The results are now history…

She already had a website so I:

• updated the format and added widgets to make it sticky (provide a reason for people to return)
• Added a poll to involve guests
• We placed recent updates on the main page to alert visitors of changes
• Included pictures of events

I also created a social networking site on Facebook and created a Twitter Account. The sites were updated at least three times a week to keep them fresh and current.

The results were amazing. Although she lost as a result of the state wide democratic sweep her district had one of the closest races for state representative. All three republican candidates lost the election to their democratic competition in her city. Here is how the results played out: District 22: 30 point spread, District 77: 11 point spread, District 79: 49 point spread. Yes you guessed it my candidate was in district 77 and the only candidate with a website and incorporating social networking tools.

My experiment demonstrated that when you add social networking tools to what you are doing there will be an impact on the results. It is easier for people to find, research, and stay connected with you and what you are doing.

What do they value?

How do you know when it is better to loose a couple of minutes and be courteous? Answer at the end of this post...

It simply amazes me the risks that people take in their lives and their assets. How little regard they have for the items of most value and what high regard they have for their items of least value. Here are two stories that support my point.

Story 1 - What were garages designed to hold?

A little over a year ago my condominium complex decided to build garages on the property in an effort to help increase values and utilize more of our property to generate revenue. At the time we received all sorts of feedback both positive and negative. Most of the negative feed back would simply make you want to say HUH?

The most notable comment against the structures was that the rules would include that the bay could not be used for storage. It made absolutely no sense to this person that we would not erect a garage that could be used for storage. After about 30 seconds of holding back my "What in gods name are you thinking comment?" I asked "Where do you plan to park your vehicle?" and he said "Outside in the lot" like it was so matter of fact I must be an idiot. I simply responded "Only in America do we park our $20,000 vehicle outside and fill our garage with junk. We are constructing garages not public storage and the last thing we wish to happen is to loose a number of vehicles because someones junk pile caught fire." I still shake my head when I recall this conversation.

Story 2 - Is it ok for me to live with my trash?

Last night I was called to assist one of our units with an issue they are having. They live in one of our ranch buildings which are flats with 6 living units with a common hallway. The problem is the people own a third floor unit clearly have a different view of how to live share space and they have been stacking trash in the hallway and from the smell outside their door it appears they must be stacking trash inside as well. This has resulted in one unit owner moving out and another not being able to effectively show their unit which is for sale. Again this neighbor has little regard for what has to be one of the largest investments they made or for what effect their unkempt habits will hold when and if they decide to sell this asset.

Educating our residents about the importance of valuing what they own and the importance of valuing what their neighbors own on our properties has to be our greatest battle. For some reason many of our residents do not understand that our complex functions as whole and not as individual complexes on the same piece of dirt.

Background on this post:

It has always amazed me how much risk people take with themselves and their vehicle. They race around to save five minutes, cutting off traffic and running red lights with the most important and expensive tool they own. Without this they probably can't easily get to work to pay their bills and worse the automobile has been shown to be the leading cause of death in this country. I was heading back home this afternoon and as my light turned green I watched as that one last car ran the red light crossing traffic so not to have to wait a couple of minutes for the next light change. The irony is his vehicle already had front end damage where he had appeared to have performed this time saving stunt one too many times before. This picture says it all...

I am guessing they were late.

Michael Zimmer is the President of The Meadows of Southington Condominium Association, Inc. Michael has served on the board of directors for this 166 unit complex in Southington for over 15 years and has held the position of President for the last 12 years. He can be contacted via email at mjzimmer@bigplanet.com.

Going Green without Sacrificing a Thing

Did you know you can go GREEN without changing a thing in your house. Once you have replaced the lights in your home with CFL's these tips will help you further reduce your Carbon Foot Print and help you save a little green at the same time.

Did you know?

• The average household receives 20 bills per month - so a typical family can save almost $100 per year in postage alone by going online to pay bills.
  Statistic, NACHA, The Electronic Payments Association
  
  
• If all U.S. households viewed their statements and paid their bills online it would save 2.3 million tons of wood or 16.5 million trees!
  Source: Javelin Strategy & Research, 2007
  
  
• One large tree can provide a day's worth of oxygen for up to four people.
  Source: Tree Canada Foundation

Green Tip #1 - Get rid of those annoying bills and statements from your mail box.

Many companies now allow you to receive your statement online and via email. This one is a big green savings that doesn't cost you a thing and really helps reduce oil dependency and our environment. Less mail means smaller trucks and lighter loads which translates into lower emissions and less fuel.

Green Tip #2 - Pay your bills online or by phone

Save time, money and gas by paying your bills online or by phone. I use a combination of online bill pay options including MSN Bill Pay (MSN.com), my bank's bill pay, and my vendors online payment process. I am less keen on bank bill pay services and only use them when I am paying a credit card or bank loan from that institution. They tend to grab the money first then pay the bill later - a way to keep from paying you interest. The biggest savings is when you pay direct to the vendor cutting out all fees. I like MSN bill pay because they do not take the money from my account until the day I tell them to deliver the payment, even if the payment is by mail.

A word of caution with online bill pay and pay by phone. Some companies, especially credit card and finance companies, charge hefty fees when you pay by phone or pay online. If the company charges a hefty fee for this service, then use your bill pay service. Most companies that offer this service want to get your payment on time and do not charge a fee.

Green Tip #3 - Archiving your statements

Many companies now allow you to view your statements for a year or more online. But as we know the government forces us to keep them longer. Once you get your statements online it will be important to archive them for future reference. Printing them and storing them defeats the purpose of having your vendor offer them online. I use a service called Carbonite (carbonite.com) to back up all of my pc files including my documents. You can do this for less using backup program like Norton Ghost or copy them to USB Jump Drive, CD/rw or DVD/rw. Your local office supply can help you with backup technology. There are also online services popping up that will accept your documents as well as your photos. Use caution with placing your personal information on a free site for two reasons, first security and second these companies seem to fold quickly when the law knocks on their door and they are more than happy to hand over your personal information which is stored on their servers without asking.

Just a note from the geek in me. If you are not backing up your computer you are leaving yourself wide open to loss, regardless how you pay your bills. Everyone is concerned about losing photos and other important documents by way of fire and other natural disaster and they do not realize they are more vulnerable to loss because a little mechanical storage device failed without notice or warning.

Don't worry you won't put your friendly mail carrier out of a job. Everything can not be processed this way and there is always that non-green junk mail. What you will do is lighten the load which will take less fuel to deliver and more important save a few trees which will help our planet process the emissions that are produced.

Michael Zimmer is the President of The Meadows of Southington Condominium Association, Inc. Michael has served on the board of directors for this 166 unit complex in Southington for over 15 years and has held the position of President for the last 12 years. He can be contacted via email at mjzimmer@bigplanet.com.

Looking for a solution to a financing nightmare?

Have you really tried to work with your lender to correct that sub-prime loan? Most people do not. I am not talking about speaking with the robo-collector who has just one annoying purpose in life - be nasty to get you to pay up. It is not in their best interests to help you out of your current situation since they generally collect a commission every time you cough up a little cash to make them go away.

I am talking about speaking with an officer within the institution itself to work out a solution to the problem before your property goes into foreclosure. Once the property goes into foreclosure, you are still in a position to refinance but generally the lender will be looking to tack on all of the fees associated with the legal action.

Before we get into details I am not offering legal advice, I am simply sharing a possible solution which is being used successfully right now by savvy investors and the State of Connecticut to save a home from strict foreclosure.

You may be in the drivers seat...

The lender already put out the money on your property, the loan is already in place the lender is looking to recover that money plus a fee. Wise investors are walking into the middle of these deals and assuming your note by doing little more than paying closing costs and assuming your payments, turning your bad loan into a good one.

Lenders are failing every week because a large percentage of their loans are going bad. With foreclosures reportedly up over 120% this year it is no surprise that the lenders are in hot water. It has reached the point that some lenders are unable to attend all of their foreclosure hearings and homeowners are unsure of what they should do.

This could be your one chance to turn their misfortune into your opportunity to save your home. Generally when a property becomes delinquent 60 days or more it is considered in default and turns into more red ink on the lenders books.

In an up economy lenders love these transactions because they are few but very lucrative to the institution as they translates into additional income by way of extra fees and interest and when the economy is rolling the lender can quickly flip the property, recover their money, and keep the profits. In a down economy like we are in now the lender has a harder time recovering the fees and chances are they will be stuck with that property leaving them holding the debt. This means red ink and lenders do not want to show losses.

Ways you can turn this around?

If you are being forced into foreclosure because your mortgage was based on an introductory rate, which jumped up after a period and you are now unable to make your payments you can use your previous payment record to show good faith with your lender. Obviously you have a history with the lender that shows you have the ability to pay your mortgage. If you have a lawyer, it is probably better to let them do this work for you. It is faster and easier for them to contact the right people and make your offer.

Your offer is that the lender refinance you at the original rate or an agreeable rate based on your credit and ability to pay, and add the arrearage to the new mortgage. Again the lender will probably want to add on any legal and late fees to the of the repayment amount. Your lawyer can work this out.

I am not suggesting that this is a license to steal or that your lender will be open to listening, but many have figured out that it is better to work with their borrower then get stuck with the bad debt. If you had a good relationship with the lender and then were unable to continue because the financing jumped to a level outside of your ability to pay it makes sense to give this a try. Keep trying until they take your keys away. Often your loan officer is not aware the current financial situation of the institution until they are in dire straits and need to take immediate action to save their jobs.

I always suggest obtaining legal assistance when attempting this type of transaction to ensure you are not making things worse then they already are. Many of the people in this situation today opted to use the lenders attorney to save on fees and closing costs and later found out that while the transaction may have been legal they were not really clear on of the possible future consequences of their actions. It is always best to have personal legal representation when you are entering into any type of contract.

Michael Zimmer is the President of The Meadows of Southington Condominium Association, Inc. Michael has served on the board of directors for this 166 unit complex in Southington for over 15 years and has held the position of President for the last 12 years. He can be contacted via email at mjzimmer@bigplanet.com.

Choosing A Contractor

Planning a capital improvement project is a task that requires time and knowledge. Plan your project right from the beginning. Research your project in great detail. For example, if you are going to re-side your home, check out the various siding products on the web, request samples of the products, check to see if they have a listing of local contractors that are certified to use their product. Know what you are buying before you are buying the product. It is better to be informed then uninformed.

Before hiring a contractor, it is extremely important to compare the contractors that have provided your quotes for your capital improvement project. You should solicit two or three quotes and make sure that they are apples to apples and not apples to oranges. You don’t want to have any hidden costs during the process if you can avoid it. Once you have done your research on the product and have several quotes, then do your homework on the contractors. Here is a checklist of items that you should ask for or research:

• Ask for detailed information on the contractor; i.e. name, address, phone number, how long in business, workmanship warranty, copy of license number, copy of certificate of insurance including worker’s compensation.
• After obtaining their license number, check with the state to make sure the license number is valid and that it hasn’t lapsed.
• After obtaining the contractor’s insurance information, contact the agency to research any claims that the company may have against them.
• Ask for local references to contact and possibly drive by and look at the property to review their work.
• Ask the contractor is they belong to any type of professional association or is credentialed then research the information
• Contact the Better Business Bureau to learn how long a contractor has been in business and if they have any negativity.

Once you have chosen a contractor, here are some items that should be included in the contract with the contractor:

• Parties of the Contract
• Name, Address, Telephone Number
• Scope of Work
• A contract must spell out specifically what work is to be done by the contract.
• The method for debris and material removal once the job is finished
• Compensation
• A contract should state the total agreed upon amount, when payment(s) will be made, in what manner payment(s) will be made, on what terms payment(s) will be made
• Time Period, start and completion date
• Right-to-rescind or cancel the contract
• Warranty, A warranty should state what is covered, for how long and what the contractor will do if the work or product proves defective
• Restoration
• Indemnification
• Insurance
• Copies should be provided prior to any work is to begin
• Licenses and Permits
• Copies should be provided prior to any work is to begin
• Termination
• Default
  

Never pay a contractor for the entire job in advance and avoid paying in cash whenever possible. You should make every attempt to pay a minimal or no down-payment for services and supplies and don’t make payments for incomplete work. All the payment terms should be spelled out in the contract for you and understood by both parties. Never make a final payment or sign off on the work until you are satisfied with the work that was performed.

If you do your research, know what to expect and then communicate that to the contractor and be willing to pay a fair and reasonable price, you should get years of trouble-free performance out the product you chose and knowing that you made the right decision.

Interested in becoming more involved?

Community Association Institutes - CT chapter is currently looking for individuals who are interested in helping our organization develop and grow. If you have a few hours each month and you are interested in getting more involved with the organization please contact Kim McClain via email at caictkmcclain@sbcglobal.net or by phone at 860-633-5692.

We have a range of committees that can use your help. Help us help communities across the state.

It is good to be King!

Have you run into the situation where a unit feels that the rules were put in place for everyone except them? A recent complaint about one unit, who is less than cooperative with their neighbors, reminded me of this story which also applied to them.

Several years back a unit owner started complaining about neighbors claiming that a few had 3 or more vehicles and they could not park in a reasonable distance to their unit. At the time we did not have a very clear parking policy other than our not allowing stored vehicles. This unit continued to complain and even organized other neighbors to the point that we were receiving regular complaints about units with 3, 4 and 5 cars.

The board did extensive work on the project, marking resident and visitor parking, establishing rules limiting parking to two vehicles as they requested and designated visitor parking for the remaining open spaces which were less convenient to units. We went as far as to issue parking tags so we could easily identify residents from non-residents.

Figuring that we had finally resolved this issue in the complex I approached the unit owner and let him know that the board had just passed the new rules and everyone would be limited to only two vehicles and the remainder would have to move to remote areas and use visitor parking or park on the street.

His response was “How is that going to help me?” I said “Sir we established rules and guidelines so when your neighbors with 3 or more cars park in front of your building we will be able to fine them or tow them to open up parking. Isn’t that what you wanted?”

He replied “That is not going to help me, I have 3 vehicles.”

True story...

Community Communication Corner

By The Numbers - The Rise of the “Over 55” Communities

Every year, I am impressed with the number of “newbies” (first-timers) that enter the world of community living by purchasing their first condominium or property that is part of a homeowners association. More impressive still, is the increasing number of folks over the age of 55 who are joining communities that cater specifically to their needs and desires. Megatrends are at work here and we seeing them trickle down to our own backyards here in CT.

More than 75% of the wealth in this country is controlled by a group of adults we call “Over 55.” The group of consumers that are 65-plus have twice as much per capita income as the average baby boomer. Is it any wonder that there are more “Active Adult” communities springing up around Connecticut than ever before? If you were a real estate developer looking for a fast-growing market segment with the means to purchase your product, you would be well-advised to invest your resources in creating communities that will attract this group of buyers whose numbers are going to continue to increase for the foreseeable future and beyond.

As a country, we have experienced a huge increase in life expectancy since the turn of the 20th century. We have added 30 years to the average life span, taking it from 46 to 76 years. Every 6 seconds, someone in this country turns 50 and one step closer to joining the “active adult” community. 55 million people in the U.S. are already members of the “Over 55” demographic. That number will double by the year 2030. These figures come to us courtesy of the Center for Mature Consumer Studies. I encourage you to visit their website at http://robinson.gsu.edu/marketing/Centers/cmcs_index.htm to learn more.

The success of these communities and the seemingly endless supply of new “Over 55” residents indicate that we will see far more of them in the years ahead. While the concept of “active adult” communities is nothing new, the diversity of amenities offered widely varies. The one thing they have in common is to restrict their communities inhabited by those who share similar and age-appropriate lifestyles. These communities are likely to thrive in the upcoming years as the numbers suggest that, as a whole, this is a financially secure group with the ways and means to live where and how they see fit. That means that as a community, they should have no problem creating healthy reserve funds to keep their common assets in top shape. Sounds like a great place to live!

I am, on occasion, asked about special communication requirements for “Over 55” communities. While that usually evokes a giggle of some little old man using a magnifying glass to read the community newsletter, the reality is that today’s “active adult” is no different than any other community member. They have just reached a certain age milestone. “55” is the new “35” and so is “65” and beyond in many cases! Community newsletters, websites, etc. are just as important in an “Over 55” community as they are in any other community. In some cases, the communications are more important as the audience is educated and takes the time to read the news of the community and to take action when needed.

Our “Over 55” population isn’t showing any sign of slowing down here in CT. I have had the pleasure of meeting and working with many residents of “active adult” communities and they have shown me that they have interests as varied as golf and tennis to scuba diving and parasailing. Some may be retired but very few that I have met plan on slowing down any time soon. I am excited to see new and viable “Over 55” community associations being born in our state. I look forward to welcoming many of these associations to CAI in the very near future.

Article from our upcoming Common Interest Magazine. To subscribe visit: http://www.caict.org/ci_subscriber.htm

Bob Gourley is one of the founders of MyEZCondo, a communications firm that specializes in newsletter production and other communication solutions for condominium associations. He also serves as Board President of Captain's Walk in West Haven, CT. MyEZCondo is a member of CAI-CT. Bob serves on the Publication Committee, Chairs the Membership and Website Commitees and was recently elected as President-elect of the Board of Directors for CAI-CT.

Is Your Association in Compliance with Changes in Fannie Mae Underwriting Criteria?

Changes in Fannie Mae’s underwriting standards for mortgages may very well create a violent storm for community associations. Lenders are now required to more carefully scrutinize condominiums and their management companies, which will ultimately mean more mortgage application denials.

Condominiums are considered to be very high risk in the current housing market since there has been a significant increase in condo owners that default and go into foreclosure. In many cases this has been caused by escalating property insurance premiums and/or major repairs due to long-term deferred maintenance which forced associations to impose special assessments.
Over the course of the past six months, Fannie Mae has gradually implemented requirements such as:

• No more than 15 percent of its association fee payments more may be more than one month delinquent,
• At least 10 percent of the association's total budget must be in reserves for capital expenditures and deferred maintenance,
• Lowering the loan-to-value ratio to no more than 90 percent for a condo resident,
• Associations must be majority owner-occupied or second-home purchasers and at least 51 percent owner-occupied if the mortgage is for an investor,
• At least 5% of the condo’s value must be derived from the borrowers’ own funds,
• Appropriate legal documentation,
• The adequacy of the association’s annual budget, and
• The adequacy of property insurance.

Although most of the major changes have been in place since February, they are just now beginning to affect the condominium market.
“Associations will be under additional scrutiny in terms of their overall budgets, reserves and delinquencies by unit owners. Throughout the Community Association Industry, we are now seeing increased client awareness of these changes at board meetings and daily telephone calls,” said Jordan Arovas at Webster Bank.

According to a Fannie Mae official, ‘requirements for condo projects are intended to ensure that the project is managed appropriately, and has adequate reserves and appropriate governing documents that will result in stability and sustainability for the entire project and its homeowners. ‘

Can you protect your association when developers fail?

We are already hearing stories about developers walking away from projects before all of the units are completed or sold. This is an association’s worst fear, but history shows that associations can emerge from these situations and remain solvent.

I run an association that was in that same situation in the early 90’s. The developer had a history of successful developments, but then the economy soured and banks were no longer lending money, the developer had no choice but had over the keys to this 166 unit complex with only a hand full of units sold.

Here are a few of the issues we experienced:
• A bank stepped in and attempted to run our association
• Units were rented by the new owner (the bank) to cover the costs of the monthly fees which were now their responsibility.
• The bank took over the efforts of selling and financing units – the same units they told the previous investor they could not finance.
• They were eventually forced to sell the complex for pennies on the dollar to an international investor because they could no longer hold the debt.

Each of these issues created their own problems for our unit owners. I am working on a detailed version of this document for our next Common Interest magazine. If you are interested in this topic or concerned about this possibility pick up the next issue of our magazine.

The good news is you can remain solvent and emerge from this type of nightmare as a healthy association. Hopefully we can provide you with a few ways that you can head off the problems we experienced and continue to experience as a result of investors that were more interested in profits than they were in the health of our complex.

Look for the complete article in our September Issue of Common Interest - Reserve Specialists/Finance/Banking.

Michael Zimmer is the President of The Meadows of Southington Condominium Association, Inc. Michael has served on the board of directors for this 166 unit complex in Southington for over 15 years and has held the position of President for the last 12 years. He can be contacted via email at mjzimmer@bigplanet.com. You can also read his postings on our association blog: caict.blogspot.com

A few energy saving tips.

Here are some energy saving tips to help reduce your electric bill this summer that we found on the internet:

Turn your thermostat up. During warm weather, set your thermostat as high as possible, given health and comfort considerations and drink plenty of fluids. Turn thermostats to78 degrees when at home; 85 degrees when away. Use fans to circulate cool air.

Close your drapes or shades. Windows are one of the largest sources of heat gain in your home. Although not as effective as exterior shading, keeping your drapes and shades closed during the day helps keep unwanted heat out of your home.

Ventilate when it's cool outside. Most areas of Connecticut have cooler nights even after the hottest days. Cut your cooling costs by opening windows when it's cooler outside than inside. In the morning, close up the house to trap the coolness inside.

Use ceiling fans wisely. Ceiling fans create enough air movement in a room to make it feel cooler by four degrees or more. They use only about as much energy as a 100-watt light bulb. Since you will feel cooler, make sure that you turn up your thermostat to 80 degrees or higher to save on your energy costs.

Eliminate wasted energy. Turn off lights in unoccupied rooms. Unplug or recycle that spare refrigerator in the garage if you don’t truly need it—this seemingly convenient way to keep extra drinks cold adds 10-25% to your electric bill. Remove the refrigerator door for safety reasons and to prevent mold.

Use appliances efficiently. Do only full loads when using your dishwasher and clothes washer. Run your appliances during off peak hours or after the sun goes down. Be sure to clean your clothes dryer's lint trap after each use. Use the moisture-sensing automatic drying setting on your dryer if you have one. When replacing these appliances, buy Energy Star products. They save up to 30 percent over standard models.

Plug “leaking energy” in electronics. Many new TVs, VCRs, chargers, computer peripherals and other electronics use electricity even when they are switched “off.” Although these “standby losses” are only a few watts each, they add up to over 50 watts in a typical home that is consumed all the time.

If possible, unplug electronic devices and chargers that have a block-shaped transformer on the plug when they are not in use. For computer scanners, printers and other devices that are plugged into a power strip, simply switch off the power strip after shutting down you computer.

Are some venders cashing in on the fuel crisis?

Recently I received a notice of increase from one of my vendors stating that they were increasing their fuel charge from $2.00 per delivery to an adjustable charge based on the average price of a gallon of diesel. My first thought was ok, oil has gone up considerably. My next thought was are they only delivering to me within a 10 mile radius? At the previous $2.00 per delivery this is about ½ of what it costs for a gallon of diesel. Even if they only have 3 of us in the same 10 mile radius we paid for that gallon of fuel used for the delivery plus some profit.

I called the company to cancel my service, to protest their cashing in on the fuel crisis, and they immediately changed there policy to offset for this obvious inequity. I imagine I was not alone in complaining and at the same time they probably had many other customers that just accepted that new charge without question.

The moral of the story is question extra charges added to your bill as this is a way to up sell and still appear to be competitive. Adding special coverage, delivery and handling, fuel adjustments, and other charges are a way to add in extra profit after the sale.

Vendors and professionals - Are you just another face in the crowd?

When you have a management company between you and your clients it is easy to let them make all of the contacts. This may be easier but is it the best course of action?

When money is tight, people start shopping for a better price,. When your competition is knocking on doors do you want to be just another face in the crowd?

If you have not made contact with the people who are actually paying your bills, it is difficult at best for your clients to separate you from the next guy who is probably looking to cut your price and cut you out...

Turn this around and let your clients know who you are, what you do, and how your service is better than your competition.

Here are a few ways to connect with your clients:

• Offer to attend a board meeting once or twice a year.
  
• Send out newsletters to the board of directors even if it is once a quarter.
• Host special events like meet and greets in your office or common location.
  

These days everyone is talking about "branding". You most certainly want to be someone that your associations connect with to help curb "best offer" transitions.