Part 1 – Articles of Incorporation – Understanding Governing Documents for HOAs
Living in a homeowners association, you’ve likely heard people use terms such as “Bylaws,” “Rules” or “CC&Rs.” What do they mean? An Association is actually a registered non-profit corporation in the state of Minnesota – and to be so, they have an important set of legal governing documents. Much like our country has a Declaration of Independence, Constitution, Bill of Rights, etc to function as a nation, an association has a similar document framework to act as a common interest community. The purpose of this article is to give you, as a member of a homeowner association, a basic understanding of this set of documents. Although all HOAs are slightly different, their governing documents will typically all contain the following: * Articles of Incorporation * Declaration of Covenants, Conditions and Restrictions *CC&Rs) * Bylaws * Rules and Regulations Articles of Incorporation A homeowner’s association is a non-profit organization and must file paperwork with the Secretary of State’s Office before a developer sells any property within the HOA. Everyone who purchases property in the HOA becomes a member of the Association. The Articles of Incorporation are typically brief and contain basic information such as an Association’s name, location, and purpose. Each governing document serves a specific purpose, yet they all interact with one another to create and maintain a community homeowner association. By purchasing in an association, you created a legally binding contract between yourself and the association. That “contract” is the important documents listed above. Hopefully this breakdown is helpful. You can access these documents on your association’s website through www.sharpermanagement.com
Natalie Martynow Joins the Sharper Management Team
Eden Prairie, MN, (April 4, 2018) – Sharper Management is pleased to welcome Natalie Martynow to its team as our newest Community Manager. Martynow brings many years of experience in property management to her new position with Sharper. She began her career as an Assistant Property Manager in the apartment field where she lived onsite in a 120-unit complex. This position gave her a first-hand look at the needs of residents and how important the role of the property manager is to a complex. She later purchased an investment property in a 402-unit condominium association. To better understand how Association’s work, she began attending Board meetings regularly. She ultimately ran for a position on the Board and later became the President. Martynow enjoys working with people. “I am thrilled to meet and help the people in our associations.” “Natalie brings a depth of experience and knowledge that will ease her integration into managing some of our larger and more complex community associations. We are excited to welcome her to our team of managers and look forward to a great partnership as she enhances how we take care of our clients,” states Matt Froehlich, owner. Founded in 2010, Sharper Management is a locally-owned, mid-sized property management company offering a full suite of premiere services to homeowner’s associations of all sizes. Sharper Management currently provides services to the Minneapolis-St. Paul seven-county area. For more information on Sharper Management services and employment opportunities, call 952-224-4777 or email to info@sharpermanagement.com.
Construction Chat: The Spring Freeze Thaw Cycle
Soon the spring freeze/thaw cycle in Minnesota will mean things are on the move. Things you don’t want to move! Concrete heaves, asphalt buckles, retaining walls shift and bricks crack. The expansion/contraction process caused by ice/snow melting during the day, and then re-freezing at night, can put a tremendous amount of pressure on surfaces and structures. There are a number of factors that contribute to the freeze/thaw cycle. Many are uncontrollable. Temperatures and melting are out of our hands. Soil conditions play a part; however, it is hard to change the natural soil content of the development. Grading/soil prep at construction are a factor; but again, it’s hard to do anything after the fact. What you can review and correct, however, is drainage patterns that bring the water to these areas and surfaces. This is the ideal time of the year to assess some common contributing scenarios: Do rooflines drop water directly onto front stoops and sidewalks? Do downspouts push water into retaining walls or landscape beds? Do downspout extensions go out far enough from the building? Are there grading issues allowing water to pool on patios or sidewalks? Is curbing along the streets level, allowing water to flow to catch basins? Are there significant cracks and holes in asphalt allowing water to pool inside? You are never going to solve all drainage problems. Nor can you eliminate the freeze/thaw cycle. But being proactive by reviewing drainage, and sometimes getting a little creative to redirect it, can save money on asphalt, concrete and other construction repairs. Now is the time to spring into action!
Board Tips – Open Meetings
What constitutes a Board “meeting” and Board “business” can become a very slippery slope. So much so that in 1994 when the Minnesota state legislature passed the Minnesota Common Interest Ownership Act (“MCIOA” or 515B), they sought to define and solidify requirements for how associations should operate with regards to Board meetings. Note that MCIOA applies to ALL condominium associations, regardless of when incorporated – and planned communities (example “townhomes”) incorporated after June 1, 1994. While it might feel natural to meet informally as a Board, even if decisions are not being made, under MCIOA this is recognized as a Board meeting and therefore the Board must comply with Notice and Open Meeting requirements. Notice – “To the extent practicable, the board shall give reasonable notice to the unit owners of the date, time and place of a board meeting.” Unless Bylaws or Declarations state otherwise in more specify, this “notice” requirement is fairly vague. Mailing and/or emailing notice to all members, as required for an Annual or Special Meeting, is not implied. The announcement of the next meeting date and/or inclusion in the Minutes from the previous meeting is satisfactory “notice.” Posting on bulletin boards, email notifications, newsletters, etc are also example practices, but not necessary. Open Meetings – “Meetings of the board of directors must be open to the unit owners.” It really doesn’t get any clearer. Boards need to take heed in their practices of meetings. Informal meetings, “work shops,” “executive sessions,” whatever they may be called – if there is a quorum of Board members and they are discussing association business, it is a meeting. If it’s a meeting, Notice and Open Meeting requirements apply, and minutes should be kept. Closed Meetings – there are only three categories of business that qualify a Board for closing a meeting to owners. 1.) if the association has employees and there are personnel matters; 2.) pending or potential litigation or arbitration issues; and 3.) criminal activity arising within the community and privacy of a victim would jeopardize an investigation. The entire section of meeting requirements can be found at https://www.revisor.mn.gov/statutes/?id=515B.3-103 And once again, these Board meeting requirements only apply to associations that fall under MCIOA. Nevertheless, they are state statutes for good reason and would be good practice for all associations to follow.
The Villas on Lost Lake Joins the Sharper Management Family
Eden Prairie, MN – (February 26, 2018) – Sharper Management is pleased to welcome the Villas of Lost Lake Association, in Mound, to the Sharper Management family. Located just off Lake Minnetonka, this 27-unit Association is centered by three-story townhome buildings with a pool and the shoreline perimeter flanked by custom built two-level townhome style buildings overlooking the bay. The Association also utilizes a dock with direct access to the property and water. “The Villas on Lost Lake is a wonderful Association with equally beautiful homes,” states Dan Cunningham, Owner and President of Sharper Management. “The Board of Directors has done a wonderful job of self-managing in the past. As the Villas of Lost Lake continues to evolve and develop, Sharper Management is honored to be providing management services for them. We hope to further enhance the community’s governance and operation with our management services.” Founded in 2010 and known for their reliable and committed approach to services for condominium and townhome associations in Minnesota, Sharper Management specializes in providing exceptional property management solutions. Offering a full-suite of premier services to the Minneapolis-St. Paul seven-county area, Sharper Management continues to expand their service area and looks forward to building more relationships throughout the Twin Cities.
Timberwood Village Condominium Association Joins the Sharper Family
Matt Froehlich Sharper Management 10340 Viking Dr, Ste 105 Eden Prairie, MN 55344 For Immediate Release Timberwood Village Condominium Association Joins the Sharper Family Eden Prairie, MN, (January 26, 2018) – Effective January 1st, Sharper Management is pleased to have taken over full management services for the Timberwood Village Condominium Association, Inc. in Eagan, MN. Incorporated in 1996 and constructed over an 8-year period, Timberwood is a unique and beautifully built Association with 63 one-level homes spread over a large area with a number of retaining walls, evergreens, and other wonderful landscaping features. It is a 55+ community with private roads and a Club House feature. “Timberwood Village is a great development and community,” said Matt Froehlich, Owner, and Chief Operating Officer. “The Board has a challenge on their hands in navigating a large and complex insurance claim. We are thankful for the trust they’ve instilled in us to help them not only with that project, but to facilitate and handle all of the day-to-day management needs that go into keeping Timberwood a desirable community. We are confident they will be proud to have engaged with us for management services.” Founded in 2010, Sharper Management is a locally-owned, mid-sized property management company offering a full suite of premier services to homeowner and commercial associations of all sizes. Sharper Management currently provides services to the Minneapolis-St. Paul seven-county area and Phoenix, Arizona. For more information on Sharper Management services and employment opportunities, call 952-224-4777 or send an email to info@sharpermanagement.com.
Sharper Management HOA Wins CAI MN Association of the Year
Sharper Management is pleased to announce one of their managed HOAs, the Territory Homeowners Association, has won CAI MN’s Association of the Year Award. Honored on September 14 at the annual Vision Awards, Territory is under the supervision of Sharper’s Community Manger Jeremy Larson. The Association of the Year Award recognizes the outstanding team effort of an association board of directors and homeowners whose members clearly understand their roles and fiduciary responsibilities putting the association’s interest ahead of and above all personal agendas. A board comprised of effective volunteer leaders who are fair, responsible and reasonable in their decisions. A lovely single-family home development, Territory HOA is still in development but recently transitioned from Declarant to Homeowner Control. It is because of the smooth process and expert planning during this transition that this Association was so deserving of Homeowner Association of the Year. A key factor contributing to the success of Territory HOA is the diverse expertise their Board members bring to the table. Their skills were put to the test when tasked with developing a detailed Architectural Review process. This is a very important process for all HOAs, but particularly important for this one since parts of the community are still in development. A reliable and efficient approval process is essential in maintaining the continuity of the community. Another strength of this Board of Directors is their fiduciary diligence. Territory has expansive common areas throughout the development that include a variety of amenities. This Association has found a perfect balance of revenue and managing expenses. Their healthy cash flow is in part due to their diligence in staying on top of Collections. Maintaining the value of their property through a healthy cash flow, maintenance of common areas, and oversight of the community architecture keeps the continuity and the value of the property high. This Board accomplished all of this in a short timeframe and it is working wonderfully. “All of us at Sharper Management are happy to see the Territory Association honored in this way. It is truly a testament to innovative thinking, dedication, and great leadership. Congratulations to Territory and to our manager Jeremy Larson for a job very well done,” states Sharper Management’s Associate Director of Community Management, Josh Reams. About CAI-MN Founded in 1973 as a multidisciplinary, nonprofit alliance serving all stakeholders in community associations, CAI is the only national organization dedicated to fostering vibrant, responsive, competent community associations. CAI is regarded as the national expert in educational programs and publications about community association governance, operations, and management. CAI’s members look to us for information about new products, educational opportunities, technologies, and better ways to run their communities. Founded in 2010, Sharper Management is a locally-owned, mid-sized property management company offering a full suite of premiere services to homeowner’s associations of all sizes. Sharper Management currently provides services to the Minneapolis-St. Paul, MN seven-county metro area. For more information on Sharper Management services and employment opportunities, call 952-224-4777 or send an email to info@sharpermanagement.com.
Chris Gosse Honored at CAI Vision Awards – Financial Impact
Members of the Minnesota Chapter of the Community Associations Institute recently honored Chris Gosse for his work in the field of community management. Gosse received the Financial Impact Award at CAI-MN’s annual Vision Awards ceremony held Thursday, September 14 in Minneapolis, MN. The Financial Impact Award is given to a manager who has positively impacted a community in a significant manner from a financial standpoint in areas such as; budget management, capital improvement management, warranty, and insurance claim management. Among the many accomplishments of Gosse in the past year, his guidance in helping three of his Associations realize the benefits and subsequent implementation of Reserve Studies was significant. Prior to Gosse, the properties did not have a Reserve Study and all three had a history of special assessing members if a need arose. Gosse convinced the Boards of the importance (and statutory requirement) to having a Reserve Study. Through his leadership, each Association did a complete paradigm shift to their capital funding philosophy. From start to finish Gosse was engaged with the Boards and their chosen firms to complete the studies. He also worked with the Boards to incorporate the funding plan in their operating budget and cash flow.Gosse’s other accomplishments in the past year include: • Improving cash flow by helping a board identify ways to save. The end result was roughly a 20% saving. • Implementing a Special Assessment in an Association that had previously not done this. Through Gosse’s expert guidance, the Board had a 100% collection rate and the project that necessitated the Special Assessment was completed successfully. • Helping an aging condo association acquire a loan for $650,000 to complete major repairs that we in immediate need. This is the second year in a row Gosse has been honored by CAI-MN. In September 2016, he was awarded the Rookie of the Year honor for his outstanding work as a new Community Manager. “Chris has really hit the ground running since first becoming a Community Manager at Sharper. His willingness to “get the job done” and find creative solutions to problems makes him a great asset to our organization and the communities he serves. He is well deserving of this honor,” states Matt Froehlich, Partner and Chief Operating Officer. About CAI-MN Founded in 1973 as a multidisciplinary, nonprofit alliance serving all stakeholders in community associations, CAI is the only national organization dedicated to fostering vibrant, responsive, competent community associations. CAI is regarded as the national expert in educational programs and publications about community association governance, operations, and management. CAI’s members look to us for information about new products, educational opportunities, technologies, and better ways to run their communities. Founded in 2010, Sharper Management is a locally-owned, mid-sized property management company offering a full suite of premiere services to homeowner’s associations of all sizes. Sharper Management currently provides services to the Minneapolis-St. Paul, MN seven-county metro area. For more information on Sharper Management services and employment opportunities, call 952-224-4777 or send an email to info@sharpermanagement.com.
Nicole Larson Joins Sharper Management as an Assistant Community Manager
Eden Prairie, MN, (September 21, 2017) – Sharper Management is pleased to announce Nicole Larson has joined the Sharper Management team as an Assistant Community Manager. Larson brings with her an excellent background in residential property management as a Leasing Consultant and an Assistant Community Manger. Her creative spirit, and ability to easily interact with clients are great assets in her new position at Sharper Management. Larson’s professional approach and work ethic exemplify her excitement to learn more about the HOA side of property management and delivering “red-carpet” customer service to Sharper Management’s clients. “Nicole has the right skill set and personality for this position,” states Matt Froehlich Partner and Operating Officer. “We are happy to have her on staff and helping our customers with their property management needs.” Founded in 2010, Sharper Management is a locally-owned, mid-sized property management company offering a full suite of premiere services to homeowner’s associations of all sizes. Sharper Management currently provides services to the Minneapolis-St. Paul, MN seven-county metro area. For more information on Sharper Management services and employment opportunities, call 952-224-4777 or send an email to info@sharpermanagement.com. END
Storm Damage and Your HOA – Choosing a Restoration Company
Summer storms in Minnesota are shaping up to be a regular occurrence in 2017. The June storm that caused significant damage in the northern metro prompted us to review a few things you may want to know about storm damage and living in an HOA. First off, all HOAs have their own set of governing documents that dictate protocol for things such as external maintenance and restoration. Generally, your HOA’s insurance protects the exterior of your home (studs out) while your homeowner’s policy will cover the interior (studs in). This may differ in townhome associations that are free-standing (those with no shared walls or roof lines). With that being said, in the event of a major storm that creates exterior damage to your HOA such as hail damage, loss of roofing, trees falling on your home etc., the Association’s policy covers your exterior. What may be confusing is coverage for damage on the inside of your home as the result of storm damage. An example of this is water damage caused by a hole left in the roof after a storm. Your insurance (you) are responsible for the water damage inside your unit. Restoration companies that specialize in 24-hour response are critical in mitigating further damage from a storm event. When we look for storm damage companies, this is one of the first things we ask of the restoration company. What mitigation and temporary things do you put in place to minimize further damage. Keep in mind an emergency response to the situation is not the final restoration. Do not expect a team to completely replace your Association’s roof the next day. The emergency response will secure the property against the elements. It will stop the rain, wind, and heat/cold from entering your home. Sharper Management also looks for companies with good reputations. Online testimonials, membership in local and national organizations, and being a member of the BBB are all pieces we consider when bringing companies to the table for your Board to review. The company offering the bottom line price may not be the best choice for your restoration project. When a restoration project is to start, Sharper Management works with your Board to notify residents of the project schedule. Sometimes it is necessary for work to begin in the early morning to ensure timely completion. This becomes a significant consideration when many properties in an area have been damaged. A little inconvenience, such as a 7am start, is worth it in the long run to restore your home as quickly as possible.