There are plenty of reasons why spring is an impressive time of year in the City of Trees! At Franz Witte, we anticipate spring as the ideal time to assist your grass and other outdoor features on their way out of hibernation and get them ready to thrive once again. A crucial part of this process involves assessing for and treating any damage to the landscape over winter. Here are important tips to ensure success with your outdoor tasks this early spring:

Task 1: Rake It Up!
Once the ground thaws, it is a good idea to do a thorough raking/dethatching of the turf. This will prove to be a benefit in several ways:

• Reducing Thatch Buildup: Thatch is that layer of dead grass and organic materials that settles between grass blades and the ground. A thin layer is healthy. A thick layer makes for a breeding ground for pests and diseases.
• Fungus & Pest Control: This process removes twigs and leaves that contain undesirable fungi and pests.
• Opening Up for Healthy Soil: It loosens matted material to allow for oxygen, nutrients and for sunlight to reach the soil and the full plant.
• Reveals Problem Areas: It exposes bare patches where turf has died, so you know where to overseed.

Damage to your home caused by water leaks can be one of the more devastating things one experiences. When a pipe breaks or another event occurs that causes water to be released where it doesn’t belong, it is essential to know how to respond.

The 6 Keys to Responding to Emergency Water Leaks

• Know where the central water shut off is to the home – Every residence has a “main” water valve that controls the supply of water to the house. Knowing where it is found and how to operate it (shut it off) makes a crucial difference in the amount of damage caused by a broken pipe and the subsequent ongoing release of water. Each resident should locate this valve and know how it operates. If a specific tool is needed to open or close the valve, that device should be permanently located adjacent to the valve itself. Keep the pathway to the valve clear so you can quickly respond in an emergency.
  
  
• Call a Trusted Mitigation Company, your Community Manager if you are part of a condominium or townhome association, and your insurance company agent and adjuster. As the owner, you can decide which mitigation company to use. You can also get referrals from your association manager, agent or adjuster. Time is of the essence. Many people do not realize that after 24 hours mold can start to grow – and once mold forms the reconstruction process becomes further complicated. That is why it is important to get mitigation started immediately.

Vendor contracts are essential in managing and operating homeowner associations (HOAs). They help ensure smooth operations for services like landscaping, snow removal, maintenance, insurance, accounting, legal services, and other necessary operations. However, poorly drafted contracts (or no written contract at all) can lead to costly disputes and inefficiencies. Here’s a guide to forming, managing, and enforcing vendor contracts effectively.
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What Is a Contract?
At its core, a contract is an agreement or a "meeting of the minds" between two parties. It consists of three key elements:

• Offer – A proposal to provide goods or services.
• Acceptance – Agreement to the terms of the offer.
• Consideration – The value exchanged by both parties.

​Does a Contract Have to Be in Writing?
While verbal agreements are enforceable in some cases, certain contracts must be in writing under Idaho law. However, it is always recommended to reduce agreements to writing.

An association should conduct a reserve study and fund in order to plan for future capital expenditures, ensure the board is fulfilling their fiduciary duty and avoid surprise capital expenses or the loss of an asset, amenity or lifestyle.

Competent common area capital analysis and reserve funding decisions are key elements to a successful community association in today's housing market.

A reserve study is a budget-planning tool that identifies the current status of a reserve fund and sets forth a stable and equitable funding plan to offset the future expense of replacing major capital components within the association.

A board has the responsibility to preserve, maintain and enhance the value of the assets of their community, and with that premise they need to consider three important matters for when dealing with their reserve study.

We face conflict in many areas of life including: personal relationships, work, community, politics, social issues, cultural differences, values and beliefs, opinions, and even within ourselves. Essentially, anywhere where people have differing perspectives, needs, or goals can lead to potential conflict. With our every changing society and unique lives, conflict becomes unavoidable. As we move forward, learning to manage conflict and the diverse personalities we interact with is essential. While many of the following steps can be used in other areas of our lives, the below are some suggestions when working in Community Management.

Identify the Underlying Issue: Conflict resolution starts with understanding the root cause. Active listening, empathy, and research are essential in uncovering the true issue. Understanding laws and governing documents is crucial, as it ensures that the resolution process is grounded in factual information and legal frameworks.

Introduction to the CTA 

The Corporate Transparency Act (CTA) was adopted by Congress in 2021 and went into effect on January 1st 2024.  It is an anti-money-laundering law aimed at gathering more information about corporations and limited liability companies that operate in the United States so that the federal government can take better action to prevent money laundering and terrorist funding.   

Under the law, all corporations and limited liability companies (among other entities) in the United States must file an initial “beneficial ownership interest” report to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).  There are some exempted companies that do not have to report—I will address those below—but, by and large, every for profit and nonprofit corporation and LLC in the United States must report.  That includes all incorporated homeowners associations and condominium associations in Idaho.   

So, practically speaking, what does the statute require and what does it mean for your community association?  Well, I’m glad you asked!  Let’s dive into a primer of some basic CTA questions and answers.  Remember, this is not legal advice for your community association.  Rather, it is simply a brief, not-all-inclusive primer into the CTA.  If you have specific questions, please consult your association’s legal counsel. 

As we approach the end of 2024—just three months away—our management company and accounting department are diligently preparing for year-end closing. We have compiled a checklist to ensure that all items are addressed efficiently. Key items include:
 

1. Closing Open/Pending Maintenance Items: Begin finalizing any maintenance items scheduled for completion this year.
2. Approved Budget Notification: During the first week of December, we will notify communities regarding any changes to HOA dues/assessments effective January 1st.
3. Mailing Orders for Coupon Booklets/Statements: If utilizing a third-party mailing service, orders for coupon booklets or statements for HOA dues/assessments should be placed by the second week of December. This will ensure homeowners receive their materials before the holidays and can prepare for the new year.

As a homeowner, making sure your dues are paid on time is crucial. Timely payments ensure everything runs smoothly and you avoid late fees or penalties. But with so many payment options available, how do you choose the best one? In this article, we'll dive into four popular methods: mailing a check, using an eCheck, setting up an ACH transfer, and paying with a credit card. We'll break down the pros and cons of each for homeowners, and even touch on how Positive Pay can help prevent fraud for HOAs with a business account. 

Let’s get started!

Primary Methods for Paying Homeowner Dues 

When it’s time to pay your homeowner dues, you have several options. Here’s a quick look at each:

- Mailing a Check: The traditional way of sending payments.
- eCheck: A digital version of the paper check.
- ACH Transfer: Direct bank-to-bank transfers.
- Credit Card: Quick and easy payments.

Now, let's take a closer look at each method, starting with the good old-fashioned check.

It’s almost that time of the year – “the budget season!” Some may find the budget season to be the scariest and most stressful part of the year, and some may find it exciting where we get to plug in numbers and project an increase for next year’s annual operating expenses.
Budget preparation is one of the best parts about community association management – without adequate funding for each expense, a community’s day-to-day will be challenging to manage because a good budget leads to consistent growth of community’s finances and health.
Please see below for the basic steps of budget preparation:

• Find out any projected increases from all vendors that provide services for a community – if they can’t give us an increase percentage, then we will have to project it based on an inflation – a start between 3% - 5%. Except for insurance, we will need to contact an agent for their projection; it’s usually between 35%-40% today’s world.

Why does our community need a Reserve Study? If something major needs repaired or replaced, we’ll figure it out at that time, or hope we’ve been setting enough funds aside in our Reserve Account.

​Reserve Study requirements are different from state to state. Some states require a reserve study be completed, how often it must be updated, and what percentage of funds, based on the study, must be in the HOA’s Reserve account. Idaho does not currently require a reserve study to be completed for a homeowner’s association, but don’t be surprised if that changes in the near future. Just because it’s not required does not take away from the importance of having one completed, and the enormous benefit to your community.

​As an elected Board Member, one of your most important responsibilities is Fiduciary Duty. In a Homeowners Association, that means a duty to make decisions and act in the best interest of the association, and its subsequent members.