Minnesota’s premier homeowners association magazine
July/August 2009
Volume 27 • Issue 4
Featured Community: Hartford Commons
In this Issue: Vision Awards Recap Collecting Assessments in Turbulent Times And Much More!
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From the President
By Mark Gittleman | CAI-MN President
I am honored to serve as President of CAI-MN for the coming year. I would like to thank Mark Schoenfelder of Schoenfelder Painting for his outstanding service to CAI-MN over the past year. I have learned over the past year, that the key roles of the President are to provide leadership and initiative, to nudge folks to get stuff done, and to bring people together in a comfortable way to achieve our common mission of serving homeowner associations. Mark has done a great job in all of these areas. I would also like to welcome new Board Members Holly Johnson of Community Development, Inc., Gene Sullivan of New Concepts Management, and Michael Mullen of Michael P. Mullen, CPA. We have a truly outstanding group of individuals serving on the Board of Directors and I am grateful for that. As we think about CAI-MN during the coming year, we will continue striving to move CAI in a positive trajectory of growth in services, membership and professionalism. We spend a lot of useful time and energy talking about membership numbers and programming. I would like to address the topics of professionalism, fulfillment, and joy that we can find in the industry association. When I first became involved with CAI-MN a number of years ago, there was an important sense of being involved out of obligation to help the industry, but volunteer time was perceived by many as somewhat of a chore as the reconstitution of CAI-MN was in its infancy. I liken this to the feeling that some of us have had going to a place of religious worship where we may go more out of a sense of obligation than fulfillment; and then we wonder what the mix of experiences are that will inspire us to really want to participate. I am pleased to report that being involved in CAI is an experience that offers fulfillment, a varied and interesting range of choices for member participation, and opportunities to build enjoyable relationships with peers and clients within the industry. These great accomplishments give our industry association an identity with our members that is valuable and fulfilling. These developments would not have been possible without the hard work of the current and prior CAI-MN Boards of Directors and Committees. In addition to programming enhancements, please know that CAI-MN continues to work on the organizational infrastructure of CAI. As the organization grows, it is increasingly important that we support good governance and administration of the industry association as doing so indirectly supports our volunteers, programming and services. We are well
aware that most volunteers are prepared to devote blocks of time to CAI-MN, but want to make sure their time is productive so that they are not toiling in their volunteer work. Key governance and organizational initiatives underway and anticipated include the following: Board of Directors Governance. We have moved quickly to appoint officers and create Board liaisons to every existing committee, which are listed in the magazine. We are also holding a strategic planning session at our Board meeting in July to make sure that the work of the Board and Committees is consistent with the strategic priorities set by the Board and that the strategic priorities are updated as needed. Running Meetings. We set a goal of holding well attended but efficient Board meetings with more formal reporting in advance of the meeting. This is an initiative started by the prior Board with committee reporting. We will build on this with a written monthly Treasurer’s report so that we have an overview and highlights of financial results each month to reduce time spent at meetings reviewing financial details. Enhancing Committee Structure. This initiative, which was also started by the prior Board, will include finalizing and approving charters for each of the committees at the July Board meeting. This action will help provide clarity of mission for the committees, a framework for how they are organized and governed, and a closer reporting and coordinating relationship with the Board. Approval of Bylaws Change. At the membership meeting in June, the membership approved a change in the Bylaws to authorize the open election of directors as had been past practice but was not consistent with the Bylaws. The past and current Boards feel that it is important for members to continue to drive the Board election process. Build on Professional Support Relationship. CAI-MN is dependent on the work and service of our professional management company, Ewald Consulting, and we reevaluate our framework and menu of professional services and budget for same on an annual basis. The prior Board made a decision that all programming should run through Ewald for consistent administration and marketing to maintain a consistent organizational identity in the market place. As CAI-MN continues to grow, the current Board will continue to look for opportunities to strengthen the relationship between the organization and our management company to continue enhancing the professionalism of CAI-MN. These changes and challenges are part of CAI-MN adapting to the needs of a growing industry and industry association. We’re excited about the range of interests in CAI-MN from all of our members and nonmembers and we look forward to engaging your interests and involvement in the coming year.
Board of Directors President Mark Gittleman Phone 952.277.2707 mgittleman@gittleman.com President-Elect Holly Johnson, CMCA, AMS, PCAM Liaison to Vision Awards Committee Phone 763.225.6400 hjohnson@developcommunity.com Secretary Jonathan Edin, JD Phone: 651.222.2155 jedin@mnconstructiondefects.com Treasurer Michael P. Mullen, CPA Phone 952.928.3011 mike@cpamullen.com Directors Patricia Butler Liaison to HOTT Committee Phone 952.936.9692 pat.butler@westbrookepatiohomes.com Tom Engblom, AMS, ARM, CMCA, CPM, PCAM Liaison to Golf Tournament Committee Phone 866.800.4656 tengblom@cabanc.com Sarah J. Fjellanger, CIRMS Liaison to Legislative Action Committee Phone: 763.746.8278 fjellangers@rjfagencies.com Mark Johnson Liaison to Communications Committee Phone 612.381.9951 mjohnson@associationsonline.com Joel A. Hilgendorf, JD Liaison to Membership Committee Phone 952.746.2167 jhilgendorf@hjlawfirm.com Traci Lehman, CMCA, AMS, PCAM Liaison to Manager Seminar Committee Phone: 612.381.8600 tracil@citiesmanagement.com Gene Sullivan Liaison to Education Committee Phone: 952.922.2500 gene@ncmgi.com
Committee Chairs Legislative Action Chair John R. Dorgan, Esq. Phone 612.729.1943 jrd@jdorganlaw.com
Education Chair Joe Crawford Phone 763.746.8120 jcrawford@developcommunity.com
Golf Tournament Co-Chair Tosh Tricas, AMS, CMCA, PCAM Phone 763.225.6400 ttricas@developcommunity.com
Nominating Chair Joel A. Hilgendorf, JD Phone 952.746.2167 jhilgendorf@hjlawfirm.com
Communications Chair Steve Hoogenakker Phone 763.213.2410 steve@landscape.pro
Annual Meeting Chair TBD
Golf Tournament Co-Chair Tom Engblom, AMS, CMCA, PCAM Phone 866.800.4656 tengblom@cabanc.com
Membership Chair Mike Laukka, AMS, CMCA, PCAM Phone 952.831.8325 ml@laukka.com
CAI-MN Member News CAI-MN President Wins National Excellence Award CAI National awarded Mark Gittleman with the Membership Recruiter of the Year Award. This award was presented at the CAI National Conference in New Orleans on April 24, 2009. In the last year, Gittleman recruited more community association professionals to join CAI than any other member in the other 50+ CAI chapters nationwide. This was Mark’s first year on the Minnesota Chapter Membership Committee. Congratulations, Mark!
“Where You Live” Radio Program Featuring the CAI-MN Minute
The weekly radio program (Saturdays from 11:00 a.m. to 1:00 p.m.), “Where You Live,” with Gene & Toni now features a one minute segment from CAI-MN every week. The program, featured on AM 1570 KYCR, is the Twin Cities’ only radio show that tackles issues and concerns faced by owners of homes, condos, townhomes or apartments. The program is produced by New Concepts Management, a member of CAI-MN. Here is a listing of the scheduled broadcast topics: Owning Your First Home How to Make an Appeal to Your Homeowner’s Association Minnesota Night Out/Personal Safety
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Calendar
Index
2009 July
3rd Annual CAI-MN golf Tournament July 15, 2009, 11:00 a.m. - 8:00 p.m. Stone Ridge Golf Club Stillwater, MN $150 for golf (includes lunch and dinner), $35 for lunch only, $45 for dinner only
features 6 Required Elevator Upgrades By Larry Teien
7 Featured Community: Hartford Commons
August
Homeowner Training Track “Governance – The Roles of the Board Officers and Committee” August 26, 2009, 6:00 - 8:30 p.m. Eagan Community Center 1501 Central Parkway Eagan, MN 55121 Free/homeowners, $30 per manager, $15 per manager who brings one homeowner, Free for managers who brings two or more homeowners
By Gale Houdek
8 Vision Award Winners 11 Collecting Assessments in Turbulent Times: Straegies that Work
By Thomas Carlson, JD, and Dawn Blake
September
Managers Luncheon “Agency: Fair Housing Culture, Custom & Communication” September 9, 2009, 11:30 a.m. - 1:30 p.m. Dorsey Ewald Conference Center $30-early, $40-late/members; $50/non-members. CEs: 1.5
Register online at www.cai-mn.com For more information regarding an event, call Scott Franzmeier at 651.290.6278 or visit the CAI-MN Web site. Online registration is available at www.cai-mn.com.
[ ADS Index ] of Advertisers Association Dues Assurance Corporation....... 9
Horticulture Services, LLC................................. 4
BEI Exterior Maintenance............................... 11
Johnson & Lindberg, P.A................................. 10
BNC National Bank........................................... 2
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Carlson & Associates, Ltd................................. 6
Omega Management........................................ 6
CA Banc/CondoCerts....................................... 16
Plehal Blacktopping.......................................... 4
Cary Charlson Insurance.................................... 14
Reserve Advisors.............................................. 12
Construct-All Corporation............................... 12
RJF Agencies................................................... 15
Final Coat Painting............................................ 4
Stock Roofing Co............................................... 3
Hammargren & Meyer, P.A. . ............................ 5
Strobel & Hanson............................................ 11
Heaton & Associates......................................... 4
Thomsen & Nybeck......................................... 13
Hellmuth & Johnson, PLLC............................... 8
departments 3
President’s Message
4
by
Mark Gittleman
Member News
Thank You 2009 Annual Partners
Platinum CABanc/CondoCerts Gold BEI Exterior Maintenance Silver Breiwick Companies Carlson & Associates, LTD. Hammargren & Meyer, P.A. Hellmuth & Johnson, PLLC Levin & Stein Thomsen & Nybeck, P.A. Bronze Gittleman Management Corp. Omega Management, Inc. Schoenfelder Painting Strobel & Hanson, P.A.
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Published by Community Associations Institute — Minnesota Chapter, copyright 2009. All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Minnesota Community Living or CAI–Minnesota Chapter. The information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting, or other professional services by the CAI–Minnesota Chapter, or by Minnesota Community Living, or its authors. Articles, letters to the editor, and advertising may be sent to Chapter Staff Editor Joe Flannigan at joef@ cai-mn.com, or at CAI–Minnesota Chapter, 1000 Westgate Dr., Suite 252, St. Paul, MN 55114.
July | August 2009
5
Required Elevator Upgrades Don’t Get Stuck Taking the Stairs
By Larry Teien, unit owner, former board member, and CAI-MN Legislative Action Committee Delegate
I
f the elevators in your common interest community (CIC) don’t meet Minnesota elevator rules and statutes by January 29, 2012, you may be walking the stairs. The compliance date is quickly approaching for elevators in residential, commercial, and government facilities. The solution could mean that increases in your association assessments that the board previously held reasonably low may be raised substantially to avoid an elevator shutdown by the Minnesota Department of Labor and Industry. Another concern that many unit owners are facing is how to get to and from their unit during the time when elevator upgrading occurs. If an owner with limited mobility is unable to use the stairs during this period, which may range from a few days to six weeks, s/he may have to temporarily vacate the unit. Boards were notified The Minnesota Department of Labor and Industry tried to inform residents of these changes in 2007, according to Bill Reinke, Chief of the Department’s Elevator Safety Section for the Construction Codes and Licensing Division. While not in his current position at the time, Reinke explains that the Department adopted the rules after two years of meetings with an advisory code committee that consisted of building and fire code officials, building owner and manager representatives, elevator inspectors, installers, and local labor officials. Once changes were finalized, letters were sent to all CICs, landlords, and operators of commercial, government, and private buildings that were known to have elevators. Letters were also sent to maintenance companies, contractors, and consultants in the state’s elevator industry. Many CICs found out about the issue this way. Others were left behind for a variety of reasons: • Minnesota has no comprehensive directory of the estimated 10,000 CICs across the state. • The Elevator Safety Section does not know which CICs Minnesota Communit y Living 6
have elevators unless the following occurred, in compliance with statute 326B and Minnesota Rules chapter 1307: (a) Elevator work was performed recently and the required state work permit was obtained, or (b) the CIC had an elevator exam by a division inspector that is required every year, or (c) the CIC obtained an operating permit for its elevators that is required every year for a $100 fee. The elevator address and other information must be on the application form. Failure to get an operating permit can bring penalties or removal of the elevator from service. • Elevator maintenance companies might or might not point out these rule changes to their clients. Easy to understand? No, most boards and property managers cannot figure out by themselves what must be done to upgrade their elevators. Here’s why: • Chapter 1307 contains numerous references to American Society of Mechanical Engineer (ASME) codes. Explanatory books are available for purchase online at asme.org. • An explanation on the Department of Labor and Industry website also is designed for elevator professionals. • Bids from elevator contractors frequently are written in technical jargon, cover the elevator work but not that of other contractors for related/required work, and/or do not clarify the difference between basic elevator code requirements and a niceto-have program called “modernization” which may cost thousands of dollars more and leave the building without elevator service for an even longer period.
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Elevators continued on page 12
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FeaturedCommunity: Hartford Commons By Gale Houdek
H
artford Commons is a rather new community in Eden Prairie located just east of the Eden Prairie Center. In 2002, David Bernard Builders, a division of Rottlund Homes, began building the community of 317 residences at the southwestern edge of the greater Minneapolis area. When you visit our beautiful community you will notice the buildings have a variety of facades, buff colored stone, red brick and neutral permanent siding with appealing architectural detail. The community’s 37 buildings are a pleasing mix of town-homes, row houses, back-toback townhomes and single-level condos, creating an architecturally rich look in the community. The majority of the home styles offer two or three levels of living space, separate entry doors and either a patio or deck. The two buildings that house the single level condos have an elevator in each building and boast architecturally subtle universal design elements, allowing wheelchair use if needed. The single level condos also have either a patio or deck off each unit or “flat.” Every unit in the entire complex has a two-car garage, eliminating the need for on-street parking within the community. We have the added bonus of being able to keep our beloved pets
at Hartford Commons, an amenity that few communities offer. The buildings are located in a beautifully landscaped setting with an abundance of trees, perennials and accent gardens of annuals, as well as several landscaped open
areas. Two of the larger open areas offer community landmarks to greet visitors and homeowners alike. One is a lovely fountain and another is a gazebo. The gazebo is the signature landmark of our community and is located along one of the main streets that go through the property. It offers a pleasant place to sit with benches within the structure as well as outside in the garden area. This is a natural gathering place, and is accented with gardens of colorful annuals. A long landscaped garden is central to the property with additional green spaces that contribute to the charm and visual beauty of our lovely community. This central garden is a pleasant place to stroll among the blooming crabapple trees, shrubs and blooming perennials. A walkway with stone and illuminated architectural accents define this garden. There is a children’s play area and sidewalks throughout our neighborhood that contribute to a friendly feel in which to meet your neighbors. Another green space boasts a fountain that lends a visual and auditory landscape element to our grounds. We are a large community, the size of a small town, but our open areas encourage neighborhood gatherings during the summer, which in Hartford Commons continued on page 14 July | August 2009 7
Top Community Association Professionals Recognized at CAI-MN Awards Program
The Community Associations Institute of Minnesota (CAI-MN) recognized top industry professionals at the 5th Annual CAI-MN Vision Awards Gala at the Metropolitan Ballroom on June 17, 2009. The Vision Awards were established to honor community association industry leaders who made outstanding contributions to the communities they serve and to the industry as a whole. Awards are given in the areas of Property Enhancement Professional Vendor of the Year, Excellence in Service, Rookie of the Year and Service Professional of the Year. The vision awards are subjected to a Jury Process. Judges are selected from among a list of highly-qualified community association industry leaders and serve as an independent panel to evaluate nominations. The identity of candidates is not shared with the judges. This year’s winners were:
Excellence in Service Award Winner Jeff Peterson, Gittleman Management Corp. Jeff’s stability and longetivity with his clients is a direct result of his management style and his ability to communicate effectively with client Board members. He is thoughtful of the precedence and impact for associations in the decision making process and is able to articulate meaningful suggestions to the clients he represents, as well as provide insight to those clients to help manage practical expectations. He works closely with numerous service providers to resolve all client issues, and has maintained the same service providers at client locations as often as is possible to facilitate effective resolution to issues and the trusted respect of the service provider. Jeff is constantly in touch with Board Members to keep them apprised of current issues with homeowners, building needs, financial awareness and neighborhood development projects.
Excellence in Service Award Nominees: Betty Ball Paradise & Associates
Nancy Lewin Gassen Companies
Dawn Blake Gittleman Management Corp.
Jenni Pederson Cities Management
Paul Bozonie New Concepts Management
Vicki Pream Keller Properties
Mark Karason Gittleman Management Corp.
John Westby Management Services Worldwide
John Kelly New Concepts Management
Pictured from left to right: CAI National CEO Tom Skiba; Excellence in Service award winner
Jeff Peterson, Gittleman Management, Co.; CAI-MN President
Mark gittleman, Gittleman Management Co.
Minnesota’s Premier Community Association Law Resource 952-941-4005 www.mncommunityassociation.com
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Minnesota Communit y Living
Property Enhancement Professional of the Year Matt Schoenfelder, Schoenfelder Painting Matt works hard to provide value to his Homeowner Associations and Property managers. He realizes that he is not selling paint jobs and his clients are not hiring a painter. He instead sells service, knowledge and advice. His clients hire him to take care of their homes and their clients’ homes. They want the most value for their money. Besides a good price, they want innovative ideas for maximizing the value of the property, they want him to reduce the burdens placed on the board and manager, they want him to take care of all the details so they don’t have to. He still looks at each project with a fresh perspective. He does not just plug in the numbers, but takes the time to determine what the key issues are and comes up with thorough, well thought out ideas on how to solve them. Matt was probably the first contractor to develop a communication plan for his projects — Setting up with the manager, board and crew who calls who for what and what phone numbers are put on which notices. His signoff system is instrumental in closing out projects. He has done an exceptional job of taking care of his clients so that they hand off the projects to him and focus on their other responsibilities.
Property Enhancement Professional of the Year Nominees: Don Huizenga ABC, Inc.
Keith Kovacevick BEI Exterior Maintenance Corp.
Property Enhancement Professional of the Year Matt Schoenfelder, Schoenfelder Painting.
Rookie of the Year Chris Campbell, Gittleman Management Corp. Within the first months of his employment, Chris was deeply entrenched in projects at one condominium high rise (305 units) that could eventually total upwards of $3.8 million dollars, with money to be spent from capital reserves and a special assessment. This included the replacement of a 27 year old, 300 ton rooftop cooling plant, updating 19 floors worth of wall/floor coverings and amenity improvements, fire alarm upgrade, security system upgrade and replacement of all of the homeowner fan coils as well as setting the architectural standard for future balcony door replacement. Additional projects that ran concurrent to these larger projects included the management of a 123 unit condominium project under court appointed receivership with multiple individual foreclosure issues, the oversight of a $40,000 office and security system upgrade and working with a developer to correct elevated patio foundation issues.
Pictured from left to right: CAI National CEO Tom Skiba; Rookie of the Year Chris Campbell, Gittleman Management, Co.; CAI-MN President Mark gittleman, Gittleman Management Co.
Rookie of the Year Nominees: Lisa Astleford Gittleman Management Corp. Casey Groff Community Development Inc. Brad Larson Cities Management Aaron Lloyd Gassen Companies July | August 2009
9
Service Professional of the Year Dan Denekamp, US Bank Dan provided outstanding banking services specific to the needs of the HOA industry. In addition, he provided exceptional consultation on the banking sector during a year of unprecedented change. Using very effective communication skills, Dan helped both the board members and our management company staff understand the banking and economic issues facing our industry. Customers were able to establish much a deeper relationship with their end client, the board members of each HOA. Dan’s ablity to meet with them personally and share such a strong financial story reinforced customers’ commitment to providing clients a sound financial partner and met their strict fiduciary duties.
Pictured on right (from left to right): Service Professional of the Year Dan Denekamp, US Bank; CAI National CEO Tom Skiba
Recruiter of the Year Mark Gittleman, Gittleman Management Corporation In the last year, Mark recruited more community association professionals to join CAI than any other member in the other 50+ CAI chapters nationwide. This was Mark’s first year on the Minnesotajohnson_2.5x4.5_bleed.pdf Chapter Membership Committee. 2/4/07 8:33:09
Pictured on Left (from left to right): recruiter of the
Year and CAI-MN
President Mark Gittleman, Gittleman Management, Co.; CAI National
Construction defect problems?
CEO Tom Skiba
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Minnesota Communit y Living
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Collecting Assessments in Turbulent Times: Strategies that Work By Thomas Carlson, JD, Carlson & Associates, Ltd. and Dawn Blake, Gittleman Management Corporation
Skyrocketing foreclosure rates, layoffs and plummeting real estate values have been front page news for the last couple of years. However, little attention has been given to the harsh effect these economic conditions have had on homeowner associations. The financial impact of the recent market conditions has been difficult for many homeowner associations and devastating for others. As more and more association members default on their assessment obligations, associations struggle to stay on budget, pay operating expenses and properly fund reserves. The pressure on association boards and managers to find solutions has never been greater. The situation is likely to continue for some time. However, not all is doom and gloom on the collections front. With a little ingenuity, associations can survive, and even prosper, in this economy. The Good Ol’ Days Before the recent years of the depressed real estate market, associations were rarely confronted with uncollectable assessments. Standard collection practices generally resulted in the commencement of foreclosure proceedings, which usually compelled payment from the owner early in the process. A unit owner losing his or her home to an association foreclosure was uncommon. Association managers and attorneys could virtually guarantee full collection of delinquent accounts.
Many associations have turned to pursuing personal judgments against delinquent owners. If the claim is $7,500 or less, the association can pursue the judgment in conciliation court – a relatively quick and inexpensive process. If the claim exceeds $7,500, the association can pursue a judgment in district court or can voluntarily reduce the amount of the claim to $7,500 to fall within the conciliation court jurisdictional limit. A unit owner can rarely mount a viable defense to the association’s claim, as the association’s declaration and the Minnesota Common Interest Ownership Act clearly impose personal liability upon a unit owner for delinquent assessments. However, obtaining the judgment is only half of the battle. Collecting on the judgment can prove difficult or impossible, depending on the delinquent owner’s financial situation. Collecting Assessments continued on page 15
Mortgage foreclosures were also relatively rare. If a mortgage was foreclosed and the mortgage company became the owner of the unit, most associations would not actively pursue collection against the mortgage company. Instead, Roofing the association would allow the assessments to accumulate until the unit was sold. This was common Siding practice as units were being turned over quickly and the expense involved with beginning the foreclosure Decks process was generally unnecessary. Recent Turmoil Association collections must now be viewed in a different light. No longer is it uniformly appropriate to simply foreclose the association’s assessment lien. When real estate was appreciating, delinquent owners who could not otherwise pay their assessments would often tap into the equity in their units to bring their assessments current. However, declining real estate values and more stringent credit requirements have virtually eliminated this “out” for the delinquent owner. The increasing number of mortgage foreclosures has also reduced the effectiveness of foreclosing association assessment liens as a means of collecting delinquent assessments. An association lien is junior to any first mortgage on the unit. Accordingly, if a first mortgage is foreclosed, the association lien is extinguished.
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July | August 2009
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Elevators continued from page 6 • It is difficult for boards and property managers to learn by asking other CICs about their experience or plans because few elevators are alike. How much will this cost? Price estimates can vary widely, depending on the configuration of each elevator. Required code compliance might be as low as $30,000, an optional modernization might be $100,000, and a mandated rebuild might exceed $200,000 – all per elevator.
Communication • Inform owners. They must pay and be inconvenienced. • Seek their ideas about solving problems that impact owners. • Notify others who will be affected: emergency responders, deliverers, service providers, sales staff, and people moving out or in. • Your CIC has to explain the effects of your elevator upgrade in the board’s resale disclosure package for prospective buyers.
Are there alternatives? The Elevator Division states that there will be no exceptions to compliance with the pertinent safety rules and laws by Jan. 29, 2009. However: • Reinke says if boards decide to meet only the basic code requirements, they should confirm what that means for their building. He says even the commercial representatives and consultants sometimes misunderstand the requirements. Reinke says the state inspectors are too busy to do analyses for elevator owners. • Reinke says full modernization might be prudent in certain cases but it is not required by Minnesota Rules chapter 1307. He says no further amendments along that line are under consideration for the foreseeable future. Suggestions If your CIC’s board and/or property manager were notified in 2007, acted promptly, and your elevator upgrade is underway or done, you are in good shape. If not, your CIC should consider these steps: Get the facts now • On the Internet, find Minnesota Rules chapter 1307 at https://www.revisor.leg.state.mn.us/ rules/?id=1307&view=chapter, • Find Minnesota statutes 326B.083 and 326B.184 at https://www.revisor.leg.state.mn.us/ statutes/?id=326B • Find the Department of Labor and Industry explanation at http://www.electricity.state.mn.us/ CCLD/PDF/bc_elevator_2007_sig_changes.pdf Get yourself a “jungle guide” • Try to find a trustworthy elevator expert and consider hiring the firm or person as a project coordinator and/or general contractor. Get competitive bids • Ask bidders to focus on meeting the basic code requirements for your building. Insist that bids cover the entire job. • They want to sell you modernization? Keep it separate. • They want to become your new elevator maintenance provider? Why not listen? Keep it separate. • They want all your money over a short period? That’s a big bite from most CIC replacement reserves, so try to work out better terms. • Decide soon. Prices will rise and contractor availability will shrink as 2012 nears. 12
Minnesota Communit y Living
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July | August 2009
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Hartford Commons continued from page 7 turn promote winter gatherings in individuals’ homes during colder months. We are striving to build a friendly and appealing micro-community within one of Minnesota’s larger cities. At Hartford Commons the day-to-day operations of our community are taken care of by Gittleman Management, a professional property management company. Their representative attends Board meetings and is our link between their company and our elected Board of Directors. Our Board of Directors, five volunteers elected by the homeowners, each serve a two-year term. The Board officers are the President, Vice President, Secretary, Treasurer, and a Member-at-Large. Each year two or three of the Board positions are open for election, providing some rotation of members while preserving consistency in governance. We hold our annual meeting in February with Board meetings held as needed throughout the year. Our Board and management company support a strong fiscal plan to keep our community on track and viable for current as well as long term maintenance. We contract with other professionals, such as a landscape company, painters, common areas maintenance, and so forth, to keep our community professionally maintained year around. Because of our mix of building styles and needs, each of the four building styles has a slightly different Association fee. They each have their own financial accounts and contribute to an account used for maintaining the common areas. This system seems the most equitable way to be fiscally responsible today and support a strong reserve for the future. As you walk around our pleasant neighborhood you get a real feel for the overall quality of living at Hartford Commons. If you are a walker, you are in a great location: the Eden Prairie public library, just a few blocks away, boasts “the most used library” in the Hennepin County Library system. A Cub Foods grocery, a Hennepin County Service Center, Lifetime Fitness, and restaurants with offerings from fast food to fine dining are within easy walking distance. Entertainment and shopping are literally across the street at the Eden Prairie Mall. Walking trails and parks that support a variety of wildlife are conveniently located in the heart of our area of the city of Eden 14
Minnesota Communit y Living
Prairie. You may even spot the eagle often seen flying above Purgatory Preserve Park. Eden Prairie is planning and has already started building a major capital project to create a “city center” within walking distance of our homes, promising even more benefits in the future. A short car ride takes you to Southwest Station, a major Metro Transit center to serve you if you work or enjoy the entertainment offered in downtown Minneapolis. It is also a convenient way to attend special events, like the Minnesota State Fair, and leave your car near home. Yes, Hartford Commons is a wonderful place to live, but we are not without our challenges. As a relatively new community, we still are maturing as a governing Board. We would love to see more participation from our community of residents and are working to build strong, engaged committees to help serve our large Association. Of course we want to plan and put our energy toward keeping our lovely community as vital and attractive as it is now. We also do not have an on-site management office or an indoor meeting facility for gatherings. This has been both beneficial and challenging. This provides our community with the feel, architecturally and personally, of a single-family residential area within a city. But it can be frustrating to visitors looking for an on-site management
office to get information. We are working to focus on people, service and creating a sense of community here at Hartford Commons, and to build a cohesive and well-informed community in which to live. We are in a lovely community that is in a terrific location, adjacent to what is to become the City Center of Eden Prairie. As they say, “location, location, location.”
State Farm is Big on Association Insurance. See me for your Association insurance needs: Cary W. Charlson, Agent 6993 35th St. N Oakdale, MN 55128 (p) 651-770-1849 (f) 651-770-0930 cary.charlson.buvk@statefarm.com Like a good neighbor, State Farm is there.®
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State Farm Fire and Casualty Company Home Office: Bloomington, IL
Collection continued from page 11 Successful Strategies Failing to deviate from the traditional means of assessment collections has left many association budgets in the red. Significant “write offs” of uncollectable debt result in strained budgets, special assessments and underfunded reserves. Accordingly, associations must pursue new ways to collect assessments and generate revenue.
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Pursuing the Mortgage Company: As a result of foreclosures, many townhouse and condominium units are now owned by mortgage companies. The mortgage company is generally responsible for the assessments that accrue against a unit from the date of the mortgage foreclosure sheriff’s sale. The mortgage company will typically want to bring the assessments current when the unit is sold. However, due This article is continued on the CAI-MN Website at www.cai-mn.com.
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Managers Luncheon Joint Sponsor Hammargren & Meyer PA
Community Association Insurance Services (763) 746-8000 www.rjfagencies.com July | August 2009
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