http://hoabrief.com/2009/03/17/what-to-know-if-youre-considering-borrwing-from-reserves/ California HOA Law for the HOA Community Thu, 14 Jan 2010 20:06:33 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://hoabrief.com/2009/03/17/what-to-know-if-youre-considering-borrwing-from-reserves/comment-page-1/#comment-7 Robert M. DeNichilo Thu, 19 Mar 2009 16:18:43 +0000 http://hoabrief.com/?p=102#comment-7 Thank you for comment! I will add those to my list of topics for future posts. Please let me know if you have any other topics you would like me to consider. Thank you for comment! I will add those to my list of topics for future posts. Please let me know if you have any other topics you would like me to consider.

]]> http://hoabrief.com/2009/03/17/what-to-know-if-youre-considering-borrwing-from-reserves/comment-page-1/#comment-6 Dora Thu, 19 Mar 2009 13:05:09 +0000 http://hoabrief.com/?p=102#comment-6 As president of a condo board, I have some questions you might discuss in your blog. (1) What is the best mechanism to use estimate a "bad debt" allowance? Owners are discouraged by being asked to pay for others delinquencies and the association wants to send the message that it will endeavor to collect all the assessments due. Our management company used a formula but the board would rather limit the allowance to what we really expect to have to write off, a smaller figure. (2) What are the issues around whether or not it would be prudent for a board to consider purchasing and renting vacant, bank-owned units, and selling them when the market improves (particularly for cash, and without the use of designated reserves)? It is a shame to have vacant units when there is a demand for rental units, and the banks are not paying condo fees. As president of a condo board, I have some questions you might discuss in your blog. (1) What is the best mechanism to use estimate a “bad debt” allowance? Owners are discouraged by being asked to pay for others delinquencies and the association wants to send the message that it will endeavor to collect all the assessments due. Our management company used a formula but the board would rather limit the allowance to what we really expect to have to write off, a smaller figure. (2) What are the issues around whether or not it would be prudent for a board to consider purchasing and renting vacant, bank-owned units, and selling them when the market improves (particularly for cash, and without the use of designated reserves)? It is a shame to have vacant units when there is a demand for rental units, and the banks are not paying condo fees.

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