Planned Unit Developments (PUDs)

Association Management, Inc. is adept at providing the professional services your community may require. We have chronicled a few of the circumstances that one of our newer clients recently faced.

Problem - Shortly after signing the management agreement with Association Management, Inc., we found that the same independent contractor had loosely written contracts for lawn care, maintenance, roofing and painting totaling several hundred thousand dollars. The independent contractor had only one (1) full-time employee, other than himself, and obviously could not meet his obligation to the Association. In addition, this independent contractor had no proof of insurance and had no intention of obtaining insurance for himself nor for his employee.

Solution - We immediately contacted legal counsel for the Association and assisted in providing the necessary guidance in an effort to obtain the proper insurance from the independent contractor. Once it was determined that the contractor had no intention of providing evidence of insurance and that the contractor was incapable of providing the services desired, the Association was able to terminate the contracts with the independent contractor. We proceeded to prepare specifications for the various projects and we collected proposals from local, reputable contractors. Contractors were selected, certificates of insurance were procured and the work was completed according to the specifications prepared.

Problem - The on-site manager of the self-managed community had little to no supervision and engaged in inappropriate business practices causing the Association to loose revenue.

Solution - We implemented our standard practice of being an authorized counter-signature on the Association’s operating account only and we prepare and provide invoices and checks to the Association’s Treasurer for review and approval twice each month. We established the Association’s reserve accounts in the name of the officers of the Association while requiring counter-signatures. Fidelity Bond insurance was obtained for the Board of Directors as well as the managing agent.

Problem - The Association had not completed an insurance review of the current policies and had not evaluated potential exposures.

Solution - We reviewed the current insurance policy and found that the Association was without various coverages i.e. Directors and Officers coverage, Commercial Umbrella coverage and Workers’ Compensation insurance. We obtained proposals for each policy and reviewed the advantages of each to assist the Board in making their decision with respect to each form of coverage. In addition, we distributed a notice to all homeowners describing the need for each owner to maintain a HO6 (condominium unit owners policy) and the advantages of having this policy.