AHN PA Iss. #5-2018

www.AssociationHelpNow.com Issue 5, 2018 AssociationHelpNow Resources for Community Associations and the Businesses & Professionals who serve them. ™ PENNSYLVANIA Read by Pennsylvania HOA Board Members and Managers

Acquiring a Loan for Your Community Association By Alyssa Gautieri

HOA Qualified Management Companies

“Reality...has a way of intruding into perfect scenarios, and many association boards and managers find themselves scrambling to find palatable funding options...”

Board Election Procedures – What Community Associations Need to Know By Sherri Hall

A nnual board elections are an important part of every condominium and community association. We spoke with Stefan Richer, Esq., of Clemons Richter & Reiss, P.C. in Doylestown, Pennsylvania to learn more about the proce- dures an association should fol- low when holding an election. First and foremost, the board and management should be familiar with the association’s governing documents as they relate to notice, quorum, vot- ing and elections. Richter ex- plained that associations must strictly follow all procedural requirements to avoid a po- tential challenge. For example, the documents may specify whether or not a nomination committee is needed, if signa- tures are required for nomina- tions, whether or not nomina- tions from the floor are permit- ted, what the notice require- ments are prior to the election, what makes someone eligible to serve on the board and how long the service term is, etc. Once all the notice require- ments have been met, candi- date eligibility has been de- termined, the nomination pro- cedures have been followed and candidates have been nominated, ballots and proxies must be created. In many cas- es, the governing documents specify ballot or proxy format as well as the method and tim- ing of delivery. Typically, votes

CONTINUES ON PAGE 12. Although it is rare, some associations will hire a third- party election monitor to over- see the election process. When doing so, it’s important that the association verify this per- son has independence, cred- “...associations must strictly follow all procedural requirements to avoid a potential challenge.” will be collected at the end of the annual meeting, during which the candidates may be given time to speak and to in- troduce themselves. However, the election can only be held if a quorum is present as set forth in the governing docu- ments (in person or by proxy). If nominations from the floor are permitted, ballots will in- clude a blank space for write- in candidates. According to Richter, it’s im- portant for the board to main- tain independence during the election, therefore he doesn’t recommend that board mem- bers, particularly those who are candidates, be involved with tallying of votes. “The process should preserve independence and therefore, the appearance of impropriety should be avoid- ed,” Richter said.

ATTORNEYS: Ansell Grimm & Aaron, PC...................5 Clemons Richter & Reiss, PC...............8 Stark & Stark...................................... 11 Steven L. Sugarman & Associates..... 10 Young & Haros, LLC........................... 12 ENERGY PROVIDERS: PECO...................................................6 ENGINEERS: Berman & Wright Architecture, Engineering & Planning, LLC............. 15 DW Smith Associates, LLC................ 10 The Falcon Group - Engineering, Architecture & Energy Consultants........13 FWH Associates, PA............................4 pair, it has become increasing- ly popular for associations to borrow money to pay for capi- tal repairs within a commu- nity. Associations fund their reserve accounts on an annual basis for future repairs based on reserve reports conducted by engineers. Reality, though, has a way of intruding into ©istockphoto.com W hether it’s for a planned project or an unexpected re-

CONTINUES ON PAGE 14. Tunnell recommended that a community try its best to put as much into reserves as possible on an annual basis to keep up with repairs and maintenance. While an associ- ation should strive toward this goal, Tunnell noted that “very PROPERTY MANAGEMENT: Access Property Management...........7 ACRI Realty.......................................5 Associa............................................... 13 DelVal Property Management............... 8 MICO Management.............................. 2 Property Management, Inc.................. 14 Robert H.Wise Management Co., Inc...12 RECONSTRUCTION / RESTORATION: Accurate Reconstruction....................... 4 SECURITY / CONCIERGE: Planned Companies........................... 14 National Cooperative Bank in Arlington, Virginia, to learn all about the best practices for acquiring a community asso- ciation loan.

INSURANCE: Community Assn. Underwriters...............5 NFP, Property & Casualty........................6 Smith Insurance.......................................3 LENDERS: Alliance Association Bank..................... 9 Mutual of Omaha Bank, Community Association Banking / CondoCerts......7 National Cooperative Bank....................15 MAINTENANCE / JANITORIAL: Planned Companies........................... 14 PROFESSIONAL / INDUSTRY ASSOCIATIONS: CAI PA & Delaware Valley Chapter... 11 perfect scenarios, and many as- sociation boards and managers find themselves scrambling to find palatable funding options for capital projects and emer- gencies that arise from leaking pipes or extreme weather re- lated events. What can an association do about acquiring a loan in the case of an emergency repair? We spoke with Jared Tunnell, senior vice president for

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