SITUATION
A 176-unit townhome association in Scottsdale, AZ was in desperate need of a community facelift. All of the board members had resigned, leaving the community with no way to effectively move forward with necessary repairs. The community was in major disrepair with rotting columns, many balconies throughout the community were failing because of rot that had not been addressed, the entire community was in need of exterior painting. The pool pumps were not working properly and there were dead trees causing hazardous conditions all over the property.
FIRSTSERVICE RESIDENTIAL SOLUTION
The management team’s first order of business was to encourage current residents to serve on the board. Board training booklets were provided that included essential details on what being a board member entailed
(e.g. fiduciary responsibilities, definition of authority, etc.). Continual training was provided to the new board members at each board meeting and whenever questions were brought up. Once a new board was established, the community manager convinced the homeowners to vote in favor of an increase in their dues.
Once the reason why the increase was necessary was explained, all owners voted unanimously to increase the dues. Next, a plan for the necessary repairs was put in to place. The manager and board members conducted three site tours with each of the five potential painters/restoration vendors. The management team provided the board with a detailed bid matrix outlining the scope of work, payment terms, warranties, and insurance in addition to the bid proposal for each vendor prior to choosing the right company for the job. A final site tour was conducted with the board, manager, and selected vendor to uncover any additional work that may have been missed in the initial tours.
OUTCOME
One year later the results are as follows: all rotting columns have been repaired or replaced, all balconies were repaired and addressed, broken pumps were replaced or repaired, all hazards created by trees throughout the community have been addressed and the community just finished a wood repair and exterior paint project. The reserve contributions are now closer to 100% of the suggested contribution, as recommended by the Reserve Study. Using the FirstService Residential Arizona Pre-legal Department, delinquencies have been drastically reduced and homeowners who were in arrears are on payment plans. The community is now in good operating order and in a position to proactively repair the roofs throughout the community.
