Lockboxes - Richardson & Harman, PC

HOA Blog : Common Area Issues

Lockboxes

October 7, 2008 • By By: Kelly G. Richardson

Kelly,

I've lived in a 90+ unitPUD in Placentia for 6 1/2 years. Our property management company was recently sold. We now send our HOA monthly fees to a lockbox in Yucca Valley.

Several of my neighbors and I have discussed this and wonder if this is normal. Do we have a say in who manages our property? What about our fees going to a lockbox?

Your advice in this matter would be greatly appreciated by all of us!!

T.W., Placentia

Dear T.W.:

Lockboxes are a common technique that associations or their managers can us to streamline the collection of member assessment payments. In a lockbox arrangement, payments are sent to a special post office box, accessed by the bank. So, payments are basically made directly to the bank, which then provides reports to the accountholder. Deposits are then made from the lockbox, cutting out the administrative work and potential delay of management firm deposits.

The selection of the management company is, as other association vendors, a function of the association board of directors. If the directors are not selecting the best vendors, volunteer to help, and provide the board with your research. Be careful though, you just might wind up on your board!

In evaluating potential managers, work on referrals if possible. Choose not only on price, but on service and qualifications. Is the potential manager a Certified Common Interest Development Manager? Do they hold credentials from the Community Association Institute and/or the California Association of Community Managers? Make sure your manager is committed to their profession, and to continuing to advance his/her knowledge and training.

_______________________________

Legal Quick Tip: Is your association's corporate status current? Check it on the internet at http://kepler.ss.ca.gov/list.html.

Need the forms (there are two) which must be filed at least every two years? Find them, the SI-CID and SI-100 at http://www.sos.ca.gov/business/corp/corp_soinfo.htm. The filing fees are minimal ($15 and $20, respectively), the forms are simple to complete, and can be filed online at https://businessfilings.sos.ca.gov/.

Kelly G. Richardson is Managing Partner of Richardson & Harman PC, a California law firm known for real estate and community association advice.Direct questions to KRichardson@RH4Law.com. For past columns, visit http://www.hoahomefront.com/. All rights reserved®.

Visitor Comments (0)

Be the first to post a comment!