FAQs

Frequently Asked Questions (FAQ) for HOA Clients

General Questions

1. What is Modern Community Management's specialty?

A. We specialize in managing small HOAs (under 50 units) with tailored solutions that emphasize transparency, communication, and affordability.

2. How does Modern Community Management differ from other HOA management companies?

A. Our focus is on small communities. We provide open-access financial management, personalized service, and proactive support to meet the unique needs of small HOAs. Our Motto is "Empowering Small Communities – One Partnership at a Time." 

3. What plans do you offer?

A. We offer three plans:

i. Silver: Financial services only ($14/unit/month).

ii. Gold: Financial services plus additional services on an hourly basis ($19/unit/month).

iii. Platinum: Full-service management tailored to your needs (custom pricing).

Financial Management

4. What financial services are included in the Silver Plan?

   • Accounts Payable and Receivable

   • Online Payment Solutions

   • Monthly and Annual Financial Statements

   • 1099 Generation

   • Tax Preparation Support

   • Bank Reconciliations and Fraud Prevention

5. How do you handle homeowner payments?

A. We manage all homeowner dues and assessments, ensuring they are accurately tracked and deposited directly into your HOA's dedicated bank account.

6. What kind of bank account do you set up for HOAs?

A. We open a new bank account for your HOA under Enterprise Bank & Trust. The account is owned by your HOA, with board members as signatories. It’s FDIC-insured and optimized for small HOAs.

7. Should we open a new bank account or we can continue using the existing account in the same bank?

A. Yes, We will need to open a new bank account, even if it is with the same bank. Establishing a new account under the HOA's name will provide a fresh start and ensure clear financial management.

8. Can we access financial reports whenever we need them?

A. Yes! You’ll have open access to financial reports via our secure portal, and we proactively provide monthly reports on 15th-16th every month. 

Administrative Services

9. What documents do you store?

 A. We securely store meeting minutes, contracts, governing documents, and financial records for easy retrieval.

10.  What is included in board member education?

A.  We provide training sessions and resources to help board members understand their roles, responsibilities, and best practices for HOA management.

11.  How do you assist with annual disclosures?

A.  We compile and distribute all required annual disclosure packets to homeowners, ensuring compliance with local laws.

Specialized Services

12.  What happens if there is a maintenance emergency?

A.  Our 24/7 Emergency Maintenance Line ensures that urgent issues like plumbing leaks or electrical failures are addressed promptly. This service is included in the Platinum Plan or available on an hourly basis for Gold Plan clients.

13.  Do you handle vendor selection and contracts?

A.  Yes, we screen vendors, ensure they are licensed and insured, and assist with negotiating favorable terms for your HOA.

14.  Can you manage HOA violations?

A.  Absolutely. We draft and send violation notices to homeowners, ensuring compliance with association rules.

Meeting Support

15.  Do you attend board meetings?

A.  Yes, we attend quarterly board meetings as part of the Platinum Plan. For other plans, meeting attendance is available on an hourly basis.

16.  What meeting-related services do you provide?

A.  We prepare board packets, draft meeting agendas, record minutes, and share finalized documents via our secure portal.

Customization and Flexibility

17.  Can we customize the services in the Gold or Platinum Plan?

A.  Yes, we’re flexible! The Gold Plan allows add-on services on an hourly basis, while the Platinum Plan is fully customizable to fit your HOA’s unique needs.

18.  What if we only need occasional assistance with specific tasks?

A.  No problem! For Gold Plan clients, we offer hourly services such as maintenance coordination or vendor screening.

Onboarding - Getting Started

19.  How do we switch to Modern Community Management?

A.  Contact us to schedule a consultation. We’ll guide you through the onboarding process, including transitioning from your current management company. 

20.  What is the onboarding process like?

A.  We begin with a comprehensive review of your HOA’s needs, set up a dedicated bank account, and establish communication channels to ensure a seamless transition. The onboarding process takes only 2-3 weeks.

21.  Who can we contact for support?

A.  You’ll have a dedicated point of contact to address any questions or concerns. For emergencies, our 24/7 maintenance line is always available.

Pricing and Billing

22.  Are there any hidden fees?

A.  No. We pride ourselves on transparency. All costs, including hourly rates for additional services, are clearly outlined in your contract.

23.  How is the hourly rate calculated?

A. Our hourly rate is $95, charged on a prorated basis for tasks that may only take 15-30 minutes.

Additional Questions

24.  Do you assist with tax filings?

A.  Yes. We provide financial records for your CPA or can handle tax filing for you. CPAs in the area typically charge around $340 for this service.

25.  Can we use our own vendors?

A.  Of course! While we provide a list of trusted vendors, you’re free to choose your preferred service providers.

26.  Do you support virtual meetings?

A.  Yes, we facilitate Zoom meetings for board discussions, ensuring convenience and accessibility for all members.

Advanced Questions - Detailed answers.

Advanced Frequently Asked Questions (FAQ)

Strategic Financial Management 

Q: Could you please provide a detailed written example of how the 24-hour Emergency Maintenance Line operates on the operational side? Additionally, could you include the charges for both the Platinum and Gold service plans?
  A: Homeowners can call the Emergency Line after office hours and on weekends. If the PM on call does not answer their first call, they should leave a voicemail. The PM on call will return the call and provide assistance. The cost of the service is described in Exhibit A of the PMA under "Emergency After Hour Services." For the Gold plan, it would be considered "Additional Manager Work."

Q: How do you ensure that customers comply with and maintain all licenses and regulatory requirements, including building laws, fire regulations, and city, state, and federal regulations?
   A: We ensure compliance by conducting regular audits, staying updated on regulatory changes, and working closely with legal experts and local authorities. We also provide clear guidelines, proactive reminders, and assistance in obtaining necessary permits and inspections to keep the HOA fully compliant with all regulations.

Q: You say you can handle the complete accounting for the HOA. Do you do this in-house, or do you partner with another firm? What kind of accounting packages do you use?
   A: Modern Community Management (MCM) handles complete HOA accounting in-house (Dedicated Team) , ensuring accuracy, transparency, and efficiency. We use industry-leading accounting software such as the AppFolio system to manage financials, budgeting, and reporting seamlessly.

Q: Can you handle all payments and collections, including payments from owners, vendors, and regulatory fees? Do you propose and monitor the building’s budgets?
 A: Yes, MCM handles all payments and collections, including homeowner dues, vendor payments, and regulatory fees. We also propose and monitor building budgets, ensuring financial stability through accurate forecasting, expense tracking, and regulatory compliance.

Q: Will you be able to handle our current banking relationship on an execution basis? If yes, who in-house would manage this?
   A: Yes, MCM can handle your banking relationship on an execution-only basis. We process payments from the HOA’s operating account while the Board retains full control as the main administrator of both the Reserve and operating accounts. Your assigned HOA manager will be your main point of contact for any financial and banking-related transactions.

Q: How are all of the building’s records—both accounting and operational—kept?

A: We maintain all building records digitally using secure, industry-leading software. Alternatively, we offer an option to keep physical (black-and-white) copies of these records upon request for a minimal monthly fee. Accounting records are stored in your online portal, AppFolio, while operational records are organized in cloud-based systems for easy access, 

Q: How does MCM mitigate financial fraud risks?
   A: We leverage our partnership with Enterprise Bank & Trust to open secure, FDIC-insured accounts exclusively for your HOA. The account is accessible only by authorized board members, ensuring full transparency. Additionally, our bank reconciliation process includes dual-verification systems and fraud detection measures to prevent embezzlement or unauthorized transactions.

Q: Can MCM provide custom financial reporting for analytics?
   A: Yes, we can provide customized financial reports tailored to your HOA’s specific needs. This includes trend analyses, cash flow forecasting, reserve studies, and budget comparisons to support long-term financial planning.

Q: How do you handle underfunded reserve accounts?
   A: We conduct a reserve study to identify shortfalls and assist in creating a funding plan. This might include proposing special assessments, increasing dues, or optimizing expense management to build a healthier reserve account over time.

Operational Expertise

Q: What specific operational expertise do you have in-house? Engineering, HVAC/Heating, plumbing (pumps), electrical, etc.?
  A: We do not have in-house expertise in these areas, but we have a trusted network of vendors specializing in engineering, HVAC, plumbing, electrical, and more. We can provide recommendations and coordinate services as needed.

Q: Who maintains and oversees the building on an ongoing operational basis?
  A: As a remote HOA management provider, MCM coordinates all necessary operational services through the HOA point of contact (POC) and trusted vendors. We ensure the building is properly maintained by facilitating communication, scheduling services, and overseeing compliance.

Q: If items need to be fixed and/or maintained, how is this handled? How quickly is it addressed? Is there emergency support available 24/7?
  A: Your HOA manager will coordinate repairs and maintenance through the HOA POC and our network of trusted vendors or your preferred vendors. Response times vary based on urgency, but emergency services are available 24/7 to ensure prompt action when needed.

Q: How fast do you respond to requests made by the building, and what is the procedure?
  A: Our HOA managers respond to email requests within an average of 5 hours. For urgent matters, unit owners and board members can call directly to speak with their HOA manager for immediate assistance.

Q: Will you proactively recommend items that need to be fixed or replaced over time to prevent larger problems, mitigate costs, and allow time for the building to fund them?
  A: Yes, your HOA manager will proactively recommend maintenance and replacements to prevent larger issues, reduce costs, and allow the building time to budget and fund necessary repairs.

Technical Infrastructure and Security

Q: How does MCM ensure data security for our HOA?
   A: We employ encrypted online portals for document storage and communication. All financial data is stored on secure servers with restricted access. Our systems comply with industry-standard security protocols, including two-factor authentication and regular system audits.

Q: Can you integrate with third-party accounting or property management software?
   A: Yes, we can integrate with platforms such as QuickBooks, Yardi, or AppFolio for seamless data transfer and reporting. This allows us to work within your existing infrastructure if preferred.

Q: Do you support automated payment systems?
   A: Absolutely. We provide online payment portals for homeowners, enabling recurring payments, automated reminders, and real-time tracking to simplify dues collection.

Vendor Management and Contracts

Q: How do you evaluate long-term vendor performance?
   A: We maintain a performance dashboard for each vendor, tracking key metrics such as response time, cost-effectiveness, quality of work, and adherence to contracts. This data is reviewed quarterly to ensure consistent quality.

Q: Can you negotiate multi-year vendor contracts?
   A: Yes, we specialize in negotiating multi-year contracts that offer cost predictability and volume discounts. We also include performance clauses to ensure accountability throughout the contract term.

Q: How do you handle vendor disputes?
   A: In the event of a dispute, we act as mediators to resolve issues amicably. If necessary, we involve legal counsel and refer to contract terms to protect your HOA’s interests.

Complex Board Operations

Q: Can MCM help streamline board decision-making processes?
   A: Yes, we implement tools like voting platforms and project management software to enhance collaboration among board members. We also provide actionable insights and data-driven recommendations to support strategic decisions.

Q: How do you handle legal compliance for board operations?
   A: We stay updated on federal, state, and local regulations affecting HOAs. Our team ensures your board complies with bylaws, disclosure requirements, and fair housing laws. We also work closely with HOA attorneys to mitigate risks.

Q: Can you assist with developer transitions?
   A: Yes, we provide comprehensive support for transitioning from developer control to homeowner control. This includes reviewing governing documents, identifying operational gaps, and establishing a framework for self-governance.

Advanced Tax and Legal Compliance  

Q: Can MCM handle complex tax situations for HOAs?
   A: Yes, we specialize in handling intricate tax scenarios, such as unrelated business income tax (UBIT) and tax exemption compliance. We work closely with tax professionals to ensure accurate filing and strategic tax planning.

Q: How do you manage legal documentation for disputes or audits?
   A: We maintain meticulous records of all financial and operational activities. In case of a dispute or audit, we provide organized documentation, including contracts, meeting minutes, and financial reports, to support your HOA’s position.

Q: Can you assist with insurance claims?
   A: Yes, we handle insurance claim processes from start to finish, including documentation, vendor coordination, and communication with the insurance provider to ensure timely resolutions.

Q: Do you handle FinCEN/BOIR filings? How much does it cost?

A. Yes we are handling the BOI filing on behalf of the HAO with the extra cost on $275.

However, the BOI is on hold due to recent developments in the Act.

"The U.S. Department of Treasury’s Financial Crimes Enforcement Action (FinCEN) issued an announcement saying that it will not issue any fines or penalties or take any other enforcement actions against any companies based on any failure to file or update beneficial ownership information (BOI) reports pursuant to the Corporate Transparency Act by the current March 21, 2025, and other deadlines. FinCEN’s announcement stated that it would not take enforcement action until an interim final rule becomes effective and new relevant due dates have been passed. According to the announcement, FinCEN anticipates the interim final rule will be issued by March 21, 2025. FinCEN will solicit public comment for potential future revisions to existing BOI reporting requirements. Read the full announcement here."

https://www.davis-stirling.com/HOME/C/Corporate-Transparency-Act-Impact-on-HOAs

Future-Proofing and Strategic Planning

Q: How do you assist with long-term capital improvement planning?
   A: We conduct reserve studies and collaborate with engineers and financial planners to develop a roadmap for capital improvements. This includes prioritizing projects, budgeting, and identifying funding sources.

Q: Can you provide guidance on HOA policy revisions?
   A: Absolutely. We review existing policies, recommend updates to align with current laws, and facilitate member approval processes to ensure smooth implementation.

Q: How do you stay ahead of industry trends?
   A: Our team participates in regular training, certifications, and industry events to stay updated on best practices, regulatory changes, and technological advancements. We apply this knowledge to continuously improve our services.

Still have advanced questions?
 Contact us at hello@moderncm.com or call to speak with one of our experts!