Articles

Turning your biggest headache into your biggest asset

By SOLitude Lake Management

Lakes and ponds captivate us due to our innate attraction to water, making them popular focal points in HOAs and residential communities. Unfortunately, weeds, algae, muck, and erosion can make your waterbody noticeable for the wrong reasons, potentially leading to complaints, safety hazards, infrastructure damage, and a bruised reputation. Healthy waterbodies contribute to happy communities and managing them should never be a headache.

For most communities, the ideal waterbody is balanced, functional, and beautiful—and achieving this trifecta can be challenging. However, proactive, environmentally-responsible management solutions can help stakeholders amplify its benefits and maximize the value that it adds to their property. 

Promoting Ecological Balance

Nuisance weed and algae growth, bottom muck, and foul odors may signify nutrient imbalances in the water. Excess nutrients can enter the water through runoff from construction sites, fertilized lawns and gardens, agricultural land, dog parks, or polluted areas. Water quality imbalances jeopardize the health of aquatic ecosystems and can create prime conditions for cyanobacteria (blue-green algae), which produce toxins that are harmful to humans and potentially deadly to wildlife, livestock, and dogs.

If water quality testing reveals significant imbalances, several eco-friendly solutions are available to help counteract and prevent them.

Nutrient remediation
Nutrient remediation can help communities achieve cleaner water that’s less hospitable to weeds and algae. Several eco-friendly products are available to remove excess nutrients from both the water column and sediments, leading to long-lasting improvements in water quality. To recommend the right solution, experts assess waterbody size, function, and degree of water movement. 

Biologicals
Biological bacteria help make the decomposition of nutrient-rich bottom muck more efficient, which can help alleviate foul odors, improve water clarity, and prevent imbalances. More importantly, depth and volume may be restored as muck decomposes, reducing flood risks and allowing stakeholders to prolong the need for physical removal via dredging, which most communities need at least a decade to budget for.

Dissolved oxygen
Dissolved oxygen (DO) aids bacteria in the breakdown of muck and is crucial to support aquatic life. DO-rich waterbodies often provide fantastic fishing and beautiful views. However, DO can become depleted due to high temperatures, abundant sunlight, or stagnation. Submersed aerators are one of the more common solutions to promote DO, but other new technologies are showing promise by producing higher DO concentrations with longer-lasting results.

Promoting Functionality 

One of the most important functions of waterbodies is the collection of water during rainstorms. Failure to do so can result in dangerous consequences like flooding in the community. It’s important to conduct regular inspections to help stakeholders identify potential impediments and develop a plan to repair or restore them.

Shoreline restoration
Erosion is natural, but it can be accelerated by human activities. Beyond being an eyesore, eroded shorelines can collapse and injure residents, guests, or landscapers, leading to potential lawsuits. Professionals utilize bioengineering techniques to rebuild eroded shorelines by filling geotextile mesh with sediment, shaping it to natural contours, and anchoring it securely. Native vegetation or sod is then planted over the material, creating a living shoreline that restores waterfront land, helps improve water quality and enhances property values.

Muck removal
Eroded sediment progresses into muck that may clog stormwater equipment, reduce depth, and impede drainage. During storms, floodwater can damage building foundations, roads, and other infrastructure. Muck and debris removal are key to preventing this. A hydro-rake, similar to a floating backhoe, can restore depth to areas with high sediment accumulation. This may help prolong or prevent the need for more costly dredging, allowing communities to divert funds to more urgent projects.

Promoting Beauty 

While naturally breathtaking, lakes and ponds can be enhanced through color, movement, and lighting to fulfill different aesthetic needs. Goals can vary significantly among stakeholders, and a wide range of options are available to customize waterbodies of all shapes and sizes. 

Fountains
Often placed in high visibility areas like community entrances, fountains provide eye-catching beauty and intrigue that may make a community more desirable to new residents and help increase property values. With intricate water patterns, graceful silhouettes, and night-time lighting elements, they can be highly customized. Fountains also provide added benefits of circulation and adding oxygen near the surface of the water. 

Vegetative buffers
Though native vegetation is primarily recommended to help stabilize shorelines and prevent erosion, they can also serve as a beautiful accent by framing a waterbody with colorful plants and flowers. Moreover, buffer vegetation helps filter stormwater runoff, reducing the influx of excess nutrients and promoting clean water that is less prone to weeds and algae.

Pond dye
Few things are as beautiful as the reflection of a sunset on glistening water. For communities that wish to maintain a vibrant look throughout the day, eco-friendly pond dyes are a great option. Customizable shades of blue can create a welcoming, pristine appearance while still looking natural. Pond dyes may also help limit the penetration of sunlight, slowing the process of photosynthesis and the subsequent weed and algae growth and DO depletion. 

Overseeing a waterbody may seem like a blessing and a curse at times. As aquatic experts, we view it as an amazing opportunity to not only improve the appearance and value of a property, but most importantly, enhance lives. By focusing on proactive, sustainable management strategies, you can better sidestep the headaches and instead help your community enjoy the long-term financial, physical, and spiritual rewards.

Associations and Fraud

by Mark Cantey CPA - HOA Financial Solutions LLC CPA’s for Associations

                                                                                                                  
Far too often we have read the story of an embezzlement or theft involving a homeowner association and we may think; “How could this have happened- Wasn’t anyone watching the store?”   In some cases, it may be true; no one was watching.  But fraud, by definition, involves deception and people intent on wrongdoing don’t always make it easy for us.   So how do we reduce the risk of a bad actor harming our community for their own financial gain?   Fully addressing the issue is far beyond this post and remember there is always a cost/benefit to every prescription, but the following are some thoughts and steps to consider.

The Fraud Triangle
Good auditors are familiar with the Fraud Triangle, but anyone in leadership and management should also be acquainted with this idea as well.  The Fraud Triangle essentially says that if the following three key components are present in a fraudster’s situation- Pressure, Rationalization and Opportunity, the environment can be ripe for a fraud to occur. What do these terms mean in our context?  Let’s look at the first one-Pressure.  The person that has pressure, strong incentives or unmet desires in their mind or life, may be looking to come out from underneath this weight- whether real or perceived.  From bills to pay, greed or addiction, the person has pressure or an incentive to get money- no matter what.

Of course, we all have pressure in our lives, but the fraudster is different in how they may rationalize it.   So, they will move to Rationalization as the next factor they consider. They may rationalize that they deserve the money since they believe they are being underpaid. The organization doesn’t need the money in their mind, they think they will pay it back, or they just don’t think they’ll get caught. These can be some of the many irrational rationalizations a fraudster may consider. 

The last aspect of The Fraud Triangle is Opportunity.  This final component to the Triangle is different from the other two aspects in that as pressure and rationalization are within the mind of the embezzler, (something out of our control), the concept of opportunity relates to the business environment we are all working within.  Yes, we should be aware of apparent warning flags we may see with folks, but the financial working environment and effective internal controls should be established to reduce opportunities for the thief.  In the Association world, what does that look like?   The basic principle is two- fold; we should have more than one set of eyes on a transaction and secondly, we work to bring financial activity into the light for all involved to see. The following is not an exhaustive list but these ideas can help promote an environment with checks and balances, including promoting the principles of segregation of duties, thus reducing the opportunity for someone to commit fraud:

1. Each month, the Board Treasurer should review the bank statements and bank reconciliations, noting the activity and transactions, including bank debits. This includes operating and all investment accounts.
   
   
2. All bills expended for the month should be reviewed, even after the fact, comparing the amount expended with an invoice.
   
   
3. The bills expended for the month should be ratified and entered into the minutes of the Board meeting as approved- even after the fact.
   
   
4. Vendors of the Association should be familiar to the Board.   All vendors serve at the pleasure of the Board and their vendor file and profile should be available to the Treasurer at a minimum, when requested. 
   
   
5. A review each month of homeowner assessment write offs and adjustments, noting any abnormalities normal assessments charged and payments received.
   
   
6. The Association should consider adopting a “No gift policy”.   This policy simply states that managers and board members are not to receive any gifts or services from vendors.
   
   
7. The Board should discuss and establish a “tone at the top” philosophy of doing business.    This is an attitude of encouraging solid ethics and acting above approach and blameless in all we do.  It is an environment where it is ok to ask questions and it is also good to provide transparency.  Most of us who have served on a Board or managed properties, are aware of “institutional mistrust” that many outside of governance have about our or any organization.   Our job in leadership is to serve well, without being defensive of our responsibilities and to provide transparent, truthful data and let the facts speak for our actions.   Easier said than done when accusations fly, so we counter with transparent truth and clear processes.  It helps protect us from falsehoods as we strive to do the right thing-and from those that are looking to take advantage of dark opportunities.

There is always more that can be done to protect your Association, but these ideas, can be a good starting point.  Consider talking to your manager, accountant and attorney to formulate your approach and document your processes.

Disclaimer. The material and opinions in this blog and our website are not intended to be used as guidance or direction for any entity and the use of this blog does not establish a professional relationship with the author or any other entity. Always consult your own professional advisors who are familiar with your specific situation. The author does not in any way guarantee or warrant the accuracy, completeness, or usefulness of this blog and will not be held responsible for the content of this or any blog. The information is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice or services. As such, it should not be used as a substitute for consultation.

What You Need to Know About Pond Management as a New Property Manager

By SOLitude Lake Management

Taking on the new role of property manager for a homeowners association or residential community can be an exciting yet challenging venture. It involves navigating through a myriad of new information, understanding community dynamics, and ensuring operations continue to run smoothly during the transition period. One aspect of community management that often surprises new property managers is the complexity of community lakes and stormwater ponds. 

When it comes to maintaining healthy, beautiful aquatic ecosystems, there is a lot more than meets the eye, and it can be overwhelming to learn that poorly managed waterbodies are a big source of complaints among residents. Stormwater ponds are important functional resources that collect rainwater, filter pollutants, and prevent flooding during storms. Improperly maintained equipment can lead to damaged community infrastructure and have devastating financial consequences. 

Community managers must become well-versed in the unique challenges of pond maintenance and learn effective strategies to preserve the longevity of these resources. Effective management is not only crucial from a functional perspective, but it is also an impactful way to enhance the value and desirability of a community. Lakes and ponds offer much more than just a pleasant sight for passersby – they have the potential to be community focal points for fishing, nature watching, picnics, and other activities. Here are five key facts you should know as you begin your new pond management journey. 

1. Most community ponds are man-made
First, it’s important to understand that most community waterbodies are man-made. In urban spaces, there are few areas where water can naturally absorb into the ground. Instead, it flows over roads, sidewalks, and other impervious surfaces. Stormwater ponds prevent flooding by safely redirecting water to nearby streams, rivers, or lakes. 

2. No two waterbodies are the same
Ponds are constantly changing and influenced by dozens of factors, including weather patterns, sunlight, topography, land use, their depth and size, and even wildlife that are present in and around the waterbody. Because no two waterbodies are the same, a one-size-fits-all management program is less likely to help you achieve your goals; strategies that work for a pond in another community may not work for yours, so it’s important to develop a custom plan that supports the unique characteristics of your waterbody. 

3. Ponds “age” naturally, but human activity is accelerating this process
Over time, lakes and ponds undergo a natural aging process called eutrophication, where they accumulate nutrients like phosphorus. However, human activities can accelerate this process through poor agricultural and landscaping practices, urban development, fertilizer use, and pollution stemming from trash, detergents, sewage, pet waste, and motor oil. Stormwater ponds that become inundated with excess nutrients are more likely to develop nuisance aquatic weeds, algae, and toxic cyanobacteria (blue-green algae). It's important to educate community members about these nutrient pollution sources so they can make responsible choices that support healthy community waterbodies. 

4. Shoreline maintenance is equally important
Lake and pond shorelines play a direct and vital role in the health of a waterbody. The shoreline acts as a buffer zone between land and water, providing a transition area that supports a diverse range of plant and animal life. Healthy shoreline vegetation helps filter pollutants, stabilize the soil, prevent erosion, and reduce the impact of stormwater runoff. Shoreline deterioration is often the first indicator of an unhealthy waterbody. In addition to endangering residents and increasing liability concerns for a community, unstable shorelines can exacerbate nutrient loading and other water quality problems.

5. Proactive management goes beyond weed and algae control
Weeds and algae are not just unsightly, they’re often a symptom of a more serious problem. During the eutrophication process, the bottom of a pond accumulates eroded sediment, animal waste, and plant matter that create a layer of muck as they decompose. Over time, water quality can deteriorate and the pond will lose depth and volume until it no longer holds stormwater as intended. Once reaching this point, dredging will be required to reset the waterbody to its original form. Dredging is one of the biggest expenses a community may ever face, which is why it’s important to budget several years to decades in advance and implement preventative measures to slow its decline. Preventative water quality testing and lake mapping are essential to aid in reserve studies and financially prepare for eventual dredging needs. 

Once a new community manager understands these basics and the benefits of getting ahead of pond problems before they occur, they may face the additional challenge of getting residents on board with investing in a proactive management program. This is often due to a lack of understanding and gives community managers an opportunity to demonstrate their leadership through education and mediation. Neglected stormwater equipment can result in flooding that endangers residents and damages homes, parking lots, landscaping, and amenities. Eroded shorelines can increase the likelihood of falls and accidents. Stagnant water promotes mosquito breeding, posing health risks from mosquito-borne diseases. The value and desirability of a community can plummet as a result. 

Successfully informing residents about these dangers can help cultivate a sense of collective responsibility and foster more effective working relationships between residents and community leaders. A professional pond management partner can assist in this process by implementing science-backed maintenance strategies and keeping leaders informed on the progress of their programs. When considering a management partner, look for one that not only prioritizes an integrated approach, but also works to understand your “why” – whether that’s to restore beauty to your community, delight and attract new residents, increase safety, reduce long-term expenses, or all of the above. 

Ultimately, expanding knowledge and proficiency in pond management is crucial for property managers who want to establish themselves as competent and reliable leaders. It enables them to educate community members, gain support for investing in essential services, create new recreational opportunities, and make informed decisions that benefit their community's value and well-being.