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/ Owner - June 7, 2012

Finance Articles from the Web

Finance & Reserve Videos

Accounting

  • Everything You Need to Know About HOA Accounting September 19, 2023
    As with any organization, strong accounting can make all the difference in maintaining a well-run, functional HOA. While good accounting practices can lead to happier homeowners and communities (not to mention HOA boards), poor financial management can have a lasting, negative impact.   Read the article………………………..
  • Sharing Community Financials May 24, 2023
    As a community association board member or manager, you are ultimately responsible for managing the finances of a business – your community. The association members are all stakeholders in that business, so sharing financial information with them is essential to building and maintaining trust and credibility.   Read the article………………………..
  • A Guide to HOA Budget, Accounting, and Finance August 20, 2022
    Understanding how to interpret your HOA management company’s financials are an important part of your role in an HOA. The management company you’re working with keeps detailed financial records and HOA members’ ability to read and understand them will be key in maintaining community funds. This skill set is even more important if you are a self-managed community. We’ve compiled important basics to help ensure you’re following best practices when it comes to managing your community finances in an HOA ...
  • Accounting Checklists Ensure HOA and Condo Financial Processes Are Done Correctly August 13, 2022
    How do you ensure best practice bookkeeping is done correctly on a consistent basis at your Homeowners Association (HOA ) or Condo community? You standardize your process, document it, add checklists and then inspect that your accounting team is following the system.   Read the article………………………..
  • HOA Accounting Reports You Should Know That Are Not Financial Reports August 10, 2022
    Many homeowners associations focus on the operational side of community management. But, the financial aspect is just as important. And one of the ways to evaluate the financial health of the association is through HOA accounting reports.    Read the article………………………..

Accounting Archives

Audits

  • Audits at Boynton Beach HOA question its finances; board president awarded contracts (FL) August 19, 2023
    Nautica’s HOA budget is more than $600,000 a year. Previous audits have also identified problems and one homeowner said she had to file complaints with the state to see HOA documents.   Read the article………………………..
  • When It’s Time for an Audit – Covering the Basics for Multifamily Boards July 6, 2023
    When the average American taxpayer (or tax-dodger, one supposes) hears the word “audit,” they’re likely struck with a feeling somewhere between annoyance and terror—usually because being audited means that something has been found amiss in their filing. For businesses that rely on the accuracy and timeliness of their financial records, however, including condominium and homeowners associations and cooperative corporations, an audit is—or at least ought to be—a regular part of a healthy fiscal practice.   Read the article………………………..
  • What can residents do when the HOA or condo board hasn’t posted audit or held elections? (FL) July 2, 2023
    Question: According to the Condominium Act, “each year the board of administration must prepare and complete a financial report of the previous year’s financial activities within ninety (90) days following the end of the Association’s fiscal year, or on such other date as the bylaws of the association require.”   Read the Q&A……………………………
  • Your Accountant Wants You To Know About Section 57 Of The Condo Act (MI) June 8, 2023
    Condominium associations with annual revenues exceeding $20,000.00 should take specific note that Section 57(2) of the Michigan Condominium Act provides that an independent certified public accountant must perform an annual review or audit of the association’s financial documents, including its books, records, contracts, and financial statements.    Read the article………………………..

Audit Archives

Budget

  • How to Successfully Budget Your HOA March 13, 2024
    A homeowners association makes the big decisions for your condo or living space. These big decisions include a budget, which encompasses how your association will decide which areas of your property require financial spending. Creating a budget is a complex project; at Thayer Associates, we’d like to make the process easier.     Read the article…………………………….
  • HOA, condo fees rising for some Minnesotans March 9, 2024
    If you live in a condo or townhome in Minnesota, you may notice your fees are going up.  One insurance expert says this is a trend he’s been seeing for the last several months.  Helen Mitchell recently found out it will be more expensive to live in the Coon Rapids townhome she’s called home for the last 20 years.    Read the article…………………………….
  • The delicate balance of HOA assessments March 7, 2024
    Hello, dear readers, and welcome to the Real Estate Whisperer, where I tackle the ins and outs of 92101 living with a pinch of humor and a dash of reality. Today’s hot topic? The ever-dreaded HOA assessment increases. Yes, I can almost hear the collective groans from here. But before we hoist the pitchforks and light the torches, let’s dive a little deeper into what’s really going on behind those notices that make our wallets tremble.   Read the article…………………………….
  • Is Your Board Making These Critical Mistakes? Essential Risk Management Tips March 2, 2024
    In a recent New York case, 72 Poplar Townhouse, LLC v Board of Managers of the 72 Poplar Street Condominium, a series of critical issues arose that have wide-reaching implications for condo, coop, and HOA boards. This case highlights the potential consequences of unclear bylaws, the importance of meticulous records, and the complex power dynamics between unit owners and boards.   Read the article…………………………….
  • Improving HOA Finances During Economic Uncertainty: Key Strategies February 16, 2024
    Homeowners associations (HOAs) across the country are increasingly concerned about how inflation, rising interest rates, stock volatility, and whispers of a looming recession could impact their communities. As the stewards responsible for maintaining shared assets that preserve neighborhood appeal and property values, HOA boards carry the weighty duty of shielding their finances from economic storms.   Read the article…………………………….

Budget Archives

Collections

  • No Super Lien for You: New Case on the Priority of HOA Liens in North Dakota March 13, 2024
    In a case of first impression, the North Dakota Supreme Court ruled that, despite the language of a declaration of covenants and restrictions to the contrary, a homeowners’ association (HOA) lien for unpaid assessments does not have super priority over a later recorded mortgage. In the Industrial Commission of North Dakota v. Gould, 2024 ND 32, the developer of a housing project recorded a declaration of covenants and restrictions with regard to the homes in the project.   Read the article…………………………….
  • New York Class Action Settlement Impacts Foreclosure Proceedings: What Condo and HOA Boards and Management Need to Know March 13, 2024
    A recent class-action settlement addressing foreclosure procedures in New York State has significant implications for condominium and homeowners’ associations (HOAs) that have owners in arrears. The law involved only applies to foreclosures of home loans, and not condo and HOA foreclosure of common charge liens and experienced counsel need to make this clear at the initial filing of the foreclosure action or risk having the action dragged into a mandatory court process where owners could be appointed legal counsel and ...
  • Unlocking Success: Using Legal Representation Over Collection Agencies for Delinquent Condominium Assessments March 7, 2024
    Community associations in Michigan play a crucial role in maintaining the integrity and functionality of shared living spaces. However, when faced with delinquent condominium assessments, these associations often encounter significant challenges in recovering the owed amounts. While some may consider turning to collection agencies as a solution, there are compelling reasons why community associations should select a law firm instead.    Read the article…………………………….
  • HOA Collections Policies: Ensuring Financial Stability and Fairness (NC) March 1, 2024
    In the realm of community management, one of the pivotal aspects often overlooked until it becomes a pressing issue is the collections process. Community association board members serve as stewards of the community’s financial well-being, necessitating a disciplined approach towards collections and delinquency management to maintain fiscal stability for the community association. This article delves into the significance of having a clear collections policy, outlines best practices for crafting one, and explores enforcement options to uphold financial integrity while adhering ...
  • Property Lien In North Carolina: What Does It Do? February 22, 2024
    When a homeowner encounters a property lien in North Carolina, it can be a source of confusion and frustration. As such, all homeowners must understand property liens, their possible consequences, and how they can affect them. It is not always easy to navigate the ins and outs of liens, especially without a lawyer or an agent.   Read the article…………………………….

Collections Archives



Reserves

(Association Reserves has a list of state laws regarding reserves at this location;  

(Building Reserves also has a list of state laws regarding reserves at this location:

  • Is it a Reserve Component (or a Capital Improvement)? March 8, 2024
    So the first criteria for a Reserve component is that it exists. If it does not exist, it is a new asset to the community, and therefore a Capital Improvement. But what about a black-and-white closed circuit camera system? Can it be replaced through Reserves with a color-digital system with a one-week digital video backup system? Such a system is obviously new (of course), and different (color, and now with storage), but I would argue that it continues to serve ...
  • HOA Reserve Funding: Real-Life Lessons from 3 Associations February 21, 2024
    When managing a homeowners association, reserve funding decisions made by the HOA board have a profound impact on the community’s financial health and quality of life. By examining the REAL experiences of three different communities, we can put into practice valuable lessons from their reserve fund wins and fails. Which HOA are you?    Watch the videos………………………….
  • Hidden Trouble: How Aging Infrastructure Threatens Homeowner Associations February 18, 2024
    It’s easy to overlook the critical infrastructure subtly running behind the scenes of every homeowner association (HOA) community. While residents enjoy manicured lawns, sparkling pools, and pothole-free roads, the inner workings powering these amenities face a ticking clock.    Read the article…………………………….
  • Navigating Inflation and Investments: Strategy Guide for HOA Reserve Funds December 19, 2023
    Whether your HOA reserve fund is modest or substantial, the pressing question remains: How can you best manage this crucial financial resource for your entire community? In the current climate where inflation looms large and investment opportunities are rising, understanding the intricate balance of community safety, growth, and fiscal responsibility is paramount for managing your reserve fund.   Read the article…………………………….
  • Condo boards across Florida work to increase state-mandated funding reserves November 17, 2023
    This is a crucial time of the year for condo associations across the state as they put together 2024 funding proposals for their members to vote on. Not only are dues likely going up for many in condo associations, but the amount they need to retain in community reserves is also likely to increase.     Read the article…………………………………

Reserve Archives

Banking & Lending

  • Lenders Identify Risks and Opportunities for Condo Lending (FannieMae) February 22, 2024
    With the U.S. housing market continuing to confront the significant supply shortage of homes for sale, condos may play an important role in narrowing the supply gap of affordable housing options1. While condos represent nearly 10 percent of the mortgage market, they often play a larger role in many metropolitan areas2. Condos also present unique risks, as condo owners share financial responsibility for the operation and maintenance of the common areas and shared amenities. The complexities of underwriting condo project ...
  • Three Steps to Simplified HOA Financing October 18, 2023
    When your association is looking for financing to improve common areas, add a playground, tackle deferred maintenance, or make emergency repairs, here are three steps your community association can take to simplify the financing process.     Read the article……………………………….
  • HOA Q&A: What are our options when common area renovations become unwieldy? (FL) September 30, 2023
    Q: My condominium association is undergoing a large common area renovation. At the beginning of the project, the Board and the management company announced that we had enough reserves and other operating funds to undertake the renovation without a special assessment.     Read the Q&A…………………………………
  • New law improves online protections for homeowners (NV) September 23, 2023
    This is the first of two columns by Las Vegas attorney Adam H. Clarkson. Today, he addresses Senate Bill 378, which imposes cybersecurity insurance and data protection requirements for homeowners associations’ online assessment payment processors. Next week, he will address what the new law says about email notices.    Read the article………………………..

Banking & Lending Archives

Taxes

  • NYC pols urge Albany to OK tax break for ‘green’ mandate that could cost co-op, condo owners $20K March 18, 2024
    New York City Council members feeling the heat from thousands of angry co-op and condo owners are urging state pols to OK tax breaks over a new “green” mandate that could cost more than $20,000 per unit.  The City Council had actually approved the mandate, the Climate Mobilization Emissions Law, in 2019 requiring residential buildings to initially curb their greenhouse gas emissions by 40% and ultimately by 80% by 2050.   Read the article…………………………….
  • 2024 Property Taxes: Impact on Chicagoland Community Associations (IL) February 13, 2024
    Cook County properties are reassessed on a triennial schedule. Every three years, the new valuations – along with appeals, exemptions, local tax levies, and assessments of nearby properties – determine the amount of future property tax bills.    Read the article…………………………….
  • Mayor Adams eyes NYC property tax breaks as co-ops, condos face crunch from ‘green’ mandate February 12, 2024
    Mayor Eric Adams said he’d consider property tax breaks for middle-class co-op and condo owners who have to pay for pricey building upgrades when a new “green” mandate icks in.  Hizzoner said he was open to tax abatements as anxious residents brace for the costs of Local Law 97, which covers 800,000 co-op and condo apartments.   Read the article…………………………….
  • Important Tax Deadlines for California HOAs February 10, 2024
    While understanding tax deadlines and requirements is crucial for any HOA board, navigating through these can be complex and overwhelming. The intricacies of tax filings often require professional guidance to ensure compliance and avoid penalties. In California, HOAs are subject to various tax reporting and filing deadlines, each with its own set of requirements and implications. While it’s imperative for HOA boards to collaborate with accounting professionals who specialize in HOA tax matters, Davis-Stirling offers some key deadlines and considerations ...

Taxes Archives

General Financial

  • POA, HOA fee hikes make it harder to afford property for some (TX) November 7, 2023
    Property association fee hikes are putting many people in a bind trying to hold onto their investment property or home.  The fee increases started around the pandemic and show no signs of ever retreating.    Read the article………………………………
  • Time for a Financial Check-Up (FL) October 28, 2023
    When did you last take a close look at your investment account statements, have a meaningful discussion with your financial advisor or broker, or reassess your investment goals and time horizon due to changing circumstances or major life events?   Read the article…………………………
  • New law improves online protections for homeowners (NV) September 23, 2023
    This is the first of two columns by Las Vegas attorney Adam H. Clarkson. Today, he addresses Senate Bill 378, which imposes cybersecurity insurance and data protection requirements for homeowners associations’ online assessment payment processors. Next week, he will address what the new law says about email notices.    Read the article………………………..
  • Costs Clients May Not Know When Buying a Condominium August 23, 2023
    Investing in a condominium can be an enticing prospect for many prospective homeowners. With amenities, maintenance, and a sense of community all bundled into one package, condos offer a unique living experience.   Read the article………………………..
  • Monitoring Fraud in Condo Associations: The Do’s and Don’ts (IL) August 4, 2023
    Condominium associations hold a significant level of trust, as they are responsible for managing the community’s financial affairs and overall well-being.  Fraud can have devastating consequences for the condominium, both financially and reputationally. Not only does fraud have the potential to break down relationships between neighbors, but it can also cause a significant increase in condo fees to compensate for the losses.    Read the article………………………..

General Financial Archives

Fraud & Embezzlement

  • Navigating the Shadows: HOA Fraud and Community Safety (CA) March 18, 2024
    Homeowners Associations (HOAs) play a pivotal role in maintaining harmony and order in the fabric of community living. However, this structured environment is not immune to fraud and misconduct risks. HOA fraud casts a shadow over community trust and safety, raising concerns and demanding vigilance. This blog explores the intricacies of HOA fraud, offering insights and strategies to safeguard communities against such vulnerabilities.   Read the article…………………………….
  • Scottsdale HOA says manager stole $1.6M (AZ) March 18, 2024
    Scottsdale House board members wish they had been more attentive a few years ago.  After failing to do a background check on a twice-sued manager who ran the HOA for years, the board started discovering money was disappearing from funds targeted for repairs and upgrades.  The deeper into the books they dug, board members found more and more money missing – hundreds of thousands of dollars.    Read the article…………………………….
  • Texas sues Colony Ridge development for fraudulent real estate practices March 16, 2024
    Texas Attorney General Ken Paxton sued the Houston-area developers of Colony Ridge on Thursday, accusing them of deceptive sales, marketing and lending practices that allowed their sprawling housing development to flourish.Residents of Colony Ridge filed dozens of complaints for years about the development to state agencies, but Texas had little to show for addressing those concerns, according to a Texas Tribune and Houston Landing investigation.     Read the article…………………………….
  • Des Peres Alderman John E. Pound Pleads Guilty to $220K Embezzlement (MO) March 9, 2024
    John E. Pound, an experienced Des Peres alderman, admitted guilt to wire fraud charges, having embezzled $220,000 from a St. Louis condo association. Using his managerial position, Pound orchestrated unauthorized payments to himself over a decade, a federal court heard Thursday.   Read the article…………………………….
  • Collier, Lee condo fraud: Owners of management company indicted on federal fraud charges (FL) March 5, 2024
    The owners of American Property Management Services, who allegedly stole millions from dozens of Southwest Florida community associations, have been indicted by a federal grand jury.  The 17-count indictment, filed in January, charges Orlando Miserando Ortiz and his wife Lina Munoz Posada with wire fraud, conspiracy to commit money laundering and failure to file income tax returns.   Read the article…………………………….

Fraud & Embezzlement Archives

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