Home > Finance
0 views 25 sec 0 Comment

Finance

/ Owner - June 7, 2012

Finance Articles from the Web

Finance & Reserve Videos

Accounting

  • Review or Audit the Books – always do one of these……… March 20, 2024
    …..because if money disappears while you’re on the board, you might as well move, as your neighbors will blame you just as much as the crook. Over the last month or so, we’ve seen another boost in cases of  fraud and embezzlements in HOA’s and condo’s. I imagine this occurs after the beginning of the year because most associations get their audit or financial review at the end of the fiscal/calendar year.  Whereas the instances of crime have appeared are mostly ...
  • 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………………………..

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

  • Strategic Budgeting for Deferred Maintenance: A Roadmap for Long-Term Success (CO) March 26, 2024
    Analyzing the financial health of a homeowners association is a crucial task to ensure its ability to maintain and enhance the community and common areas. For a variety of reasons, sometimes the association will be faced with deferred maintenance. Creating a funding plan to address maintenance helps establish a sustainable financial foundation. Completing an assessment of deferred maintenance is the first step in determining the current state of the community.     Read the article…………………………….
  • 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…………………………….

Budget Archives

Collections

  • Top 5 HOA Collection Policy FAQs for Board Members (GA) March 26, 2024
    Many board members and homeowners have questions about their HOA collection policy and how their HOA enforces the policy. We’ve asked our experienced HOA collection attorney team to provide the top questions they hear from association board members to help you better manage your community:   Read the article…………………………….
  • Condo/HOA Boards – Don’t Let Lenders Block Your Collections (NY) March 20, 2024
    Condominium and HOA boards in New York have lien foreclosure rights against delinquent properties. But, when the primary mortgage lender isn’t qualified to do business in New York, delays and complications can arise. Here’s what you need to know:   Read the article…………………………….
  • How does a condominium assessment lien work? (FL) March 20, 2024
    Condominium associations have various tasks that require them to interact with unit owners, such as collecting overdue fees or payments. These delinquent dues can impact all other unit owners, requiring the association to respond appropriately. Sometimes, sending notices can be enough to collect these fees, but other scenarios may call for further actions, such as placing a condominium assessment lien on the noncompliant owner’s unit.   Read the article…………………………….
  • 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 ...

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

  • State Court Ruling Opens Door for Major Changes to NYC Property Tax System (NY) March 27, 2024
    A recent state court ruling has created a path toward major changes to New York City’s property tax system — albeit one that could have mixed consequences for co-ops and condos owners. In a 4-3 ruling, the New York Court of Appeals allowed a lawsuit alleging the city’s property tax system is unfair and illegal to move forward. Tax Equity Now New York (TENNY), a coalition of homeowners, real estate industry groups and civil rights organizations, filed the suit, claiming ...
  • How Condos are Reassessed (IL) March 19, 2024
    The job of the Assessor’s Office is to calculate a fair market value for your property. The market value is how much your property could sell for based on the current real estate market. For residential properties, including condos, your property’s assessed value equals 10% of its fair market value, per Cook County ordinance.   Read the article…………………………….
  • 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…………………………….

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

  • Employee accused of stealing over $200,000 from HOA in Anderson Co. (SC) March 26, 2024
    An employee is accused of stealing over $200,000 from a homeowners association in Anderson County.  According to the Anderson County Sheriff’s Office, detectives met with the Overlook Homeowners Association President after he noticed a large amount of money was missing from the association’s account.   Read the article…………………………….
  • Former Seminole County HOA manager accused of stealing $437K from HOA March 26, 2024
    Tammi Morrison, a former President of the Ashford Park Homeowners Association, was arrested by the Seminole County Sheriff’s Office after investigators say she stole $437,000 from the community association when her business managed the neighborhood.  Read the article…………………………….
  • Review or Audit the Books – always do one of these……… March 20, 2024
    …..because if money disappears while you’re on the board, you might as well move, as your neighbors will blame you just as much as the crook. Over the last month or so, we’ve seen another boost in cases of  fraud and embezzlements in HOA’s and condo’s. I imagine this occurs after the beginning of the year because most associations get their audit or financial review at the end of the fiscal/calendar year.  Whereas the instances of crime have appeared are mostly ...
  • 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…………………………….

Fraud & Embezzlement Archives

Comments are closed.