Since July 1, 2018, when the CCIOA budget process was made applicable to pre-CCIOA communities, there continues to be confusion and unclarity with respect to the CCIOA budget process and especially if and how it applies to special assessments. The purpose of this article is to help clarify both the budget process and special assessment […]
Putting money in escrow does not excuse the payment of assessments (FL)
Q: Is is legal to deposit your HOA monthly payment in an escrow account if you are frustrated with the board’s performance? There are quite of us that are interested in your response. Read the Q&A……………………………….
Need More Money for Your Association? Here’s How to Get It! (CO)
Last month I had the privilege of teaching the webinar “Help We Need More Money,” which was all about generating more income for associations. Whether an association needs more money because it has unexpected repairs, or insurance costs have quadrupled, or just due to inflation and other uncontrollable costs, many boards fall into the rhythm […]
Hundreds of condo owners at One Archer Lane hit with up to $21,000 repair bill (HI)
When disabled Vietnam veteran Steve Dixon bought his condo at One Archer Lane, he was able to pay his mortgage and monthly maintenance fees of $550. But now, his maintenance fees have jumped to almost $3,000 a month. Read the article………………………..
What Happens When You Don’t Pay Your HOA Fees?
As a member of a homeowners association, you’re likely familiar with the importance of paying your HOA fees on time. These fees are used to maintain and improve the common areas of your community, including things like landscaping, maintenance of community amenities, and other essential services. Read the article………………………..
Can You Lose Your Home if You Stop Paying Your HOA Fees?
When you buy a home that’s subject to ongoing HOA fees, it’s important to make sure those dues fit within your budget. But what if money gets tight or your income decreases and you start to fall behind? Not paying your HOA fees could have unfortunate consequences, so it’s important to avoid that situation to […]
New HOA fees at Yorba Linda community may force residents out of their homes (CA)
However, he said last month, the HOA’s board unexpectedly increased their monthly dues by 20%, implemented a one-time special assessment and will collect emergency fees to make repairs to the property. “We all owe about $9,000, depending on the square footage of our respective units, on March 15,” said Ionita-Ariton. Read the article………………………..
Can you withhold HOA fees when you’re unhappy with the board? (FL)
Question: Is it legal to deposit your HOA monthly payment in an escrow account if you are frustrated with the board’s performance? There are quite of us that are interested in your response Read the Q&A……………………………….
The Purpose of Assessments: What Is an Appropriate Use of Association Funds?
We are often asked what an association can or cannot spend their money on. In fact, this blog was inspired by a request from one of our regular readers. Associations are tasked with performing various community functions based on the requirements of their particular governing documents and state statute. You will often hear us say […]
Maple Heights condo tenants left in cold after gas bill goes unpaid (OH)
Tenants at the Maple Park Drive Condos got a notice this week from Dominion Energy, telling them they’re shutting off their gas. That means no heat or hot water, with temperatures in the teens. Read the article………………………..
HOAs and Special Assessments: What to Know (WA)
If you have considered living in or currently live in a community with a homeowners’ association (commonly referred to as an HOA) such as a condominium or complex of townhomes, you have likely heard of special assessments. Read the article………………………..
Why Are My HOA Fees So High? Inflation’s Impact on Your HOA Assessments
Whether your HOA’s assessments are monthly, quarterly, or yearly, it’s that time of the year again where you may have noticed the dues are higher. While it can be frustrating and may feel unnecessary, there’s a reason behind those increased assessments, and recently, that’s been inflation. Read the article………………………..
Dues, Special Assessments, and Reserves – What’s The Deal?
As you know, dues and special assessments come with the territory of residing in any type of community association. Understandably, it can be confusing for residents to navigate exactly what both of these payments are used for, when they should be used, and how they affect the association as a whole. Read the article………………………..
4 Important Line Items to Include in Your HOA’s Annual Budget
HOA budget planning will be a constant for any members on the board. While it can seem daunting at first, once you gain experience with creating and managing budgets, you will find there will always be elements that remain constant. Read the article………………………..
Expect higher HOA assessments in 2023 (NV)
Q: Our homeowners association has stated they will be increasing our monthly fees by 25 percent starting in January 2023. I reviewed our bylaws and CC&Rs and found that nowhere does it talk about increases or cap percentage. I reached out to the community manager asking him to direct me where this was stated. Read the […]
Does Recession Affect The HOA? How And What To Do?
One of the last things any homeowners association needs is a recession. But in what way can a recession affect the HOA? And what can HOA boards do about it? Read the article………………………..
Margate Residents Scramble Over Condo Fees (FL)
A Margate resident is scrambling over rising condo fees, afraid that she’ll be forced to move out. NBC 6’s Heather Walker reports Watch the news report…………………………….
Real estate Q&A: Can we refuse to pay special assessment? (FL)
Q: Our board recently passed a special assessment. Several of our neighbors disagree with the assessment and are refusing to pay. Is there any consequence if we also refuse to pay? Read the Q&A……………………………….
But We Can’t Afford It! (CA)
omeownership entails dealing with occasional unanticipated expenses. Recently, I didn’t plan on a main water line breaking, but it happened. Days (and much money later), the problem was resolved. I didn’t want the expense, but it happened. I couldn’t say to the water company or my neighbors, “I’m sorry, I can’t stop this flooding right […]
Everything Condo Residents Need to Know About Assessments (ON)
Residents living in a condominium community appreciate amenities and other benefits, but these features come at a price, paid for by assessments. Those fees are one of the most important factors homebuyers consider before buying into a condominium corporation. Regular payments from residents to their condo, assessments are often discussed in board meetings and around […]
Here’s How Your HOA Can Avoid Special Assessments
These assessments usually happen because there is a shortfall in the HOA budget and unexpected repairs, but in recent years inflation has become more of a factor as well, with significantly and rapidly rising insurance rates and construction projects the association may have planned. Read the article………………………..
What to Do With Your HOA’s Budget Surplus (NC)
Community associations are usually incorporated as not-for-profit corporate entities; therefore, an association’s goal is to avoid making a profit or loss at the end of the year. Though it isn’t common, community associations can sometimes end the year with a budget surplus. Board members must be careful when handling the situation because a misstep could […]
The Right Reasons for Raising HOA Dues
Acommunity association’s board of directors is elected by fellow homeowners to make decisions for the well-being of the community, including how the community’s finances are managed. Read the article………………………..
Inflation and Reserves: The Implications on Capital Planning
As we all know by now, inflation has moved into our lives and isn’t estimated to move out for about a year or more. While some industries are already seeing some relief, this is not and will not be the case for many other industries for the foreseeable future, including those that community associations rely […]
Pasco Co. seniors frustrated after ‘astronomical’ increase in HOA fees (FL)
The Ashton Oaks homeowners association is proposing a 33% increase in fees for residents living in villas in Wesley Chapel. “It’s been really frustrating,” said 14-year Ashton Oaks resident Suzy Cardner. Read the article………………………..
Condo Association Budget Season Tips: How to Cut Costs and Increase your Reserves (Without Raising Assessments)
It’s that time of year again — budget season for Condo Associations! If you’re a Board member or Property Manager, you know how important it is to get the budget right. The goal is always to maintain or improve the property while keeping costs down and building up reserves. But sometimes that can feel like […]
5 Reasons Why Condo Common Charges Are Going (Way) Up (NY)
Condo common charges — covering operating expenses like staff, repairs, amenities, property management and insurance — are high partly because the cost of doing business in New York City is high. But that’s only part of the story, Brick Underground reports, and even higher fees are on the way. Why? Let us count the reasons: […]
7 Expert Tips to Ensure a Successful Budget Season for HOA’s and Condos
Creating a budget is essential for the overall health of a Homeowner’s Association (HOA) or condominium association. A well-planned budget allows the community to share priorities, identify necessary operational requirements, and create spending guardrails. It also improves clarity when it comes to decision-making and offers controls when corrective action is required. Read the article………………………..
How Inflation Can Impact Your HOA or Condo
As there are economic shifts happening, you may wonder how this may affect your Condo or HOA. Inflation can lead to a variety of changes, and it’s best to be prepared. Here are a few area where you may see inflation impacting your community: Read the article………………………..
Is Your Association Ready for a Recession?
With inflation on the rise and economists forecasting a potential recession in the near future, it’s easy to start worrying about your finances and the finances of your community. A recession could result in job loss, difficulty finding employment, and cost of living increases, which could impact homeowners’ ability to pay assessments as well as […]
Financial, Physical, & Operational Health: How Does Your Association Measure Up?
In early 2020, our firm was hired to prepare a reserve study for an unremarkable 136-unit, 12-story condominium in south Florida. It was the kind of association you could drive right by without noticing, not much different from all the other high-rise buildings in this coastal neighborhood. Read the article………………………..
Ask a real estate pro: What’s the best plan to pay off $10,000 special assessment?
Q: Our community is levying a significant special assessment of $10,000 to be paid over 10 years. They tell us that the outstanding balance must be paid whenever a home is sold. The community has given us the choice of paying off the whole assessment in one payment, saving $4,300.00. What is your recommendation? Read […]
Set Assessments at Appropriate Levels Because A Special Assessment May Not be Available to Save the Day!
Nobody likes to pay taxes, or in the community association world, high assessments. However, Boards need to make sure that they are setting assessments at an appropriate level to account for anticipated and potentially unanticipated needs and obligations of the community. Read the article………………………..
Impact of Inflation on Community Associations
Inflation is here and no apparent relief in our near future. According to the most recent data from the United States Bureau of Labor Statistics the annual inflation rate for the United States is 8.5%. This increase has slowed slightly with the recent decrease in gas prices, but materials, food and shelter costs continue to […]
7 Common Questions HOA Board Members Ask About Budgets (CA)
Many HOA board members get into trouble due to not understanding the operating fund and reserve fund in a homeowners Association. If these two funds aren’t properly maintained, a Board can unintentionally cause the Association to fail financially. Therefore, it’s crucial that Boards understand how to correctly use the operating fund and reserve fund. Read […]
A Guide to HOA Budget, Accounting, and Finance
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 […]
Inflation: How It Impacts Your HOA
Whether at the grocery store or on the news, you’ve likely heard and felt the impact of this year’s inflation. With costs steadily rising, it is important that HOAs prepare ahead of time to avoid their community running into financial trouble. Below, we’ll cover some of the impact inflation can have on your community and […]
Hawaii Condo Fees Are Among Nation’s Highest. And They’re Squeezing The Middle Class
Many of Hawaii’s high costs of living are painfully obvious, including the nation’s highest electricity rates, median single-family home prices that top $1 million on Oahu and milk prices that routinely exceed $6 a gallon. But there’s another less talked about cost that has earned Hawaii an equally dubious distinction: according to a recent study, […]
Budget Workshops and Planning Sessions
Understanding how to create and maintain a budget is essential to the success of every community association. Unfortunately, however, understanding when and how to budget isn’t always easy. Read the article………………………..
Budgeting 101
I’m a budget nerd, and I freely admit it. Putting together an HOA budget and seeing each month how accurately the projections and actuals fall into place gives me a sense of satisfaction and downright gleefulness. In the coming weeks, this process begins again as I start the budgets for the communities I manage. With […]
Inflation at the Shore: HOA residents struggling through fee hikes (NJ)
There probably was never a great time to replace the decks at the Knox Hill Townhome Condominium Complex, but when owners got word in early June of the cost ? an extra $160 a month for 29 months starting Aug. 1 ? they wondered how they would afford it. Read the article………………………..
How Associations Can Successfully Manage Inflation (AZ)
In recent months, inflation in the United States has reached one of its highest levels in years at 9.1%. In light of this, HOAs/condos must be prepared to adjust their budgets and respond to inflation’s impacts through the use of loans, increased assessment rates, and reserve accounts. Read the article………………………..
How Co-op and Condo Boards Can Fend Off Challenges to Assessments (NY)
Co-op and condo boards sometimes need to impose special assessments on the shareholders or unit-owners. Predictably, the owners may be displeased when they are assessed, especially when the assessment is unexpected or when the owners perceive it as being unnecessary or excessive. Read the article………………………..
Financial Success Starts With Responsible Budgeting (CA)
One of the primary responsibilities of every homeowner’s association (HOA) is to manage the finances responsibly and efficiently; this is not limited to collecting dues and fees from residents and then using that money to improve the community. What should be included in managing the finances but is often not because it can be less […]
4 Ways Inflation Can Impact Your Condo and HOA
Condominium, homeowner (HOA), and townhome community association board members and property managers prepare budgets to cover operational costs. These expenses include services (ex. landscaping, snow removal) along with routine maintenance, repairs, and replacement over time to ensure the property remains in good condition. Read the article………………………..
Using Your Reserve Study As A Budget Tool
With the budget season fast approaching, it’s time to seriously consider your association’s near and long-term financial needs, goals, and ultimately, its future. Capital planning is no easy feat, but having a continuous blueprint for the future is the key to a thriving community. Read the article…………………………..
Reserve Funding Strategies
Boards and managers who want to ensure adequate funds and avoid shortfalls (or at least get into a better financial position) should familiarize themselves with common reserve funding goals and the strategies to achieve them. As outlined in the National Reserve Study Standards (NRSS), four accepted funding goals are available to community associations. Read the […]
What happens if you don’t pay HOA fees?
Homeowners Associations (HOA) help keep your community clean and safe, and often maintain shared neighborhood amenities like pools, tennis courts and fitness facilities. These are just a few of the reasons that you pay HOA fees as a homeowner. Read the article…………………