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…………………
HOA dues: what they are and how they are determined
As of 2022, there are over 142 million housing units across the United States. Of these housing units, 40 million of them are a part of HOA communities. HOA communities offer unique features and are maintained by associations. To support operations and the associations’ regular expenses, homeowners are required to pay fees periodically. Read the […]
Everything You Need to Know About Community Association Assessments
If you’re a homeowner in a community association, you’re probably familiar with assessments. But do you know everything about them? What do they cover? How are they calculated? When are they due? And what happens if there’s not enough money in the reserve fund to cover an unexpected major repair? Read the article………………..
Be Aware and Plan for Rising Material Costs (OH)
In recent years, the cost of construction materials has increased dramatically. During 2020 when shelter-in-place orders were in effect, many manufacturing businesses were unable to operate, decreasing supply for materials like lumber. At the same time, individuals began purchasing these materials at a greater rate to perform their own DIY projects with their newfound time […]
Can your association pay all its bills during the 2022 inflation storm? (FL)
Most condos and homeowners’ associations prepared their 2022 budgets in the fall of 2021. At that time, the expectation was for 3-4% inflation in 2022. Unfortunately, we are now dealing with CPI inflation of 8.6% in 2022 and real inflation in South Florida feels even higher. Even if you included 5% contingency in your budget, […]
Delinquent Homeowner Checks: What to Look For
When an Owner becomes delinquent, and the file is transferred to the attorney for collections, the Owner should begin sending their checks to the law firm for processing. The Owner is advised in writing that the checks are to be mailed to the law firm and not the management company. Read the entire article……………………………….
Key Tips for Levying Special Assessments (CA)
There are times when levying a special assessment is necessary or prudent to obtain needed funds. However, if not well planned and properly implemented, a special assessment can turn into a nightmare for the Board, and for you. Here are some key tips to help avoid such a nightmare. Read the entire article……………………………….
9 Tips for Creating a Budget for Your Community Association
For many people, their home is their most valuable asset. Not only is it a place to live, but it’s also an investment. That’s why it’s so important to have a well-run community association. Part of having a well-run association is having a well-planned budget. Read the entire article……………………………….
Your Guide to HOA Finance, Accounting, and Budgeting
Keeping the association in good financial standing is one of the most important duties of an HOA board. Poor HOA financial management can have lasting consequences, so it’s crucial for board members to understand the basics of association finance. In doing so, they will know how to properly manage community funds and ensure the continued […]
5 Budgeting Mistakes of Self-Managed Boards
Every association collects dues and fees from residents in the community. Balancing that money and making the best use of it is vital to providing residents with a good return on their investments in the community in which they live. Read the entire article……………………………….
Inflation: How to Manage your HOA’s Cash
The Federal Reserve has started raising interest rates, which had been set between 0% to 0.25% for about two years, and may continue to increase over the next several months or years. All cash management products are eventually impacted by the Fed’s policies, meaning that the association’s cash must be put to work prudently. Read […]
Real Estate Matters: Is fee for leasing condo creating separate ownership ‘class’?
Q: I own a condo that I rent out. The association charges me $100 per year as an “annual administration lease fee.” Isn’t this creating two “classes” of owners in the association? Read the Q&A……………………………….
Understanding HOA Special Assessment in Detail
If you are a homeowner in a planned community, there is a good chance that you will have to pay special assessments at some point. Special assessments are an extra fee that homeowners pay to the association in addition to the regular assessments. Read the entire article……………………………….
Can An HOA Change Its Assessment Allocation? (CA)
Buying a home within a homeowners association community comes with several responsibilities, including paying HOA dues and assessment fees as stipulated by the HOA governing documents. These payments are mandatory and backed by the laws of the association involved. Many people often wonder if an HOA board has the power to change the assessment allocations. […]
HOA Dues and Inflation: How High Up?
Homeowners’ associations are non-profit organizations that charge recurring monthly dues to their members. These fees help to preserve community amenities and shared spaces including clubhouses, swimming pools, play areas, landscaping, pathways, and streets in good working order. Read the entire article……………………………….
6 Questions to Ask About How the HOA Board Manages Its Finances (CA)
The Board of Directors for your homeowners association has an immense financial obligation to the community. One of the HOA board’s most important jobs is to keep legible and accurate financial reports and records. These reports and records provide an overview of your community’s revenue and expenses against its financial projections or budget. Read the […]
How To Create A Budget In Mixed-Use Associations
It is no secret that saving money is important, especially when it comes to managing properties and communities funds. Running an association can be a challenge, and the only way to successfully run an HOA is to create a proper budget. Read the entire article……………………………….
How to Create a Realistic Condo Budget
Annually, the Condominium Manager and Board of Directors have a fiduciary duty to prepare a budget for the condominium corporation. As such, by the 8th or 9th month into the fiscal year the Condominium Manager will begin the process of preparing the operating budget for the upcoming fiscal year. A condo corporation’s budget is made […]
New Decision Gives Washington HOAs Broader Deference in Allocating Assessments
Surowiecki vs. Hat Island Community Association et al. is an important decision for homeowners’ associations throughout Washington State. It gives associations broad deference when deciding how to allocate assessments. So long as the association is making a discretionary decision in a procedurally valid manner and with reasonable care, the courts will not second-guess the association. […]
Condo Column: The bad budget bill (NH)
As noted from my last two columns, it has been an interesting Legislative session in Concord for condominiums, starting with the proposal of Senate Bill 324 that would effectively shut down condominiums. But that’s not the only piece of legislation currently pending that is of concern. The New Hampshire House of Representatives wanted its chance […]
How Is Inflation Affecting HOA Dues?
Homeowner dues are not fixed rates. These dues can go up and down depending on a number of factors. While a decrease in dues is not always noticed, homeowners are usually alarmed when they are faced with the opposite. More often than not, inflation is the culprit behind an increase in HOA dues. Read the […]
HOA Dues And Inflation: A Look Into Rising HOA Fees
It is the duty of the homeowners association board to prepare the budget from which dues are calculated. But, there are external economic factors you must consider beyond just the needs of the community. Here, we take a look at the relationship between HOA dues and inflation. Read the entire article……………………………….
Can my HOA hike my fees without limits? What to know as a homeowner (TX)
When Pflugerville resident Casey Fewell moved into the Carmel neighborhood in May 2018, she and fellow homeowners paid $75 each quarter to their homeowners association to help cover the services and amenities provided. Then in December, Carmel’s HOA board approved raising that cost to $180 each quarter. It was approved during a board meeting that […]
Financial Tips For HOA Managers: Budget Friendly
HOA managers are professional individuals who run a community’s day-to-day activities on behalf of the board members. Depending on the agreement, they collect HOA dues, maintain common areas, and enforce the rules and regulations of the community. Read the entire article……………………………….
‘It’s Unscrupulous’: Homeowners in SW Miami-Dade Community Upset Over HOA Fee Hike (FL)
Neighbors who live in the Hammocks, a large southwest Miami-Dade community, are up in arms. They say their monthly association fees will increase astronomically. “They’re basically pricing people out of their homes,” said resident Alan Chevel. Chevel and his Cedar Landing neighbors are bracing for a major monthly hike in their HOA fees. Read the […]
A Primer on Special Assessments (FL)
There is an old saying that the two dirtiest words in community associations are “special assessment”. Board meetings at which special assessments will be discussed and imposed are often the only well attended meetings throughout the year in many communities. The reason for this is simple: Tell people they have to pay a special assessment […]
Condominium budget must be approved at least 14 days before start of fiscal year (FL)
I recently answered a question regarding budget approval in a condominium, and at the time I informed the reader that I could not think of a reason why their budget needed to be approved by December 18. It turns out I overlooked a subtle change to the statute made in July of this year Read […]
Preparing Your HOA for Inflation
Virtually, all economists agree that the economy is humming. The country’s unemployment rate is at the lowest level in 50 years. Housing prices are increasing in nearly every market in the country. The problem with all of the good news? Inflation. It is currently at the highest level in 40 years. Prices of everyday items […]
Condo directors should control budget (MI)
Q: There are some members of our condo association who want to be able to vote on the budget, any increases in annual assessments, and any additional assessments. While we believe in democracy and want to promote inclusiveness in our association, are there risks associated with allowing this? Read the Q&A……………………………………
HOA Budget Meeting: Tips For Planning And Presenting
The HOA budget meeting is an important event in any homeowners association. Make sure all goes well with yours by adopting these tips for planning and presenting your annual budget. Read the entire article……………………………….
Ensuring a Smooth Fiscal Transition (GA)
All over Georgia, new “volunteers” are preparing to take their seats on an HOA or community association board of directions. Most boards have some, if not a majority, or seats turn over each year, with new board members voted in at annual association meetings. Read the entire article……………………………….
Sticker shock: Special assessments can send condo costs even higher. What buyers should be asking (MA)
The Boston condo world in the early aughts simmered — explosively boiled, some might say — with the drama played out in the media regarding special assessments that left owners with six-figure bills for hefty, overdue maintenance projects. Read the entire article……………………………….
Top Tips to Offset Inflation in your Coop or Condo (NY)
Inflation is not just the increased price of milk or a gallon of gas, it is something that affects virtually every aspect of our (economic) lives. This obviously also relates to coop and condominium living. Read the entire article……………………………….
Tips For Preparing Budgets for HOAs and Condos
Budgeting is extremely important to the success of your homeowners association (HOA) and can prevent your community from facing financial troubles. Here are some tips for ensuring that your community association is proactive, prepared, and properly plans for the future. Read the entire article……………………………….
Real Estate Q&A: Who Pays Balance of Special Assessment if Property Is Sold? (FL)
Q: Our association will be remodeling the clubhouse, and there will be a significant assessment. We will have the option to pay off the amount in one lump sum or over 10 years. If I sell while paying off the assessment, am I responsible for paying the balance, or does the new owner take over […]
Condos and HOAs follow different budgeting rules (FL)
Q: Our association will be holding its annual budget soon. After receiving the notice for this meeting, I called our association manager to ask how and where I could obtain a copy of the proposed budget. I was told that a copy of the approved budget would only be provided to the members after the […]
HOA Capital Improvements
When communities are built, they are done so to provide the lifestyle and amenities that residents desire at the time of development; however, as time passes, residents’ desires change, and so do their desired amenities for the communities that they live in or want to live in. In order for communities to keep up with […]
How to Save Money Without Compromising Your Building Operations (IL)
One of the most important aspects of the work of a property management company is being smart with a building’s finances. When cutting building costs becomes necessary, the goal is always to reduce them with as little impact on building operations and on the residents’ needs as possible. When you find yourself in need to […]
Assessment Caps: Consequences & Solutions (CA)
A very important responsibility of an HOA Board is to provide services and maintenance to the community, which are paid solely from assessments or special assessments. However, some HOA Declarations contain a cap on how much assessments can be raised each year without membership approval. Read the entire article……………………………….
The Basics of HOA Assessments
Community associations are attractive to homebuyers because they offer well-manicured common areas, neighborhood events, and amenities, such as pools, parks, and fitness gyms. However, to foster and maintain the kind of community that homeowners want to live in, the association must have the funds to do so, and this is where assessments come in. Read […]
How Does Inflation Impact the HOA Industry?
How does inflation impact your HOA, and management in the greater HOA industry? Considering that inflation and HOA decisions both acutely affect today’s homeowners, this is an important question to ask. Read the entire article……………………………….
A Condominium Board’s Conundrum When Levying Special Assessments (FL)
Pursuant to Section 718.111(1)(a), the officers and directors of condominium association owe a fiduciary duty to the unit owners. This means they have a legal duty to make informed decisions for the benefit of the owners, act in good faith toward the owners, and not exceed their authority as set forth in the governing documents […]
Special Assessments: What HOA and Condominium Board Members, Owners and Buyers Need to Know (NC)
Special assessments are a topic that comes up only occasionally with most single-family residential homeowners associations, but can come up more frequently with townhome associations or condominium associations, and even more often for condominiums located at the coast. That’s because buildings on the coast suffer weather-related effects that can require major, costly repairs to the […]
10 Money-Saving Strategies for Your HOA
Saving money is a pretty admirable goal, especially in today’s challenging economy. Every dollar you save in an HOA helps avoid higher assessments, which means more money for your association. And when it comes to saving, going with the budget flow might not help you save enough. However, thinking outside the box rather than following […]
Is There A Limit When Increasing HOA Fees? What’s The Basis?
To truly grasp the need for fee increases, you must first understand how homeowners associations work. Homeowners associations exist to maintain the community and protect property values. This includes coordinating and paying for various expenses such as landscaping, maintenance, repairs, and the like. And the money used to pay for these expenses comes from the […]
Funding Community Association Repairs and Renovations (FL)
Rather than kicking the can down the road in hopes that future boards will address worsening maintenance concerns, association directors are coming to terms with the fact that delayed repairs and maintenance are likely to exacerbate structural problems and increase the eventual costs, in addition obviously to the potential life-safety risks, to be borne by […]