To ensure the financial well-being of the association, boards and managers should focus on at least four factors in the association: budget, reserves, insurance, and collection practices. This article will take a brief look at each of these, but this is not a finite list. It is recommended that you consult with your association attorney […]
Community Association Best Practices – Finances (CO)
I like to say that the best practices are born out of the trials and tribulations of the worst practices. If you are a board member or community manager of homeowners associations and condominium communities, the way to learn these best practices without suffering yourself is to learn from the mistakes of others. Over the […]
The ABCs of Community Association Financial Management
With many schools now back in session, and our children learning everything they forgot over the summer, we thought it would be fun to prepare a primer with tips for good HOA and community association financial management. The vast majority of community associations are well-run and in reasonably good financial health. The property manager and […]
What are my HOA Fees Paying For?
More than 70% of all new developments in the United States are common interest realty associations, also known as Community Associations. The benefits of community associations are many. For the developer, it ensures that home values remain high, cementing in resale profits as the homes are sold. For the homeowner, it allows you to have […]
A Municipal Finance Tool to Avert Another Deadly Condo Collapse
Local governments could turn to special assessment districts to cost-effectively assure safety improvements, bypassing occupants’ foot-dragging and dysfunctional homeowners’ associations. Read the entire article……………………………….
In Case of Emergency: 5 Funding Factors in Community Association Finances
Underfunded community associations can be at risk of falling behind on much-needed repair, restoration, or replacement. Read the entire article……………………………….
Safeguarding HOA/Condominium Association Money: Investment considerations and pitfalls (NC)
We are often asked by our association clients whether they should invest assessment or reserve funds into the stock market, bonds, money market accounts, CDs, etc. Let me start by stating that I am neither a financial planner nor an accountant, so my take on investment of association funds will center on the Board’s duties […]
Why Are HOA Dues Vital For Your Community?
Homeowners Association or HOA is an organization that provides rules and regulations for homeowners. The association also maintains the property values of a neighborhood. To afford these maintenance services, there are Homeowner’s Association dues. HOA managers work to keep your neighborhood appealing. Read the entire article……………………………….
Can Homeowners Request HOA Financial Reports?
As a homeowner living in an HOA community, it is only natural for you to want to know that your association is doing well financially. To that end, you might want to request HOA financial reports. But, is that even possible? Read the entire article……………………………….
7 Tips to Improve HOA Financial Stability
If 2020 was the year of crisis management and pandemic survival, then 2021 should be the year for applying the lessons learned and improving HOA and community association financial stability. A financially stable HOA is not only better prepared for an unforeseen situation, but is also set up to meet goals, address maintenance needs, and […]
Co-op and Condo Boards Getting Sticker Shock From Facade Repair Costs (NY)
As of 2021, some 14,000 buildings in New York City must have their facades inspected to make sure they comply with Local Law 11. With COVID, of course, the landscape has changed. Yes, and there are two sides to that — the engineering side and the contractor side. The engineering fees have gone up dramatically […]
HOA Homefront: Who’s watching out for our association’s money? (CA)
Q: Are there laws governing the responsibilities and obligations of HOA boards, especially those related to limits on raising the monthly assessments that each resident in the community pays? Read the Q&A…………………………………..
A Look Into The HOA Income Statement
The HOA income statement is a part of every association’s range of financial reports. Therefore, it is important to know what this statement does and what you can find on it. Read the entire article……………………………….
HOA Financial Statement Requirements
Among the many records that a homeowners association must keep, the financial statement is definitely an important one. Residents invest in the community through their fees and assessments, and they have the right to see how that money is being used by the HOA board. Transparency and accountability are vital to healthy relationships with the […]
HOA Board of Directors Financial Spring Cleaning (GA)
The end of March is officially national spring-cleaning week! Your Board’s HOA spring-cleaning checklist should include a check-in with your association’s finances and plan for the rest of the year. While we cannot predict what will happen, the best way to protect the association from uncertainty is to have a financial plan. Read the entire article……………………………….
Best Practices for Managing HOA Finances
Managing your own finances can be a stressful issue. That feeling can get multiplied when you’re managing a business funded by tens or even hundreds of homeowners. Working with HOAs and community associations throughout Georgia, we’ve seen our share of stressful HOA situations. Read the article……………………………….
What Payment Methods Should Be Made Available For Homeowners?
“How do I pay my HOA fees?” Homeowners often ask this question, but many HOAs only offer the same traditional method. But, there are a few different payment methods for HOA dues that associations can start adopting. Read the article…………………………………….
Top Reasons Cryptocurrency Could Be Bad for Your HOA
The COVID-19 pandemic forced community association boards to pivot how they do business, from hosting virtual meetings to reimagining how amenities can be used. Associations even explored the possibility of converting their funds into cryptocurrency. Read the article…………………………………
7 Tips For Better HOA Financial Reporting And Management
Financial reporting and management are key components of your job as a homeowner association (HOA) manager. Your clients depend on you to help them keep the HOA in good financial standing. This includes everything from day-to-day tasks like collecting fees and paying bills on the HOA’s behalf to assisting your client during annual audits and […]
Five Financial Tips for New HOA Board Members
Congratulations, you’ve been elected to your HOA board! As a board member, you have a fiduciary duty to use sound business judgment in your role. That means you need to think like a business owner and not just a committee member – and that includes understanding the HOA’s financials. As a new board member, you […]
Your Guide to HOA Finance, Budgeting, and Accounting
Kindly allow us to share a basic refresher on some financial terms related to accounting, financing, and budgeting. You may encounter these concepts in your role as an HOA leader. Read the article…………………………………..
HOA Financial Management in the New Normal
The direct and indirect impacts of the COVID-19 pandemic will be with us for a while. Careers have been interrupted, we’ve actually gotten used to working from home, and travel – business and vacation – has been severely limited. On the bright side, we’re spending more time with family and friends, getting to those home-improvement […]
Do You Really Need An HOA Finance Committee?
In a homeowners association, what is the role of the finance committee? For some, an HOA financial committee is a prerequisite to success while others do not seem to be convinced of its importance. When it comes to your HOA, do you really need a finance committee? Here’s what you need to know to answer […]
Six HOA Financial Mistakes to Avoid
In pandemic times like these, it’s always a good idea to revisit the basics and ensure your HOA financial practices are in order. Through the years, we have looked at a number of HOA financial mistakes and provided advice on how to fix as well as prevent these regretful blunders. Read the article…………………………………
10 Financial Best Practices for Homeowner Associations and Condominiums
I say that the best practices are born out of lessons learned from the worst practices. If you have been a board member or manager for a few years, you may have come across some worst practices. They can result from incompetence, or in the extreme, criminal activity (embezzlement). Read on to learn about the […]
Special Assessments
Condo buildings are complex and intricate, and they require a reliable source of revenue to maintain the structure, repair systems, keep everything clean, cover emergency or unexpected costs, pay staff, etc. Much of this money comes from owners in the form of condo fees. However, on rare occasions, the corporation or association may be hit […]
Should Your HOA Take An HOA Loan Or Not?
Homeowners associations rely on a constant stream of funds in the form of assessments to cover the community’s operating expenses. But, there might come a time when this stream is interrupted for whatever reason, necessitating an HOA loan. Read the article………………………………….
Ask The HOA Expert: Policies, Statements, And Responsibilities
Question: Our collection policy states that if an owner is 30 days past due, the management company sends a pre-lien notice letter. Several board members think the board members should be notified when these letters are sent. Read the Q&A………………………………..
How Has the Pandemic Impacted Your Condominium or HOA Finances?
Since the onslaught of this insidious virus, we have been all made aware of the human toll it has taken in people’s health, mortality, and economic life. The only thing we can say for sure about this virus is that its long-term effect is still unknown. We know that it has affected community associations by […]
How to Recession-Proof Your HOA from a Maintenance Perspective
When the Great Recession of 2008 occurred, home-owners associations took a hit. Not only was there an increase number of homeowners unable to pay their dues, but continued maintenance was unfortunately overlooked. Without sufficient funds, how can HOAs complete necessary maintenance in their communities if they didn’t plan? As the U.S. economy gets hit by […]
Resolving a condo dispute about percentage of ownership — and property taxes
Q: I am on the board of a condo association, and it was brought to our attention by a past owner who was selling his unit that a potential buyer noticed the par value noted in the governing documents of our association did not match that in the multiple listing services in our local tax […]
Is HOA Bankruptcy An Option?
Whether due to an economic downturn or other reasons, homeowners associations are not exempt from financial issues. The situation can degenerate even further to the point that an HOA is forced to consider bankruptcy. But, is HOA bankruptcy even a viable option? Read the article……………………………
Tips to Being a Smart HOA Money Manager
As an HOA board member or property manager, staying on top of the HOA budget and other financial issues is a top responsibility. With the coronavirus pandemic potentially impacting the timeliness of HOA assessment payments and increasing costs, such as the disinfecting of common areas, it is now even more important to be a smart […]
Why Does Bad Debt Happen In Community Associations?
In your Condo or HOA you are going to have delinquencies every month in good times and bad times. These are bad times and the delinquency rate is only going to increase to levels where hard choices by the board of directors need to be made. Read the article……………………………….
Condos and HOAs in the time of Virus and Recession
These are not the best of times, and maybe they are not the worst of times, but most certainly they are difficult times. Our health and prosperity are in harm’s way and our residences are on the line. For those of us who live in community associations (Condos & HOAs) these times are reminiscent of […]
Condo Association Finances 101
Time for a quick and dirty lesson on condo association finances. There are three things that are the core of condo finances: income, operating expenses, and reserves. The goal of every condo is to have income exceeding expenses and reserves, but not by too much, or you’re overcharging the owners. On the other hand, if […]
5 Steps to Take if you Suspect Your HOA or Condo Board of Mismanaging Funds
Can community associations mismanage funds? The plain and simple answer is “yes.” Some communities mismanage community funds, whether maliciously or due to ineptitude, and it only takes one bad apple to give every community a bad rap. If you suspect your board or management team is not managing your community’s financials correctly, you need proof, […]
HOA Financial Reports: What Every HOA Board Member Should Know
Managing and overseeing the finances of your HOA should be the HOA board’s main priorities. That said, many HOA board members may not have experience with HOA financial reports previously, consider this article as a helping hand. Read the article…………………………
Fidelity Insurance for Your HOA
It takes a lot of money to properly run a homeowner’s association. Maintenance, security, capital, and other expenditures all require a large reserve fund that is available to the association at all times. Because HOAs are run in large part by volunteer board members and may lack proper checks and balances, they unfortunately become easy […]
How to utilize special assessments (MO)
Homeowners associations in Missouri and elsewhere utilize collected fees to keep up community property. Unfortunately, there are times when those fees do not cover all community expenses. If allowed under community bylaws, special assessments may be collected to make up for any budget shortfalls — usually caused by the need for repairs or special projects. […]
What’s Special about Special Assessments? (NC)
The term for owner payments to a homeowner or condominium association in North Carolina is “assessments.“ That’s because the term “dues” doesn’t appear in any statute. Instead, “assessment“ is used to describe the payment that owners of an HOA lot or a condominium unit make to the association to pay for common costs of the […]
Miami Transfer Fee Controversies: A Wake Up Call for Associations (FL)
Condominium associations across South Florida have come under scrutiny for imposing mandatory, non-refundable “transfer fees” on residents in connection with the lease or sale of units. Indeed, several years ago this firm was quoted in an article in the Miami Herald addressing the issue, and this year, a class action lawsuit resulted in an association […]
Are HOAs Non-Profit?
Homeowners’ associations are often organized as non-profits. By incorporating non-profit status into the bylaws of the community, the association is always registered as a non-profit. So, how does the IRS treat an HOA? Are homeowners’ associations corporations? Do HOAs have to file tax returns and pay taxes? These are very common questions and ones that, […]
How Do You Know if Your HOA or Condo is Under Water?
The term “under water” in real estate usually refers to a property that has no equity. That is to say that the money owed on it is more than what it can sell for. Seldom do we hear about an entire HOA or Condominium Association being “under water.” The brutal truth is that your entire […]
Keep Track of the Money: Finance and Condos
Money is a top-of-mind topic for condos. Following the money is hard without good policies and procedures. This blog fills the gap on financial policy. Read the article………………………..
What Every Board Member Should Know About Financial Reports
Managing and overseeing an association’s finances is one of the board’s most important responsibilities. To successfully fulfill this duty and sustain the financial well-being of your community, you must understand financial reports and their importance to the success of your association. Read on to learn everything you need to know about financial reports. Read the […]