Finance Articles from the Web
Finance & Reserve Videos
Accounting
- Why you should pay special attention to closing your books this year October 1, 2024I’ve been posting the condo and HOA news for over 20 years now. During the first 6 years, I might have run across 3 or 4 cases of people stealing from an association. During the last 2 years, I’ve seen over 20. And most of them haven’t been for small amounts. The scams were often as simple as someone writing checks to themselves, either as a manager, treasurer or president. The one constant in all of them – no one ...
- The Critical Role of Accounting Management in Homeowners Associations September 9, 2024Effective financial management is a cornerstone of successful homeowner’s association (HOA) governance. Properly managed finances ensure the community is well-maintained, legally compliant, and financially stable, which in turn preserves or enhances property values and ensures a high quality of life for all residents. The role of an HOA accountant is central to achieving these goals. Read the article…………………………….
- How to Advocate for Financial Transparency in Your HOA August 10, 2024Financial transparency in your HOA (homeowners association) might sound like a dry topic, but it’s one of the keys to a happy, well-managed community. Since many of us live in communities with HOAs, understanding how they operate and how their actions affect us can make a difference in our overall satisfaction with our neighborhood. Read the article…………………………….
- Your Association’s Financial Statements: Basis of Accounting August 1, 2024Homeowners and boards receive association financial statements at various times during the year. For many, reading and understanding financial reports can be challenging Understanding the basis of accounting used to prepare financial reports is a vital first step to comprehending your association’s financial position and results from operations. Read the article…………………………….
- HOAs Are Reporting Companies Under The CTA May 30, 2024On 4/18/24, FinCEN updated its Beneficial Ownership Reporting FAQs and included for the first time information regarding HOAs (Home Owners Associations). FinCEN confirms in this update that HOAs are reporting companies under the Corporate Transparency Act (CTA) and are subject to BOI (Beneficial Ownership Information) reporting requirements if they are entities created by filing of a document with a secretary of state or similar office. Read the article…………………………….
Audits
- How to Audit Financial Statements: A Step-by-Step Guide to Ensure Accuracy November 24, 2024An important process guaranteeing the quality, dependability, and conformity of financial data is auditing financial statements. Whether your position is that of an auditor, a company owner, or a stakeholder, knowing how to conduct a financial audit helps you maintain openness and make wise judgments. This guide will walk you methodically through the procedure. Read the article…………………………….
- Audit Reveals Shocking Conditions at Three Mitchell-Lama Co-ops (NY) October 23, 2024Thomas DiNapoli, the comptroller of New York State, has produced a textbook on how not to run an affordable co-op. In a recently released audit, DiNapoli uncovered appalling conditions at three Mitchell-Lama co-ops — York Hill in Manhattan, Arverne/Nordeck in Queens, and Arlington Terrace/North Shore on Staten Island — conditions that included broken fire safety doors, mold, collapsed ceilings, pest infestations and unsafe facades. To top it off, the auditors discovered more than $1 million in questionable spending at the ...
- Why you should pay special attention to closing your books this year October 1, 2024I’ve been posting the condo and HOA news for over 20 years now. During the first 6 years, I might have run across 3 or 4 cases of people stealing from an association. During the last 2 years, I’ve seen over 20. And most of them haven’t been for small amounts. The scams were often as simple as someone writing checks to themselves, either as a manager, treasurer or president. The one constant in all of them – no one ...
- Audits at Boynton Beach HOA question its finances; board president awarded contracts (FL) August 19, 2023Nautica’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………………………..
Budget
- Everything you need to know about homeowners association fees (AZ) January 9, 2025When purchasing a home in a community governed by a Homeowners Association (HOA), understanding the intricacies of HOA fees is crucial. These fees play a significant role in maintaining the community’s aesthetics, services, and shared amenities, but they can also impact your monthly budget significantly. To help navigate the nuances of HOA fees, we’ve gathered insights from leading real estate and financial experts. Read the article…………………………….
- What Your Condo Fees Actually Pay For January 6, 2025If you live in a community of single-family homes, you might find yourself paying monthly or annual homeowner’s association (HOA) fees. If you live in a condominium community, you’ll instead be on the hook for condo fees. While the two fees aren’t totally interchangeable, they do serve similar purposes, and they can add — sometimes quite a bit — to your costs as a homeowner. Read the article…………………………….
- Suit against Martin’s Landing directors alleges misconduct in $1.1 million vote (GA) December 21, 2024The owner of the Lake House at Martin’s Landing is suing more than a dozen homeowners association board directors over how they allegedly conducted a vote on a $1.1 million special assessment. The assessment, for renovations to the 50-year-old neighborhood pool, will charge nearly $600 to each of the community’s some 1,900 homeowners, according to documents provided to Appen Media. Read the article…………………………….
- Tips for Budgeting in HOAS and Condominium Associations (FL) December 16, 2024Creating a budget is one of the primary and most important functions that any community association board does during its tenure. The budget will serve as the guideline to determine the dollar amount owners are charged to live in their communities. There are differing obligations to consider when budgeting for a Homeowners Association (HOA) versus a condominium association. Today, we will discuss the differences and offer tips when creating your own community association budget. Read the article…………………………….
- How much do HOA Reserve Studies cost? December 13, 2024As a board member of an HOA or condominium association, ensuring the financial stability and longevity of your community’s shared assets is a great responsibility. One crucial tool in achieving this goal is a reserve study, which helps you plan and budget for future repair and replacement costs of common area components. The cost can vary significantly based on several factors. Read the article…………………………….
Collections
- Foreclosures (CO) January 16, 2025Any attorney that represents homeowner associations will tell you that the Colorado legislature has unleashed a massive assault on associations over the last several years with respect to regulating the collection of delinquent assessments. However, no other area of collections has been affected to quite the same extent as the foreclosure of association liens. There have been wide-sweeping revisions and new impediments to foreclosure never before seen in Colorado. Read the article…………………………….
- Redefining Collections: CAI Policy Recommendations in Community Associations January 10, 2025The Community Associations Institute (CAI) recently announced new policy recommendations concerning foreclosure practices for delinquent assessments. These updates aim to strike a balance between safeguarding the financial health of associations and ensuring fair, compassionate treatment for homeowners. Read the article…………………………….
- Omaha homeowners association in dispute with HUD over years of unpaid dues from vacant property (NE) January 10, 2025A half-million dollar home along a golf course would typically be a hot property on the real estate market, but one such house in Sarpy County has been vacant for five years and counting. Tiburon Point —a gated neighborhood nestled along Tiburon Golf Club near 168th and Cornhusker Road in West Omaha — has a vacant home controlled by a federal agency, and neighbors like Al Haney are looking for answers. Read the article…………………………….
- HOA, Condo Association Group Weighs in on Foreclosures Over Unpaid Assessments, Fines January 8, 2025Homeowners and condo associations foreclosing against their owner members have been making headlines in Florida and across the country. “World War II vet, 95, fears foreclosure after losing suit to Florida condo association,” reads one recent headline from the Tampa Bay Times; “Woman fears foreclosure after carpet dispute with condo association” reports the Chicago ABC affiliate; “Arizona HOAs can foreclose for $1,200 in fees” tops a story from the Arizona Republic; “HOA bought a woman’s house for $3.24 after she ...
- How can HOAs improve collection rates? January 6, 2025Homeowner groups (HOAs) often face problems collecting dues on time. Late payments can hurt budgets and stop community projects. However, there are innovative ways to improve collection rates without legal action. HOAs can get timely payments and maintain financial stability by applying clever strategies and building team spirit. Read the article…………………………….
Reserves
(Building Reserves also has a list of state laws regarding reserves at this location:
- Reserve Funding Legislation – Not a “Silver Bullet” December 16, 2024“We’ve got to do something about this!” That was the sentiment I heard from a number of my friends in the community association industry in the days and weeks following the tragic collapse of Champlain Towers South on June 24, 2021. For decades we’d joked about the regular annoying parts of community association life: pets, parking, and people. Here in the Reserve Study business, a bad day was when we had to recommend a special assessment in one of our ...
- What Does Fully Funded Reserves Mean? December 13, 2024Managing finances in a homeowners association (HOA) often feels like walking a tightrope. You need enough money saved for emergencies and future repairs, but figuring out just how much is enough can be tricky. One term you might have come across is “fully funded reserves,” but what does it really mean? According to the National Reserve Study Standards, being “100% funded” means there’s enough cash in the reserve to cover all projected or actual expenses—pretty crucial for keeping your HOA ...
- How Much Should An HOA Have In Reserves? December 13, 2024Deciding on the right amount for an HOA to hold in reserve funds can be tricky. Many boards struggle with finding that sweet spot—too little and they risk not covering future expenses, too much and they may overburden homeowners with fees. Read the article…………………………….
- HOA Budget Best Practices for Effective Financial Planning December 13, 2024Crafting the perfect HOA budget often feels like a tightrope walk. Board members strive to balance costs without tipping over into financial instability. One key fact stands tall – making conservative projections is foundational in effective HOA budgeting, given the unpredictable nature of expenses. Our article cuts through the complexity, offering straightforward best practices for guiding your HOA towards sound financial management. Read the article…………………………….
- HOA Reserves Rule Of Thumb: Everything You Need To Know December 13, 2024Managing an HOA comes with its share of financial responsibilities, one of the most critical being the maintenance of a healthy reserve fund. Many board members face challenges in determining how much should ideally be kept in these reserves to cover unexpected or substantial expenses down the line. Here’s a fact: The rule of thumb suggests that an HOA reserve should be at least 70% funded to ensure financial stability. Read the article…………………………….
Banking & Lending
- Recommendations for Associations Seeking Financing for Major Projects (FL) January 9, 2025With so many Florida condominium associations contending with budget increases as a result of the newly required inspections and reserves, many boards of directors are exploring financing options with banks and credit unions. Some lenders are responding by making concerted efforts to expand their commercial loan portfolios with loans for associations, which are generally considered to be relatively low in risk due to the lien rights backing community collections. Read the article…………………………….
- How can you get a $50,000 loan for condo assessments in Miami-Dade? Here are the steps (FL) January 6, 2025Are you facing a high condo assessment? Miami-Dade County runs a loan program to help with the cost. The loans range from $3,000 to $50,000. But there are some rules and restrictions to get a loan. Read the article…………………………….
- HOA Homefront: Is a bank out of state OK for our HOA deposits? (CA) December 28, 2024Q: Our HOA has their bank accounts with an online bank. Our payments are mailed to a postbox address outside California. I contacted the bank, and they were unable to provide a physical branch address in California. Civil Code 5380 requires the HOA to deposit HOA funds in a bank account in the State of California is it not? Read the Q&A………………………………..
- Bank Commitment Letter Pitfalls for Condominiums (FL) November 27, 2024When a condominium association is seeking to obtain a loan, too often the board is signing the Bank’s commitment letter before having that document reviewed by legal counsel. While some banks will permit the association to amend the commitment letter after the fact, through revisions to the loan documents, others will not permit that to occur. Read the article…………………………….
Taxes
- A New Tool to Help Co-ops and Condos Cut Emissions: Tax Breaks (NY) January 10, 2025For co-op and condo boards, the first deadline for reporting on their buildings’ carbon emissions under Local Law 97 is looming on May 1. While some 90% of the 50,000 covered buildings are already in compliance with 2024’s carbon caps, that number will drop to around 50% when the caps become more stringent in 2030. As a result, Bloomberg reports, co-op and condo residents across the city are raising alarms that they could face crippling monthly fee increases to absorb ...
- Suit Accuses County of Imposing De Facto Tax on Homeowners for Water Service (CA) January 9, 2025The homeowners’ association of a well-to-do Pleasanton golf community has sued the county over water fees. The Castlewood Property Owners Association (CPOA) recently filed suit against Alameda County, alleging the Board of Supervisors failed to follow the law before imposing a $1.4 million loan on the organization’s members to pay for their water and sewer maintenance. Read the article…………………………….
- Lost Creek neighborhood sues city over tax efforts (TX) January 8, 2025The Lost Creek Neighborhood Association and two property owners in the area that disannexed from the city of Austin last September have sued the city after residents discovered that the city is still expecting them to pay property taxes. According to attorney Bill Aleshire, who is representing the plaintiffs, the city says it will continue to send tax bills for the next two years to help the city pay for bonds issued while Lost Creek was part of the city. ...
- Rochester mobile home, condo owners speak out on big tax hikes: It’s not ‘right or fair’ (NH) January 8, 2025Residents of mobile homes and condominiums are speaking out after the city’s property revaluation process resulted in large tax increases, on average much higher than what single-family homeowners are seeing. A report by Marybeth Walker, the city’s interim chief assessor, shows the disparity. Condo values went up 94% on average and mobile home values went up 208%, Read the article…………………………….
General Financial
- How to Advocate for Financial Transparency in Your HOA December 11, 2024Financial transparency in your HOA (homeowners association) might sound like a dry topic, but it’s one of the keys to a happy, well-managed community. Since many of us live in communities with HOAs, understanding how they operate and how their actions affect us can make a difference in our overall satisfaction with our neighborhood. Read the article…………………………….
- Financial Management Tips for HOA Boards: Ensuring Long-Term Success November 22, 2024Managing a Homeowners Association is no small task. As an HOA board member, you’re responsible for maintaining your community’s finances, making decisions that affect your neighbors, and ensuring everything runs smoothly for the long haul. One of the most important aspects of this job is financial management. Proper budgeting, managing reserves, collecting fees, and strategic financial planning can keep the HOA in great shape, both now and in the future. Read the article…………………………….
- 4 Essential Things Finance Leaders at Community Management Companies Must Know to Prepare for 2025 November 6, 2024The finance landscape for community management companies is evolving rapidly, and 2025 is set to bring new challenges and opportunities that finance leaders must be ready to tackle. With increasing demands to drive efficiency, adopt emerging technologies, and safeguard against rising fraud risks, finance professionals in this sector are being asked to do more than ever before. Read the article…………………………….
- Expert Tips for Effective HOA Financial Management October 17, 2024Homeowner Associations are unique entities. In some ways, they are akin to small cities that manage community assets, fund operating expenses, and impose dues and assessments. However, unlike municipalities, volunteer boards of directors oversee HOAs, while most municipalities employ a staff of paid experts and consultants. Read the article…………………………….
- Board Duties, Fiscal Checklist October 12, 2024Associations must file a federal and state tax return or exemption statement by the 15th day of the third month after the fiscal year ends. Since requirements can vary, it is best to consult the association’s CPA or tax advisor regarding applicable filing or reporting requirements. Read the article…………………………….
Fraud & Embezzlement
- Cedar City residents respond to allegations of HOA manager embezzling funds (UT) January 18, 2025A Cedar City community told ABC4 they were shocked to find a notice detailing allegations that their HOA manager was in custody for embezzlement. Video news report……………………..
- Cedar City property manager facing felony charges for alleged financial crimes (UT) January 16, 2025A Cedar City property manager is facing multiple felony charges following an investigation that uncovered alleged financial irregularities involving a homeowners association account. Blake Floyd Cozzens, 39, was arrested Wednesday and charged with 10 counts of unlawful fiduciary dealing, each a second-degree felony. Read the article…………………………….
- NJ woman accused of scamming $1M as condo property manager December 24, 2024A 43-year-old Morris County woman has been accused of scamming more than $1 million from her employer while working as an on-site property manager at a condo complex. Martinia Heath, of Morris Plains, was charged with second-degree counts of theft by deception and impersonation, as well as one count each of third- and fourth-degree forgery. Read the article…………………………….
- Grand Lake Homeowners Association hit with $100,000 theft (OK) December 16, 2024A Grove woman accused of stealing over $100,000 from a Grand Lake gated community homeowners association is released from jail after posting bail, online court records show. Christina Antoinette Dentmon, 42, is charged with embezzlement in Delaware County District Court in Jay. Court records show that between July 9, 2018, and July 8, 2024, Dentmon allegedly embezzled $106,797.69 in unauthorized expenditures. Read the article…………………………….
- Man who led Las Vegas HOA takeover scheme has prison sentence commuted by Biden (NV) December 13, 2024The ringleader of a scheme to take control of Las Vegas homeowners associations from 2003 to 2009 is among the 1,499 people who had their sentences commuted by President Joe Biden on Thursday. Read the article…………………………….