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 […]
Earmarking Reserves In Your HOA
Most homeowner associations are entrusted with substantial common elements which must be maintained, replaced or renewed. All of this costs a lot of money. Borrowing said money is a very bad idea because it comes at a very high price in the way of interest and fees which must be repaid along with the principal. […]
Legal Counsel’s Two Cents on Community Association Budget Considerations (VA)
It is that time of year. Summer vacations are in the books, schools are in session, and pumpkin spice lattes are back on tap. These signs of Fall also mean many Virginia community associations are in budget season. Community association boards rely on their budget committees, management team, accountants, auditors, and/or reserve specialists for input […]
Should You Compare HOA Assessments To Other Communities? (UT)
As a management company, when budget season rolls around every year we get board members asking us, “Can we compare HOA assessments to what other communities are charging?” Not only is this the wrong way to calculate your budget, it is also dangerous for your community’s fiscal health. Here’s why: Read the entire article……………………………….
Ask Mary: How Can Boards Get Owners to Pony Up?
Dear Mary: Our board has a hard time convincing owners to spend money. Even when we present a good case, we can’t seem to get approval. We’re missing out on fixes that could prevent future costs and on improvements that could benefit everyone. What are we doing wrong? Read the entire article……………………………….
What Your HOA Needs to Know About Assessment Payments in Arizona
Homeowners’ Associations carry a great deal of responsibility when it comes to maintaining the community. HOAs are often required by their governing documents to perform many actions, which may include maintaining insurance policies, paying for water or sewer charges, maintaining landscaping, caring for community facilities such as pools, playgrounds or golf courses, repairing roofing damages, […]
Passing the Buck Can Cause Collapse
It began about 40 years ago when the Champlain Towers South condominiums, the Surfside, Florida condominium complex that became a news story in June, was first developed. Internal documents apparently contend that the driveway on the top of the building’s garage had “very poor drainage (design flaws) which exposed the garage to water intrusion for […]
Understanding the Importance of Assessment Increases (CO)
Any community management professional understands that one of the biggest questions raised year after year by board members and homeowners alike is “Why do we need to increase our assessments this year?” An educated manager that comes ready to answer that question is going to be able to both service the community, and at the […]
Condo 101: Budgeting Best Practices (ON)
Responsibly managing a condominium corporation’s funds is a crucial part of a board member’s fiduciary duty; however, the task can be too overwhelming for one person to handle. While a board treasurer takes the lead on preparing an annual budget, it’s the responsibility of the entire board to keep it balanced. A budgetary shortfall can […]
Should Early Payments Of HOA Dues Be Encouraged?
When it comes to dues collection, late payments seem more like a common occurrence than early ones. But, should early payments of HOA dues even be encouraged? Read the entire article……………………………….
How to Increase HOA Dues and Handle Homeowner Concerns (IL)
To ensure that HOA expenses are covered for the year, it is almost always best practice for board members to increase homeowner assessment fees. Although this is rarely a popular decision, there are ways to communicate the news of an increase to residents with minimal friction. Here are some things to keep in mind. Read […]
HOA Budgeting 101 – 6 Pro Tips and Practices
Budgeting is an integral part of the HOAs management world. From landscaping, lawn care to pool treatment services, they all require prior planning and allocation of resources. Being the Board of Directors (BoDs), they ensure that these budgets are achievable and healthy for the community. When homeowners associations start increasing their residents’ dues to cover […]
What Should An HOA Budget Template Have?
Every homeowners association relies on a carefully crafted budget for its yearly expenses. But, what does an HOA budget template look like? And what should it include? Read the entire article……………………………….
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 […]
Preparing For Unexpected Large-Scale Repairs In Your Community Association (NC)
As a homeowner, you probably expect that certain elements of your home will have to be repaired or replaced over time, and the same rings true for common elements and structural components of community associations. However, large capital repair projects in associations are undoubtedly more complicated and expensive than your average home repair. And, of […]
HOA Fee Discounts: Should They Be Given?
Many HOA boards struggle to collect fees and consider giving discounts as a way to encourage on-time payments. But, are HOA fee discounts even a good idea? Read the entire article……………………………….
Six tips for effectively managing your HOA’s budget
There are three key items that determine the success of any HOA: communication, management, and money. In this article, we will focus on the last point. While HOAs may hire professionals to help them manage the association’s finances, it is ultimately up to the board to make sure the HOA is in good financial health. […]
What is an HOA Special Assessment, and When Should It Be Levied?
If you live in a planned community, there is a possibility you are part of a homeowner’s association (HOA) which requires members to pay fees. The regular dues cover the daily operations of the association, such as simple repairs. However, there are moments when these dues won’t cover all the expenses. For example, when unexpected […]
Proactive HOA Budgeting (TX)
Every year, the HOA board must approve an annual budget for the association. And, sometimes, because of too many busy weeks and complex personal schedules, the board may feel like they’re just going through the motions to complete the budget without taking the time to really think and evaluate how the money can best be […]
The Ins & Outs of Preparing a Condominium Association Budget (FL)
In many ways, the managing and operating of a condominium association is akin to operating a business. A primary similarity is the importance of careful and accurate financial planning and budget preparation. The board of directors of an association has fiduciary duties to its members. By paying close attention to the legal and technical requirements […]
9 Top HOA Budget Planning Mistakes The Board Should Know (NC)
The HOA budget is a critical tool for financial success. But, so many things can go wrong right from the planning phase of your annual budget. Learn how to avoid the most costly HOA budget planning mistakes below. Read the entire article……………………………….
The Ins and Outs of Preparing a Condominium Association Budget (FL)
In many ways, the managing and operating of a condominium association is akin to operating a business. A primary similarity is the importance of careful and accurate financial planning and budget preparation. The board of directors of an association has fiduciary duties to its members. By paying close attention to the legal and technical requirements […]
What You Need to Know About Raising HOA Dues (CA)
One of the biggest challenges of running a homeowners association board is handling the dues. While residents usually want their homeowner’s association dues to be as low as possible, the neighborhood still needs a decent amount of funds to handle community needs. There are all sorts of pros and cons to raising HOA dues, but […]
5 Effective Ways to Properly Budget and Save Your HOA Money
Saving money is an admirable goal and one that many of us try to accomplish, but when you are running an HOA, it can be challenging to know the best way to cut costs without sacrificing your community’s well-being. No HOA wants to increase its assessments, and owners would be happier if that never needed […]
HOA Lessons Learned – Case 1 Construction After the Fact
Construction projects are often a part of a condominium association board’s most impactful business and can define the year, or several years, as these projects can be large and far-reaching, changing the nature of a community. In Florida, an appellate case highlighted the need for strict compliance by the condominium board of directors to their […]
How To Adjust An HOA Budget During The Pandemic
The coronavirus outbreak has financially impaired Americans nationwide, affecting homeowners associations in the process. To avoid financial ruin, it is imperative to learn how to modify your HOA budget during the pandemic. Read the article…………………………………..
Planned Community (Non-Condo) Operational Deficits: Plugging the Gap (TX)
From the date of creation until death, a community association requires funds to operate. Operational funds for the association are obtained through assessments levied by the community association, but only as homes are built and conveyed to homeowners. As a result, in the early to mid-stages of a planned community life cycle, there will be […]
How to Build a Responsible HOA Management Budget (CA)
Navigating the budgetary needs for a homeowners association is one of the trickiest elements of serving on the board. Estimate too high and you risk having to raise monthly HOA dues, creating frustration among homeowners. Budget too little and you’re forced to impose costly special assessments for major projects… which also causes dissatisfaction for homeowners. […]
What is acceleration of assessments? When and how should you accelerate? (CO)
If you’ve come to one of our collections classes or read your Association’s Collection Policy, you may have heard the term acceleration. But what exactly is that? Accelerating means calling due all of the year’s assessments now. If it’s January and you accelerate assessments, all the monthly (or quarterly) assessments due this year are now […]
HOA Budget Guideline: How To Come Up With An HOA Annual Budget (OH)
The homeowners association budget is a major responsibility for the board. Creating an accurate and well-thought-out budget ensures the financial health of your community — not just for the next fiscal year, but for many years to come. For new board members who are not yet familiar with this process, here are HOA budget guidelines […]
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 […]
The Right Way to Raise Assessments
The cost of living continues to skyrocket across the World. In this case, the financial burden incurred in operations across various sectors remains a thorny issue. Your HOA is no exception. The association has to maintain a delicate balancing act between increasing assessments and keeping the fee to a nominal amount that homeowners are comfortable […]
Explaining HOA Assessments
Timely and effective communication regarding assessments is one important way to get each year started on the right foot. As you are aware, payments collected from homeowners to cover expenses in the association are known as assessment fees, or dues. Because HOA assessments are vital to the overall health of the association, members are responsible […]
Budget Ratification: Understanding the Ghost of Budgets PAST When Preparing for the Future (NC)
As we reflect on the unprecedented past year, many of us begin to look forward and think, “What’s next?” With a New Year right around the corner, community associations need to begin considering the PAST in order to prepare for the upcoming year. So “What’s next?” for community associations? The answer: budget ratification. Read the […]
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…………………………………..
Planning Ahead for 2021: A Brief Guide to Annual Budgets (FL)
As we approach the final months of the year, community associations and their Board of Directors must start planning for 2021. There is no question that the global pandemic caused by COVID-19 this year has unexpectedly and significantly impacted every facet of our lives. Condominium Associations have particularly felt the financial repercussions of the pandemic […]
Association Funding Budgeting Assessments And Reserves (MI)
Association boards have a variety of responsibilities in administering the affairs of a condominium or homeowner association. Some of the most important responsibilities include ensuring that the association has sufficient funding to maintain, repair and replace items within the community, to carry insurance, and to maintain adequate funding for all of its obligations. To help […]
Condominium budget preparation issues (FL)
It is that time of year when Condominium Associations start working on preparing their budgets for 2021. Usually a small committee or the board will have a “workshop” to come up with a preliminary budget and later in the year the board will vote on the final budget. Read the article…………………………………
5 Costly Financial Mistakes To Avoid In Your HOA’s Budget
Proper budgeting can be an art. When carefully planned and well-executed, a homeowners association (HOA) budget can serve to improve the lives of everyone in the HOA community. A reasonable HOA budget helps ensure that the association has a bright future. It creates more resources for improvements, maintenance, and amenities for residents. Read the article……………………………………
How To Handle HOA Surplus Funds
It is not often that homeowners associations encounter excess operating funds in their budget. But, in the event that you do, you must know the proper way to deal with them. Here is everything you need to know about HOA surplus funds. Read the article……………………………..
What Do You Include in the HOA Budget?
Thoughtfully planning and preparing for the annual HOA budget is not easy, but it is crucial to the day-to-day and long-term success of the community. Each year, the board is tasked with overseeing both the operating and reserve budgets and adjusting them accordingly to best meet the needs of the association. Read the article…………………………..
What Are Special Assessments, and Can They be Enforced?
If you’ve ever lived in an HOA, you’re most likely familiar with the term ‘special assessment,’ or have at least heard the term in passing. There are two types of assessments associated with homeowners’ associations: regular and special. Read the article……………………………..
What to Do with HOA Operating Surplus Funds
Even with their many expenses, an HOA board may reach the end of the year and discover they have an operating funds surplus. This occurs when all revenue or receipts, which may include rents, assessments, or profits obtained by the association, exceed the common expenses. Read the article……………………………
7 Strategies to Keep Assessments Low in Your Community Association
No homeowner ever thought to themselves, “Gee, I wish my condo association charged me higher dues!” It’s a struggle Boards of Directors face universally. Assessments need to be high enough to accommodate the needs of the community, but not so high that homeowners struggle to pay them. If you serve on a board of directors […]
HOA Budgeting During Times of Crisis
Preparing an accurate budget for your HOA may seem like a daunting task, especially during uncertain times such as these. At SpectrumAM, we believe careful planning and partnering with your community manager to discuss the community’s financial picture can help make this process much easier. Read the article……………………………..
What Every Board Member Should Consider To Reduce Assessments (MI)
A condominium association’s board of directors has a seemingly endless list of responsibilities, but one of the most important – at least in terms of its impact on the membership – is the adoption of an annual budget. In simple terms, adopting a budget requires the board to balance two competing realities: (1) the association’s […]
How much Can HOA Assessments Increase?
Assessment fees are payments the HOA collects from homeowners in order to cover expenses that the association is responsible for. Occasionally, the HOA may need to increase assessments. Before we get into that discussion, let’s start by understanding the basic concept of the HOA annual budget and why assessments are important. Read the article………………….
9 Ways To Increase HOA Cashflow Without Raising The Fees
A homeowners association thrives on assessments — fees regularly charged to residents of the community. It is the main source of income for any HOA. But, what if they’re not enough to cover all the expenses? Is there a way to increase HOA cashflow without raising dues? Read the article………………………
Annual Budget Preparations For Your Association (NC)
Those serving on HOA boards need to have a keen understanding of how essential a balanced budget is to the success of their associations. Drafting and ratifying a budget can often seem like a daunting task for board members. However, if the proper steps are followed and all prudent information is taken into consideration, budgeting […]
Avoid Issues Arising From Unwelcome Financial Surprises
As we prepare thousands of HOA, individual, and business tax returns while helping clients avoid tax surprises, we also want to help community association property managers and board members avoid common budget and financial surprises. Here are 10 potential surprises, and how to avoid or address them: Read the article…………………………