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 […]
Condo Column: Access to your money (NH)
An issue arises occasionally at condominium associations that arose lately at an association I am fortunate enough to represent, and a board member thought it might make a worthwhile column. He was right, so here we are. Besides, I don’t want to lose one of the readers or a client. Read the entire article……………………………….
Understanding the Basics of Board Financial Reporting
As a property manager or community association board member, sometimes it’s tough to remember that associations are businesses. Some of them are pretty large, with hundreds of thousands of dollars in dues collected and expenses paid each year. That requires regular, proactive monitoring to ensure that issues, like mistakes or variances, are quickly identified and […]
Condo Column: The crypto mistake (NH)
There have been rumblings in Condo World about cryptocurrency, i.e. digital money with no physical presence like coins or bills. A lot of people have made a lot of money by investing in it and seeing it double, triple or more in worth in a very short period of time. Good for them. Read the […]
HOA balance sheets
Balance sheets are used by all types of businesses. HOAs also use balance sheets to understand how much money is coming in, how much is going out, and how much equity they have. This financial document provides a clear snapshot of the company’s finances at any given point in time. The items listed on the […]
Distinguishing between maintenance responsibility and financial responsibility in the wake of damage to condominium property (FL)
Forgetting to turn on the air conditioner before heading back up north for the summer and coming back to find mold growth. An undetected pipe leak. Forgotten running faucets that spill over onto the floor and beyond. Read the entire article……………………………….
6 HOA Financial Reports You Need to Know
Homeowner Associations in Santa Clarita can involve lots of reports. Here are 6 financial reports that you need to know Read the entire article……………………………….
Financial Management and Planning is Key to a Healthy Condominium Association (FL)
We have all heard the old adage, “Don’t judge a book by its cover.” The same is true when it comes to condominium associations—you cannot judge the “health” of a condominium association by its polished marble floors or its breathtaking gulf shore views. The true lifeline of a condominium association comes from successful financial planning, […]
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 […]
5 Ways to Keep Your HOA’s Financial Stability
Your homeowner’s association (HOA) will achieve success when its financial health is maintained. Your role as an HOA board member goes beyond ensuring that fees get paid in a timely fashion. You should be involved in the budget-making process and monitoring of financial expenses. Board members provide the availability of funds to cater to the […]
How to Get Your Condo or Homeowners Financial Records (FL)
If you live in a condo or homeowners association, you may wonder: where is all your money going? Do you have a right to the records, and if so how do you get them? Which is why one South Florida woman called Help Me Howard with Patrick Fraser. Read the entire article……………………………….
AB 1101 Signed! Welcome Clarity to HOA Financial Protection Requirements (CA)
AB 2912, passed in 2018, provided welcome protections to homeowners in HOA’s from fraudulent activities by those entrusted with managing an HOA’s finances. AB 2912’s protections included: 1) requiring Associations to secure fidelity bond insurance in an amount equal to or exceeding current reserves, plus three months of assessments; 2) requiring a monthly review of […]
The association suddenly needs a lot of money. How do you get it? Which way makes sense? (FL)
So many of our buildings are approaching the 40 year mark, requiring recertification in electrical and structural. Many buildings are younger yet still need major repairs to the concrete, balconies, pool decks and other portions of the common elements. The board is going to need a lot of money. Assuming you don’t have enough in […]
Caring for the Financial Well-being of the Association (FL)
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 […]
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……………………………….