HOA Management BlogRecent Posts
We all know how important it is to try and consider taking a green approach in our daily routines. What if you could go green while also helping the community in your homeowners association? Residents can help their homeowners association minimize its maintenance expenses, which can also avoid HOA fees from increasing, by observing a few simple green considerations.
You’re the President of the HOA board in your community and you’re wise enough to know that you’re in way over your head - but you like a challenge and you’re ready to meet it head on. You’ve read your governing documents and know how to keep a basic balance sheet, but that doesn’t mean you understand the CC&Rs or know the difference between the operating and reserve budgets.
Planned Unit Developments and Condominiums with attached walls tend to have more challenges around confining issues like infestation to just one unit. Bed bugs could have a devastating impact on these communities and it’s good to be aware of just how likely these critters could affect you.
Homeowner associations (HOAs), like most organizations, have adopted information technology for everything from accounting and bookkeeping to email and other forms of communication to preparation of documents and presentations, etc. However, HOA board members and their management staff must recognize and address the risks inherent in modern electronic technology, especially data breaches & server hacks that compromise information the HOA is responsible for keeping private.
Groups that are run by volunteers that handle money are particularly vulnerable to fraud, embezzlement, illegal activities, and scams. HOA boards are no exception. Access to funds is a temptation that some cannot resist.
Dishonest board members can exploit the fact that most volunteers don’t know the details on how to financially manage the HOA’s funds. They also know other board members are busy with family life, jobs and hobbies and may not have the time to scrutinize every transaction. Board members with a bit of financial savvy can “cook the books” to embezzle money or collude with outsiders to collect kickbacks.
Sometimes what seems like a simple item on the agenda that will receive an overwhelming vote can end up taking the whole meeting because Board members and homeowners keep hashing out the same issue over and over again.
All meetings of the homeowners association Board of Directors are open meetings. Residents are encouraged to observe meetings and read approved minutes. Residents who wish to address the HOA board are welcome to do so during the forum conducted at the beginning of each business meeting.
Here are a few tips for participating:
You’ve sent out the candidate solicitations, you’ve gone through finding members who are willing to serve on your board, printed the ballots, and mailed out a professionally prepared cover letter with two envelopes (postage paid!) – just like your CC&Rs or Bylaws outline. Now you have a new HOA board, right?
Then, someone you’d least expect notifies you, as the Director, that they are disputing the election because your HOA does not have election rules!
Reserve funds are not an extra expense. They are part of the ongoing expenses of the homeowners association which occur at various points in time. The plan provided by your reserve fund specialist will help you in this process. It's much more preferable that homeowners associations have a plan to set the funds aside now, on a year-by-year basis. By doing this, the Association can spread out the collection of assessments for these expenses more evenly over the coming years.
There are other important reasons that Association monies should be put into reserves every month:
As homes in your homeowners association begin to thaw from the cold months, it’s time to start thinking about preparing your home for spring and summer! The steps you take now can help avoid costly maintenance and repairs later.
Social media, for good or bad, is here to stay and has changed the way we communicate. By recognizing the pros, cons, and legal issues of using these platforms for HOA communication and professional branding, you can make these tools work for your HOA rather than against it.
So, your homeowners association is contemplating doing a reserve fund study. Perhaps you are a new HOA and need to establish and start funding the reserves; or, you are an older HOA that has had a reserve for years, but it is time to update it. How many years should your HOA reserve study cover?
Well, it depends. HOA communities vary in size, age and the number and dollar value of the capital assets they own. They choose different maintenance strategies for short-lived and longer-lived capital assets. Let’s explore some of these issues.
