HOA Management Blog
The reserve fund of a homeowners association is often misunderstood by members and sometimes the HOA board as well. Some see it as a slush fund that is to be used on a "rainy day"' when the association gets low on cash in the operating account. Others, although they may understand the need to have some measure of reserve cash, do not make the connection that reserve funds are being reserved for the particular components within the community that the association is responsible for, such as roads, roofing, siding, fencing, painting, and equipment replacement.
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.
Every HOA's number one priority is the legal fiduciary responsibility to enhance and maintain their property. The only way to do that is by collecting HOA fees. That's why a clear collection policy is a must-have for your HOA board.
Sounds like fun, right? Maybe not. But the new year is a great time to communicate a detailed collection plan for HOA fees. By managing owners’ expectations about HOA fees and the need for timely payment, you can help your board (and especially your treasurer) meet their goals and reduce the need for costly HOA fees collection.
Working for one of the largest HOA management companies in Northern California I get a lot of phone calls from distressed HOA board members. I hear the same story emerging from these different homeowners association. It’s a sad pattern that is all too common. The story goes something like this:
We all have heard the question time and time again, "Why do my HOA fees continue to increase?” Although it may not be news most homeowners want to hear, sometimes an increase in fees is the best way to keep the homeowners association in good financial health.
If just a few homeowners aren’t paying their HOA fees it can be felt very quickly in an association’s budget. It can also cause a ripple effect. If too many homeowners fail to pay their HOA fees, lenders might start to be unwilling to finance mortgages in the association. This could lead to a decrease in property values.
Tax season is here and we all want to deduct every last penny we can find. If you’re a member of a homeowners association, have you ever considered whether or not the HOA fees you pay are tax deductible? Every HOA is different, so you’ll want to find out what applies to your specific Association.
Did you know you can request a copy of the CC&Rs that detail just about everything you need to know about the HOA, prior to becoming a member? You can and you should! One of the important factors is how much you will be paying in monthly HOA fees.
Part of being a member in a California homeowners association is the routine practice of having to pay monthly HOA fees. It's easy to get frustrated if you're unclear on what purpose these fees serve, especially if the HOA board ever makes the decision to increase the amount. Whether you've been living in an HOA for a while now, or are considering buying a home in an HOA, asking the question what do HOA fees cover? can save you from unexpected financial surprises.
Buying a home is a big milestone in life. It’s probably one of the biggest purchases you’ll ever make. It can also be one of the most exciting and nerve-racking! You can avoid anxiety and buyer’s remorse by making sure you’re informed about certain factors that are part of home buying – whether you’re buying a home in a homeowners association or elsewhere. When you’re in the house hunting process, be sure to ask about the following to avoid any surprises to your budget.
The HOA board is thrilled to announce it is lowering assessments by implementing an exciting new program that will actually cut the association’s expenses in half! Here’s how it works.
Your association board is planning for the big project on the horizon, and is currently reviewing how to finance it. For several reasons, you don’t believe you’ll have enough funds in the association’s operating budget or reserves to cover the project’s entire bill. What should you do? Split the project up over several years, levy a special assessment, or maybe get a loan?
