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HOA Management Blog

At The Hignell Companies we have been providing professional management services for California Homeowner Association Boards for nearly 30 years. We love sharing our knowledge and perspective. Give us a call at 530-419-6032 if you have any questions.

Why It's Crucial to Regularly Collect for Reserves at Your Homeowners Association

May 11, 2018 at 11:40 AM / by HOA Manager

posted in Reserve Funds

past-now-futureReserve 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:

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How Many Years Should an HOA Reserve Study Cover?

April 25, 2018 at 9:00 AM / by HOA Manager

posted in Reserve Funds

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.

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The Legacy of Your HOA Board: Passing the Torch

April 20, 2018 at 2:47 PM / by HOA Expert

posted in Reserve Funds

When a new HOA board is transitioning into power, having solid foundations for the new members is important to the homeowners association’s success. The first step in a successful HOA board’s transition process is to set expectations, particularly if you have many board members (along with their experience) leaving the board. To do so, a comprehensive transition plan document should be in place. If there isn’t one, meet with current and new board members to document a plan. It’s a worthwhile investment, because the document can be used for future HOA board transitions.

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How To Interpret Your HOA Reserve Study

April 11, 2018 at 9:00 AM / by HOA Expert

posted in Reserve Funds

More often than not, sitting down to review your HOA Reserve Study can be about as easy-to-understand and enjoyable as sitting down to review the U.S. Tax Code. And just reviewing your HOA Reserve Study is not enough.  As an HOA Board member, you’re responsible for using that HOA Reserve Study to plan for, allocate, adjust, and collect reserve funds accordingly. 

Here are some ideas to help you interpret your HOA Reserve Study and put it to good use so that your HOA can pay for what your community needs to keep it in good repair, easy on the wallet, and lovely to live in...today and in the future.

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Why Your HOA Board Should Use a Reserve Specialist

April 4, 2018 at 9:04 AM / by HOA Manager

posted in HOA Board, Reserve Funds

As an HOA board member you probably know what a reserve study is and the importance of doing one. If you don’t, take a couple of minutes to read this blog to familiarize yourself with frequently asked questions about doing a reserve study in your homeowners association.

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Eliminate the Risks of Not Having Adequate HOA Reserve Funds

February 21, 2018 at 9:00 AM / by HOA Manager

posted in Reserve Funds, HOA Resources

The risks of not having enough HOA reserve funds for your community are as serious as the risks of not having enough emergency savings for your family.  Imagine needing to pay for college tuition increases or costly medical expenses without having enough money set aside to do so. Now imagine fellow homeowners having their family budgets crushed by emergency assessments because there aren't enough HOA reserve funds for repairs.  They’ll likely call you as a board member to complain!

Why not avoid these situations altogether? Having HOA reserve funds readily available “just in case” offers you and your fellow homeowners financial peace of mind.

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Questions About How an HOA Board Uses the Reserve Fund

October 7, 2016 at 9:00 AM / by HOA Manager

posted in HOA Management, Member of HOA, Reserve Funds

Each and every homeowner’s association should have a reserve fund as part of its budget to plan and prepare for future repairs and maintenance, as well as unanticipated expenses and needs. HOA board members are responsible to make sure a reserve plan is in place for the Association, or at least ask the question about how the Board is planning for the reserves. If the Board is ignoring the reserves altogether, then it needs to actively seek out assistance to make this happen.

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What is a Reserve Study and Why Should an HOA Board Care?

October 5, 2016 at 11:00 AM / by HOA Manager

posted in HOA Management, Member of HOA, Reserve Funds

As a homeowner or renter in a homeowners association, you know the importance of setting aside a little bit of money each month in case of an emergency. After all, you never know when you might have to replace an appliance or take your car to the mechanic. In order to effectively do this you’ve probably analyzed your budget and determined an amount that you can comfortably set aside each month so it’s there when you really need it.

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Is Your HOA Board Saving Enough for the Reserves?

August 8, 2016 at 4:34 PM / by HOA Manager

posted in HOA Management, Reserve Funds

How does the reserve fund in your homeowners association look? If your fellow HOA board members tend to look the other way, not want to deal with the reserves, or simply refuse to fund them, you’re not alone. Many Associations across the country aren’t saving enough in their reserves to make major repairs which can cause a multitude of problems. The community can fall into disrepair, you may be faced with having to enforce a special assessment on homeowners, or eventually losing control of the entire Association.

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Why a Loan is (Sometimes) a Good Idea for Your Homeowners Association

March 1, 2016 at 9:00 AM / by HOA Manager

posted in HOA Management, Reserve Funds, HOA Fees

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?

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