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.

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. 

Power failures can be one of the most annoying and disabling occurrences in your HOA. Whether caused by summer storms, crippled by winter ice, equipment failure, an overloaded regional grid or an animal disrupting a power line, electrical outages can be costly, uncomfortable, and without forethought -sometimes even dangerous.

Association homeowners can face many hazards when a power failure occurs, usually without any warning, including losing refrigerated and frozen foods. Some food items can be salvaged, but only if you’re prepared.

Common area lighting, pools, club houses, and laundry facilities are just a few areas that a homeowners association can find itself spending lots of dollars on quickly. No one likes it when their HOA dues increase, so how do you help conserve energy and manage costs?

Energy bills, like the temperature, always rise in the summer. While there are big fixes an Association can incorporate to make common area electricity more energy-efficient, there are also many inexpensive energy solutions, as well as some simple and free steps that you can take to cut down on costs and save money.

Unclear or unenforced parking rules can wreak complete havoc in your HOA community. Many reasons contribute to this: Communities built with poor planning for parking, poor signage or lack of clarity on parking rules, owners NOT using their garage as their primary parking spot as stated in the Governing Documents, owner having more vehicles than allowed, owners storing vehicles in the community and in doing so losing a valuable parking spot.

Homeowner associations are sometimes faced with special circumstances that arise even when they’ve done an excellent job of planning for replacement costs. Large-scale repairs, emergency situations,  or capital improvement projects may occur that put their reserves dangerously low. Special HOA assessments, in addition to monthly HOA fees, could then be the best option.

There are a lot of property managers out there.  They have different backgrounds, styles and strengths.  It is important for the board of directors of your homeowner’s association to look for a management company that will best serve your community.  Do they have the expertise that your association needs?

Does an HOA board have authority to make important decisions for the community without seeking input from their homeowners – either by informal consultation, a survey or a formal vote?

The short answer to the question is “Yes.”  The HOA board is established to oversee the governance of the association on behalf of the homeowners/members. While HOAs are quasi-governmental in nature, they are not pure democracies in which members vote on every issue. The long answer to the question is more complicated.

Homeowner associations with common area buildings and structures are required to stay up to code and should schedule their local fire inspector to assess buildings on an annual basis.

One item on that inspection will be an assessment of the smoke detectors. One major safety concern to also consider is carbon monoxide, or CO.

There’s a lot more to managing a community association effectively than you may realize. It’s much more than property management; it’s also about governance—enforcing rules, conducting elections and more. Your home and your ownership interest in the common elements represent a huge asset—possibly your largest asset. Doesn’t it make sense to have a knowledgeable, trained, professional community association manager watching out for your interests?