Who Profits from HOA Dues?

September 28, 2022 / by HOA Manager

In a homeowner's association, members pay their assessments, and those assessments are divided between operating and reserve accounts. That money goes to pay for the upkeep of common area components in an association. Individual board members should not have access to those funds.

The idea isn't that an individual or small group would profit from the assessments being paid, but rather that all members would collectively benefit because that money's being used for the common good of the entire homeowner’s association.

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7 Common Questions HOA Board Members Ask About Budgets

August 26, 2022 / by HOA Manager

Many HOA board members get into trouble due to not understanding the operating fund and reserve fund in a homeowners Association. If these two funds aren’t properly maintained, a Board can unintentionally cause the Association to fail financially. Therefore, it’s crucial that Boards understand how to correctly use the operating fund and reserve fund.

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Steps to Take If You Suspect Fraudulent Activity Within the HOA Board

August 12, 2022 / by HOA Manager

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.

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6 Questions to Ask About How the HOA Board Manages Its Finances

April 22, 2022 / by HOA Manager

The Board of Directors  for your homeowners association has an immense financial obligation to the community. One of the HOA board's most important jobs is to keep legible and accurate financial reports and records. These reports and records provide an overview of your community’s revenue and expenses against its financial projections or budget.

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What to Do if Your Homeowners Association is Facing Foreclosures

February 26, 2021 / by HOA Manager

As a Board member of a homeowners association you may be faced with making decisions to foreclose on homes in your Association. This is not a pleasant task, but it is a necessary one at times. Some homeowners may challenge the entire process and you and the Board should know what you are doing and why.

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How an HOA Board Can Find Funds When Faced With an Unexpected Project

October 9, 2020 / by HOA Manager

It’s inevitable – someday you’re going to be faced with a project in your homeowners association that has to get done with the funds that just aren’t there. Since money doesn't grow on trees, what’s an HOA board member to do? It can be a tough spot to be in, but depending on what the project is and how much money you need, you do have options. Remember, it’s the board’s responsibility to protect, maintain and enhance the Association.

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Can the Reserves Be Adjusted for Items Costing More Than Planned For?

October 7, 2020 / by HOA Manager

Picture yourself in this scenario: The clubhouse needs a new water heater and it will cost $10,000. But all prior reserve studies that have been done in the association have only allocated $6,000 for replacement. What are the board’s options to make up the additional $4,000 difference?

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3 Options if You Need to Make a Big Repair NOW in Your Association

September 29, 2020 / by HOA Manager

As a general practice, what does an HOA board do if there’s a problem in the association that exists right now, but not enough money in the reserves to fix it? Is issuing a special assessment the way to go, or can the board use other funds in the reserves?

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How to Eliminate the Risks of Inadequate HOA Reserve Funds

July 14, 2020 / by HOA Manager

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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Does Your Homeowners Association Budget Include the Right Components?

June 26, 2020 / by HOA Manager

Many homeowners associations operate on the fiscal year (July through June). If your Association is one of them then hopefully you have your new and improved budget ready to go because July is just around the corner.

As an HOA board member you probably know the basics of HOA accounting, and that the process is reversed from the typical American’s household budget.

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