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Important Tax Deadlines for California HOAs

February 9, 2024 / by HOA Manager

While understanding tax deadlines and requirements is crucial for any HOA board, navigating through these can be complex and overwhelming. The intricacies of tax filings often require professional guidance to ensure compliance and avoid penalties. In California, HOAs are subject to various tax reporting and filing deadlines, each with its own set of requirements and implications. While it's imperative for HOA boards to collaborate with accounting professionals who specialize in HOA tax matters, Davis-Stirling offers some key deadlines and considerations for HOA tax returns.

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The Key to Unlocking Financial Resilience in Your HOA

October 12, 2023 / by HOA Manager

Homeowner associations are at the heart of community well-being, orchestrating the collective rhythm of neighborhood life. Among the myriad responsibilities shouldered by HOA boards, navigating the financial maze emerges as a daunting challenge. Unpaid dues, insufficient budgeting, and unforeseen expenditures often conspire to unsettle the fiscal equilibrium of an HOA, echoing through the community in the form of compromised services and unmet obligations. However, HOA boards are not destined to traverse this intricate financial landscape unaided.

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The Impact of Inadequate Reserve Funding by the HOA Board

May 11, 2023 / by HOA Manager

Homeowners associations are established to ensure the proper maintenance of common areas, amenities, and other community resources. To fund these, HOAs rely on the contributions made by homeowners in the form of regular assessments and reserve funds. The reserve fund is essential in ensuring that the HOA can cover unforeseen expenses, repairs, or replacement of community property. However, what happens when the HOA board fails to maintain the reserve fund at a proper level for the association?

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How Often Do You Recommend Doing a Reserve Study?

April 28, 2023 / by HOA Manager

Reserve studies are a critical tool for HOAs to help ensure that they have adequate funds available to cover future repairs, replacements, and other significant expenses. These studies provide a comprehensive financial analysis of an HOA's reserve fund, including an inventory of the property's common elements, estimates of their remaining useful life, and projected costs for their repair or replacement.

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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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