For homeowners associations with a January through December budget year, the time clock is ticking to develop a budget for the upcoming year and have the budget approved in time for the association’s year-end mailing. A budget committee can be comprised of HOA board members, members of your community association or a combination of both. How does the budget committee work and who serves on it?
If you're part of a homeowners association in California, the time to send out your budget and disclosure package is 30 to 90 days before your new fiscal year begins. For those who have a January to December fiscal year, now is the time! Please see the following suggestions to get you over the hump.
An area where a lot of HOA board members get into trouble relate to properly understanding the operating fund and the reserve fund in a homeowners association. If the two funds aren’t properly maintained a Board can be setting up the Association for failure and don’t even know it. It’s crucial that Boards understand how to use the operating fund and reserve fund, and use them correctly so they don’t find the Association in financial ruin.