HOA News, Advice, and Tips
Throughout most of the year, a HOA President is the focal point for scheduling meetings, conducting business and setting the agenda for the association. However, around tax time the HOA Treasurer – working in concert with the board’s community association manager – becomes very important. Most community associations are set up as a corporation. However, just because these […]
Continue ReadingHow to Communicate the “News” in the Best Possible Manner If you have been in the association management business for any length of time, then you most likely have been faced with the need for a special assessment (SPA). The mere words can send chills down the spine of a manager and board of directors, […]
Continue ReadingIn today’s housing market, mortgage and interest rates are at their lowest in years. It is definitely a buyer’s market. However, more and more mortgage lenders are becoming increasingly scrupulous when examining your mortgage loan application. While the United States is still shrouded in economic uncertainty, mortgage lenders are fearful of borrowers who may default […]
Continue ReadingTo ensure the stability of every association, maintain property values and fulfill fiduciary obligations, it is important for the association’s board of directors to effectively pursue collection of assessments. Associations’ annual budgets are based on the assumption that all property owners promptly and consistently pay their assessments. Typically, delinquency rates for an association range between […]
Continue ReadingInternal Audit and Controls… What & Why? An internal auditors’ role includes monitoring, assessing, and analyzing organizational risk and controls; and also reviewing and confirming information and compliance with policies, procedures, and laws. Working in partnership with management, internal auditors provide the board, the audit committee, and executive management assurance that risks are mitigated and […]
Continue ReadingWhile it is always important to know where your community stands financially, it is especially important to understand the community’s financial condition in today’s economy. There are several recommendations and standards in place for analyzing a community’s financial health, and a few are listed below: Recommendation A: 2-3 months of expenses in your operating account(s) […]
Continue ReadingNew Associations in today’s economic environment are struggling with the need for having reserves, but reserves are critical for an Association to preserve the property and have funds for capital expenditures. Equipment and major components (like the roofs) must be replaced from time to time, regardless of whether we plan for the expense. We prefer […]
Continue ReadingHomeowners and homeowners’ associations often face expenses to maintain or repair their property. It makes sense to look for the most affordable contractor available to do the work. Many times, through friends or relatives, a homeowner will come across an unlicensed contractor during their search for a person to do the work. The unlicensed contractor will […]
Continue ReadingNew community associations are expensive to establish. Developers understand that in the current economic climate, community associations can be a hard sell to purchasers trying to obtain a loan and keep their monthly expenses low. Some developers have established associations in their new developments but have not assessed dues to the owners, in the belief […]
Continue ReadingHoly cow! I can’t believe it is time to begin preparing next year’s budget. Where to start? The first item of business is to retrieve the financial information for the last year and determine what the association spent this year. Look at the trend for the expenses. Are you spending more or less money than […]
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