Far too many homeowners associations have underfunded HOA reserves, not recognizing the importance that reserves play in a community’s financial stability. To avoid and potentially remedy underfunded reserves, an HOA board must first analyze its situation and determine possible causes. From there, the board can seek the proper solutions and keep the association financially healthy.…
Homeowners associations would do well to stay within the reserve funds FDIC limit. Doing so can help the community protect their funds and remain financially healthy. But, what exactly is this limit and is it truly important? Let’s find out. What Is the FDIC? The Federal Deposit Insurance Corporation (FDIC) is an independent agency…
Some states have HOA reserve fund laws that regulate community associations when it comes to funding and study requirements. Apart from avoiding potential liability, homeowners associations and condominiums should follow these laws for their own good. Maintaining an adequately funded reserve account is imperative to the financial health of an association. What Is an…
It is not often that homeowners associations encounter excess operating funds in their budget. But, in the event that you do, you must know the proper way to deal with them. Here is everything you need to know about HOA surplus funds. What to Do With HOA Surplus Funds A lot of factors can…
What is an HOA reserve study, and should you do it now? If you’re one of the board members and wondering what HOA reserve studies are for, this might just be the right time to learn more. A homeowner association reserve study is always a useful tool to have for budgeting. It’s true whether you…
Your homeowners association reserve fund plays a crucial role in maintaining community assets. To determine the necessary amount, you need to conduct an HOA reserve study. Since there are a lot of strict requirements involved, the process can be quite complex. If you want to properly establish an HOA reserve fund, it may be beneficial…
Having the finances well-organized in your community association is essential to maintain a great reputation amongst current and future residents. Many HOAs are not responsible with their finances, which causes them to not operate at their maximum potential. If you want to avoid money problems down the road, consider these financial tips for an HOA.…
HOA special assessments can be a source of friction between the board and community members. What is a special assessment, and how does HOA special assessment rules affect residents? Can an association just call for an HOA assessment or a condo assessment in the case of high-rise communities? Let’s take a look at why HOAs…
What are reserve funds? Homeowners association reserve funds are one of two principal accounts necessary to manage your community. As a homeowner who pays monthly dues, you should understand the purpose of reserve funding and how it is used by the association. Here’s everything you need to know about HOA reserve funds. What Are…
As a homeowners association (HOA) member that pays fees each month, it’s only right that you know what your money is being used for. One of the most important tasks of an HOA board is to allocate these funds. HOA fees are usually distributed to two accounts: operating funds and reserve funds. While both accounts…