Financial Management



ASSESSMENTS, LATE FEES & COLLECTION ACTIONS DURING COVID-19 February 2021 At the time of this publication, we are in the midst of a global pandemic. There is no disputing that many are hurting, financially and otherwise. When the COVID-19 health crisis hit in early 2020, many of us couldn’t imagine its duration or its impact. It is likely that the

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April 2, 2020 We are in the midst of an unparalleled global health crisis, uncertain of when it will pass and life will return to normal. At the date of this column, approximately 80% of Americans are under a State Order to stay home, businesses are closed, and people are out of work. Unemployment claims are spiking, and millions of

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To Lien or Not to Lien

Aggressive Pursuit of Delinquent Assessments is Critical for the Fiscal Health of Your Association Associations are non-profit corporations that rely on zero-sum budgets for operational and reserve expenses. In other words, an Association’s annual budget does not account for an income margin like “for-profit” corporations. As such, it is imperative that projected assessment revenue is received in a timely manner

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Budget Season is Never Really Over

Budgets and financial statements should be reviewed regularly, and adjusted if necessary. If your Association’s fiscal year-end aligns with the calendar year, your approved budget along with the legally required disclosures has already been mailed out to the membership. While it may no longer officially be budget season, roughly defined as the last quarter of your Association’s fiscal year, is

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Budget Season is Here! No, Really… Budget season begins much earlier than you may anticipate.

Budget season is here! The reality is, if your fiscal year end coincides with the calendar year, you should begin the budget preparation process by early August. If your fiscal year falls at another time throughout the year, I suggest allowing a full 5 months before your Association Budget Report is due to be received by the membership to begin

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Budgets, Reserve Studies, and the Board’s Obligation to Maintain Common Areas

The preparation of the Association’s annual budget and updated reserve study are critical tasks to ensure the proper funding of operational expenses, proactive repairs, and replacement of aging common area elements. One of an Association Board’s primary responsibilities is to properly maintain the Association’s common areas, including community amenities, and an adequately funded budget is essential to meet this obligation.

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Associations Have Right to File Lien

I was contacted by my mortgage company that my homeowners association filed a lien on my house for outstanding assessments. I never even received a notice from the HOA! Admittedly, I fell behind on my HOA assessments after I was laid off from my job, but is it legal for the HOA to lien my house? Wouldn’t there be a

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Tips to increase your HOA value

There is obviously very little I can do about the recession and depreciating home values, but are there things that I could be doing, or our neighborhood can do to increase the value or appeal of our community? How can we set ourselves apart from all of the other communities through the valley? David B. Home values are on everyone’s

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A few tips for how to look at a prospective HOA

DR. HOA, I am in the market to purchase my first condominium, and I am nervous after hearing horror stories of associations not maintaining buildings and outrageous special assessments. What should I be looking for to ensure that I make a good investment? —Amy H. Hello Amy, I applaud your due diligence prior to purchasing in a condominium association. All

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HOAs can avoid special assessments

Dr. HOA, I was recently elected to the board of directors for my condominium association. I ran for the board after our association had its second special assessment in two years. The first special assessment was for new roofs and this year’s assessment was for painting the buildings. What can our new board do to avoid these types of special

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