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When it comes to finances, homeowners' associations (HOA) operate
like any other corporation or business. HOAs have different accounts set
up to pay for different things. A checking account to pay for everyday
expenses, and separate savings and investment accounts set aside for
future repairs and improvements. While appropriately funded spending
and savings accounts are crucial to a well-run association, the savings
part of the equation can often get ignored. Some studies estimate that
nearly 70% of HOAs in the United States are underfunded and lack the
proper savings to pay for major projects or repairs.
If you volunteer on your HOA board, then you have a unique
responsibility to help protect your association with proper financial
planning and stewardship. Don't wait to take a serious look at your
HOA's financial health. We recommend working with your board,
community manager, accountant, and other trusted professionals
to ensure your community is prepared to meet all of its financial
obligations including reconciling the past, managing the present, and
planning for the future.
This eBook is an excellent introduction to reserve funds and studies—
the two most essential aspects of community association savings and
financial planning. We break down the eight most commonly asked
questions, and provide helpful tips and insight from experienced
community and reserve study experts.
Is your association's
FINANCIAL HOUSE IN ORDER?
