Why does An Association
Need to Budget?
Not only may an annual budget be mandated by an association's governing documents or current laws,
but a budget is also necessary to determine three things:
1. How much money to collect from assessments
2. How much it costs to run the HOA's day-to-day operations
3. How and when to perform required maintenance and repairs
The annual financial plan for the community, budgeting should begin about six months in advance of the
fiscal year. Because the primary income for an association is from collecting assessments, which each
member pays to cover all expenses necessary to operate the corporation, budget preparation must be
taken seriously and prepared with a very detailed hand.
