Financial

No STR Moratorium for Maui Disaster Victim Housing

Governor Green announced on March 27, 2024, he is not going to pursue a moratorium on short-term rentals on Maui. He emphasized his administration is committed to working with partners across all counties to crack down on illegal listings and those engaging in deceptive acts and practices. Some complaints include landlords evicting long-term tenants illegally to rent at higher disaster supported rates. If these incidents are validated, the property would not be eligible for rent under the disast [...]

UHERO: Maui Wildfires Not Derailing the State’s Economy

The latest economic forecast from the University of Hawaiʻi Economic Research Organization (UHERO) is better than expected.  The report anticipates the state's financial well-being and recovery following the Maui wildfires. Although the report states only about 1% job growth in 2024, flat visitor arrivals and reduced visitor spending, overall it is not an economic crisis. "All of this is punctuated by the losses that happened on Maui," Carl Bonham, UHERO executive director, said. "And what we're [...]

HOA New Year’s Resolutions to Make Better Communities

As we wrap up 2023, the arrival of a new year signals the perfect time for homeowners’ associations to set some resolutions aimed at enhancing community living. Let's explore some practical and achievable New Year's resolutions for HOA boards. 1. Revise and Update Community Rules A community's governing documents, like its bylaws and CC&Rs, are the backbone of its regulations. It's common for these documents to become outdated over time, potentially causing unintended violations. As part of [...]

Two Funds, Two Different Functions: HOA Operations and Reserves

Funding the ongoing operations of an HOA community stands out as one of the most critical functions of an HOA board — perhaps even the most pivotal. Ensuring the smooth running of day-to-day activities and planning for the long term is key to maintaining a steady flow of funds for a community's effective functioning. It is also an HOA board member's duty to responsibly allocate funds according to guidelines outlined in a reserve study. This study addresses larger issues like roof replacements, n [...]

The New Project Standards for Fannie Mae and Freddie Mac

In September, Fannie Mae and Freddie Mac implemented updated project eligibility standards for condominiums and housing cooperatives. Project standards are specific requirements outlined by Fannie Mae and Freddie Mac. These standards apply to condominium, housing cooperative, or any multi-family common interest ownership association with more than five attached units. Fannie Mae and Freddie Mac purchase loans from mortgage lenders so lenders have access to capital, and can provide mortgages to m [...]

How Will Maui Fires Affect Insurance Rates? 

The Maui wildfires are estimated to cost insurers up to US$3-billion in damages, creating one of the largest insured losses in Hawaii’s history, according to an analyst report. This leads many property owners wondering if the tragedy will result in higher homeowners insurance rates across Hawai‘i. And as natural disasters are escalated by climate change, will policies be adequate or even obtainable? We’ve gathered some experts opinions. The Aug. 8 blazes did the most destruction in Lahaina, but [...]

Helping Owners Fund a Special Assessment

If HOA boards want to minimize homeowner opposition to special assessments, they may want to offer some alternative payment options. The “pay it in full now!” option is a big turnoff for many. But when boards offer alternative financing, homeowners can choose what works for their individual situation. Read on to learn more about how condominium and homeowner association boards offered creative financing that helped them pass a special assessment. You’ll also pick up some tips for funding a speci [...]

Top Trends for HOAs in 2023

Whew! The last few years have been bumpy for homeowners, including those in HOAs. We’ve all felt the impact of record inflation. Sky-high real estate prices benefited some and stung others, while lack of inventory kept many homeowners in place. HOAs have faced rising insurance and well as other costs, while sea level rise and climate change trends are not far from our thoughts. There are a few things that will impact HOAs significantly in 2023, but not all of them are bad. Here is a rundown of t [...]

Start Your HOA Budget Year Off Right

January marks the beginning of a brand-new fiscal year for many HOA boards. Now is the chance to take stock of how your board is operating and implement your budget – two things that are easier said than done. But these tips should help you get off on the right foot. Set expectations The budgeting process, which you should already have completed, is a chance for the board to set expectations for the community. Have a conversation with your management team about how the board wants the year to go [...]

Upcoming Legislation Supporting Owners and HOAs in 2023

The Community Association Institute's  Federal Legislative Action Committee is carrying momentum from 2022 into the 118th Congress, which convenes in Washington, D.C., on Jan. 3. This past year saw important legislation introduced in Congress to help condominium homeowners finance major building repairs, a CAI-led coalition working to support mortgage credit for condominium and cooperative homeowners, and renewed interest in disaster assistance for community associations. Safe Buildings & Sa [...]

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