Should HOAs Use Reserve Funds to Fill a Budget Gap?

COVID-19 has brought economic hardships to individuals and businesses across the world. Community associations are no exception. For example, there are increased cleaning and maintenance protocols, and higher expenses along with it. At the same time, dues collection can be challenging. Owners cringe at special assessments. Communities may be looking at reserve funds to cover some of these expenses. Reserve funds are typically set up to prepare for future expenses. However, with hardships occurri [...]

Reducing HOA Property Risks

Amenities add value to communities. Having a place to gather, play tennis or other recreation activities can be the centerpiece of the neighborhood on Maui. And since all members chip in through HOA fees, perks can be provided at a reasonable cost. However, amenities are not without risk A Homeowners Association is open to liabilities providing such amenities. It’s important to be fully aware of risks and take appropriate steps to minimize them. It may mean saving a lot of money down the road. [...]

Keeping Adequate HOA Reserves

It’s hard for some homeowners to understand why dues are collected, or even increased, when an HOA already has funds held in reserve. However, reserves must be adequate, and a vote not to reserve is likely a vote for a special assessment in the future. An association must protect its common elements through the proper funding of association reserves. Pre-planning can save money, relieve stress and save time. Adequate reserves help keep a property well maintained, and adds to the safety and sec [...]

Go to Top