One of the last things any homeowners association needs is a recession. But in what way can a recession affect the HOA? And what can HOA boards do about it? How Does a Recession Affect the HOA? A recession is a temporary economic decline marked by a fall in GDP for two consecutive quarters.…
An HOA audit is an instrument that can help you measure the financial health of your association. Unfortunately, not all associations take audits seriously — and therein lies the problem. What Is the Purpose of an HOA Audit? A homeowners association audit is a comprehensive inspection of an HOA’s financial accounts and reports conducted…
In a lot of ways, homeowners associations are just like corporations. They operate with a budget, are headed by a set of board members, and manage a reserve fund. But, what are HOA reserve funds anyway? What Are HOA Reserve Funds? Simply put, a reserve fund is a savings account. It contains funds that…
Every member of a managed community should know how to read HOA financial statements. This knowledge will help owners understand how the association is doing financially and be able to determine whether the board is doing its job well. HOA Finance 101: How to Read HOA Financial Statements Homeowners associations operate largely like corporations.…
The HOA balance sheet is an important financial tool in any given homeowners or condo association. Making sure you prepare this report accurately is essential to the financial health of your community. What Is an HOA Balance Sheet? The balance sheet is one of several financial statements or reports that organizations use to assess…
When faced with unexpected expenses or necessary repairs, not all homeowners have funded reserves or the capacity to levy special assessments. Instead, they will take out a loan. HOA loans require adequate planning and understanding the intricacies of association loans can increase your chances of approval as well as help you get the best rates.…
Homeowners association fraud or embezzlement can happen anytime, anywhere, and anyone — even to the closest, tight-knit communities. If you want to safeguard the financial health of your community, consider these strategies to prevent HOA fraud. Most Common Types of HOA Fraud to Look Out For HOAs are run by a handful of people,…
It is important for any homeowners association to have HOA reserve funds and to understand the purpose of this separate account. In doing so, an HOA can avoid financial ruin and minimize the need for special assessments. What Are HOA Reserve Funds? Reserve funds, also known as reserve accounts or HOA cash reserves, are…
Collecting homeowners association payments is a very time-consuming process. Each month, the HOA has to issue invoices, collect fees, process checks, and then deposit them to the bank. If you want more efficient operations, here’s how HOA online payments can help your association. 7 Great Benefits of HOA Online Payments HOA fees are the…