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HOA Trash Removal FAQs: Answers About HOA Waste Management

admin on January 14, 2025

Key to maintaining a clean and well-organized community is HOA trash removal. If you’re wondering how HOA waste management works, this guide answers frequently asked questions about trash removal, responsibilities, rules, and best practices.

 

Is the HOA in Charge of the Garbage Collection?

Neighborhoods with no community associations usually have the state or local government manage trash collection. However, those with HOAs typically have full control over handling waste management services in the community. This is part of their responsibility to do regular maintenance for the community.

Usually, the HOA gets funding for waste management services through collecting HOA dues, which you may see in the HOA’s governing documents. The funds cover hiring costs and contracting with a waste removal company.

 

What Does HOA Waste Management Cover?

An HOA’s waste management services usually include more than just garbage collection to ensure the community is clean and organized. What the service covers, however, depends on the HOA’s budget, size, and the contracts negotiated with waste management companies.

Here are some services that most HOAs have:

 

Regular Residential Trash Pick-up

Household trash is collected every week or bi-weekly. This service ensures that trash, such as food leftovers, everyday packaging, and non-recyclable materials, is removed to prevent clutter, foul odors, or pests.

 

Recycling Services

Many homeowners associations have adopted recycling programs as a key part of their waste management plans. For HOAs with this program, homeowners are usually provided separate trash bins for recyclable materials. This may include separate bins for glass, cans, plastics, paper, and cardboard.

Sometimes, HOAs go beyond and provide educational workshops for their residents about proper recycling practices.

 

Bulk Waste PickupBulk Waste Pickup

In many communities, it can be unavoidable for homeowners to need to get rid of larger items. Usually, oversized items like furniture, mattresses, and appliances are not included during regular HOA garbage collection days.

However, for some communities, part of HOA trash removal services is scheduling a pickup day for bulk waste or helping residents arrange special pickups with a waste management company.

 

Bin Maintenance

Many homeowners associations also handle the maintenance or replacements of trash and recycling bins across the neighborhood. By doing this, the HOA ensures all residents are equipped with the right tools to comply with community standards.

 

Community Drop-off Points

For some communities, designated drop-off points for HOA trash removal are assigned instead of picking up waste curbside. Usually, these locations are monitored by the HOA to ensure proper handling and prevent illegal garbage dumping.

 

Seasonal Waste Management

Some HOAs provide seasonal waste-related services. These may include leaf collection during the fall season or Christmas tree disposal after the holidays.

 

How Does the HOA Select a Waste Management Provider?

The responsibility of choosing a trash disposal service provider falls on the hands of the HOA’s board of directors. The board will have a list of waste management companies and evaluate each based on several factors, such as cost, reputation, and services. They may also get input from the residents to help with the decision-making process.

After the board has chosen a provider, they should continuously monitor the service provider’s performance to ensure they meet the community’s needs.

 

What are the Rules for Setting Out Trash Bins?

One of the most common HOA trash removal rules enforced is the proper placement of trash bins. These rules are usually in place to keep the community organized.

The rules will vary for every HOA and should be included in the governing documents. However, some standard guidelines include timing, placement, and removal.

When it comes to timing, residents are typically required to place bins outside on collection day mornings or the evening before collection day. Bins should be placed at the curb so as not to block anyone’s driveway or the sidewalk. Once the trash is collected, residents should promptly return the bins to their household’s storage areas.

The HOA may fine or penalize residents who fail to comply with bin rules.

 

What is Yard Waste? How Does the HOA Handle It?

Simply put, yard waste is organic waste that may come after lawn or yard work. This includes soil, grass clippings, fallen leaves, and small branches. HOAs often schedule separate pickups for this type of waste. After collection, waste management companies usually add the waste to compost or dispose of it via an eco-friendly process.

If residents need yard waste disposed of, HOAs may require them to take several steps to ensure the process remains environmentally friendly. These steps may include using biodegradable bags for loose leaves, clippings, and other organic debris and bundling branches depending on size.

In some communities, HOAs also provide seasonal cleanup services, which is especially crucial during the fall season or following a storm.

 

How Does the HOA Handle Recycling?How Does the HOA Handle Recycling?

Many homeowners associations practice and encourage recycling in their waste management plans. This aims to promote sustainability in the community. As part of the program, HOAs usually provide separate recycling bins where residents can segregate their recyclable trash.

HOAs also provide guidelines for items accepted, preparation for disposal, and a pickup schedule when disposing of recyclables.

 

What Items are Not Collected by HOA Trash Disposal Services?

Many HOAs have contracts with waste management companies. Those contracts include exclusions for certain types of waste that the contractors won’t collect. Usually, such items would need alternative disposal methods so that they won’t pose a safety risk to residents or the environment.

Some of these items include:

  • Hazardous Waste (chemicals, paint, batteries, and fluorescent bulbs)
  • Electronic Waste (monitors, computers, and other electronics)
  • Large Appliances (refrigerators, ovens, and washers)
  • Construction Debris (drywall or concrete)

Luckily, some HOAs may make special arrangements for disposing of large, bulky items. They usually announce a separate schedule for these bulk pickups.

Residents may consult their HOA for guidance and proper disposal methods for other types of excluded items.

 

What are the consequences of violating HOA trash rules?

The association’s governing documents generally outline consequences for violating HOA trash rules. Typically, a first offense would only result in a written warning from the HOA. However, the HOA may impose penalties or fines if a resident keeps violating these rules.

 

The Importance of Proper Waste Management

Proper trash disposal is crucial to keep your community clean and organized. As part of the HOA, the board and its committees should organize how this is done. Rules are in place so that both the HOA and homeowners can do their part in managing trash in the community.

Whether you’re a self-managed HOA or an HOA management company, it can be hard to oversee your community’s trash management plans without the right tools. That’s where HOA management software like Condo Manager can come in. Call us today at (800) 626-1267 or contact us online to book a demo!

 

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Can A HOA Manager Manage Different HOAs

admin on December 31, 2024

Can an HOA manager manage different HOAs? This is a question that many HOA boards might ask. After all, when an HOA hires a manager, they expect top-notch services. Is that possible when one manager handles multiple communities? How many associations can a single manager manage at the same time?

 

Why Would an HOA Manager Manage Different HOAs?

Homeowners associations typically turn to an HOA management company when they require professional assistance. Management companies typically oversee several communities simultaneously. After all, it is a business, and it requires many clients to keep operations going.

Management companies assign managers to handle different HOAs under their portfolio to make this possible. This approach allows management companies to serve more communities effectively and efficiently while keeping costs low. Instead of assigning one manager per community, companies often split a manager’s time across several.

When an HOA manager handles multiple HOAs, they balance the needs of every community with the time they have. To board members, this may not seem like an ideal situation. However, it is possible to do so and still produce great results. It is usually standard practice because the demands of smaller HOAs or those with fewer amenities may not need full-time oversight.

When a single HOA requires more attention than others, the company may adjust the manager’s workload accordingly. The company may assign fewer additional communities to the manager or dedicate more support staff to work under the manager.

 

How Can an HOA Manager Manage Different HOAs?

For an HOA manager to juggle multiple communities, they must practice effective time management and clear communication. Managers often set specific schedules to visit each community regularly, attend board meetings, and stay in touch with board members and homeowners. While this schedule can be flexible, it is usually fixed to accommodate several associations within a timeframe.

An HOA manager can balance many communities through task prioritization as well. Prioritizing more pressing tasks and requests while delaying non-urgent ones helps keep things manageable. Moreover, a specific timetable allows managers to dedicate time to each HOA. The community has the manager’s undivided attention for a certain amount of time. After that, the manager can move on to the next community.

Technology also plays a crucial role in managing several HOAs. Management companies use specialized software to track maintenance schedules, respond to resident requests, monitor finances, and send updates to homeowners. With centralized systems, managers can efficiently keep track of each HOA’s needs, even from a remote location.

 

How Many HOAs Can a HOA Manager Handle?

An HOA manager can handle multiple HOAs at the same time. That much is clear. However, the number of HOAs they can manage simultaneously depends on a few factors. This includes the unique requirements of each HOA and the manager’s capacity. On average, a single HOA manager might handle between three to ten communities.

Here are the factors that influence how many communities a manager can handle.

 

how many HOAs can a HOA manager handle1. Size of Each HOA

A small HOA with minimal maintenance needs may require less time and effort. This allows a manager to handle more communities at once. Larger HOAs with more amenities, on the other hand, naturally demand more oversight. As such, the amount of work it takes to manage eight small communities may equal that of three larger communities.

 

2. Community Complexity

Complex HOAs tend to have more demands and needs that a manager must meet. These have many amenities, more homeowners, and larger budgets. The more involved an HOA manager needs to be, the fewer they can realistically handle simultaneously.

 

3. Support from the Management Company

Many HOA managers have a support team for accounting, maintenance coordination, and administrative work. This back-office administrative team alleviates some of the manager’s burden. With a great support system, an HOA manager can focus on more important things like strategy and community relations.

 

4. Manager’s Experience and Skills

An HOA manager with more experience and expertise tends to be better at handling multiple communities effectively. This is because they are more familiar with the common issues that plague an association. With this knowledge, they can easily address these issues and even prevent them before they happen.

 

hoa manager handles multiple HOAs5. Proximity of Communities

A manager can minimize travel time if the HOAs are close to each other. This makes it easier for them to oversee multiple HOAs at once. Proximity allows for more frequent visits and quicker response times.

 

Is it Okay for an HOA Manager to Handle Multiple HOAs?

It’s common for HOA managers to oversee multiple communities, and this practice is acceptable when done responsibly. With a balanced workload, a manager can handle multiple HOAs with efficiency. Many management companies have honed their systems and processes to enable managers to balance multiple communities without sacrificing quality.

However, problems may arise if a manager is stretched too thin. The same can happen if specific HOAs require more attention than they receive. Overloading a manager with too many communities can lead to slow response times, missed deadlines, and an overall decline in service quality.

To avoid these issues, boards should communicate with their management company. If they are displeased with the service of their manager, they should inform the company as soon as possible. This way, the company can look into the situation and trace the source of the problem. For instance, if the manager’s workload is too much, the company can scale back.

 

Can an HOA Request a Manager to Focus Exclusively on Their Community?

In certain situations, an HOA may want a dedicated manager who does not handle any other communities. While possible, this request is more common for larger, high-maintenance HOAs or those with extensive amenities. Assigning a single manager to a single HOA requires additional resources. This can raise management costs, which, in turn, can raise the fee for the HOA.

If an HOA needs a dedicated manager, it should discuss this with the management company. The board should let the management company know why they need a full-time manager. There is no guarantee that the company will accommodate this request. However, if the company does agree to assign a dedicated manager, the HOA board should be prepared to pay a higher fee.

 

How Does This Practice Affect Communities?

Having a manager who oversees multiple communities can have both benefits and challenges. Here’s how this arrangement might affect an HOA.

 

1. Cost-Effectiveness

Sharing a manager across multiple HOAs allows management companies to offer services at a lower cost. This helps keep fees manageable for the HOA and, in turn, the homeowners.

 

HOA Manager Experience and Expertise2. Experience and Expertise

When a manager has a diverse portfolio, they tend to have more experience dealing with an equally diverse set of problems. This gives them a broader understanding of an HOA’s challenges. With this perspective, the manager can be more effective in their field.

 

3. Potential Delays in Response Times

One downside when a manager balances multiple HOAs is their limited availability. This can lead to slower response times, especially if the manager deals with urgent issues in other communities.

 

4. Less Frequent On-Site Presence

Managers overseeing multiple HOAs may visit each community less frequently. This is because they must divide their time among more clients. Of course, it will still depend on the workload, schedule, and other factors mentioned above. Less frequent on-site visits can lead to reduced engagement.

 

Can an HOA Manager Manage Different HOAs? Answered!

An HOA manager can manage multiple HOAs at the same time. However, it has pros and cons, especially regarding its impact on communities. Boards should not be surprised that their community isn’t the only one their manager handles. If your board wants an exclusive manager, it is best to take it up with your management company.

Condo Manager helps HOA management companies juggle numerous communities simultaneously. Call us today at (800) 626-1267 or contact us online to request a demo!

 

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Eco-Friendly Christmas: Tips for a Sustainable Holiday

admin on December 17, 2024

With the impact of climate change being felt, having an eco-friendly Christmas can contribute to mitigating it. While fun and festive, the holidays are also associated with increased general waste. By being mindful, you and your family can also reduce your holiday footprint this Christmas.

 

7 Tips for a Sustainable Christmas

You’ll be surprised with how much positive impact small choices can make during the holidays. Here are some tips that you can follow for a more eco-friendly Christmas.

 

1. Eco-Friendly Gift Wrapping

Traditional wrapping paper, ribbons, and bows contribute to yearly holiday waste. Every year, people in the U.S. use 4.6 million pounds of wrapping paper, most of which comes from the holidays.

To make your holidays more sustainable, and if your loved ones don’t mind, you can always give your gift without any wrapping.

If you must, however, you can use gift-wrapping alternatives. You can try out using recycled brown or kraft holiday gift wrappers. You can also use fabric wraps like beeswax wraps or the Japanese Furoshiki, which the receiver can reuse.

For design, instead of a bow, use natural decorations. Instead of plastic bows and ribbons, you can use dried flowers, pinecones, or leaves to spruce up your gift.

 

2. Sustainable Gifts

For an eco-friendly holiday, you can give out sustainable gifts that the receiver can appreciate. These goods may be material, such as environment-friendly items like reusable water bottles, sustainable clothing, or organic makeup and skincare. Your sustainable gift may also be DIY, like homemade candles, baked goods, and personalized craft items.

Alternatively, instead of giving away material items, you can also gift your loved ones unforgettable experiences. Why not give them tickets to a fun event, take them to exciting workshops, or treat them to a fun family outing?

 

3. Green Christmas Trees

Green Christmas TreesChristmas isn’t complete without a tree. For an eco-friendly Christmas, using an artificial Christmas tree or a real one is okay.

When getting an artificial Christmas tree, try to look for a high-quality one. Make sure you will be able to use the tree for a minimum of 10 years.

If you can’t find that, you should instead try to buy a real tree. Make sure to get one that is grown sustainably and is FSC-certified. Alternatively, if there is a rental service near you, one of the best green ideas for Christmas is to rent a tree and return it after the holiday season so it can be replanted.

When you choose a real tree for the holidays, you should also consider how to properly dispose of your real tree after the holiday season ends. If it is potted, consider replanting it. You can also recycle your tree by mulching or turning it into wood chips.

 

4. Reducing Holiday Décor Waste

The holidays are a time of fun parties and family gatherings. To make things look more festive, many decorate their homes with single-use holiday decor, such as plastic tinsel and artificial Christmas wreaths.

Did you know that households generate 30% more waste during the holidays? This includes waste from single-use decorations.

If you want to reduce your waste and be more eco-friendly for the holiday, use more sustainable items. You can make DIY ornaments out of natural or repurposed materials. You may also buy reusable, high-quality Christmas decor lasting several years.

 

5. Mindful Holiday Lighting

LED Christmas LightingOther than general waste, the holiday season also impacts energy consumption worldwide. In the U.S. alone, people consume 6.63 billion kilowatt-hours of electricity to light up decor for the holiday.

To mitigate the possible impact of additional energy consumption, you can be mindful of using holiday lights.

One change you can make is using the more eco-friendly LED instead of traditional Christmas lights. You can also shorten your use of lights. Instead of using them all night, you can set timers to turn off the lights after a few hours. You may also get creative with lighting alternatives indoors, such as using candlelight for a cozier and more energy-efficient option.

 

6. Sustainable Christmas Cards

Sending Christmas cards is a great way to show appreciation for friends and loved ones during the holiday season. However, using traditional cards can negatively affect the environment as many are non-recyclable. Since glitter and foil can’t be recycled, carts decorated with those materials are also non-recyclable.

You can still send Christmas cards for an eco-friendly Christmas, but you must be mindful of your choices. You can send paper cards made from recycled materials. Plantable cards are also available, including seeds that the receiver can plant. Alternatively, you can send digital cards that don’t generate additional holiday waste.

 

7. Minimizing Christmas Food Waste

Minimize Christmas Food WasteWhat’s a Christmas season without a holiday feast? While most associate Christmas with parties and family gatherings, food is always involved. Unfortunately, that also means more food waste generated during the holidays.

To minimize food waste during the Christmas season, strategic planning is your friend. First, you must plan your feast based on how many people you expect. This will help you set the amount of food you need to prepare, minimizing excess food.

Additionally, buying ingredients and serving food also presents the opportunity to reduce general waste. When grocery shopping, try to buy organic and look for more sustainable packaging. Instead of using disposable utensils and plates during the feast, bring out your reusable serving items.

If you still have leftovers, don’t dispose of them immediately. You can store them properly in the fridge and reheat them later on to consume. Alternatively, you can also help other people by donating leftovers to shelters.

 

Frequently Asked Questions:

What Are Some Eco-Friendly Stocking Stuffer Ideas?

You can try to look for small but sustainable and reusable items to add to your family’s stockings. Some items you can put include valuable items, like bamboo toothbrushes or metal straws. You can also give baked treats like small cookies as stocking stuffers.

 

Is It Possible to Have a Zero-Waste Christmas?

Given what many are used to during the holidays, it may seem impossible to have a zero-waste holiday. However, while it would be highly challenging, with proper planning, it is possible.

 

How Can You Get Family Involved for a Green Christmas?

Start eco-friendly traditions with your family, such as creating DIY and sustainable decorations or using a reusable advent calendar for your kids.

 

A More Mindful Holiday

Consider having a more eco-friendly Christmas as a holiday gift for Mother Earth. Festive holidays don’t always have to involve a large amount of waste. The task can seem daunting, but being mindful of your choices this holiday season can positively change the environment.

 

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HOA Myths And Facts: The Truth About HOA Living

admin on December 12, 2024

A lot of HOA myths made up about living in planned communities are usually misinformed. Sometimes, myths about homeowners associations can be far from the truth and create a negative image in people’s minds.

 

HOA Myths and Facts to Know About

Misconceptions about HOA living run rampant, mostly among people who have yet to experience HOA living. Here are some common HOA myths and the truth behind them:

 

Myth: HOAs Collect Many Hidden Fees

Many assume that being bound to a homeowners association means that residents always pay hidden fees.

HOAs do collect dues and assessments. These fund the community’s day-to-day operations or emergency maintenance projects. They help carry out the HOA’s responsibilities of maintaining common areas and creating funds for repairs and improvements.

However, all of the fees and assessments that the HOA collects are known by its members. Regular dues are outlined in the HOA’s governing documents that homeowners are provided before signing their property. Meanwhile, assessments must be formally levied before they are collected so homeowners are notified about them and what the special assessments are allocated for.

 

Myth: HOA Fees are Unnecessary

myths of homeowners associationsMany homeowners believe that HOA dues and fees are unnecessary. Another HOA myth is that these dues only put an unneeded burden on homeowners. However, these fees cover many community expenses that also benefit residents.

Essentially, HOA fees cover the association’s day-to-day operations. Collected funds go to the HOA’s budget, which is used for the maintenance of common areas and amenities, regular repairs, and other planned improvements in the community.

Additionally, HOA dues usually also cover reserve funds. These funds are used to cover large-scale emergency maintenance or repairs.

By collecting funds, the HOA can provide homeowners services that benefit all community members.

 

Myth: HOAs Discriminate

Many think that because people live in a planned community, their homeowners association discriminates. However, HOAs are not allowed to do so.

All HOAs are bound to and governed by the Fair Housing Act and regulations stipulated in state and federal legislation. These laws prohibit discrimination for residents based on their race, religion, sex, country of origin, disabilities, or family status.

HOAs exist not only to help manage the community but also to create harmony and inclusivity among residents. They are responsible for doing what is good for the entire community, including creating a harmonious environment where everyone respects each other.

 

Myth: HOA Rules are too Strict

Many people are dissuaded from living in homes with HOAs because they believe joining an association would mean following rules that are too strict.

Yes, homeowners associations have rules in place, but they are not as stringent as many think. HOA rules are usually created to encourage an excellent community living experience. Many rules are agreed upon and in place to promote harmony and prevent issues between neighbors.

Also, HOA rules guide residents when using common spaces, such as clubhouses, activity centers, and meeting areas. It also gives each community member equal opportunities to meet and socialize.

 

Myth: Normal HOA Residents are Powerless in Decision Making

Since HOAs have a board of directors, many people outside of such associations think that the power only rests with the board of directors.

In reality, the community has a large say regarding decision-making in the HOA. Members of the community can freely join and voice their opinions in HOA meetings and join committees to help out the community.

An HOA is in place to help neighbors coexist in a planned community, and the board remains open for resident involvement. Homeowners are never powerless in a HOA, which is essentially community-run. They have the power to influence any decision that the HOA makes.

 

Myth: HOA Boards Make Decisions in Private

Another one of the many myths of HOAs is that board members prefer to make community-related decisions in private. This is far from the truth, as any meeting done in secret is not allowed.

The board of directors manages the community, but it also must be transparent to residents regarding decision-making. This is why any HOA meetings should be accessible to all association members, and every homeowner needs to be notified about all meetings organized by the HOA.

 

Myth: All HOA Communities are the Same

There is already an established image in many people’s minds about a planned community with an HOA. Many believe that they all have the same feel to it.

In truth, all HOAs are different. One community may fit a younger professional’s lifestyle, while others may be better for a different demographic.

When a potential property buyer is looking into purchasing homes in an HOA community, it would be best for them to first research and see if the “personality” of the HOA can also fit their needs.

 

Myth: HOA Rules are Set in Stone

myths of HOAsMany believe that once an HOA is established, the rules it starts with will be implemented until the association is dissolved. However, contrary to popular belief, HOA rules can be changed.

When reviewing CC&Rs and bylaws, a homeowner may find many years-old regulations that do not make sense in the current state of the community. When this is the case, the homeowner has the right to bring this issue to the attention of the board and the HOA to this rule and propose an amendment.

The process involved in amending governing documents may vary per HOA. Usually, it involves creating a proposal, scheduling a meeting with the entire HOA, having a vote, and implementing the changes if approved.

 

The Truth About Living in a HOA Community

People who have yet to experience living in an HOA neighborhood tend to create a skewed image of such communities with myths and fabrications. Although, in reality, HOAs are in place to create harmony among its residents and preserve peace.

Looking to enhance the quality of living in your HOA community with effective management? Condo Manager offers a top-of-the-line community association management platform for self-managed associations and HOA management companies. Reach us online or call us today at (800) 626-1267 to learn more!

 

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Do HOAs Increase Property Values?

admin on November 20, 2024

Do HOAs increase property values? This is a question many people, especially homebuyers, ask. Before buying a home, you want to consider all of these factors. More often than not, your potential return on investment (ROI) is a top priority. You want to buy a home that will eventually have a higher value when you decide to sell it in the future.

 

Do HOAs Increase Property Values?

Homeowners associations have grown in popularity since the 1970s. Every year, more and more HOAs are popping up throughout the United States. Considering the benefits these communities bring, it is easy to see why they are increasing in number.

One of the most highlighted benefits of an HOA is its impact on property values. In your search for the perfect home, your real estate agent may have also mentioned it. But, do HOAs increase property values?

 

Does an HOA Increase the Value of Your Home?

For many people, property value is a chief consideration before buying a home. They want their investment to be worth more years from now, and they want to be able to sell the home for much more than they initially paid for it.

Several factors can influence the value of a home. One of these is the existence of a homeowners association. Does an HOA help increase house prices? Does it affect appraisal?

In a word, yes. Studies show that an HOA does have a positive impact on home value. According to the Community Associations Institute (CAI), an HOA can raise property values by 2% to 17%. Of course, the mere presence of the HOA isn’t enough. The HOA must work to preserve the neighborhood.

Another study in the Journal of Urban Economics found that houses within HOA communities are at least 4% or $13,500 higher than similar ones outside of associations. There is a clear correlation between home values and their location within HOAs.

 

How Does an HOA Increase Property Values?

Data shows that HOAs do have a positive influence on both HOA property values and individual home values. But how exactly do associations do this? What factors contribute to high property values within an HOA community?

 

1. Enhancing and Preserving Appearance

does an hoa increase the value of your homeHomeowners associations are known to invest in beautification projects. These associations are in charge of cleanliness and appearance, ensuring communities remain neat and pleasing to the eye.

Additionally, HOAs enforce architectural standards and landscaping guidelines for homeowners. Homeowners must adhere to these rules to ensure consistency and curb appeal.

Examples of such standards and guidelines include color palettes for home exteriors, fencing requirements, tree pruning requirements, and rules concerning exterior changes to your home. If homeowners wish to change something, they usually must seek approval from the HOA first.

While this may seem inhibiting to some, the existence of architectural rules helps maintain uniformity throughout the community. Associations have a certain aesthetic, and these rules ensure that homeowners adhere to those standards.

 

2. Property Maintenance

Homeowners associations are responsible for maintaining common areas, including lobbies, entryways, stairwells, elevators, parking lots, and the like. The HOA is also responsible for any amenities and facilities.

Meanwhile, homeowners have maintenance obligations, too. The HOA’s governing documents typically require owners to keep their own properties clean and well-maintained. Homeowners also usually adhere to specific rules concerning trash and snow removal.

 

3. Access to Amenities

Homeowners associations are known to have amenities and facilities that members and their guests can use. These can vary from one community to another. However, they usually include swimming pools, clubhouses, gyms or fitness centers, parks, and golf courses.

The HOA is responsible for maintaining these facilities. On the other hand, homeowners gain access to these spaces with their membership. The presence of these amenities and the exclusivity they offer add to the appeal of the community and the values of homes within it.

 

4. Enforcing Rules and Regulations

Enforcing Rules and RegulationsHomeowners associations enforce a variety of rules and regulations. These include rules about noise, pets, home businesses or commercial use, short-term rentals, and even parking. Most nuisances are covered in the HOA’s governing documents. This ensures a peaceful environment for all residents.

Holiday decorations are also only permitted at certain times of the year. When a particular date passes, and a homeowner still has their decorations up, the HOA may fine them. You won’t have to see Christmas decorations in mid-February because your neighbors “forgot” to take them down.

 

5. Encouraging Socialization

Living in an HOA community also encourages socialization. Homeowners associations typically host social events and gatherings to help build a strong sense of community and camaraderie. In these associations, neighbors know their neighbors, which helps minimize conflict.

 

6. Resolving Disputes

Speaking of conflict, an HOA will sometimes encounter neighbor-to-neighbor disputes. When neighbors have spats, the HOA can step in to enforce its internal dispute resolution process. This promotes harmony within the community and keeps homeowner satisfaction high.

 

7. Emergency Services

HOA Emergency ServicesDuring times of emergency, a homeowners association can come in handy. An HOA usually has an emergency preparedness plan that dictates how to evacuate residents and respond to specific disasters. This plan also typically includes a course of action in the aftermath.

Furthermore, most associations have contractors on retainer to handle emergencies, offering services such as debris removal and repairs.

An HOA’s reserve funds can also be very helpful in the event of unexpected costs or major repairs. These funds offer long-term financial protection, ensure the security of assets, and allow owners to avoid significant dues increases or special assessments.

 

Do HOAs Increase Property Values? Answered!

Homeowners associations do have a positive effect on property values. When an HOA is well-managed and properly maintained, it can enhance curb appeal and raise the value of homes. Unfortunately, it is far too easy for an HOA to have the opposite effect if it has an incompetent board or management team.

Let Condo Manager be the answer to your troubles. With our state-of-the-art software, your HOA board or management company can ensure seamless operations with just a few clicks. Call us today at (800) 626-1267 or contact us online to request a demo!

 

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The History of Thanksgiving: Fun Facts You Didn’t Know

admin on November 18, 2024

Many events in Thanksgiving’s long history shaped what it is today. As a longstanding tradition and institution in the United States, the holiday also gained many fun and interesting facts that many people don’t know about.

 

What is Thanksgiving?

Most Americans look forward to Thanksgiving every year when they celebrate with family and friends. This holiday is officially celebrated every fourth Thursday of November in the United States. It’s usually associated with traditional turkey, stuffing, pumpkin pies, and cranberry sauce.

 

11 Fun Facts About Thanksgiving

The history of Thanksgiving can be traced back to the colonial period. Since then, it has become a part of life in the US, with people planning to travel and organize gatherings. Here are some fun facts about this well-loved holiday:

 

1. The First Thanksgiving

The first Thanksgiving is widely considered to have happened in Plymouth in 1621. The holiday is patterned after a harvest feast by colonists and the Wampanoag.

Colonists were heading out for “fowling” or bird hunting. However, the Wampanoag appeared near the settlement’s gate one day. This incident first unnerved the colonists, but over the next few days, they socialized without much incident.

 

2.  Thanksgiving as a National Day

While the feast is patterned after it happened in 1621, Thanksgiving did not become a national holiday for a hundred years. The first national day of Thanksgiving was observed in 1774. However, it was only in 1863, during the Civil War, that Abraham Lincoln officially proclaimed it as a national holiday.

 

The Mother of Thanksgiving3. The Mother of Thanksgiving

Did you know that a particular nursery rhyme and Thanksgiving have a connection?

Sarah Josepha Hale, the author of Mary Had a Little Lamb, campaigned for Thanksgiving to become a national holiday. Her campaign started in 1827, hoping Thanksgiving would become a permanent American custom and institution.

 

4. The First Thanksgiving Was in mid-October

The feast was observed in mid-October before Lincoln formally proclaimed Thanksgiving a national holiday. While historians are not 100% certain about the date of the first Thanksgiving, many believe it took place around that time. They also think Lincoln assigned the new date in November for the holiday to coincide with the date of the Mayflower landing in New England.

 

5. The Year Thanksgiving Day Was Moved

There was a year when then-President Franklin D. Roosevelt moved the holiday. The holiday was shifted by a week in 1939, so the holiday shopping season was extended by a week. Back then, Thanksgiving was celebrated on the last Thursday of November, which coincidentally was the last day of the month, November 30th.

However, after continued debate, the US Congress passed a resolution in 1941, stipulating the new Thanksgiving date to be observed every fourth Thursday of November.

 

6. The Tradition of Giving Pardon to a Turkey

Presidential Turkey PardonIn 1963, John F. Kennedy became the first president to pardon a turkey during Thanksgiving. When he received a turkey from the National Turkey Federation, Kennedy returned the bird to the farm instead of cooking it for a Thanksgiving feast. However, this was not considered the first formal “turkey pardon.”

The first official turkey pardon was granted by President George H.W. Bush in 1989. During a ceremony, the National Turkey Federation presented him with a turkey, but the then-president said he was granted a “presidential pardon,” formally launching an annual White House tradition.

 

7. The First Macy’s Thanksgiving Day Parade

The Macy’s Thanksgiving Day Parade we know now involves gigantic balloons of popular characters, performances, and floats. But did you know this was not originally the case?

The first Macy’s Thanksgiving Day Parade, which spanned only two blocks back in 1924, featured animals from the Central Park Zoo. Instead of giant balloons, it featured live bears, elephants, monkeys, and even camels, which are zoo residents. Also featured were Macy’s employees in vibrant costumes, performing with puppet floats, celebrities, bands, and Santa Claus!

 

8. The Origins of Thanksgiving Day Football

The tradition of Thanksgiving Day football games began in 1876. It happened long before people in their homes could watch it on TV. Back then, football wasn’t even a professional sport. Instead, the first Turkey Day football game featured Yale and Princeton matches.

For almost 50 years, Thanksgiving Day games featured college and high school teams. Eventually, in 1920, the National Football League was founded and started hosting Thanksgiving matches every year.

 

9. The Mistake That Gave Birth to TV Dinners

Did you know that a mistake during Thanksgiving helped create TV Dinners?

In 1953, Swanson, a food corporation, overestimated the turkey consumed on Thanksgiving. They had 260 tons of leftover turkey, which they needed to use.

Getting creative, Swanson made a Thanksgiving-inspired meal using the leftover turkey and cornbread dressing, peas, gravy, and sweet potatoes. The pre-cooked food was sent to an assembly line of packers, where they placed the meals on aluminum trays.

The first TV meal cost 98 cents, and Swanson sold 10 million of them in its first year of production.

 

How Much Turkey Does America Consume During Thanksgiving?10. How Much Turkey Does America Consume During Thanksgiving?

It is estimated that, during Thanksgiving, Americans eat around 704 million pounds of turkey. That translates to over 46 million turkeys being enjoyed as the feast’s main dish.

 

11. “Jingle Bells” Was Originally a Thanksgiving Day Song

The Christmas tune “Jingle Bells” was initially intended to be sung on Thanksgiving Day. Created in 1957, the song was originally “One Horse Open Sleigh,” composed by James Pierpoint for Turkey Day. However, the song became more popular near December 25th, so in 1959, its title was changed to “Jingle Bells.”

 

The Spirit of Thanksgiving

With its long history, Thanksgiving has gained a deeper meaning for many. It’s more than just a turkey feast; it’s a day of thankfulness and a celebration of friends and family.

 

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How To Make HOA RFP For Vendors

admin on November 11, 2024

Homeowners associations require help from various vendors to function correctly. However, finding the right vendors can be a long and tedious task. Instead of asking for quotations, many HOAs choose to create and send an HOA RFP to the vendors of their choice.

 

What is an HOA Request for Proposal?

An HOA Request for Proposal (RFP) is a document the HOA provides to potential association vendors. It includes all the information involving a project’s specific details, scope of work, and quotation requests. The HOA RFP for vendors serves as a guide for companies interested in working with the association.

Typically, RFPs also indicate the process the HOA wants partners to follow. An HOA RFP also asks for custom information from the vendor to ensure they can meet the association’s requirements. This helps the board quickly assess whether the vendor is the right fit. Generally, RFPs achieve two things:

  • Introduction of the HOA. RFPs for association management services and other jobs introduce the community to the vendor. The vendor no longer needs to learn more about the association’s goals and requirements and adjust accordingly.
  • Better Understanding. RFPs allow HOAs to understand better how a prospective vendor operates. It unveils their processes and whether or not their operations are compatible with the HOA.

Unfortunately, there is a lot of negativity surrounding RFPs. Vendors dislike them because they prefer to invest time in customizing a proposal only when they’ve already won the client. An RFP demands more time and effort from the vendors even though it does not guarantee that they will work with the HOA.

Nonetheless, RFPs are a useful tool for large projects. Many vendors will still respond to RFPs instead of sending a generic proposal if they see the benefit in the project. If a vendor responds, the HOA will know they’re serious about their work and building a good relationship with the association.

 

How to Make an HOA RFP

Understanding RFPs and their importance is just half the battle. Once the board has decided to create an RFP for HOA management services or other jobs, it needs to create a thorough RFP to send to vendors. Here are some things HOAs should include in every RFP, whether for landscaping services, HOA management, or construction.

 

1. Overview

An HOA RFP must include an overview or summary of the request. The overview should describe the job and the vendor’s engagement with the association. Ensure the description is clear and provides a picture of what the HOA expects, where the project will take place and other requirements. Vendors will use the overview to determine whether or not they are the right fit for the job.

 

2. HOA Information

Every HOA RFP template should include the association’s information. Doing this allows the vendor to understand the HOA’s context and situation. It will also help them determine the project’s scope and requirements. Include the following information:

  • HOA location
  • Size of the community
  • Amenities and other facilities
  • Current staff and organizational structure
  • Present challenges within the community
  • Other information that would help the vendor understand the HOA

 

3. Project Goals

hoa rfp for vendorsHomeowners associations shouldn’t just send an RFP detailing the project’s scope of work. They should also provide a clear objective for the project. After all, the deliverables and scope of work may change if the project’s overall goals and trajectory change.

Include the project’s purpose and the board’s vision for the community. Remember to outline it clearly so the vendors understand what the HOA is trying to achieve.

 

4. Scope of Work and Deliverables

Every RFP should include the scope of work. This helps the vendor understand the HOA’s expectations and obligations. Typically, this section is one of the lengthiest parts of the RFP.

There is no standard template for the scope of work. The important thing is that HOAs make their expectations clear. Here are some things the board should include in this section:

  • Reasons the HOA is looking for a vendor
  • Current HOA situation
  • List of services required from the vendor
  • Additional responsibilities the HOA may ask from the vendor
  • Projected timeline for the project
  • People responsible for decision-making

 

5. Vendor Information

RFPs should also include a section specifying the information the association needs from the contractor. As you might expect, this section will vary from job to job. Here are some things to include:

  • Vendor history (e.g., how long they’ve been operating, how many other associations they work with, previous work history, etc.)
  • List of staff
  • Specializations and processes
  • General scope of services
  • Any software the HOA must download to avail of the service
  • Budget and price breakdown
  • Support options

 

6. Submission Process

hoa request for proposalHOA vendors need to know what the application process is like. In this section, tell the vendor where and when they must submit the proposal. It may also include any next steps they can expect from the HOA after receiving the bid.

The board should explain their timeline for vendor selection. Doing this prevents vendors from needlessly waiting for a response. It saves everyone time and shows respect to the vendors as well.

In addition, make sure to outline how the HOA will choose a vendor. Most contractors will be interested in learning the HOA’s qualifications and how they will decide. This way, they can prepare a customized proposal that hits all the marks. HOAs should also let them know whether additional meetings or interviews will occur.

 

7. HOA Documents

Depending on the service, the HOA might also need to include additional documentation about the association. This will provide a clearer picture of the association’s circumstances and needs. Here are some of the documents the board may need to attach:

  • HOA CC&Rs and bylaws
  • Policy Manual
  • Membership application
  • Annual reports
  • HOA meeting minutes
  • Most recent financial statements
  • Year-end audit
  • Meeting brochure
  • Advertising rate card

 

Finding the Right Vendors

An HOA RFP is a useful tool for planned communities. It allows the board to fine-tune vendor requirements and find the most appropriate contractor. Preparing it in advance saves time for both the HOA and potential contractors.

Condo Manager is an excellent HOA management software tailored for HOA management companies and self-managed associations. Call us at (800) 626-1267 or contact us online for more details!

 

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8 HOA Fundraising Ideas For Extra Income

admin on October 22, 2024

Homeowners associations often rely on HOA fees as their main source of income. However, delinquencies and economic downturns can often make HOAs unstable or unable to make ends meet with just HOA fees. How can HOAs remain financially healthy despite economic hardships? The answer: through HOA fundraising activities.

 

HOA Fundraising Ideas for a Financially Healthy Community

Homeowners associations have many options to get extra cash to cover their expenses. They can raise HOA fees, levy special assessments, or obtain an HOA loan to cover the costs. However, while these strategies may be helpful, they are not always feasible or acceptable for the community residents.

What can the board do, then? One good idea is to raise the community’s income by hosting HOA community fundraisers. Here are some ideas HOAs can consider.

 

1. Culinary Events

HOA fundraising programs do not have to be boring or burdensome for the residents. They can even serve as community bonding activities. One good idea is to host culinary events like potlucks and cookoffs in the spring or fall.

In a cookoff, homeowners can register as chefs or attendees to taste the meals prepared. The HOA can charge the chefs to register and charge the attendees upon entry. During the event, people from all over the neighborhood — or even those outside the HOA — can come and taste food from various home cooks.

Meanwhile, the cooks and chefs can even sell some of their dishes to the participants. It’s a win-win because both the chefs and the HOA can raise funds. The HOA can even invite bands, food stalls, and other outside vendors to the event for more proceeds.

If the HOA is strict about outside visitors, they can also throw a potluck. Residents can bring a dish of their choice and pay a small fee to enter. Those who want to attend without bringing a dish can pay a higher entry fee.

 

2. Amenity Rentals

Amenity RentalsMany HOAs provide amenities like parks, gyms, pools, and co-working centers. Consider renting these out as part of HOA fundraising. The money HOAs can make from renting them out can be significant, especially if the amenities are nice or the HOA is in an area with high demand.

In addition, HOAs can host events in these amenities like camps and courses. For instance, they can invite schools to host a camp in the community park and clubhouse. If there are no schools in the area, the HOA can host an adult learning program like a gardening or cooking class.

Alternatively, HOAs can rent out the clubhouse for small events like birthday parties or class reunions. Consider advertising the space in local newspapers or social media.

 

3. Game Nights

HOAs can host game nights and charge a small entry fee. For example, the board can host bingo, poker, or board game nights every Thursday for the community residents. These games are fairly low-maintenance and can bring a lot of income, especially if they’re hosted every week.

However, make sure to check state law before hosting anything gambling-related. State laws may vary when it comes to gambling regulations. For instance, Flordia law allows penny-ante games wherein winnings for each round do not exceed $10. However, a person cannot receive commissions for conducting the game in their dwelling.

 

4. Festivals

HOA festivals are fun and lively events that invite people from all around the area to the community. The board can invite food vendors, game stalls, and local craftsmen to the event. They can then sell their goods and services during the festival. Moreover, the festival can have a highlight event like a battle of the bands or a silent auction.

Hosting festivals is a great way to raise funds while also supporting local artists, craftsmen, and businesses. The HOA can even prioritize residents who want to participate. It also fosters a better sense of community for the residents living there.

 

5. Sporting Events

Athletic activities are a great way to bring the community together while also raising some funds on the side. Consider hosting a sporting event where residents can participate in various sports for a small fee. The event can include sports like basketball, tennis, badminton, and even marathons or walk-a-thons. HOAs can also invite other vendors, like food or drink vendors, to raise more funds.

In addition, the HOA can incorporate other ways to raise money during the event. They can host a text-to-give donation event where residents and participants can donate what they can from their phones. Raffles are also a good way to convince participants to stay until the end of the event, thus driving more traffic and sales. Participants can purchase a raffle ticket for a chance to win a good prize.

 

6. Online Shopping

HOA fundraisers don’t always have to be physical. In fact, an online shopping fundraiser can sometimes be enough to cover additional expenses. The HOA only needs to partner with an online platform where people can purchase goods and services. Retailers can join in and post their listings and products through the platform. The HOA then gets a cut from every purchase made on the website.

 

7. Converting Unused Parking Lots and Buildings

Converting Unused Parking Lots and BuildingsSome HOAs may have unused parking lots or buildings that they can convert into a profitable business. For instance, if there’s a lot of unused land in the area, consider converting it into a pay-parking space. Outsiders (or even the residents’ guests) can pay for parking. It’s a good idea if the HOA is near any commercial establishments or offices.

Meanwhile, empty buildings can be converted into storage units used by the community residents. It’s a great way to put the building into good use without too much preparation or overhead.

 

8. Install Vending Machines

Vending machines can make the HOA a decent amount of extra income without breaking the bank. The community only needs to install them at convenient, high-traffic spots near the gyms, pools, or clubhouses. Vendors are often more than willing to pay a fee to use these spaces.

The HOA can also purchase vending machines and manage them in-house. They can cost anywhere between $1,200 to $10,000, depending on the model. The board should conduct a cost-benefit analysis to ensure they purchase the right one.

 

Prioritizing Financial Stability

At times, HOAs cannot rely on fees and assessments alone. Homeowners associations can host HOA fundraising events to ensure financial stability. It’s especially useful during economic downturns or when there are a lot of delinquencies in the community.

Condo Manager is an all-around HOA management software for both HOA management companies and self-managed neighborhoods. Call us today at (800) 626-1267 or get in touch with us online to request a demo!

 

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What Are The Typical Political Yard Signs Rules In Your HOA?

admin on October 10, 2024

Political yard signs rules have been a touchy topic within homeowners associations — and for good reason. Residents will often want to show their support for their candidate of choice during election season. However, it can cause division and conflict within a neighborhood. In addition, it’s not exactly the most appealing ornament in a front yard. Can HOA ban political signs?

 

Political Yard Signs Rules: What Can the HOA Do?

Can HOAs prohibit political signs? Homeowners associations often have strict rules about what decorations and items they can place in their front yard. Usually, trash bins and unsightly equipment need to be hidden from view. Moreover, some HOAs even prohibit homeowners from adorning their yards with off-season holiday decor.

When it comes to political sign rules, though, things are a little more complex. A lot of homeowners argue that implementing political sign regulations can prohibit their freedom of speech. They argue it conflicts with the First Amendment. Are they right? Is the HOA violating the Constitution by imposing campaign sign rules? There are two main things to consider: State Law and the Governing Documents.

 

State Law

Some state laws protect people’s right to place political signs on their property. This includes everything from banners and flyers to posters. However, more often than not, states will allow HOAs to place reasonable restrictions on political signs. This means rules for placing political signs are not necessarily illegal.

For instance, while California law prohibits HOAs from banning political signs, they can employ political yard signs rules that outline what kinds of signs are allowed. Associations can prohibit signs made of building, decorative, or landscaping materials.

Moreover, they can dictate where the homeowners can post political signs. In planned communities, residents can typically post signs in yards, doors, windows, and the sides of their property. Meanwhile, condominium residents can post signs inside their windows and on balconies. They cannot, however, post signs on exterior doors, walls, and windows because those are considered common elements.

According to California law, HOAs may also prohibit non-commercial posters and signs over 9 square feet in size. Meanwhile, HOAs can limit non-commercial flags and banners to 15 square feet. They can also ban common area signs and signs with obscenity.

Given these regulations, it’s safe to assume that political yard signs rules do not necessarily violate the First Amendment as long as they’re reasonable. HOA board members should review state law and consult an attorney to make sure they’re not violating any laws.

 

Governing Documents

Homeowners associations often have architectural guidelines that dictate what homeowners can and cannot do with their property.  These guidelines preserve the community’s harmonious aesthetic and protect property values. Political signs are often an eyesore for many onlookers as they disrupt the community’s exterior facade.

For this reason, many HOAs will implement rules stating where and when homeowners may post political signage. The HOA has a right to enforce these rules so long as they do not violate state law. Thus, residents should review the governing documents before posting flyers or banners during election season.

On the flip side, HOA board members should also carefully review the governing documents before implementing policies regarding political signs. Homeowners may take legal action against the HOA if the board imposes a rule it has no right to.

 

What are Examples of Political Yard Signs Rules?

Homeowners associations have a variety of rules they can impose. Of course, they should review the governing documents and state law before implementing any of them. What political yard signs rules do they often use? Here are some common examples.

 

1. Number of Signs

Homeowners associations may limit the number of signs each home can have. Doing this prevents homes from being littered or overcrowded with political signs. It strikes a good balance between the freedom of self-expression and prioritizing community aesthetics.

 

2. Sign Placement

HOAs may indicate where homeowners can place their signs. Many associations allow them on front yards or front doors and windows. Typically, they place restrictions on how the signs are held up. Many will require residents to use ground-mounted signs instead of wall-mounted ones to preserve architectural uniformity.

 

can hoa ban political signs3. Size of Signs

Homeowners associations restrict the size of each political sign allowed. Otherwise, even if an HOA limits signage to only one or two, homeowners may take advantage of the rule and post one massive billboard-sized sign on their front yard. Consider implementing a maximum size for each type of political sign — be it flyers, banners, flags, or posters. Large signs are not only aesthetically unappealing but they can also block paths or become safety hazards for the residents.

 

4. Posting Period

HOAs can restrict posting to only a certain period (e.g. during campaign or election season). Doing so allows the homeowners to show their support for their favorite candidate or political party without turning the community into an overly political neighborhood year-round.

It’s crucial to review the HOA’s governing documents and state law before implementing this, though. This is because some states prohibit HOAs from banning political signs within a certain number of days before and after election season.

 

5. Sign Materials

Homeowners can sometimes be overly enthusiastic when it comes to showing their support. Hence, they may build outlandish signs out of lights or concrete. These signs can not only be unsightly but may also disrupt the community’s architectural guidelines.

As a result, it may be wise to ban signs made of certain materials like concrete, greenery, lights, or balloons. The HOA may even provide a list of allowable materials such as cardboard, tarpaulin, or plywood.

 

can hoas prohibit political signs6. Obscenity

HOAs may ban signs that feature obscene or offensive scenes and language. Doing so protects curb appeal and ensures no conflict arises between residents. Obscene signs can have more serious consequences such as monetary fines.

 

Striking a Balance

Homeowners associations can implement political yard signs rules without violating people’s rights to free speech. As long as they stick to reasonable restrictions that do not violate the law, political sign rules should be safe overall. However, it’s important to strike a balance and not prohibit political signs entirely. Otherwise, it can lead to complaints, conflict, and even lawsuits.

Condo Manager is a comprehensive HOA management software fit for both management companies and self-managed communities. Call us now at (800) 626-1267 or contact us online to get a demo!

 

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7 Best Ways For Managing HOA Reserve Fund

admin on September 26, 2024

Managing HOA reserve fund accounts is not easy. Done poorly, homeowners associations can easily deplete their reserves to cover other expenses. However, maintaining ample reserves is crucial to financial health. The community might suffer bigger losses if it foregoes proper reserve fund management.

 

Best Practices for Managing HOA Reserve Fund

No matter how well you prepare for it, emergencies happen to the best of us. HOAs might face lots of different crises like earthquakes, fire, or acts of terrorism. In these cases, one way to protect the community financially is to maintain ample reserves. Here’s what you need to know about how to manage HOA reserve fund accounts.

 

1. Perform a Reserve Study Periodically

What is a healthy reserve fund? There is no universal amount recommended for all HOAs. It truly depends on several factors, such as the HOA’s size, amenities, and exposure to risk. To determine a specific community’s ideal reserve amount, conducting a reserve study every few years is best.

A reserve study is a financial analysis performed by a reserve analyst or specialist. The conductor examines the HOA’s foreseeable capital improvements, upcoming repairs or replacements, current reserve accounts, and the condition of all HOA property. Based on these factors, analysts recommend how much the HOA should keep in its reserve account.

Reserve studies are not one-time events. In many communities, the CC&Rs or Bylaws require the board to conduct them every year or every few years. Even without these requirements, though, it’s usually a good idea to conduct the study at least once every three years.

 

2. Set a Goal

Set a GoalHow do you account for reserve funds? After conducting a reserve study, the HOA may aim to maintain a certain percentage of the ideal reserve funds to remain healthy. Ideally, reserve accounts should be fully funded. However, maintaining a 70% funded reserve account should be a decent level to aim for if the community is underfunded.

The HOA can slowly work its way toward the goal. Board members may increase the assessments incrementally to achieve their desired funding. This way, the residents won’t face sudden hikes in HOA fees.

 

3. Create a Separate Account

Homeowners associations tend to combine funds in one bank account. However, this is not a good idea when it comes to managing HOA reserve fund accounts. An HOA that does this risks accidentally dipping into the reserves when it isn’t necessary.

Instead of mixing the funds, consider other avenues, such as other banks or money markets, to ensure the reserves are untouched and still earn interest. HOAs can also invest in certificates of deposit (CDs) with varying maturity intervals.

 

4. Look for a Secure Place

Regardless of where the HOA keeps the funds, the board should ensure that it’s secure. HOAs can consider banks and institutions with Federal Deposit Insurance Corporation (FDIC) protection. Keeping the reserve funds within the FDIC limit is also good practice.

HOAs may also create deposit accounts in institutions with experience running community association deposits. For example, services like the IntraFi Cash Service (ICS) network allow HOAs to distribute their reserves among several banks to ensure they’re all protected by FDIC coverage. Despite having multiple banks, the HOA only works with the ICS to manage its reserves.

 

5. Prioritize Return and Liquidity

Accidents happen, so HOA reserve funds need to remain liquid. The board should be able to easily access the funds should any unforeseen expense occur. In addition, the board should consider interest or returns. The reserves shouldn’t just remain safe, depreciating in value. That’s a bad business practice.

Instead, the reserve account should earn ample interest to keep up with inflation. While security and liquidity come first, earning interest should also be a priority. The board should build a good relationship with their bank or institution of choice. That way, they can assist the HOA and explain their options for increasing the reserve funds.

It’s also a good idea to periodically review the interest being earned on the current reserve accounts and inquire about any new programs that might yield higher interest. These offerings will vary by bank and account terms, so make sure to ask them every now and then.

 

6. Be Transparent in Accounting

Homeowners associations must be transparent about their financial practices and decisions. The residents might not like it when the HOA has to increase their fees to account for the reserves. Nevertheless, they can understand more if they see why the community needs the money.

The board should always communicate the purpose of the reserves. In fact, they can even discuss the reserve study results with the community members so they have a clear idea of the HOA’s current standing.

Apart from this, it’s equally crucial to separate regular assessments from reserve contributions in the account books. Noting each item separately in the income sheet can paint a more accurate picture of the HOA’s current status. Homeowners can also more easily see where their money is being spent.

 

7. Educate the Board

Educate the BoardHOA board members are not always legal or financial experts. They rarely have financial or legal backgrounds. Hence, they might not know why the reserves are important and how to manage the funds wisely. HOAS needs to educate the board members about proper reserve fund management.

In addition, HOAs should review the legal or regulatory requirements regarding reserve funds. For instance, California HOAs are required to conduct reserve studies regardless of size unless the replacement costs are below 50% of the HOA’s gross budget. Keeping regulations in mind will ensure the HOA operates at full capacity and protects it from liability. It may be wise to ask an HOA attorney for help in board education.

Similarly, HOA board members must know how to read financial statements, understand reserve studies, and handle HOA banking. They may ask an experienced accountant for help or attend workshops to learn the ropes.

 

For the Community’s Protection

Managing HOA reserve fund accounts can be difficult for inexperienced board members. Nonetheless, the time and effort it takes to learn what to do and how to maintain ample reserves will pay off. A fully funded reserve account can save the HOA from financial crises during emergencies and rainy days.

Condo Manager is the best community association management platform for self-managed associations and HOA management companies. Contact us online or at (800) 626-1267 to learn more!

 

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