Time for our annual budget reminders!
Here are a few important things to know about Board responsibilities and Budgeting:
- The Board is required to prepare an annual budget for the association each year.
- A copy of the proposed budget must be delivered to owners at least 25 days before the Board votes at a meeting to approve it.
- Notice of the Board meeting to approve the budget must be delivered to owners at least 10 days prior to the meeting.
- Owners do not vote on the budget, only Board members. However...
- If an assessment increase would result in a 15% or more increase over TOTAL income for the prior year (including Special Assessments), then owners have the right to petition for an owner vote on the budget.
Please see more about Budgets from these helpful CCR articles:
Condo Budgeting Tips for Pandemic-Related Issues
Double-check your ownership percentages when preparing budgets ...
How to Avoid Common Board Member Mistakes
The Importance of Reserves Budgeting in Small Condos ...
Related Videos for CCR Members:
BUDGETING MADE EASY
CONDO FINANCES MADE EASY
Bankruptcy is the most complicated issue involved in condo and HOA collections.
While a condo or HOA can collect if a homeowner declares bankruptcy, it is imperative to know what they are doing and how to do it.
In community associations, the registered agent will receive notice that an owner has filed for bankruptcy and action must be taken. If the association does not respond appropriately, they may not be in line to recover any delinquent assessments when the case is discharged by the bankruptcy court.
Check out this article to learn exactly how to handle this perplexing issue.
Reserves take care of the infrastructure and capital aspects of an association. These are repair and replacement needs that happen infrequently and carry large price tags. Associations should be including a contribution to reserves in their annual budget. But how do you know how to calculate that contribution? A Reserve Study can help.
Reserve studies are important to the health and stability of an association, because:
- Without a reserve study, an association cannot determine how much money it should have in reserves.
- During reserve studies, professionals evaluate the life of all capital investments, allowing associations to understand how much money is needed each year to replace each component.
Reserve studies should be conducted and updated regularly so that your association can plan for large repair needs over time.
Read more, here.
How a Board of Directors responds to complaints from members has a great impact on the association.
Handling a complaint correctly can deter future violations from the violator and other owners.
While it is important that a Board of Directors is seen as a group that enforces rules and regulations, it is also important that they are seen as fair.
Check out this step-by-step processhis step-by-step process for community associations to follow when enforcing rules and regulations.
As the COVID-19 vaccine rolls out across the country, board members are noticing that many vaccinated residents no longer want to wear masks.
Even while more people receive the vaccine, CDC guidelines remain the same, including hand washing, social distancing, and mask wearing.
Therefore, vaccinated residents still need to take precautions by wearing a mask in public spaces and not gathering in large groups.
Vaccinated residents who refuse to wear face coverings are also calling for amenities to reopen, which could expose associations to liability.
If associations choose to reopen their amenities, they must adhere to local, state, and federal guidelines in addition to determining the cost of extra precautions for reopening.
Boards should continue to communicate the importance of masks and social distancing in public areas of their buildings.
Learn more and find helpful templates for communicating with residents here.