Looking to Invest Your Condominium Association Reserves? Read This First...

Investing reserve funds may help you to increase your available cash, but do you know which options are best for your association?

When investing reserve funds, the board should focus on minimizing risk and ensuring that funds are available when needed. A high risk investment account that may lose money in the long-run is not a good option for any association. You should never end up with less then you've invested.

The best options for investing your reserves are:

Money Market Accounts

Money market accounts are highly liquid, meaning funds are easily accessible when needed. These accounts typically offer higher interest rates than traditional savings accounts while maintaining low risk but rates may not be as high as other investment options.

Certificates of Deposit (CDs)

CDs are a very secure investment with guaranteed returns. They offer fixed interest rates for specific periods, often at higher rates than savings accounts. However, since they often tie up funds for several months or years, they are best used when you do not need access to the funds until the CDs reach their maturity date.
U.S. Treasury Bills or Bonds

U.S. Treasury Bills and Bonds are government-backed, making them one of the safest investment options available. These offer a steady return over time, with bonds providing interest payments over the life of the bond. Like CDs, these are best for funds that don't need to be accessed for a long time.

Remember that interest earned on invested funds is taxable over $100 for most associations and will need to be reported on your annual income tax return.

Winter Checklist for your Community Association

Winter maintenance and preparation are essential for condominium, homeowner (HOA), and townhome associations in cold climates to ensure safety and comfort. Proactive autumn tasks, such as maintaining landscaping, clearing gutters, and preparing irrigation equipment, can minimize winter risks.

Associations should create inspection schedules for interior and exterior common areas, addressing heating systems, lighting, frozen pipes, and potential structural damage. Proper snow removal management, including hiring reputable vendors and reviewing contracts, is crucial to reduce liability and maintain community accessibility.

Legal and professional guidance can help manage responsibilities, damages, and insurance claims related to winter incidents.

Read more here.

Law & Legislation Roundup 2024

According to the Foundation for Community Association Research’s Community Association Fact Book 2023, 30% of the U.S. population now resides in condominium communities, housing cooperatives, or homeowners associations, a number that has been rising since 1970. Consequently, community associations significantly impact legislation, and several bills in Illinois, such as SB2740 for accessible parking and HB4125 for property taxes, are being considered.

Additionally, the federal Corporate Transparency Act's reporting requirements, effective this year, will likely affect these communities, demanding disclosure of sensitive information about board members and beneficial owners. 

Learn more here

Reminder! Funding Capital Repairs: Bank Loans - FREE Webinar THIS Thursday

Have large captial repairs projects you've been neglecting due to a lack of funds?

The next free Condoly webinar will focus on the process of applying for a bank loan to fund large capital repair projects so they don't cause bigger problems down the road.

Documentation requirements, loan terms options and the proper process for approving a loan will be reviewed.

Join Condoly and their special guest on Thursday, August 29th at 6:30 pm to learn all about bank loans for capital repairs.

Register your FREE Condoly account or Sign in to your existing Condoly account to register.

Holding Orderly, Efficient Annual Meetings

Apathy is a significant issue among residents of co-ops, condos, and HOAs, making it challenging to get them to participate in governance, even with the rise in community associations, which now house 30% of Americans. Efficient and productive meetings, essential for maintaining property value, can be achieved by setting and adhering to a detailed agenda, utilizing professional presentation decks, and organizing Q&A sessions effectively. Virtual meetings, though convenient, might lack the social engagement of in-person meetings. Offering incentives, like small prizes or social events, and emphasizing the importance of protecting their financial investments can encourage attendance.

Learn more here.