Condo Association Management Blog

Should number of association employees be based on condo units?

I am the treasurer of a condominium association in downtown Chicago with 108 units and I am trying to get a better handle on our expenses and ROI. My question is this: (and I know that it will vary) is there a "general" rule that suggests how many full-time maintenance personnel should be "employed" by the condo association or management company given the number of units in a building?

For example, our building has 108 units; we have a full-time building engineer and a full-time janitor. I am not happy with their performance. On the other hand, the building across the street has 88 units, a full-time engineer and a part-time janitor once a week. Their building looks great. Any insight would be most appreciated. Thank you

Condo association has budget challenges and never set aside reserve

Our condo association's fiscal year starts July 1 and ends the following year on June 30. Our annual condo meeting is usually the third week in August at which time we "approve" of the projected fiscal year budget. However, by that time we are already seven weeks into the fiscal year, and the Condo Board is already spending the money we haven't approved. The Board also does not send out the projected budget ahead of time with the required 21-day notice for the annual meeting agenda. Therefore there is no real time for the owners who attend the meeting to really study it and approve or disapprove of it. Half of the owners never come to the annual meeting, so they never see the budget ahead of time either. We keep getting more and more renters into the condo association. We have not had a reserve study done since 1994. The Board in the past has said that they do not want to delegate money to any defined reserve funds in case they need the money for something else. They lump it all into savings, and they do what they want with it during the year which keeps shifting as the year goes on.

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How do you calculate HOA or condo association fees?

What is the norm in condo associations or HOAs for homeowner's dues or fees on different size condos i.e. is the amount that each owner pays figured by the square footage of what each owner owns or does each owner just pay the same?

What do condo associations and HOAs do with a budget surplus?

I'm curious what other condo associations do with a budget surplus / funds in a savings account; how to invest it? I've been researching savings account options and posted information here: http://bit.ly/bG13BK

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Want to buy condo, but association board won't share financials

I want to buy a condo. What information am I entitled to review from the HOA before I make a bid on the condo unit? I'd like to know the financial stability of the condo association to make sure I'm making a sound investment. Who governs the release of those condo association documents? If the HOA board will not give them to me, is there any other recourse available to me in obtaining those records?

What's a reasonable amount of cash on hand for a condo association?

I have a question about retained earnings. Our condo association presently has what I consider an excessive amount of retained earnings on our balance sheet . We have in excess of $60,000 plus $29,000 in working capital plus monthly revenue of $41,000 to meet a monthly condo association budget of $41,000. Obviously we have made a profit against expenses every year (2 to 5%), in spite of this we have continued to raise condo maintenance fees . What should be considered a reasonable amount of retained earnings ? Is there a formula to be considered ?

Condo Association budget doesn't include salt for ice this winter

Can the Condo Association board of directors take salt out of the budget? Our Condo Declarations says we are to get plowed and salted after 2 inches of snow. Year after year it gets worse they are not plowing common areas sidewalks, driveways, parking lot and private street. They plow once and then thats it. Even if it continues to snow for hours after they plowed and they apply no salt. Can they bate their duty and promise in the contract because they feel legals for assesments out weigh the importance of salting everytime it snows. Everything is covered in ice! It's no secret they announced it at a condo association board meeting and we still have no budget for 2010 we have a condo association proposed budget.

How to reduce a condo association budget?

What are common must-do "budget cuts" for a condo association? We are relatively small condo association (170 units, 7 buildings). No pool, no clubhouse, etc. The monthly condo fees still look a little high. Any particular areas that should be considered first? Eg., cleaning service, etc.?

Condo Association Budgets: Reporting Reserves

Our condo association board of directors approved the 2009 HOA Budget and due to issues such as foreclosures, delinquencies, and dropping interest rates, our budgeted amount for reserves was instead used to pay increasing operational costs.

Are we obligated as a condo board to fulfill this budgeted item or just show on our balance sheet that we budgeted for "X" but only received "Y"? What, if any legal ramifications should we consider?

Who owns the budget: HOA or Property Manager?

The HOA budget was published for new year by the property manager without the input of any of HOA board members. Please let me know if there are HOA rules and regulations as to what is the proper way for the condo board and not the Property management company to suggest how our money is spent?