Condo Association Management Blog

Properly-sized Reserve contributions really aren't that big. While an appropriate amount is often in the range of 15-40% of an association's total budget, that typically works out to just a few dollars a day per unit (which is less than a premium coffee per day). Caring for your house is a bigger deal than a premium coffee! 
 
One client of ours had a clever idea. Faced with expensive balcony repairs and a "I don't care" attitude among the majority of homeowners, they chose to stack the worst of the rotted materials right by the entry gate area. That way everyone saw the reality of deterioration every day in their normal coming and going. That got everyone's attention, and they got the popular support they needed behind the idea of raising assessments.  
 
Ongoing deterioration is real and requires properly sized Reserve contributions. It is rare the deterioration is so physically evident, and they took advantage of the opportunity!

If you are in Florida you can't just "creatively" implement any of the choices descrived above. You have to follow Statutes guidelines. Have you read your governing documents and state laws ?? In Florida a Homeowners Association (HOA) is a totally different entity than a Condo Association or, a Cooperative. What state are you in ??

How old are the homes in your association? The older the home the more need for money to fix it.  
 
Has any part of your association succumbed to the bad economy?  
If not then raise the rate a minimal amount. The amount depends on the type of homes you have and how much replacement costs are. 
 
If so then I'm not sure if there is a painless creative way. If you have multiple condos going bankrupt in some associations that money falls on the back of the owners in good standings! 
 
The question should be how to raise money without have to assess the owners. 
 
 
Vic 
 
 
 

New FHA standards require a reserve study, funded and reviewed and updated yearly. Mortgage lenders are taking into consideration reserve funding in evaluating the financial health especially for condos.  
A reserve study is performed by a professional specializing in this field. It will provide information on the items required to be maintained by the condo or an HOA. It will determine the projected life expectancy of the components and the funds necessary to have available for each item.  
If a member of CAI, reserve specialists are a member category. Otherwise search online for reserve specialists. These companies provide service throughout the country.  
As to unit owner funding, it is part of the assessments due from each owner. A transfer fee would have to be authorized in the legal documents and common elements must be maintained for the use of owners and guests.  
As always, read your documents and the State condo legislation.

Susan, 
 
I live in Florida and what are the 
 
Florida Statutes guidelines for HOA's regarding transfer fees or fees when homes are sold new or resale? 
 
 
 
Also, Nancy what are the New FHA standards require a reserve study, funded and reviewed and updated yearly.  
 
 
 
Thanks, 
 
Stephen

My company works with many HOA's for whom we have successfully created sustainable funding opportunities and / or savings for owners by consolidating or aggregating amenities or expenses that everyone uses and / or spends money on independently. 2 great examples of this are the overall savings gained by installing either a PBX system with direct inward dial phone numbers or by deploying a WI FI System for internet access. By aggregating these services and the associated expenses that most owners are already incurring privately, the HOA can either save owners some money each month or begin to bill owners for these services at some agreed upon rate that allows them to generate revenues in excess of the reduced overall expenses required to own and operate these systems. It's very simple and effective.  
 
 
 
We have HOA's as small as 24 units and as large as several hundred units who are utilizing these methods to save owners money or build reserves from monies already being spent by owners individually on these amenities.  
 
 
 
Often the ROI is far less than 18 months which usually means an HOA can purchase the equipment using a lease and still have a positive cash flow while the system debt is retired during the lease term, allowing the HOA to avoid any up front capital expenditure!  
 
 
 
We do this all over the US. I would like to chat with anyone who has some interest in how these programs could work for them. Not every property is a good candidate for both systems, but many are.  
 
 
 
We own a number of properties and are in the process of implementing a reserve study at one of them. I suspect it will be edjucational and a good topic for further discussion on this blog.  
 
 
 
Please reach out to me if I can be of assistance to any HOAs out there.... all our HOA clients provide a good reference for us.

I am interested in the PBX and  
 
Wi Fi. Please give me a call at 202-239-2933

I am interested in the PBX & WiFi system. Please give me a call. 
 
 
 
Jim 
 
San Diego 
 
760-702-9561

I am interested in WIFI what company can i contact?  
 
 
 
 
 
Ray  
 
Danbury Ct

Does California permit HOAs to levy Transfer Fees?