Who pays for HOA and Condo Association common area charges and how?
Some condo associations feel they are constantly assessed for everything from HOA common area repairs to renovations. On the other hand, the condo association often doesn't have enough cash in condo reserves to cover any of these costs, but feel its in the condo associations or HOA's best interest to take on these projects.
In a perfect world, the condo association board has designed and implemented a condo budget that is able to fund all operational costs along with any projects envisioned for that fiscal year. As we all know this is often not the case. This can leave the condo association in a bind with ill-will from condo owners who feel they are getting an unjust assessment because the condo association didn't plan properly.
The best solution to pay for these common area charges is always to take from the operating or condo reserve accounts - if there is enough cash.
Otherwise, the best funding alternative today may very well be HOA loans or condo association loans for 100% of the project cost or a mixed funding solution of HOA loan or condo association loan and condo association assessment. This hybrid approach may be the best way not to make condo owners feel the pain of writing one large assessment check. The payments of a HOA loan or condo association loan can be incorporated into condo fees moving forward and an HOA loan or Condo Association Loan can always be paid off ahead of time.
