Why not just special assess for Reserve expenses when the expenses occur? It fundamentally boils down to fairness and responsible corporate planning. By nature, Reserve expenses occur unevenly through the years: some years will have minimal Reserve expenses, some years will be especially hit hard.
While more financial institutions are offering loans to community associations, this option is not available to all associations. To quality for a loan, an association must demonstrate enough fiscal health (positive assessment revenue stream) to demonstrate to the lender
Popular management consultant Peter Drucker famously stated “The best way to predict the future is to create it.” With that in mind, what future do you want for your association? Will there be sufficient cash to maintain “curb appeal” and maximize owner enjoyment,
So on what income does an association pay tax? This can get very complicated, but at the very least, the association generally needs to pay tax on its interest earnings. That includes ALL bank and investment interest, including interest earned on reserve accounts.
Today a well-intentioned Boardmember called, asking why he should tell his homeowners that the expensive roof they installed two years ago,
It is as important for our clients to have an accurate expectation of which components they will see in the Reserve Study as it is to expect
