3 Options That Ensure Major Repairs Are Completed Now In Your HOA

It is not uncommon for some HOA’s to be faced with unexpected repairs that require considerable amounts of money to solve.  Faced with these problems, finding the most practical solution might seem like an arduous task.  In most cases, the choice is to choose between using the funds in the reserves or issue a special assessment.  Here are some options you can use to ensure major repairs are performed without jeopardizing your HOA’s finances.

 

Obviously, a reserve specialist understands the HOA’s reserve funds better than anyone else so they should be the first person you get advice from.  Their specific knowledge helps them assess the situation keenly and according to upcoming repairs.  As well as the reserve study, the specialist might recommend adding the cost as a one-time item or advise you to issue a special assessment.

 

In case you don’t have a reserve expert, the next best option is to get advice from a financial expert that deals a lot with property matters.  That could be an accountant, a property manager, an insurance agent, or even a HOA website manager who’s well acquainted with HOA costs.

 

Though not ideal, borrowing from the reserves may be your only practical solution.  Just ensure you have a plan in place for paying back the borrowed money.  Note that in some states, there are laws governing the process of borrowing money from the reserve funds.

For instance, in one state the board is required to notify members about the transfer of money, as well as the reasons involved and the repayment plan.  Through the HOA website, the whole process can be kept transparent so homeowners stay informed.

Dealing with unexpected repairs that are not in the reserve study can be daunting but by following the tips above, the task becomes a lot easier.  Consider having a reserve specialist and a manager as part of your team to help you overcome the financial aspect of getting repairs done promptly.