4 Questions Asked By HOA Board Members Regarding Budgets
Posted on September 7, 2022 10:06 AM by HOA Sites
It can be challenging to own a home these days, especially if you’re active in your homeowners association or on the HOA website. With daily decisions to make and projects to take care of, the time in between can seem like a blur. But, there are almost always specific questions from HOA board members that come up about repeatedly about budgets and financial reports. Here are four questions that board members tend to ask regarding budgets.
What Is The HOA’s Budget?
As seen on the HOA website, the purpose of the HOA budget is to indicate all the expenses for the association and the amount of money that is being charged to residents. In other words, this figure indicates the amount each one is paying towards the HOA’s expenses.
If homeowners don’t like how much they’re being charged, they might relocate where HOA fees are lower. A general operating budget includes the funds needed for maintenance and upkeep, but it may not show exactly how much will be spent for each item.
What Percentage Of Dues Go Towards Expenses?
The answer to this can be found in the total annual budget for the HOA. In addition, you’ll also need to find out how much revenue the association takes in annually versus expenses. Members can go to the HOA website and find all these numbers for free.
How Many Live In This Development?
This question is most commonly asked by association management during meetings. After all, if homeowners are unhappy with it, they can relocate to an area they find more suitable. Usually, managers or board members will provide this information during meetings when the community was first being constructed. An excellent way to obtain a better answer is to ask your neighbors.
What Percentage Goes Towards Maintenance or Management?
Managers are probably better suited to be asking this, not board members since they don’t know how much managers collect. If board members discovered the HOA was overspending on salaries and other overhead costs, it would likely cause an uproar among the community’s owners. Use these answers as a guide on the HOA website to ensure your HOA has fewer budget issues!