Category Archives: Financial

Now is the time to Start Planning your 2019 Association Budget!

Most community association documents require an associations’ board of directors to adopt a budget for each fiscal year and early to late fall is typically the time of year devoted to that process. Because the management company is familiar with … Continue reading

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Why are HOAs a good thing?

Approximately 65 million Americans (or 1 in every 5) live in homeowner associations, including condominiums and planned communities in the United States.[1] The number of homeowner association communities in the United States has risen from approximately 10,000 communities in 1970 … Continue reading

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ARE RECEIVERSHIPS EVER A GOOD IDEA?

Regardless of what issues your community may be facing, receivership should only be considered as an absolute last resort, and only in the most dire of circumstances. Receiverships are expensive, time-consuming and transfer decision/making power to someone outside of the … Continue reading

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New Year Purging: 5 Tips to help Board Members figure out what Community Association documents need to be kept and what to toss

By: Beth Mulcahy, Esq. Happy New Year! The new year often brings the desire to get organized and clean things out to start fresh! As a Board Member, how do you figure out what can go and what needs to … Continue reading

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Budgeting and Reserve Funding for Your Association is a must!

By: Beth Mulcahy, Esq. Here are our Quick Tips for the Annual Budgeting Process that will make sure your board is assessing the current and future needs of the association. In a planned community, the budget must be approved by … Continue reading

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Fraud and Embezzlement in Your Association-How to Spot It & How to Avoid It

It has happened; there are funds missing from the checking account. Figures do not line up and you cannot get in touch with anyone. The board always sees a financial statement at each board meeting, so what went wrong? Any … Continue reading

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Bankruptcy 411

By Beth Mulcahy, Esq. When a homeowner files a bankruptcy (and lists an association as a creditor in the bankruptcy), there is an automatic stay in place, which prohibits the association from proceeding forward with collection against the owner or … Continue reading

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Financial Controls to Help Prevent Embezzlement and Fraud

Our law firm suggests that boards have the following accounting and financial controls in place to prevent embezzlement and fraud in their association: 1. Keep association records up to date; 2. Assign control of all reserve funds to the entire … Continue reading

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Reserve Studies 411

by Beth Mulcahy, Esq. Our association board is considering hiring a company to prepare a reserve study but we aren’t really sure what a reserve study is. Can you define a reserve study for us? How much do reserve studies cost? A … Continue reading

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Is there a Difference between a Disclosure Fee and a Transfer Fee?

By Beth Mulcahy, Esq. Yes, there is! There is often confusion in the community association industry regarding the difference between a “disclosure fee” and a “transfer fee”. Can an association charge a disclosure fee and/or a transfer fee, and, if … Continue reading

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