What is the 10% Rule There are two areas where condominium buyers may hear about the 10 percent rule: FHA Approval - FHA stipulates that any one single owner cannot own more than 10% of the units. This is for FHA approval which frankly I don't hear much about these days FHA / [...]
What is a Healthy Reserve Balance? We get this question in our office all the time - do we have enough money in reserves? HOA or Condominium associations need to keep track of how much money they have on hand at all times. This helps ensure that there will always be enough cash available for [...]
Before you can understand what reserves are, you must first know how a homeowners/condominium association works. An association takes on the responsibility of maintaining the community with the primary objective of protecting property values. Achieving such a feat is impossible without proper funding. But, where does an homeowners/condominium association get its money? Every association consists [...]
Communities (Condo and Homeowner) special assessments are extra, “unusual” fees that you may be charged by your board under certain conditions. Most association managers and experienced board members cringe when the term special assessment comes up. These costs are usually levied by the board only in emergencies, such as in the case of unexpected large-scale [...]
In the past two years we have seen maintenance costs of our associations sky rocket. In light of this, HOAs and condos may need to pivot by adjusting the year-to-date budget, increasing assessment rates or levying special assessments. With increasing vendor rates, labor costs, and materials due to inflation, it’s also wise to proactively review [...]
A question that we frequently get is “can we use reserves for Electric Vehicle Charging Stations”? The quick answer is no…. Reserves are intended for maintaining existing community assets. Once the stations are installed they can be maintained with reserves but not until then. These stations can consume quite a bit of power and not [...]
A reserve study is a budget planning tool. It consisting of both a physical and financial analysis. The study identifies the components an association must maintain or replace, the current status of the reserve fund, and a stable and equitable funding plan to offset anticipated major common area expenditures, according to the Foundation for Community [...]
In late June 2021, America and the world watched in horror as rescuers combed through piles of rubble and everyday household goods looking for survivors of the condo building collapse in Surfside, Florida. After the first few hours, no survivors were found. Ninety-eight lives and 136 homes were lost. In the following days, information emerged [...]
The buying process isn’t any different than if you are buying a single-family home - especially when it comes to the inspection. Aside from the sizeof the dwelling, one of the only differences between most condos and homes is the shared spacefor condo owners. Typically the homeowners association (HOA) owns the exterior pf the [...]
