30 Aug 2016

Special Assessments

Posted by Orlando HOA Services

We have heard many times “Why can’t we have a special assessment instead of raising our monthly dues?” This philosophy does not work.  If your association is having a problem meeting its expenses because of tight cash flow, you need to raise your assessment amount or your assessment frequency.  Special assessments are just that, special.  They are not for paying your bills.  They are intended for major improvements, or in a case of emergency repairs, not to pay the landscaper.Homeaway-4-10-07.jpg

How do you tell if your HOA needs a special assessment? It depends on if your HOA is financially strong or not. The current Davis-Stirling law requires the HOA to publish a 30-year percent funded report for your reserves with your reserve study. It tells you clearly where you are well-funded and where you are weak. A strong HOA is 73% funded. Below 35% is weak and indicates a good chance that you will need a special assessment in the future. If you want to avoid costly special assessments, make sure your condo’s reserve fund will be there when large replacements are due.

 

Do you need an expert? Orlando HOA Services can help you set up good financial practices that will keep your association financially strong and well into the future. Email us at JR@Orlando-HOA.com or visit our webpage at www.Orlando-HOA.com!


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