Put Your Homeowners Association Reserves to Work–Safely
You’ve managed your homeowner association well, and you’re proud to have substantial HOA reserves. Now you’d like to put those reserves to work so that you strengthen your community association’s financial footing even further. Can you even do that? If so, what investments are appropriate?
Your homeowners association is a nonprofit organization. In most states, nonprofits can generate income, but they must apply the vast majority of their income to their mission and maintenance. The amount of income your association can generate beyond its operating expenses varies depending on your state’s laws governing community associations and nonprofit corporations.