Tag Archives: special assessment

Best Practices for a Smooth Budget Process

Does your association have a budget? If it does, how is it prepared? Is it even followed? Here, we provide tips for creating a budget process that works well for nearly all associations.

 Know fundamentals first

Start your budget process by understanding why budgeting is important. Aside from the obvious benefit of creating a well-run association, having a solid budgeting process helps protect the value and marketability of your association’s units. Without it, lenders may be unwilling to lend for the purchase of a unit or to the association, and buyers may feel burdened and walk away because they don’t want to assume the fallout of bad decision-making in prior years.

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The Benefits of Having a Reserve Study

As budget season approaches, many associations are focusing on their reserve stud-ies for two reasons only; one, it is required, either by state statutes or governing documents, and two, to make sure that the reserve assessment fits within the de-sired overall budget of the association.

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How to Stretch Your Reserve Dollars

What does an association do when faced with millions of dollars in repairs and inadequate funds in their reserve account? There are several options, including deferring projects, bank loans and special assessments. However, if the needs are urgent, phased planning is the key. When it is not possible to make all the necessary repairs immediately due to budgetary constraints, phased construction can be key to getting the project done with the money available.

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