HOAleader.com - Tip of the Week - March 27, 2009
Published: Fri, 03/27/09
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HOA Budgeting Tips
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For this week's tip, I'm turning to recommendations from Sima L.
Kirsch, a principal at the Law Office of Sima L. Kirsch P.C. in
Chicago.
As part of a new article on best practices for a smooth
budgeting process, Sima gave us her suggestions for HOA boards
when budgeting. This week's tip is to follow these core ideas in
your budget process:
* Your fiduciary duty requires consistent planning, the
application of standard business practices, and, where
applicable, mandates of your state law.
* You can't accomplish fiscal security and structural stability
in a single budget cycle. A three- to five-year model works best.
* All budget decisions must be based on the objective, its
affordability, the benefit to the association, and adjustments
for uncertainty, which should be formed by consensus.
* Always have proper reserves--they're akin to insurance, and you
wouldn't underinsure your building. Adequate reserves allow you
to spread the uncertainty and cost of major repairs and
replacements over a determined time.
* Special assessments aren't intended to cover items that are
typically capital reserve items. If you're passing one or more
special assessment a year, it's time to increase your
assessments--you're probably not prepared for an emergency
either.
Sima gave us additional thoughts on how to handle the projections
of your budget and the best ways she has seen to contain costs
though the budgeting process. To get these and more, see the full
article: http://www.hoaleader.com/members/258.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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HOA Finances: Best Practices for a Smooth Budget Process
Here, Sima L. Kirsch, a principal at the Law Office of Sima L.
Kirsch P.C. in Chicago, provides tips for creating a budget
process that works well for nearly all associations.
Click here to read full article:
< http://www.hoaleader.com/members/258.cfm >
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Buyer Asserts RICO Violations to Void Condo Contract
GULF SHORES, Ala.--Purchasers of a condo in Island Villas at
Sunset Bay on Plash Island has sued Bon Secour Development LLC,
real estate agent Shirlee Poulos, appraisal firm Thomas Bealle &
Associates, and Mortgage Solutions South. James and Janice
Boatwright allege the defendants schemed to pe
Click here to read full article:
< http://www.hoaleader.com/members/257.cfm >
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Man Sentenced for Harassing Condo Neighbors
An owner at the Stevenson Commons Condominiums has been sentenced
to a year in jail, along with two years probation--and ordered to
stay away from his condo--after being convicted of harassing his
neighbors.
Click here to read full article:
< http://www.hoaleader.com/members/255.cfm >
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HOA Sues Developer for Money Owed; Developer Says, "Pursue
Insurance"
The Wisconsin Tower condominiums has sued its developer, City
Real Estate Development LLC, claiming it owes the association
more than $46,000.
Click here to read full article:
< http://www.hoaleader.com/members/254.cfm >
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After Co-op Fire, County Proposes Water System Changes
In response to a fatal co-op fire where firefighters struggled to
douse a blaze due to failing water pressure, the Suffolk County
Water Authority plans to create an incentive system to encourage
private communities to upgrade their water systems.
Click here to read full article:
< http://www.hoaleader.com/members/253.cfm >
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