While it can be financially manageable for residents if explained properly, simultaneous increases in both dues and special assessments can feel burdensome.
HOA fees (monthly dues) cover the regular operating costs of the community, such as maintenance, landscaping, insurance, utilities for common areas, and reserve fund contributions. The Board and Management are responsible for budgeting these expenses and keeping it inline with like type HOAs and other similar associations or explain rises.
Financial Transparency and Accountability
HOA Boards and management should provide a detailed listing of all association expenses in the general ledger, organized into clear and consistent sub-categories. This level of financial transparency helps homeowners see exactly how community funds are allocated, whether for maintenance, insurance, utilities, landscaping, or administrative costs. When expenses are categorized clearly, members can better understand the financial health of their association and evaluate how effectively the Board is managing resources.
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Transparent reporting not only builds trust but also helps prevent misunderstandings, errors, or misuse of funds. It allows homeowners to ask informed questions, encourages responsible spending, and ensures that budget decisions reflect the best interests of the entire community. A well-organized and openly shared general ledger demonstrates that the HOA values accountability, fiscal responsibility, and good governance. ​​​​​​​​​​​​​​​​​​
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It is important to note that HOAs are non-profit corporations. Although they need not adhere to Internal Revenue Service regulations pertaining to taxation on profit and specific accounting rules, HOAs can not hide expenditures, known as the common "cooking the books" term. The HOA must, by state and federal law, report accurately all expenditures to the association members, owners.
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An example reporting:
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