Helping my HOA

File liens and maybe raise assessments. We had a 6 month behind we liened policy. Establishing a policy helps so you are not randomly liening. It is all in your documents on how to do this. read them.

I say the biggest thing is to make cuts to any non-essential services.

My neighborhood dealt with some financial problems because of a lawsuit. At the meeting they mentioned they were running out of cash. The problem was nobody was willing to make any decisions. They pre-paid pest control for a couple cul-de-sacs and entrance ways at a huge rate because they were getting a discount. They felt that was a priority because of the discount. They didn't want to cancel yard service for some grassy patches that equaled less then a quarter acre because they believed it was important. They refused to shorten the amount of time the entrance way light was on because they felt it would be an "invitation to criminals," despite there being county street lights 10 feet from the entrance and about one every couple of houses. They wanted to INCREASE the off-duty policeman to patrol. They wanted to continue running water for their cul-de-sacs where they planted non-native water intensive grasses and plants because they spent the money on them. All this when membership dropped by over half (effectively halving operating cash) and they had to hire a new attorney, costing thousands of dollars.

The problem is you have to make the difficult decisions in order to make things work. Look at your finances and really ask yourself if it is an expense that is necessary. Also avoid any commitments that again are not necessary. Don't pre-pay pest control for a couple planters if you know you are on shaky ground.

I'd like to know how your HOA has managed to get out of the financial hole because my HOA is still struggling with this!

But as others have said, you and the homeowners will have to determine what services they're willing to pay for and go on from there. Remember some expenses are for things the homeowners can't "see", like property taxes for the common areas, legal fees (to go after the people who won't pay!), association insurance, etc. You won't be able to get rid of those things because it's the law and if your HOA is set up as a non-profit corporation, there are things you must do to stay legal and the IRS off your tail.

Your budget should have a bad debt line item because there will probably be some people you'll never collect from (foreclosure, bankruptcy, etc.) Make sure you have a good collection policy and use it. It's also helpful to review the policy with your attorney and property manager to see if it needs to be tweaked to make it more effective.

Hey Johnb64 MYOB that's just what every HOA needs someone running around trying to HELP THE ASSOCIATION !!!!!