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JeffG3 (California)
Posts: 1
Posted:
I am new to the site and serve on a board in southern CA. We have reserves of nearly $250k, partially due to regular assessment increases due to a recent $22k special assessment (140+ units) for long overdue repairs that were neglected for 20 years.

We are contirbuting approx. $18,500 monthly to build our reserves to take the preventitive measures needed to avoid such a signficiant hit to HOs in the future. With this sum in our account and that amount being adding monthly, I as treasurer am having dificulty in finding FDIC insured investment vehicles that can maximize our returns without tying up our funds for too long.

Our current money market accts yield 5.25%, 4.75% and 0.25%, with the last one held at our local bank to facilitate transfers to our operating account as needed. I would prefer not to open another money market, but we are above the $100k FDIC insurance threshhold on both and it makes me nervous to exceed that too signficantly.

We have also had a hard time finding banks that offer such high yields to HOAs - Capital One took us all through the account opening process and then told us that they do not allow HOA accounts.

As such, we are looking for an HOA friendly bank, credit union or thrift that offers competitive rates and is willing to work with HOAs. CD ladders are alos an option, though we are reticent to tie up the funds too long and I have been unable to find short term (less than 9 mos CDs) that can beat our money market rates.)

Any assistance would be appreciated.
DaneC (California)
Posts: 210
Posted:
Perhaps you may want to take a look at the other HOA friendly website www.ahrc.com and look at their business menu of vendors, under Banks, and look for those located in California.
NancyD1 (Florida)
Posts: 447
Posted:
Quote:
Posted By JeffG3 on 08/10/2007 3:16 PM
I am new to the site and serve on a board in southern CA. We have reserves of nearly $250k, partially due to regular assessment increases due to a recent $22k special assessment (140+ units) for long overdue repairs that were neglected for 20 years.

We are contirbuting approx. $18,500 monthly to build our reserves to take the preventitive measures needed to avoid such a signficiant hit to HOs in the future. With this sum in our account and that amount being adding monthly, I as treasurer am having dificulty in finding FDIC insured investment vehicles that can maximize our returns without tying up our funds for too long.

Our current money market accts yield 5.25%, 4.75% and 0.25%, with the last one held at our local bank to facilitate transfers to our operating account as needed. I would prefer not to open another money market, but we are above the $100k FDIC insurance threshhold on both and it makes me nervous to exceed that too signficantly.

We have also had a hard time finding banks that offer such high yields to HOAs - Capital One took us all through the account opening process and then told us that they do not allow HOA accounts.

As such, we are looking for an HOA friendly bank, credit union or thrift that offers competitive rates and is willing to work with HOAs. CD ladders are alos an option, though we are reticent to tie up the funds too long and I have been unable to find short term (less than 9 mos CDs) that can beat our money market rates.)

Any assistance would be appreciated.

Jeff,

Look for a bank that has CDARS. This FDIC program insures up to $30M. You do get good interest, but it is a insurance vehicle for your money so you will not get 5.25%. I set up quite a few CD ladders with a HOA bank and their Affiliates. With the CDARS accounts there is only one form you sign. You can designate which banks you do not want Cd's going to. This way you can keep to the FDIC limit for your Operating. You can set up a sweep from your Operating to go into a Liquid CD. A good representative of the bank can help you.

We are doing major renovations this year and also need access to our money without penalties of long term CD's. The bank I went with saved us on the Maintenance coupons, lockbox and are very accommodating. There are banks that cater to HOA's and Condo's, and want this business and they are national.

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