Social Committee Budget

I'd say it's more like 0% to 1%.

In our case, the BOD has allocated 1% for discretionary spending. Some of it goes to social activities, but it mostly goes to other things like training, organization memberships, donations to fire/police, etc.

Hi Kelly,

I completely agree that the exact amounts depend on the community etc.. I'm just trying to get a better understanding as to the customary range that places are allocating for this. For example your mother's condo is probably bringing in a lot more revenue than some single family home associations without amenities or a gate so if they are doing 1% of their budget that may be giving them a lot for their events.

Is there a percentage of the budget allocated towards social that can or should set off red flags? To add context as to my own association, it is one with no gates and 130 homes. The only amenities are cameras and a fairly short wooded walking trail. There is no other common land that can be used for events, clubhouses buildings etc..

Lance

What about un-budgeted amounts? IE: no social committee budget, but the board allocates funds as requested with no guidelines? Theoretically surplus HOA funds?

If one if the missions of the organization is social, then a social committee can be formed to put on events , etc. This might be found in the bylaws.

Otherwise, there’s no commitment or obligation from the board to fund or sponsor community- building activities. Some hoas have side social groups not funded or sanctioned. They are on their own.

Surplus of HOA funds???? That should never exist...

What is the issue? Is it just all theory? Otherwise, a social committee is either funded or not funded by the HOA. If it isn't then it raises it's own money. If it is, then the committee approaches the board with it's expenses needed. There should be no "surplus" of money. You pay out what you need and what is collected.

Lance,

It's not a percentage, it's a sentiment of the people who'd be forced to pay money for HOA-endorsed social events. A red flag could arise if you're going to propose increasing dues to fund events. A red flag should be raised if you're proposing diverting funds away from camera maintenance, tree/landscaping (for the path) and camera replacement (when they age out).

I'd say 0% is "customary" for HOAs that only maintain very basic amenities or are passive because their amenities generally have long shelf-lives. You need to poll or gauge your neighborhood appetite for increasing expenses for social events using money derived from the forced payment by property owners.

Condos are very communal by nature and thus generally accept organized socialized. If you have 130 single family homes, and no clubhouse, then an HOA social budget would be ripe for small scale corruption because the community isn't literally tied together in multi-family buildings.

Talk to the entire community, not us crusty HOA board members.