HOA: Good News For A Change

The Change being: Last year, I posted a few times seeking advice on taking our HOA private (as in, dumping our management company). Based on the advice received here, I convinced my fellow Board members to give it a shot. And I'm happy to report, things are working out well.

Sure, we all had to put in a few extra hours to get up and running, but the results have been well worth it.

Background: We're a 20 unit single family HOA with about 30 acres of green space, including 4 ponds, the largest with a fountain. $900 per unit per annum in dues. At the close of 2007, $5,000 in reserves.

Benefits: Immediate savings of $6,000 in management fees for 2008 and beyond. Plus, we're actually getting things taken care of, rather than being told "Yeah, we'll (MC) get around to that."

How we did it:

1. Got a PO Box for dues collections and bills.
2. Kept (and keep) membership current with e-mailed, detailed UPDATES, including running expenses and receipts.
3. Frequent e-mails among the Board to keep things moving.
4. Personally delivering 2008 dues packets/envelopes to membership.

Results:

1. Happy, appreciative membership.
2. Much lower delinquency rates (in part as we tacked on a $20/month late fee for accounts in arrears +30 days).
3. Things get done.

Thank you, HOATalk!

So you dropped your annual dues by 300.00 per member? 6000.00/20 homes

DJ,

No reduction of dues yet. In the past three years, only $500 per was added to our reserves/capital improvement fund, leaving a small deficit in our working account on 31 Dec. This year we're shooting for $2-3,000 addition to reserves, and after we see how our scheme financially works, will hopefully lower annual dues 10-15% for 2009. Our long-term goal is to get reserves up to $10,000.

Glen,

We did IRS, but thanks for the heads-up on the other entities.