Now, This is What I'm Talking About

Hey All,

I don't know how many of you read the articles on the home page but this is something that we should pass along.

We talk about volunteering and why some don't want it done in their associations. Then along comes an article like this which dispells all of the nay-sayers thinkings.

" The entrance to the community on Honeymoon Island and some other common areas in the complex now feature Florida-friendly landscaping.

"We're saving water; we're beautifying the landscape. It gives a nice look to our community," says resident Alton Blalock, who volunteered to help with the planting.

Looking at some "before" photos, property manager Sharon Wilson explains that despite a huge water bill, the previous landscaping looked shabby.

"Looks ratty, looks unkempt," says Wilson pointing to a photo, featuring scraggly bushes. "And we were spending a lot of money to maintain this unkempt landscape."

With a $9,000 grant from the city of Dunedin, volunteers from the complex replaced turf with drought-tolerant plants and they also put in drip irrigation. Managers also cut back on watering days throughout the entire complex."

Cities do it all the time.

We have a Neighborhoods Grant Writing Workshop here that's offered by the city.

I know several HOAs that have received various grants for all kinds of projects.

It's one thing that HOA boards forget (or are unaware of): grants are available to assist with any number of projects within your subdivision, crime prevention, beautification, access, you name it.

Ok. I admit it....I'm stupid (uneducated) about just exactly HOW grants work. Can somebody clue me in? Do the associations have to pay back this money, if we apply for it?

Anna,

Grants do not have to be paid back but it takes some time to go through all the hoops. Our assn got a $5,000 grant here in Jacksonville but in this economy I doubt many are available. Check with your city to get details.

I do believe that the IRS considers grants to be taxable income to a homeowners association. If anyone has a specific citation to support this or to the contrary, please post it. I am not aware of any private letter rulings or other IRS rulings that exempt grants from income taxes. Nor did my quick and dirty search of IRS documents this morning find anything one way or the other. (Some grant funds may be tax exempt by the specific authorizing statute.)

This is why it is important that the fiduciary authority for the grant be a 501(c)(3) organization, not the homeowners association itself. That is not a problem in most instances. For example, the local affiliate of Keep America Beautiful in my part of the country handles the fiduciary function for such grants for improvements that benefit homeowners associations, such as neighborhood tree planting, entrance improvements, and community garden plots on private land.