Is your Arizona HOA reserve study ready for the real world?

Let’s face it: Just because you are a member of your homeowners association (HOA) board of directors, doesn’t mean you know everything about running an HOA. The truth is, most board members are not experts; they are simply volunteers who want to do all that they can to ensure that their community continues to be a great place to live.

Ignorance is not bliss, especially when it means potentially leaving your homeowners association (HOA) at risk of a cyber attack. And that’s exactly what you’re doing if you don’t recognize that your HOA is as much of a target as any other small business.

Each year the Arizona Legislative Action Committee (LAC) monitors a number of bills that could affect community associations across the state.  This year, Governor Ducey passed House Bill 2411 stating that “it promotes transparency and participation for all residents in homeowners’ association governance.”

Many people who live in cities like Phoenix and Scottsdale appreciate the rewards that come with living in a high-rise building. Some of the unique advantages include great amenities, security and even concierge services.
 
High-rise buildings are also unique when it comes to insurance coverage. Besides the individual policies that unit owners need to have, the building and common areas must be covered as well.

Phoenix high-rise dwellers generally choose to buy their homes because of convenience and location. Amenities can also be a deciding factor in where to buy. However, what’s desirable in amenities is always changing.

Another budget season is here once again, and that means that the boards of homeowners associations are busy planning, analyzing—and grinding their teeth. We know that developing your HOA’s annual budget is not an easy task. However, with the guidance offered in the following nine steps, you’ll be able to get through the process more easily—and without needing to visit your dentist.

Your reserve fund is an important way for your homeowners association (HOA) to plan and budget for the future. It gives you the financial ability to maintain the quality of your community by funding necessary—and expensive—projects. Rather than covering day-to-day maintenance expenses, a reserve fund is intended to be used for major expenses like roofing, paving and capital improvements (for example, new construction or remodeling).

It happens: Your community gets hit with an unexpected repair cost or rate hike, and you need to generate more revenue. While your goal may be to bring in some cash quickly, it’s important to look at longer-term revenue-generating ideas and options, too.

Do you dread preparing your HOA’s annual budget as much as you dread stepping outside of your Arizona home on a summer afternoon? You’re not alone. For many HOA boards, it’s their least-favorite task. But look at it this way: You’re making sure that your HOA remains financially stable, and that’s an important job.

Maintaining your HOA’s financial health—just like maintaining your personal health—boils down to moderation and good decision making. Eating one deep-fried blooming onion every once in a while isn’t a problem. Eating three or four several times a week is.  Keep your HOA financially fit with these four "health" tips.

Being a board member isn’t always easy, but it can be very rewarding when you’ve successfully managed your HOA. So what does success look like for a board of directors? 

Arizona HOAs, pay attention! As of August 6, 2016, new state laws go into effect that will impact your HOA community. As a board member or a community resident, you’ll want to know more about four of these laws in particular. They deal with short-term rentals, online voting, a grace period extension, and potluck events.