Contributions to Reserve Fund

Contributions to the association reserve fund are funds derived from the current years income or dues only.  Money transfered into the reserves that came from closed accounts or mature CDs are not contributions and thus cannot be counted as such.  Money transfered from funds left over from previous years are not contributions either they are repayments of money not contributed or are just transfers into the fund.

Every person who holds title to a condo needs to be aware of this.  If your annual financials do not show contributions as an expense you will need to calculate it.  Take the reserve balance from the previous years balance sheet and subtract it from the most current balance sheet reserve balance.  The difference is the net contribution after reserve expenses.  Take that number and the most current balance sheet and subtract it from the amount of surplus shown under owners equity.  This will tell you how much the checking account has increased.  To verify this take the most current balance sheet and subtract the checking balance from the checking balance on the previous years balance sheet.  The two should match.  Here is an example.

                                            2009                      2008                      Difference
Checking balance of         47,761.14                22,308.08               30,111.77
Reserve Balance             144,834.16              107,107.19              33,068.28
2009 Surplus on Balance Sheet                                                     $63,180.03

The reason for the surplus to be so large is that the contributions on the income statement does not include contributions deriving from the 2009 dues collected.  Therefore, the surplus shown on the balance sheet includes both the contributions and the amount of dues that were not used to pay expenses. 

Because the $30,111.77 there is not any large sums of money owed the association from a suit or any accounts this far past due and only a compilation audit is completed which will not reveal any vendor over-payments or charges.  This money is unspent dues period. 

Arizona state law 33-1254 says that any surplus money left from the current year dues is to be refunded to the owners or credited to their accounts to offset dues.  This means anyone who owned a home in the community for any length of time in 2009 is owed a partial or full refund of the over paid dues. 
Condos are personal property and cannot legally be held for investment purposes.  Any surplus money not spent is a profit causing an investment to be created into the HOA.

This means that every person who held title to a home in Indian Bend Village Inc. a non-profit aka Suntree is owed $14.42 per month for part year owners or $173.05 for full year owners.  If this money is not refunded not only does it violate state law but it also violates the declaration. 

Surplus money cannot be used for whatever the board wants to spend it on.     Spending money on the common area other than the common area in front of the homes has no benefits.  The amount of money spent on major redesign projects will be so insignificant that it isn't worth mentioning.  If landscaping returns 15% then a 173.05 per owner project would could only get a return of 25.00.  Spending 173.05 to get 25.00 makes no financial sense at all!


Every owner of a condo in Ariozna should be aware how to determine the surplus dues and that it is legally required to be refunded.

Audits Are Not A Witch Hunt

I'm amazed at the number of HOA boards that are scared to have a full audit.  Full audits are not a witch hunt nor are they intended to cause finger pointing within the community or management.  The intent behind them is to find errors. 
 

Increasing Interest and Desire

I recently read that mature trees can increase home values up to 7% on average.  It really kinda upsets me to read or hear people say this because it isn't completely accurate.  Here's why.

HOA Relents, Gives Disabled Vet New Handicapped Parking Space - Denver News Story - KMGH Denver

Who advised this board? I think it may be time to fire the management company and their attorney.

HOA Relents, Gives Disabled Vet New Handicapped Parking Space - Denver News Story - KMGH Denver

Disabled Vet Battles HOA Over Handicap Parking Space - Denver News Story - KMGH Denver

It really just doesn't get much worse than this. I think this board may be the lowest common denominator. Learn from others.


Disabled Vet Battles HOA Over Handicap Parking Space - Denver News Story - KMGH Denver

Maintenance Schedule

I tried to post this as a form that could be edited but was unable.  But, I was able to do it as a picture.  If you know how to convert it to a document it should convert perfectly as a .doc, .pdf, or open office document.  Edit this form anyway needed to fit your needs.    

Getting the Most Bang for Your Buck

My experience has been that board members approve bids based on price only.  Making decisions in this manner shows how little respect they have for the other owners. Value has yet to be considered in the discussion process when determining how board members vote.  Questions usually asked to determine value like; the company's reputation, designations earned, experience, warranty, maintenance requirements, or even cost of maintenance are never asked!  It's really very shocking to say the least.

  It's just basically reading the bids aloud then a vote.  Do they manage their own money this way or just the association funds?  Determining if something is a good value can be different for everyone and situation.  Some may think that versatility to ease of changing with the trends cheaply is more valuable than something elaborate that costs less.  Versatility equals lower maintenance costs, and thus costs less in the long run.  Where as something elaborate may cost less upon install will cost more over the long run, but both items should be build to last regardless of which is chosen.  For the HOA value has to include; versatility, total costs over the life of the item, warranty, company's reputation, quality, etc.  All of these characteristics at the very least must be considered to determine value, but more often than not are not considered.     

Marketing - Whose Responsible For Doing It?

To answer the question you first have to ask yourself this question.

1.  Does our HOA Association own a golf course, retail space, offer any kind of club facilities that require membership, who can be a member of it, or other means of generating revenue from the public?

Landscape Conversions Are they Worth It?

It's hard to not get angry at board members for doing landscape conversion because it doesn't make any sense.  Landscapers make out like a bandit and the community is left holding the bag.  I know, I've been told by landscape companies that we should convert some of the common area to desert landscape.  The never tell you why it should be done. 

Can Anyone Answer This Question?

More and more I'm seeing shrubs shaped like mushrooms.  It's not like it's a young shrub that is being trained into a tree that is just in transition.  These are old shrubs and very very large evergreen shrubs being shaped like mushrooms.

Are they trying to send a message that they want to nuke their yard out of frustration?  Are they supporting nuclear war?  Is it representing psychedelic mushrooms or what?

The first thing you see when you drive into a community or anywhere for that matter is the landscaping.  The shape of the plants and trees direct your eyes to look at whatever the focal point is.  If the any of the plants are shaped like a mushroom my eyes stay focused on that and that only.  Which means I'm looking down at the ground or looking straight up and nothing else exists from then on.  All I will remember is, that place with the mushroom shaped plants. 

Why do you think they shape them like mushrooms?  It's an odd way to be remembered.