The Operating Budget: I

Budgeting for a homeowner association (HOA) typically involves two elements: 1) Annual operating expenses; 2) Intermittent or non-annual replacement reserve spending. Annual operating spending in turn, typically includes spending on recurring maintenance that is expected to occur at least once of the course of the typical year.  “Operational” maintenance spending is a separate category of…

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RESERVE PLANNING: I

Most people who purchase a home in a home owner association (HOA) have no idea what a reserve study is, or why it is important. In spite of the critical role reserve planning plays in the long-term sustainability of the organization, many HOAs have never conducted a reserve study and do not maintain a reserve…

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THE TIPPING POINT: I

In 2009, CIDA’s founders introduced the subject of the Tipping Point in response to an invitation from the Community Associations Institute (CAI) to submit a proposal for an educational presentation at the CAI’s national convention. The tipping point thesis was that by 2020 the majority of the homeowner associations (HOA) in the United States years…

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THE BOARD OF DIRECTORS

90% of all homeowner association (HOA) are organized as a non-profit corporation. In certain respects, these non-profit corporations are not unlike their for-profit, publicly-traded counterparts. Many home buyers overlook this important fact only to find that the privatized community in which they now find themselves living is beset with financial problems. Problems within the organizational…

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OREGON LEGISLATION UPDATE: II

Salem, OR – House Bill 2466, effective date 1/1/2020: The legislation applies to some planned communities and all condominium associations created “before, on or after” that date. In other words all condominiums and some planned communities created in the state. As a result of HB 2466 all condominium associations and planned communities are required to…

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OREGON LEGISLATIVE UPDATE: I

Salem, OR: In 2017 the Oregon Legislature approved House Bill 3057 resulting in changes to the language in chapters 94 and 100 of the Oregon Revised Statutes (ORS). ORS 94 is the statute that governs planned communities in Oregon while ORS 100 governs condominiums. Both statutes were “cleaned up” to paraphrase one esteemed former Representative…

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