Category Archives: Blog

100% Funded: What Does it Mean?

The percent funded metric is arguably the most misunderstood concept in the lexicon of HOA financial planning. More correctly stated, we are referring to the “percentage of the fully funded reserve fund balance,” which may also be referred to as 100% funded. The Community Associations Institute (CAI) 2023-Reserve Study Standards (RSS-2023) defines the term Fully Funded…

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Special Assessments

Bring up the subject of homeowner associations (HOAs) and the conversation is almost certain to lead to a discussion of special assessments.   Special Assessment – What is a special assessment, anyway, and why is the subject ever-present when conversations turn to HOAs and condominiums? The term “special assessment” refers to non-scheduled assessments that the…

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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 homeowner 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 account.…

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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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