How to Get Finances for an HOA Exterior Maintenance Project
The truth is that when it comes to repairs or capital improvements for HOA associations, the cost can add up quickly, depending on what is needed. There should be a build-up for the funding required in most situations, but if the price is higher than the reserves, there may be a question about how to pay for the upgrades.
This can be problematic because a choice will have to be made between what's necessary and what can help improve the living area for the tenants. There are a few ways to make the HOA maintenance more manageable, and here is more information.
Weighing Out the Need
One of the first considerations is the priority of areas that need improvement. A new roof will take precedence over replacing areas in a playground, so having a list of all the required upgrades can help keep the need clearer, allowing the tasks to be completed over time instead of once.
Ensuring that dues are being paid on time, keeping a regular budget that includes reserve funds, and forecasting possible future expenses can also help when it comes to financing. Understanding what is available for upgrades can help sustain any reserves through the year unless it comes to a significant repair that may require some additional outside assistance when it comes to funding.
HOA Finance Options
Traditionally HOA dues would cover any upgrades or repairs that need completing. But if the budget is not allowing for additional funding of projects on the property, the group may need to consider taking an HOA loan to help supplement the missing finances. Even with the monthly revenue from HOA dues, if the money is not appropriately balanced throughout the year, it can run out quickly with just one or two major repairs.
The primary concern is ensuring that whatever needs upgrading will be considered an HOA capital improvement for the community. This can improve the overall well-being of the individuals living there and increase the property's value. Getting an HOA loan can help with capital improvements and emergency repairs required to be fixed by the organization.
There is also the option of having a special assessment of what is needed. The evaluation may create additional fees for those in the community to help finance the repair, but it may be an agreed-upon project depending on the situation.
HOA Capital Works as a Team With Your HOA
HOA Capital is a locally owned company committed to creating the highest quality living environment for all our client's residents. We offer HOA management solutions that can better streamline the property's needs to help our customers with the process.
We are here to help, so if you would like to schedule an appointment, contact us or give us a call at 952-836-9593 today.