Category

HOA Finance

HOA Reserves

Can The HOA Borrow From Reserve Funds?

Is it legal for an HOA to borrow from reserve funds? This is a question many board members ask. The answer, while important, isn't as simple as a yes or no. There are several variables to consider, including the association's ability to repay the loan. Jeopardizing the reserves can have severe consequences, even putting board members at risk of liability.   Can an HOA Borrow From the Reserve Fund? In an HOA or condo community, the reserve fund plays a…
Denise
May 6, 2026
HOA Accounting

HOA Chart Of Accounts: A Checklist For Clear HOA Bookkeeping

An HOA chart of accounts is the foundation for all accounting transactions and books. It keeps an association's finances clear and organized, allowing the board to view its reports with accuracy and make informed decisions. Because of this, it is important to learn how to establish a solid chart of accounts.   What is an HOA Chart of Accounts? A homeowners association chart of accounts is a structured list of financial categories used to record every transaction. It works as…
Denise
April 7, 2026
HOA Budgeting

What Are HOA Budget Assumptions A Board Shouldn’t Forget?

The association board is responsible for preparing the HOA budget, but this task is more than just listing down expenses. Boards must rely on assumptions about future costs, income, and financial conditions. If these assumptions are unrealistic, the association may face funding gaps, forcing the board to either levy special assessments or significantly increase dues.   What is the HOA Budget? Everything starts with the homeowners association budget. The budget is essentially a forecast of all expenses, with the board estimating…
Denise
March 18, 2026
HOA Finance

HOA Audit vs Review vs Compilation: What Do You Need?

The topic of HOA audit vs review vs compilation is often a source of confusion for board members. Each option serves a different purpose and offers a different level of financial assurance. Choosing the right one depends on the association's size, budget, and governing documents.   HOA Audit vs Review vs Compilation: What's the Difference? Financial reports help boards understand the association's financial health. An audit, review, and compilation all serve this goal, but each does so at a different…
Denise
February 25, 2026
HOA Taxes

Are HOAs Tax Exempt? Here’s How To Reduce HOA Tax Liability

Are HOA tax exempt? This is a common question for board members and community managers. Taxes are part of running any organization, including homeowner associations. Understanding the rules can help boards make informed financial decisions.   Are HOA Tax Exempt? Many ask, "Are homeowner associations tax exempt?" The answer is usually no. Most HOAs must file tax returns with the IRS. Although they are not considered traditional businesses, they still generate taxable income. Income sources can include interest from reserve…
Denise
September 23, 2025
HOA Taxes

Your Guide To HOA Tax Returns And Tax Filing In Illinois

An HOA tax return is something every association should understand, whether large or small. Filing correctly will help boards avoid penalties and maintain the association's good standing with the IRS and the state. Board members need to know what forms to use, when to file, and how rules fit into the process.   What is an HOA Tax Return? An HOA tax return is a federal and state filing that reports an association’s taxable income to the appropriate tax authorities.…
Denise
September 23, 2025
HOA Finance

HOA Financial Reports: Is The HOA Board Required To Make This Yearly?

An HOA financial report is more than just a set of numbers. It is a tool that can help board members maintain transparency and accountability. Preparing and sharing financial statements is not only a best practice but also a big part of fulfilling the board’s legal and fiduciary responsibilities.   What is an HOA Financial Report? When people ask, “What is HOA financial reporting?” they often picture a stack of spreadsheets. In reality, it is the process of recording, summarizing,…
Denise
September 23, 2025
HOA Fees and Assessments

When And Why Condo Special Assessments Are Issued?

Condo special assessments are legal and, sometimes, necessary. Still, they can also come as an unwelcome surprise to many unit owners, especially considering they are an added expense. By understanding what these assessments are, when they are issued, and why they are needed, unit owners can better prepare themselves.   What are Condo Special Assessments? A condominium special assessment is an extra fee that a condo association charges to unit owners. They are in addition to the regular condo dues.…
Denise
August 22, 2025
HOA Fees and Assessments

Why Are Condominium Association Fees Higher Than HOA Fees?

Condominium association fees can cause a lot of confusion among buyers, especially since they tend to be higher than HOA fees. This difference boils down to what these fees cover and how these associations operate.   What are Condo Fees? Condominium association fees are fees that unit owners pay to their condo community. These fees cover shared expenses within the association. Owners pay them monthly, quarterly, or yearly. While exact expenses can vary from one condo to another, condo fees…
Denise
August 19, 2025
HOA Deliquency

HOA Foreclosure Explained: Can The HOA Really Take Homes?

Many homeowners don't realize that unpaid dues and assessments can lead to HOA foreclosure. While rare, it is a legal tool that associations may use to recover delinquent balances. The process can vary by state, but in many cases, an HOA can take legal steps to seize the home.   What is HOA Foreclosure? A homeowners association foreclosure is a legal action an HOA takes to recover unpaid fees, assessments, and fines. When a homeowner fails to pay, the HOA…
Denise
July 14, 2025