Category

HOA Finance

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
HOA Collections

What Triggers A Lien In Homeowners Association? Common Causes Explained

A lien in homeowners association cases usually begins with a financial dispute. When a homeowner falls behind on dues or other charges, the HOA can file a lien against the property. This legal tool can help secure the debt and grant the HOA the right to collect it. When left unresolved, the lien can even lead to foreclosure.   What is a Lien in Homeowners Association? A lien in homeowners association terms refers to a legal claim placed against a…
Denise
July 3, 2025
HOA Fees and Assessments

The Truth About HOA Fees: Worth It or Wasteful?

Living in a homeowners association means paying regular HOA fees. These fees play a vital role in the success and operation of an HOA. Still, many homeowners don't know how these fees function and deem them unnecessary. In truth, no HOA community can survive without these fees.   Define HOA Fees: What Are They? Homeowners association fees are fees that members of an HOA pay to the association. Also known as HOA dues, homeowners agree to pay these fees upon…
Denise
May 15, 2025
HOA FinanceHOA Reserves

How HOA Reserve Funds Protect Your Community’s Future

HOA reserve funds are an important tool for the long-term financial stability of any association. While HOA managers can help maintain and budget the reserves, it is the primary responsibility of the HOA board to manage this fund.   What are HOA Reserve Funds? A reserve fund is essentially a savings account that an HOA sets aside for future major expenses, such as repairs and replacements. This fund is not the same as an operating fund, which is used to…
Azalea
January 22, 2025
HOA FinanceHOA Insurance

Rising HOA Insurance Costs And The Impact On HOA Fees

Rising HOA insurance prices prevent some associations from securing the coverage they need. Even worse, many homeowners are increasing dues to cover the additional costs. Board members must understand the reasons behind these increases and how to deal with them effectively.   What is the Cause of Rising HOA Insurance? For many homeowners associations, insurance is a major expense. In addition to the master policy, HOAs need to acquire various coverage types, including D&O insurance, workers' compensation insurance, liability insurance,…
Azalea
January 22, 2025