Frequently Asked Questions

The Operating Account is for day-to-day expenses like the water bill, landscaping, and minor repairs. The Reserve Account is strictly for long-term capital improvements and major repairs. We strictly maintain these in separate bank accounts to ensure funds are never co-mingled and are used appropriately.

Yes. Even though HOAs are non-profit corporations, they are still required to file federal and state tax returns. Most associations file Form 1120-H, which is designed specifically for homeowners associations, but we will review your specific situation to ensure compliance and minimize tax liability.

We offer an online portal where homeowners can pay via e-check (ACH) or credit card. We also accept traditional checks via mail. Our goal is to make the collection process as frictionless as possible to ensure consistent cash flow for the association.

It depends on your state laws and your specific governing documents. Some associations require a full audit, while others only need a “Review” or “Compilation,” which are less expensive but provide different levels of assurance. We can review your bylaws and state requirements to recommend the most cost-effective level of service for your community.

Absolutely. We work closely with the Board to prepare a draft budget based on historical data and projected expenses. We help you factor in utility increases, contract changes, and reserve funding requirements so the Board can approve a realistic budget that keeps the association financially stable.

We use a secure system where the Board reviews and approves invoices online before any payment is released. This ensures that no money leaves the association’s account without the Board’s explicit authorization, giving you complete control over your funds.

Think of the Reserve Fund as the community’s savings account. It is money set aside specifically for large-scale repairs and replacements that don’t happen every year, such as replacing a roof, repaving a parking lot, or painting buildings. A healthy reserve fund prevents the need for large, unexpected “Special Assessments” when these big costs arise.

A Special Assessment is an extra fee charged to homeowners when the association needs funds for a specific project (like a new roof) that exceeds the amount available in the Operating or Reserve accounts. A well-funded Reserve account helps avoid these, but they are sometimes necessary for emergencies or major improvements.

When selling or refinancing, your title company will need an estoppel letter (or resale certificate) to verify your account status. Your title agent can request this directly through our office or online portal. We recommend initiating this request as early as possible to avoid delays at closing.

Assessment increases are typically driven by rising costs for services like insurance, water, landscaping, and trash removal. The Board works hard to keep costs down, but modest annual increases are often necessary to maintain the property value and ensure the community can pay its bills without falling into debt.