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Finance
Money in the Bank
Perhaps one of the most difficult aspects of the recent recession was the sudden
evaporation of credit from major banks and lending institutions. The logic
behind it was understandable: too much easy credit had led, in part, to the
collapse that stunned the nation and then the world in 2008. Although some
housing markets were less affected than others (Florida and Nevada have been
especially hard-hit) everyone still felt the shifts. Among the repercussions
was a new set of regulations issued by the Federal Housing Administration (FHA)
in February 2010 which created a number of requirements for any building that
wished to accept FHA-backed mortgage loans.
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Overlooked Savings
As annual and quarterly budgets come up for review, HOAs across the state are
looking to cut costs anywhere and everywhere they can. But how much more “fat” can be trimmed from budgets that already look stripped to the bone? Happily,
there are hidden savings to be found, if you know where to look and are willing
to make some changes here and there.
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Challenges Include Sagging Reserves & Unpaid Condo Fees
Even in the best of economic times, preparing a condominium’s annual budget is a tiresome task, fraught with uncertainty, estimations and
shifting numbers.
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Changing Your Condominium's Tax Filing Status Can Net Savings
For the uninitiated, tax filing for something as complicated as a community association can seem a daunting task. Fortunately, there are multiple options for homeowners associations, and with a little background knowledge, you can take the first steps toward making the right choice for your particular situation. Read More
Mortgage Products
Although New Jersey housing cooperatives may be rare compared to the numbers of co-ops in New York City, suburban co-ops face the same types of issues as their big-city neighbors. One of the primary concerns of nearly all co-ops is the building's underlying mortgage, which is paid for by shareholders as part of their monthly maintenance fee. Sometimes, special circumstances arise that require the board to take another look at the co-op's mortgage. Read More
Financial Planning
In a co-op or condo community, the responsibility of the homeowners association goes beyond setting house rules. The association also has a fiduciary responsibility to collect maintenance fees from its residents, create a budget to account for where that money will be spent, and raise enough capital to cover long-term special projects and repairs. The budget includes operating expenses, repairs and upkeep of the building and other structures, landscaping, lighting, and special projects, such as new playground equipment. Read More
Deciphering Your HOA's Finances
It was comedian Jackie Mason who said, " I have enough money to last me the rest of my life—unless I buy something." Mason was making a joke, but if your homeowners association isn't adept at managing its books, it might also be an unpleasantly accurate description of your community's finances. Read More
Money-Making Opportunities for HOAs
It's a profound story of how reserve funds can go seriously awry—within months of buying an apartment in a new New York City building, David and all his new neighbors were informed that they would have to contribute out-of-pocket to help build the co-op's reserve fund. Each shareholder would have to pony up a month's worth of additional fees—which for David meant over $1,000. Final total: the residents coughed up around $45,000 to put aside just in case something went wrong. Read More
Raising Maintenance Fees
They say the only two inevitable things in life are death and taxes. Well, for condo and co-op owners you can add a third—maintenance fees. As long as roofs are going to have to be repaired, snow is going to have to be plowed, and grass has to be cut, unit owners and shareholders are going to have pay for their share of the cost for maintaining the property where they live.
Read MorePlanning for the Worst
Tsunamis, earthquakes, tornadoes—these are just a few of the devastating disasters that have made headlines
already in 2011 and created emergency situations that many never thought
possible.
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