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Subject: Grants for HOA
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Author Messages
CynthiaL6
(Texas)

Posts:1


05/15/2019 1:43 PM  
We are a 80 unit condo association. Due to some inappropriate actions by a former board member , we have a lower than comfortable reserve fund. Increasing dues is not an option at this time. Does anyone know of any grants that assist HOA’s. We have a large number of seniors on fixed incomes.
MelissaP1
(Alabama)

Posts:8090


05/15/2019 4:03 PM  
Do not believe there is anything like a "grant" for a HOA. A HOA is ONLY funded by it's members for it's members. You may be able to get a loan but that's not necessarily a good idea. A HOA is a non-profit corporation and NOT a charitable one. You need money, you have to either raise dues or have a special assessment. Considering this isn't operating budget then that may be a good thing. A reserve account is more long term for capital expenses. I'd be more concerned about operational budget.

Former HOA President
PatJ1
(North Carolina)

Posts:57


05/16/2019 2:40 AM  
Check with your city or county. We have programs available that award funds to eligible neighborhood-based organizations to make neighborhoods better places to live, work, and play.

Board members are volunteers. Many have no idea what they're doing. Educate them. Don't beat them up.
DouglasK1
(Florida)

Posts:1394


05/16/2019 6:06 AM  
My county offers grants, but it is for one time projects like redoing entry landscaping and such, not for on-going operations expenses.

Escaped former treasurer and director of a self managed association.
RoyalP
(South Carolina)

Posts:737


05/16/2019 7:28 AM  
..... We have a large number of seniors on fixed incomes. .....



tough love:

They should either

move somewhere affordable

or

apply for public assistance.


The BOD's job is NOT to aide members but to adequately operate and maintain corporate assets.


? why should anyone subsidize private property owners ?
SheliaH
(Indiana)

Posts:2473


05/16/2019 10:07 AM  
I'm not aware of any, but I have to agree with Royal and Melissa on this one. Homeownership isn't cheap and ultimately the owners have to be willing and able to pay maintenance and improvement costs, so you're looking at assessment increases whether you like it or not.

You didn't say if the former board member's action were illegal but if there's evidence of that, you might want to talk to your association attorney about your options for pressing charges. Remember, illegal isn't necessarily the same as lousy decision making - for example, if the board member was responsible for setting the budget, but failed to fund reserves, that's not illegal, just short-sighted, and you'll just have to move on and learn from it.

Start with taking a look at your last reserve study - if you haven't done one in the last five years or longer, that needs to be job one and yes, it will be a bit pricey. However, you need it to get a good idea of where you stand financially and which components will need repair or replacement sooner rather than later. You may already have an idea on that, so if you have several items, you'll need to prioritize which ones need to be addressed right now.

I read about one association that decided to raise assessments, but they did it over a period of years at a certain percentage, so homeowners weren't hit all at once. Others did a special assessment just to increase the reserves to a certain amount and then began funding them regularly. This could be an option for your community.

Finally, you'll need to take a hard look at your operating budget and cut wherever you can. This may mean you'll have to change your documents to turn over some maintenance responsibilities to the homeowners altogether, or they'll have to shoulder more of the costs. Whatever you decide to do, keep the homeowners informed and ask for suggestions. They won't be happy about any of this, but complaining will not resolve the problems. They may want to sell, but won't be able to hide the finances, so best to deal with it now and take part in turning things around.
RichardP13
(California)

Posts:3534


05/16/2019 10:34 AM  
I am going to disagree with others. I believe there should be some assistance to HOA's in special circumstances. Not all HOA/townhomes/Condos are created equal. You would think a 15 unit condo complex in Los Angeles worth $800K should afford a new roof or have the ability to pay for one, but the same 15 unit complex in East Los Angeles in a low income area could have a major problem.

For example, where I lived, we had 317 units, a $140 monthly assessment. Had three months of assessments in operating and $1.5M in reserves. Full amenities, pool, spa, parks, gated community, private streets. I managed a 7 unit SFD with $190 monthly assessments, no amenities and barely made expenses and no reserves. If anything major happened they are screwed. The min number of units for a SBA is 25 and your delinquencies had better be under control.

I have made a proposal to two State Senators in my area. I'll see where it goes.

Been there, Done that
PatJ1
(North Carolina)

Posts:57


05/17/2019 4:17 AM  
Richard,

This is the Grant we have available for our community. Our awarded projects have ventured outside the scope of the listed Project Opportunities.

https://charlottenc.gov/HNS/CE/NMG/Pages/default.aspx?NotFoundURL=https://charlottenc.gov/NMG&Referrer=https://www.google.com/

We are presently applying for our 4th Grant in 4 years. Our previous Grants had a combined Project Value of over $80,000. Having these Grants available has helped our community tremendously in many ways.

Board members are volunteers. Many have no idea what they're doing. Educate them. Don't beat them up.
CathyA3
(Ohio)

Posts:243


05/17/2019 7:19 AM  
Be sure you understand the tax implications of receiving a grant. Typically the IRS considers income from members' assessments and fees to be exempt, but other forms of income are taxable. However, it's not totally black and white, because the IRS also looks at how the funds were used to determine whether or not a particular source of income is exempt from taxes or not..

(Disclaimer: I'm not a tax professional, you should consult with the professionals about this.)
MarkM19
(Texas)

Posts:310


05/17/2019 7:20 AM  
Cynthia,
In my opinion with the limited information provided you should not be asking for outside help yet. What you need to do it analyze your current expenses. That means trim the fat. I would send a letter to every vendor including the PM if you have one. If the board agrees every contract should be negotiated with a 5% discount going forward and if they do not agree let them know that the board will automatically go out and get 3 bids and make changes. Most vendors really do not like to rebid for a account they already have. It is much easier to keep an account at a small discount than find a new one. Trust me when I say this because I have been on both sides.

It appears to me like you are trying to look into peoples pockets to decide if the community can afford a dues increase. The State of Texas does not think about Homeowners when taxes are raised. They raise them because they have a budget. I am not saying raise dues every year I am saying raise them when you have to for the good of the entire community. It is not a Board members job to not raise dues. Your job is to run this HOA like a business. If your dues are not sufficient to handle repairs your property values will decline and then you are hurting everyone in your community.
RichardP13
(California)

Posts:3534


05/17/2019 7:32 AM  
There should be more.

Been there, Done that
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