JoeT1 (Georgia)
Posts: 6
Posts: 6
Posted:
What happens to any excess money that is collected by the HOA through the dues and what is an MC?
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money accumulation
Started by JoeT1 • 4 replies • 1997 views
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RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Joe, the word dues generally is used for HOAs which do not have a manditory amount of money (assessment)to be paid by each and every owner.
MC = Management Company.
MC = Management Company.
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Excess money either goes into the reserve fund or is carried over to the next year's operating fund. Seldom is it refunded to the owners.
AndreaW (North Carolina)
Posts: 57
Posts: 57
Posted:
Our HOA has a projected budget which was mailed to all homeowners and ratified in Dec 05. The current budget allows for $174,000 for so far 330 homes with approx 110 more to be built by 2007. Currently of the $174,000 the existing homeowners of occupied lots are paying About $148,500 is paid by the dues from the existing homes leaving the builder with only a balnce of $25,500 for the not yet built lots. This budget has no fat and very little leftover to move to a reserve if any. What is an appropriate amount to be putting in the reserve for a community of our size? Also, shouldn't the builder be putting in the same $450. annual for the unfinished lots as we homeowners do for the finished ones? Without the extra $24,000 how are we supposed to build up the reserve without any fat in the budget?
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Andrea, it appears the Developer is only paying half the assessment of the owners. Normally the Declaration requires equivalent Units pay the same amount of assessment. Check to see if this is true or if "Class A" homeowner's Units pay more than "Class B" Developer's Units.
When the Developer has turned over control of the HOA, or when the owners gain sufficient votes the assessment amount can be changed to provide for adequate reserve funds. The amount depends on what and how many common elements you have and want in the future. This can be established by doing a 20 year reserve analysis; or approximately 25% to 30%/year of the total annual income.
When the Developer has turned over control of the HOA, or when the owners gain sufficient votes the assessment amount can be changed to provide for adequate reserve funds. The amount depends on what and how many common elements you have and want in the future. This can be established by doing a 20 year reserve analysis; or approximately 25% to 30%/year of the total annual income.
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