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| Friday, November 21, 2008
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| Author |
Messages |
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BruceD1
(Georgia)
Posts:39
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| 10/09/2008 4:46 AM |
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While projecting HOA income for the year, do you project homes sales for additional income? Or do you base your income on the known?
We are a new subdivision with ~70 lots yet to be developed and approximately 10 spec homes.
Thanks. |
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BrianB
(California)
Posts:1732
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| 10/09/2008 7:28 AM |
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in my experience, it depends on what your CC&R's state: do you collect revenue per lot, or per sold lot? MFHOA made no distinction, and our 40 lots were valued every year, regardless of whether the developer owned them or they had been sold to a "homeowner".
Your rules should tell you. |
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BruceD1
(Georgia)
Posts:39
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| 10/09/2008 7:33 AM |
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Per sold lot. During 2007, the last year the HOA was operated by the developer, they projected 30 homes to close. Well so far we have closed on 17 homes.
I'm not sure if this is a common practice -- to project the income of assesments collected for future sales when developing a budget. |
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BrianB
(California)
Posts:1732
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| 10/09/2008 10:30 AM |
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then i would set my budget based on the current lots sold x annual assessment.
I never set my own budget based on money "I might make", i base it on my salary (not overtime, bonuses, casino winnings, etc.).
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KirkW1
(Texas)
Posts:1110
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| 10/10/2008 11:45 AM |
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| For the most accurate budget you should project home sales. But be conservative. For instance if this year a total of 20 homes sold, then look at when. Assuming they were evenly distributed and sales didn't drop off as the year went on, I would then guess 15 for next year. But if the sales were weighted to the early part of the year then project one or two. |
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MaryA1
(Arizona)
Posts:2161
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| 10/10/2008 1:50 PM |
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Bruce,
I agree with Brian. IMO it would be most prudent to project income based upon the number of lots sold. It's much better to have excess funds (should a few homes sell) than to have a shortage! |
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GlenL
(Ohio)
Posts:1362
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| 10/11/2008 8:38 AM |
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| Don't count the chickens before the eggs are hatched. Budget for what you have not for what may be; as Mary said, better to have a little extra, than not enough. |
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