A growing number of people are participating in a unique form of property ownership called homeowner associations (HOA).
An HOA, also known as a community, condominium or townhouse association, is the legal entity that governs the business affairs of planned communities. An association is set up to administer a piece of land or building that is owned “in common.”
It is estimated there are over 350,000 HOAs in the United States. This organization is frequently used by condominiums or townhomes, where the association is responsible for maintaining common areas such as the grounds and building exterior. Other associations are located in residential neighborhoods where the group may own and maintain recreational facilities such as pools or tennis courts.
As a member of an HOA, you are expected to pay association fees as well as actively monitor the finances of the association. One of the biggest responsibilities of an HOA is to account for the income and expenses of the association. In order to help make sure that funds are managed properly, use the following tips when managing your own funds or when hiring an outside firm to pay bills and manage the association’s fund.
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DISCLAIMER — The recommendations printed here follow generally accepted safety standards. Compliance with these recommendations does not guarantee that you will be in conformance with any building code, or federal, state or local regulations regarding safety or fire. Compliance does not ensure the absolute safety of you, your operations or place of business.