How Successful HOAs Are Preparing for the New Year

We’re all familiar with the seasonal changes in South Florida as we close in on the final months of the year, such as watching the return of the snowbirds, getting to open your windows, and being outside under a slightly less intense sun. Similarly, there are some key seasonal events happening for homeowners associations (HOAs).

HOAs are busy getting set up for 2022, frequently with new boards and budgets. Having worked with hundreds of HOAs during my career, I have some tips that can help HOAs as they go through this process.

Getting the new board signed on: The sooner you can start your election process for new board members the better, as this step kicks off a series of actions every HOA must do to prepare for the coming year. Once the new board is in place, one of the first orders of business should be adding signatories to the financial accounts.

I always remind clients that it’s important to have as many board members as possible on their accounts, which provides more checks and balances on all financial matters. For example, if a property management company is cutting checks on the HOA’s behalf, having a board member signing the checks as well is helpful since it provides one more set of eyes on the money going out.

Passing detailed budgets: The budgets for HOAs are just like those for a house. If your air conditioning goes out or your roof leaks, you want to be sure there is a fund to pay for timely repairs. An HOA’s budget should outline all major projects coming in the future, so you can start planning ahead. Reach out to your banker now, ahead of the project start date that you’ll need a loan for. Interest rates are still favorable for those seeking loans and you’ll want to take advantage and work these plans into the budget.

There is sometimes a question as to whether a board should ever waive the need for reserves. Don’t be tempted. You just don’t know what the future will hold and what you’ll need. It’s a good time to get a study done of your reserves, to be sure you’re planning correctly. If you’re reserving funds appropriately, you’re going to have a more financially viable organization.

Connecting early with partners: Between the staffing challenges some industries are facing, the coming of the holidays, and the usual end-of-the-year extra workload, the pace picks up for everyone you do business with this time of year. Personally, I’m usually doing what feels like 4,000 signature changes toward the end of the year. From planning holiday parties to requesting that billings for HOA dues be printed, stay ahead of the rush and get your requests for third-party help in early.

Mark Nuzzolo is a Senior Vice President and Director of Association Banking at Valley Bank, where he was worked for the past 13 years. Based in West Palm Beach, he works with HOAs and property management companies all over Florida.

Valley National Bank is a Member of the FDIC and Equal Opportunity Lender.

 

You May Also Like
Quiet Power Move: DayMark Lands in Fort Lauderdale with $350M Under Management

DayMark Wealth Partners has expanded into South Florida with a newly onboarded team managing $350 million in client assets.

Read More
South Florida Just Became the Epicenter of Private Banking’s Next Power Play

Commerce Bancshares Inc. has announced its acquisition of Fort Lauderdale–based FineMark Holdings in an all-stock deal valued at $585 million.

Read More
Fifth Third Bank Names Marty McAndrew Market President and Commercial Banking Head for Florida

In his new role, McAndrew will lead the middle market banking teams throughout the state.

Read More
SFBW Hosts “Empowering American Cities” With Fifth Third Bank

The event has been held across 15 cities so far and the SFBW-hosted event was the first of its kind held in Florida.

Read More
Other Posts
A Fix for the Fixer-Uppers: Florida Rewrites Its Condo Law Before the Market Cracks

Tens of thousands of condo owners have been blindsided by sudden special assessments, skyrocketing HOA fees, and panicked boards scrambling to comply.

Read More
People at the Center: How South Florida Leaders Are Elevating the Future of Work

Whether it was a dealership redefining employee recognition, a hotel group championing leadership development, or a healthcare company implementing safe AI tools, the message was the same: success starts with people.

Read More
Big Brains, Bigger Build: PBA Bets $236M on West Palm’s Future

Palm Beach Atlantic University to fund a transformative new student housing project in West Palm Beach.

Read More
Infinite Reality Makes a Mega Move—Fort Lauderdale Goes Full Tech Mode

Infinite Reality Plots a 60-Acre Power Play in Fort Lauderdale

Read More