Why a Budget is so Important

Community associations operate and execute their duties based upon an annual budget. That budget is developed and approved by the board of directors but is sometimes subject to a vote of the membership during the association's annual meeting. Requirements for budget approval are typically outlined in the association's by-laws. Throughout the year, the board then monitors the economic condition of the association through periodic (usually monthly) financial reports and updates.

The association's budget is, essentially, an estimate of the income and expenses of the association for the year. A budget reflects an association's policy decisions (as proposed by the board of directors and approved by the members) regarding the programs and services that will be completed during the budget year. Often, the governing documents of the community will define the common property expected to be maintained by the association and other maintenance and service requirements. The budget then establishes what services the community will provide, when they will be done, and how much they are expected to cost.

Fo More inforamtion on Budgeting, read here:

• Budgeting Whys and Wherefores

If you have further questions on this issue, please feel free to contact J Brooks & Associates, Inc. at (239) 313-7129. As always, we are here to help.

17041 Alico Commerce Ct., Unit 1

Fort Myers, FL 33967

(239)313-7129

www.JBrooksai.com

J Brooks & Associates, Inc. is a full service Homeowner Association (HOA), Condominium Association, Cooperative Association and Master Community Association property management company servicing all of Fort Myers, Naples, Bonita Springs, Cape Coral, and all of Lee, Collier, Charlotte, and Sarasota Counties.www.jbrooksai.com

Who is Responsible for Assessments on Properties Owned by the Association?

Our Fort Myers Homeowner Association Management Blog wrote and excellent article about who is responsible for the Assessments on Association owned properties. We wanted to share this information with our Naples' Homeowner Association residents. 

This is an issues that comes across our desk often. Due to the downturn in the economy and housing market, many properties in Associations have been foreclosed on or taken over by the Association. Many times, the Associations that has acquired a vacant property are not aware that as the new owner, the Association is responsible for all Assessments for that property, just as if it were owned by any other person or entity.

It is imperative that the Association prepares for the added costs of owning the property, and reviews the Covenants, Rules & Regulations carefully regarding the sale or leasing of the property. The Association must be prepared for the financial obligations required of them and plan accordingly.

We advise that the Board of Directors discuss the potential obligations of the Association with their Property Manager, Association Accountant, and Legal Advisor prior to taking over any vacant or foreclosed property in their Association.

If you have further questions on this issue, please feel free to contact J Brooks & Associates, Inc. at (239) 313-7129. As always, we are here to help.

17041 Alico Commerce Ct., Unit 1

Fort Myers, FL 33967

(239)313-7129

www.JBrooksai.com

J Brooks & Associates, Inc. is a full service Homeowner Association (HOA), Condominium Association, Cooperative Association and Master Community Association property management company servicing all of Fort Myers, Naples, Bonita Springs, Cape Coral, and all of Lee, Collier, Charlotte, and Sarasota Counties.