• "I can't afford the increase." When you live in an association, you need to be willing to share the costs, as described in the governing documents to which you agreed in escrow. Keep in mind that if the association does not maintain its property, real-estate values can decline.

• "I probably won't be living here in 15 years when the streets need repaving. why should I have to pay for it now?" Senior citizens, as well as young people living in condos they consider to be starter homes, often pose this question. The problem with this "short-timer" logic is that these people are themselves benefiting from the use of the streets, pool, and other common assets paid for by members who lived there before. Members should pay for the incremental use of these items each year they live there.

• "Why don't we just have a special assessment for a specific project?" It can be difficult to collect money when you suddenly have a large expense. It's better to collect it gradually, so the funds are there when you need them. Also, a special assessment unfairly penalizes homeowners who happen to be living in the association at the time.SOURCE: Community Associations Institute

BOARD CANDIDATES
If you're considering running for the board, we ask that you take a few moments to ask yourself the following three questions:
Do I have the time?: As a Board Member, you will need to devote at least several hours of your time each month to association business. In addition to regular monthly board meetings, you will need to be active in email discussions and occasional special meetings. During special projects, you may need to spend a little extra time on association business. Some board members may also spend a little more time than others if they work with a committee.
Can I make tough decisions when it's required?:  The primary role of the board is to conduct the business of the association. This doesn't mean approving the budget, but also developing and enforcing policies. Board members are required to step outside their immediate circle of family and neighbors and make decisions based on the greater good of the community.
Can I do all this and have fun too?":  It isn't all about policies and tough decisions. Our community is only as good as we make it, and establishing and maintaining a sense of community is a part of a board member’s responsibility. Planning and attending functions, such as our picnics, and being a presence in the community are as important as any policy decisions you may make.

Being a board member can be frustrating at times, but it may also be one of the most rewarding ways you'll find to volunteer your time. If you're interested in running for the board or would like more details about board's responsibilities, please contact the manager or a current board member.
SOURCE: Community Associations Institute.

COMPLYING WITH REGULATIONS
When you bought a home in our community you should have received copies of all our governing documents- including the rules and regulations-prior to or at closing. Sometimes these documents get lost among all the other papers you received at closing. And many homebuyers are so involved in moving into their new homes, they don't take the time to read all the fine print.

As a homeowner, you have the right to these documents; so, if you don't have copies of them for some reason, let us know, and we will provide them to you.

Of course, it's your responsibility to provide the association with your current address and phone number (particularly nonresident owners). This enables us to meet our obligation to provide all owners with information from the association.

It's very important to have copies of the governing documents because you'll be expected to know and comply with all rules and regulations of the community. You'll also want to stay informed by reading the materials provided by the association.
SOURCE: Community Associations Institute

HOW THE BUDGET COMMITTEE WORKS
The budget committee comprises members of our community association, which enables residents to have a say in how their money is spent. How does the budget committee work and who serves on it?

The Treasurer’s and Accountant's Roles: It makes sense for the board treasurer to chair the budget committee. As chair, it's the treasurer's job to keep everyone on track as the budget is prepared. The treasurer also presents the budget for approval to the board and members. If the association works with an accountant, he or she may offer consulting, but the accountant really has no significant role in the process of devising the budget.
Who should be on the committee?: The owners who serve on the budget committee should represent a cross-section of the community. Of course, if there are members willing to serve who have expertise in areas such as insurance, that's even better. When it comes to size, a good general guideline is that the committee shouldn’t be so large that it becomes unwieldy.
What does the committee do?: The treasurer will make sure that all committee members understand the three basic components of the budget:

1. Funds needed for the daily operation of the community, such as common electricity and water, grounds maintenance, management, insurance and general maintenance. These expenses are either contractual or can be reasonably estimated based on experience. An important consideration when looking at items in the operating budget is the expectations of the community- for example, do members want a landscaper who is a "blow, mow, and go" type, or do they want a landscaper who provides a higher level of service?

2. Funds needed to maintain our reserves at sufficient levels. Reserve funds provide money for the repair and replacement of the community's assets- such as pool, roofs, pavement, etc.

3. Funds for additions or enhancements to the existing property. This is a function of what members of the community want and are willing to pay for. The community should provide input and approval for this component.

Armed with this knowledge, the committee will estimate total expenses for the coming year and compare that sum to the association’s potential revenue (assessments, interest on investments, concession income, and so on). If expenses are greater than revenue, the committee will look for ways to lower expenses without compromising service. If that doesn't balance the budget, the committee may have to make a tough decision- whether to increase assessments or levy a one-time special assessment.

FINANCES AND ASSESSMENTS
When you sit down to pay your bills each month, do you consider your association assessment a low priority? If so, think again.

According to the National Consumer Law center's (NCLC) Guide to Surviving Debt, "Condo fees...should be considered a high priority." In fact, NCLC considers community association assessments in the same category as mortgage payments and real estate taxes- a category ranked second only to feeding your family- according to the Guide's "Sixteen Rules about Which Debts to Pay First."

Assessments pay for services like building maintenance, and cleaning that you would pay no matter where you lives- either as direct out-of-pocket expenses or indirectly in a higher rent payment. But the association has collective buying power, so when all services and utilities for everyone in the community are passed along to you as a monthly assessment, you're actually getting a bargain.

So, next time you get out your checkbook, remember to put your assessment near the top of that stack of bills. You'll be glad you did.