Accounting

Why does the accounting really matter when everything seems just fine in the building? If some major piece of equipment commonly used by the homeowners, breaks, like say the building's water pump, or if the roof were to leak and require repair - these repairs must one way or another be paid for. This is why a homeowner's association (HOA), has its management company collect and maintain a reserve account of all the money collected from the homeowners, for safe-keeping. If that reserve account doesn't contain enough money to pay for repairs, homeowners are typically 'assessed' or billed additional money to cover the cost of repair. Observe Barry Shy's previous development, The Bartlett Building. In 2007 when the building's water pumps broke, each unit was assesssed $1250, even on top of their insurance coverage award, to pay for the cost of repairs because the building's reserve account could not cover the cost. This is precisely why a homeowner might really benefit from caring what happens to their money, even if everything in the building seems fine. Assessments can then frequently be followed by monthly HOA dues increases. The Bartlett Building is currently completely free of the developer's influence on the board, and the homeowners are managing themselves very well these days turning the building into a great investment.

This website was not written by an attorney and readers of site should verify all information presented and not take this website to be a substitute for legal advice.