A strong HOA board must set aside a portion of the community budget for disaster relief. The HOA must know the exact cost to repair and replace elements around the community to have enough funds set aside should a disaster strike. Regular maintenance evaluations are critical for keeping HOA dues cost-effective and budgeting for emergencies.
Once the repair and replacement figures are in place, the HOA must outline how they intend to raise the money to reach the estimated budget. For instance, will the HOA hold fundraising events, increase fees, or charge a one-time disaster relief assessment?
The HOA emergency budget is the community’s safety net. How an HOA manages its emergency funds can make a tremendous difference in how well-run the community is. The HOA board must be aware of its obligations to understand when appropriate to use emergency funds.
An HOA Emergency Budget should Answer the Following Questions:
- Will the HOA offer financial assistance to residents who an emergency has impacted?
- If so, how much?
- What will be the criteria for who receives assistance first?
- How will the HOA budget for offering assistance to residents?
- Will HOA dues cover the cost of repair or replacement of common elements?
- If not, how will the HOA fund the cost of repairs or replacements?
- What processes should the HOA follow regarding post-emergency repairs or replacements?
Disasters can happen at any moment. Having an HOA emergency plan in place will ensure better peace of mind and potentially save lives.
Prism Realty HOA Management can help with emergency planning and preparation.
We are here to assist with all of your association management needs.
Contact us for more information at (512) 609-8098 | info@prismrp.com
