Use of HOA funds

[JamesWhitney]

We have two bank accounts (checking - operating bills are paid from this account and savings - considered our reserve). Our budget this year will have approximately $2,000 that won't be used due to not spending any money for legal fees. We would like to use that $2,000 to assist with landscaping maintenance next year (tree trimming. fertilizing, etc.). This money is in our checking account. Are there specific rules for non-profits that would be an issue with using this money? We are in Idaho. We would rather use some of the excess money instead of factoring it into our member HOA dues for 2021. Our CCRs and Bylaws do not have any wording related to this question. Thank you.

 

[Zigner]

I imagine that, if a surplus is not addressed in your bylaws, then you should have the members vote on the disposition.

 

[bcr229]

Is your HOA responsible for anything that could be expensive to repair, such as parking lots? It might be better to put it into savings rather than have to do a special assessment for an unexpected major expense.

 

[JamesWhitney]

Is your HOA responsible for anything that could be expensive to repair, such as parking lots? It might be better to put it into savings rather than have to do a special assessment for an unexpected major expense.

We are not responsible for anything expensive to repair.

 

[adjusterjack]

Our CCRs and Bylaws do not have any wording related to this question.

Maybe not. But do they have wording regarding the board's authority to make financial decisions about the HOA money? Look for that.

 

[MamaBear51]

We have two bank accounts (checking - operating bills are paid from this account and savings - considered our reserve). Our budget this year will have approximately $2,000 that won't be used due to not spending any money for legal fees. We would like to use that $2,000 to assist with landscaping maintenance next year (tree trimming. fertilizing, etc.). This money is in our checking account. Are there specific rules for non-profits that would be an issue with using this money? We are in Idaho. We would rather use some of the excess money instead of factoring it into our member HOA dues for 2021. Our CCRs and Bylaws do not have any wording related to this question. Thank you.

If it was our HOA, reserves are for big, one time type upgrades. If it is coming out of the operating and you don't have enough, maybe you should raise the dues to be able to keep up with the landscaping. Landscaping should fall under operating.

 

[Just Blue]

If it was our HOA, reserves are for big, one time type upgrades. If it is coming out of the operating and you don't have enough, maybe you should raise the dues to be able to keep up with the landscaping. Landscaping should fall under operating.

Please don't post to old threads. Thank you.