One of the most important responsibilities of any HOA or CA board is to properly allocate its community association’s funds. HOA members pay monthly or annual fees to enjoy the perks of living in a community association, and they expect their board to use that money in a way that will benefit the entire association.
But when costs for security, landscaping, and maintenance issues start popping up, it can be difficult to know how best to allocate funds to address these different types of expenses. And using money incorrectly can not only causes rifts within your HOA or CA, but can also cause legal repercussions as well. Having a robust reserve fund can be a huge asset for your community association if you understand what it is and what that fund can lawfully be used for.