Hoa Bylaws Template With Calculator In Montgomery
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10 things to include in your HOA bylaws Name and purpose. The very first bylaws are the ones in which the association states its. Membership requirements. Board duties. Officer duties. Board member meetings. Member meetings. Committees. Non-compliance to bylaws.
The fundamental equation of a balance sheet is: Assets = Liabilities + Equity This means that the total value of an HOA's assets must always equal the sum of its liabilities and equity. If an HOA has more assets than liabilities, it has positive equity. If liabilities exceed assets, the HOA has negative equity.
How to calculate HOA reserve fund amounts Take inventory of the association's assets on-site. Assess the condition of assets. Predict future repairs, component lifespans, and current replacement costs. Calculate potential long-term expenses. Evaluate the status and strength of the existing reserve fund.
HOA fees generally cover the maintenance of common areas, such as lobbies, patios, landscaping, swimming pools, tennis courts, and community clubhouses. In many cases, the fees also cover utilities like water, sewer services, and garbage disposal.
Once the board has determined the total expected expenses for the year, they take that total and divide it by the number of units in the HOA. This calculation provides the basic assessment amount per unit per year. It can then be further divided by 12 months to offer the monthly assessment amount.
An HOA's "Covenants, Conditions, and Restrictions" (CC&Rs) is a legal document that describes what you can and can't do with your home. For example, the CC&Rs might limit what color you can paint your house, prohibit you from leaving your laundry out to dry, or describe what type of mailbox you may .
So how much should your HOA have on hand to address these inevitable repair and replacement costs? A good rule of thumb is for Reserves to be funded at 70% or higher of the property's calculated deterioration.
The main difference is that covenants dictate property-related restrictions, while bylaws govern how the HOA operates — things like board elections, meeting procedures, and voting rights. Because covenants are recorded with the property deed and tied to real estate law, they generally hold more weight.
Percentage Basis Formula: The reserves ratio is equal to your operating reserves divided by annual operating expense. The figure used for annual operating expenses can either be the prior year's actual expenses or the current year's budgeted expenses.
