The Ultimate HOA Checklist For New Communities
To keep things running properly, homeowners associations need a great deal of effort. The HOA board needs to set the budget, control property care, and arrange audits when preparing for the coming year. It's easy to forget some of the important stuff if you don't have a good guide.
This is why we have created an ultimate HOA checklist template for your convenience. The beginning of each year is a perfect time for ensuring that everything and everyone in your community is as well-organized as possible.
This is especially important for new HOA communities and their members. The yearly calendar is critical since it contains all the vital elements that cause a new association to function smoothly throughout the year.
That said, you need to compile a comprehensive HOA checklist that includes all the key things that you need to include in your calendar. Keep reading to find out more!
Things to Include in Your Annual HOA Checklist
Let's begin with a general annual checklist that all HOA associations require. Here’s a rundown of things to do when creating your yearly list:
Annual Report
Create and review your annual report
Distribute your report to every member of the community
Make a few copies of the report
Store both the digital and physical form of the report
Governing Documents
Update digital and physical copies
Upload to the relevant HOA site
File with both the jurisdiction land recorder and SCC in your city
Audit
Gather every financial statement required
Send them to your CPA
Let your CPA gain access to records
Copy and file audit documentation
Approve audit report
Budget, Taxes, and Dues
Calculate dues for every single month
Create the annual budget
Reach out to your tax expert
Schedule your tax preparation
Insurance
Evaluate actual policies
Ask the insurance provider about premiums
Other Things to Consider
Additionally, you need to consider scheduling various meetings and preparing for HOA elections as well as other special events. Be sure to schedule both board and committee meetings, and don't forget to distribute a newsletter to your community with all the updates.
This is also the perfect time to evaluate the entire property and make decisions on any renovations or major construction projects that need to happen within one to three years.
10 Key Elements For Creating An HOA Strategic Plan
Below we will shed some light on the critical elements of a homeowner’s association management plan for new communities. These tips and suggestions will help you make a strategic plan for your HOA that is smart and easy to implement.
1. Audits
Make sure the audits begin immediately after the last fiscal year ends. Because the governing documentation and state laws have different regulations, not all HOAs need annual audits.
Associations having a total income of more than $500,000, for example, are required by Florida law to provide financial statements that a CPA has audited. Make sure you partner with an expert in your state to find out the laws that pertain to your property.
2. Governing Documents
Your HOA must have up-to-date governing records ready at the start of the year. If you created any amendments during the previous year, the current copies of governing documents need to reflect them.
In addition to being filed with the SCC, the updated documents need to be recorded in your local jurisdiction land reports as well.
3. Board Meetings
This should also be on your annual HOA checklist since the start of the year is an excellent opportunity to reassess board meeting schedules. These meetings must be scheduled on time, giving new board members ample time to prepare and commit to attending.
4. Taxes
Taking care of association taxes in a timely manner will prevent many headaches down the road. File them by the deadline and before personal taxes.
Typically, the deadline is March 15th; however, it is advisable to schedule and complete your taxes a month earlier (in February) to avoid any unforeseen obstacles that need to be resolved before the deadline.
5. Budget & Assessments
Your checklist should also include time for assessment computation and budget planning. The best time to do this is in early summer because gathering and organizing all financial data can sometimes take up to six months.
In that case, you would want to begin the process around June or July. It’s best to partner with a local HOA management organization for the best results.
6. Insurance
Examining your current insurance plans allows you to discover any gaps in the coverage and make the appropriate changes if needed.
It is also a good idea to check with your insurance provider about any forecasted premium increases so you can adjust the budget accordingly to reflect the additional costs.
7. Annual and Committee Meetings
There are two basic types of meetings to schedule ahead of time:
Committee
Annual
Committee Meetings
We recommend scheduling these meetings well in advance so all the board members can attend. This will also allow any new board members to prepare and ask any questions before the scheduled meeting.
Annual Meeting
The association governing documents usually contain information on the time and date of the annual meetings. Nevertheless, send reminders to community members to make sure they will attend meetings.
8. Renovation, Construction, and Maintenance Plans
Every board member in your community should stay in tune with renovation, construction, and maintenance plans. This involves preparing an HOA checklist for any closure or seasonal opening that will happen within the community.
9. Special Events
Add staff vacations, celebrations, and workplace closures to the HOA checklist and make a note of any forthcoming events. That will prevent you from forgetting to arrange them.
In addition, don’t forget to notify homeowners of the days and hours when these special events are taking place in your community.
10. Newsletter
Most HOA residents enjoy reading community newsletters. Therefore, keeping a calendar with the due date and details will help the board members stay on top of this task.
As a result, the person or people responsible for the newsletter won’t be scrambling last minute to get the newsletter created and distributed.
Conclusion
Having your HOA annual checklist in order at the beginning of the year is essential for any homeowners association. It can help you keep everything organized throughout the upcoming year and beyond.
Now that you have a better idea of what your annual HOA checklist should include, it will be easier for you to get the new community and board members organized. Contact us today to find out how we can help you streamline this process and answer any questions you may have.
