Important HOA Tasks to Take Care of Before the End of the Year

For homeowners associations at the end of the year, plans may be focused on how to begin the next year. From implementing new rules and regulations to ushering in new board members, a new year brings its fair share of tasks before the previous year is up. But finishing the prior year off on a good note should take precedent. It’s important to do a top-down assessment of what all needs to get finished up and prepped for the next phase.

Re-evaluating Insurance Needs

An HOA should already have different forms of insurance in place, but it’s always helpful to go over options to consider what needs to be added, dropped or updated. For instance, if an HOA doesn’t have a form of cyber risk insurance, an insurer for hoas should encourage them to add this on given the risky climate around cyber threats. For HOA board members, a directors and officers liability plan can help protect against claims like wrongful foreclosure, non-employment discrimination or breach of contract.

Regardless of the risks, there are plans that an insurer for hoas can personalize to individual groups to help stepping into the New Year safer and more responsible.

Budgeting and Financing

The house cleaning steps focused on budgeting and financing in an HOA can be as complex as they are important. For instance, HOAs need to send out required annual disclosures, no matter if they run on a fiscal calendar or regular calendar. When it comes to these disclosures, sending them out sooner rather than later is the best option and will keep HOA’s compliant with rules and regulations that make it mandatory these reports are sent out on time.

When it comes to budgeting, it’s always better to get finances in order for the next year early. Pulling together resources to forecast the financial needs for the next year is proactive and helpful in the long run. HOAs need a reserve budget and an operating budget to make sure they don’t fall behind and to make sure they have enough to accomplish built-in plans.

Tying Up Major Projects

It’s never a good idea to go into a new year, which has its own needs and plans waiting to be dealt with, with incomplete projects. HOAs should make sure to have the funds necessary to finish projects that include things like replacing roofs or painting houses so they don’t have a mountain of new tasks piling on top of old ones. HOAs should stick to calendars, plans and budgets, and have constant check-ins with all parties involved to stay on top of things.

Ushering in New Members and Plans

If an HOA had new elections there will be new members stepping into roles in the next year. The end of the year is a great chance to train ne members and get them familiar with rules, regulations and tasks they will be undertaking. HOAs should plan on mapping out a calendar for meetings and events, while also setting projections for major projects.

About Kevin Davis Insurance Services

For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (877) 807-8708 to speak with one of our representatives.