HOA Liens and Association Finances

Many properties built in the last 20 or 30 years were built in some type of HOA. This type of association often has as much (if not more) effect on the homeowners as the city or town in terms of maintaining roads, common areas, landscaping, or exterior of homes.

If dues are unpaid by one property owner (due to foreclosure or financial distress), this will affect other owners, perhaps resulting in a special assessment.

The HOA is supposed to keep proper reserve funds and stay on top of when major expenses are likely to be due. Make sure your association is planning ahead so you don’t end up getting an extra bill.

Also make sure your HOA has proper insurance in place, so liability for a potential lawsuit doesn’t end up falling in the property owners’ laps.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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