by Harvey Radin
People in government should take field trips to well-run homeowner associations. To experience fiscal responsibility first hand. To see how elected leaders in some homeowner associations -- HOAs -- are actually spending public money prudently and efficiently.
Like governments, homeowner associations collect money to fund a host of community needs. Homeowners residing in HOAs pay dues to their association. This is similar in a way to government taxation. So, if there are roads in an HOA property that are not city-maintained streets, a portion of the money homeowners pay in dues may be set aside for the upkeep of these roads.
Governments use tax dollars for public parks maintenance. Homeowner associations have what's known as common areas, landscaped parcels of HOA property that are often maintained by the homeowner association. Some HOAs assume responsibility for roof maintenance on homes, and painting maintenance. Some have recreational facilities that are maintained by the association -- swimming pools, tennis courts or maybe a golf course. These maintenance responsibilities vary among HOAs, depending on how they're structured. Some of the maintenance is immediate and ongoing, keeping the lawns mowed, for example. Some of it, such as house painting and roof replacement, is longer term.
The challenge for HOA leaders is to budget for every need. So there's money available for weekly landscaping and swimming pool upkeep, as well as sufficient funding on hand to pay for new roofs or to repave HOA roads every several years or decades. This takes planning.
So, homeowners elected to HOA boards, sometimes with counsel from others -- a property manager, for example -- have to keep their budgets in balance. And many HOAs are doing this quite well. There are well-run homeowner associations with leaders who take their role as stewards of their neighbors' money very seriously. They diligently keep an eye on the purse strings.
Governments are bigger than HOAs, of course, but when you come right down to it, financial management is financial management. Isn't it? Especially when you're managing everyone's money like it's your own money. That's what stewardship should be all about.
So, when you hear all the political rhetoric about fiscal responsibility, it's good to know that some organizations are actually succeeding at it. Politicians should see how it's being done.
People in government should take field trips to well-run homeowner associations. To experience fiscal responsibility first hand. To see how elected leaders in some homeowner associations -- HOAs -- are actually spending public money prudently and efficiently.
Like governments, homeowner associations collect money to fund a host of community needs. Homeowners residing in HOAs pay dues to their association. This is similar in a way to government taxation. So, if there are roads in an HOA property that are not city-maintained streets, a portion of the money homeowners pay in dues may be set aside for the upkeep of these roads.
Governments use tax dollars for public parks maintenance. Homeowner associations have what's known as common areas, landscaped parcels of HOA property that are often maintained by the homeowner association. Some HOAs assume responsibility for roof maintenance on homes, and painting maintenance. Some have recreational facilities that are maintained by the association -- swimming pools, tennis courts or maybe a golf course. These maintenance responsibilities vary among HOAs, depending on how they're structured. Some of the maintenance is immediate and ongoing, keeping the lawns mowed, for example. Some of it, such as house painting and roof replacement, is longer term.
The challenge for HOA leaders is to budget for every need. So there's money available for weekly landscaping and swimming pool upkeep, as well as sufficient funding on hand to pay for new roofs or to repave HOA roads every several years or decades. This takes planning.
So, homeowners elected to HOA boards, sometimes with counsel from others -- a property manager, for example -- have to keep their budgets in balance. And many HOAs are doing this quite well. There are well-run homeowner associations with leaders who take their role as stewards of their neighbors' money very seriously. They diligently keep an eye on the purse strings.
Governments are bigger than HOAs, of course, but when you come right down to it, financial management is financial management. Isn't it? Especially when you're managing everyone's money like it's your own money. That's what stewardship should be all about.
So, when you hear all the political rhetoric about fiscal responsibility, it's good to know that some organizations are actually succeeding at it. Politicians should see how it's being done.
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