Category: Articles

Whether you’re new to a homeowners association (HOA) or a longtime resident, living in a managed community offers unique opportunities and responsibilities. From understanding your governing documents to connecting with neighbors, these ten tips will help you make the most of HOA living and enjoy the full benefits of your community.

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1. Read Your Governing Documents

When you purchased your home, you received governing documents such as the Declaration of Covenants, Conditions & Restrictions (CC&Rs) and the Architectural/Landscape Guidelines. These guidelines provide a clear understanding of community standards and homeowner responsibilities, helping you enjoy your home and neighborhood.

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2. Get to Know Your HOA Management Company

Most associations partner with a professional HOA management company to support the Board and serve homeowners. Take time to familiarize yourself with your management team and the resources they provide. Many communities now offer digital tools—such as homeowner portals or mobile apps like AAM All Access—to provide 24/7 access to account details, documents, and updates.

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3. Connect with Neighbors and Get Involved

One of the greatest benefits of HOA living is the sense of community. Attend neighborhood events, volunteer on a committee, or participate in a block watch program that promotes safety and connection. Building relationships not only creates lasting friendships but also strengthens the fabric of your community.

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4. Attend Board and Annual Meetings

Community meetings are where important decisions are made. Attending Board or annual meetings allows you to stay informed, share your ideas, and raise concerns. It’s also a chance to understand better how decisions impact your neighborhood—and, if you’re interested, to run for a Board position yourself. Tools like BoardVue make it easier than ever for Board members to collaborate and for homeowners to stay engaged.

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5. Respect Your Neighbors and Shared Spaces

A successful community thrives on courtesy. Be mindful of parking rules, pet noise, and the neighborhood’s quiet hours in general. Simple actions—such as keeping common areas tidy and respecting your neighbors’ property—go a long way toward creating a welcoming and harmonious environment.

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6. Submit Architectural Changes for Approval

Thinking of adding a patio, painting your home, or updating landscaping? Submit your plans to the homeowners’ association architectural committee before beginning work. This ensures updates align with guidelines and avoid costly changes later. By following the process, you’ll keep your project stress-free while supporting the community’s overall look and feel.

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7. Maintain Curb Appeal

From neatly storing trash receptacles to caring for lawns and landscaping, small actions make a big difference. HOAs often conduct routine inspections to help preserve property values and ensure the association looks its best. By staying on top of maintenance, you’ll not only avoid compliance issues—you’ll contribute to neighborhood pride.

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8. Enjoy Community Amenities Safely

If your HOA offers amenities such as pools, playgrounds, or fitness centers, use them responsibly. Keep an eye on children around water features or play areas and follow posted guidelines. When everyone uses the community’s common areas with care, they remain safe, enjoyable, and well-maintained for years to come.

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9. Be a Responsible Pet Owner

Pets are part of the family, and responsible ownership keeps your community associations clean and comfortable. Always clean up after your dog, especially in shared areas, and follow leash or noise policies. These small steps show respect for your neighbors and keep common spaces pleasant for all residents.

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10. Take Pride and Stay Engaged

Your HOA management company and Board are here to help, but every homeowner plays a role in protecting the community. Stay alert, report maintenance issues promptly, and use tools like AAM All Access to communicate with your management team. When everyone participates, your neighborhood becomes more than a place to live; it becomes a community to be proud of.

 

A successful HOA strikes a balance between structure, communication, and community spirit. With the right knowledge—and tools like AAM All Access to keep you connected—you’ll enjoy the full benefits of HOA living while helping your neighborhood flourish. And don’t forget to attend meetings. 😉

If your HOA board has ever hosted a meeting only to see a half-empty room, you know how tough it can be to get residents involved. The truth is, HOA homeowner participation doesn’t happen by accident—it takes planning, creativity, and a genuine effort to make homeowners feel welcome. Below are practical, real-world ways to encourage more neighbors to raise their hands, join in, and strengthen the community..

Attracting Community Volunteers

Volunteers are the backbone of any HOA, but many communities struggle to find and keep them. People are busy, and the idea of joining a committee or board can feel overwhelming. Here’s how to make it easier for them to say “yes”:

• Spread the word clearly and often. Use your HOA website, newsletters, email, or even community boards to let residents know about opportunities. Keep the messaging positive—show how volunteering benefits the whole community and why it’s worth their time. Annual meetings are a great moment for these call-to-action reminders.
• Ask directly. Sometimes the best way to get a volunteer is simply to ask. If a neighbor has voiced concerns at a past meeting, invite them to get involved. A personal nudge can be the difference between someone sitting on the sidelines and stepping in to help.
• Respect people’s time. Keep meetings short, focused, and well-run. Most residents are willing to contribute, but nobody wants to sit through a three-hour meeting after a long day at work.
• Highlight the impact of volunteering. Share stories or testimonials from current committee members. When neighbors hear from their peers about how rewarding it can be, they’re more likely to give it a try.
• Offer short-term commitments. Not everyone can sign up for a year-long role. Give people the chance to pitch in for one event or a single project—it’s a low-pressure way to get their foot in the door.

Create a Warm Welcome

First impressions matter. When new volunteers join a board or committee, make sure they feel supported right away.

• Pair new helpers with experienced ones for mentoring.
• Ask your HOA manager to run an orientation or training session.
• Encourage social interaction to foster relationships quickly.

A welcoming environment goes a long way in turning a one-time volunteer into a long-term contributor.

Building Belonging and Recognition

Homeowners are more likely to participate if they feel like part of something bigger.

Show appreciation. Recognition doesn’t need to be elaborate—sometimes a thank-you at a meeting is enough. You might also host an appreciation dinner, present plaques at the annual meeting, or highlight volunteers in newsletters. Even small gestures send a clear message: their efforts matter.

Promote a sense of belonging. Keep board and committee environments positive and collaborative, not combative. Open communication and mutual respect keep people engaged.

Boosting Engagement Across the Community

Encouraging HOA homeowner participation isn’t just about filling committee seats—it’s about making everyone feel connected.

• Communicate consistently. Emails, newsletters, social media, and even text alerts can keep residents in the loop. If communication is weak, consider forming a communications committee.
• Invite input on decisions. Budgeting, maintenance, and event planning are easier when residents have a voice. Solicit feedback in meetings or surveys, and make sure people see how their input shapes results.
• Offer flexible ways to join in. From remote attendance options (Zoom or conference calls) to online suggestion boxes, convenience matters. Sign-up sheets at meetings or digital forms for committees can lower the barrier to entry.
• Create short-term projects. Event help, clean-up days, or one-time workshops allow busy homeowners to contribute without a long commitment.

Building Community Spirit

A thriving HOA is more than budgets and bylaws—it’s about neighbors connecting. Consider:

• Hosting social gatherings like block parties, potlucks, or “Front Yard Fridays.”
• Starting interest groups—book clubs, walking groups, or bike rides.
• Launching a community garden or educational workshops.
• Offering fun incentives like raffles, contests, or recognition awards.
• Partnering with local schools to let students earn community service hours by volunteering.

These kinds of activities not only bring people together but also make the community a more enjoyable place to live

In conclusion

Strong HOA homeowner participation doesn’t just check a box—it builds trust, strengthens relationships, and creates a more vibrant community. Whether through volunteering, events, or simple acts of recognition, every effort to get residents involved adds up. With the right strategies in place, your HOA can transform meetings from empty chairs into engaged, connected neighbors.

• Top 10 Benefits of Living in an HOA
• HOA Events: Tips and Ideas
• Building HOA Committees
• HOA Annual Board Meetings

When you purchase a home in a community managed by a homeowners association (HOA), you agree to follow a set of rules and regulations designed to support the long-term success of the neighborhood. These HOA rules do more than maintain order—they help preserve property values, ensure fairness among residents, and promote a strong sense of community.

Below, we’ll explore what HOA rules are, who creates them, how they’re enforced, and why they matter to you as a homeowner.

HOA Rules and Regulations

HOA rules and regulations are enforceable community policies that homeowners agree to follow. They are typically included in the association’s governing documents and are created to ensure consistency, safety, and shared responsibility among all residents. These rules are customized for each community but often include standards related to property maintenance, aesthetics, behavior, and use of common areas.

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Benefits of HOA Rules and Regulations

HOA rules offer more than structure—they provide long-term value. Here’s what they do for your community:

• Preserve Property Values: Consistent standards protect the neighborhood’s appearance, which directly supports its resale value.
• Enhance Curb Appeal: Architectural guidelines and landscaping rules help maintain the community’s visual cohesion.
• Support Community Harmony: Rules around noise, pets, and parking prevent friction between neighbors.
• Ensure Shared Responsibility: Everyone follows the same standards, creating fairness and transparency.

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Most Common HOA Rules You Might Encounter

While most HOA rules vary by community, many cover the following areas:

• Exterior architectural changes (painting, additions, roofing)
• Landscaping and lawn maintenance standards
• Quiet hours and noise policies
• Guest and street parking restrictions
• Pet policies (leash rules, breed/number limits)
• Trash can storage and pickup schedules
• Holiday décor timelines and rules
• Short-term rental or leasing guidelines

While the specifics differ from one community to the next, these categories represent some of the common HOA rules and regulations that homeowners are likely to encounter.

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How to Find HOA Rules for a Community Association

If you’re unsure which rules apply to your property, review your community’s governing documents, typically provided at the time of closing. These documents may also be available via your HOA’s website or the local county recorder’s office.

Many homeowners new to HOA living often ask questions like:

What Are the Articles of Incorporation?

This document legally establishes the HOA as a not-for-profit corporation in your state. It defines the HOA’s basic structure and purpose.

What Are CC&Rs?

The Covenants, Conditions, and Restrictions (CC&Rs) form the foundation of community standards. They outline the rights and responsibilities of homeowners and include enforceable restrictions related to property use, appearance, and maintenance. They also outline the duties, powers, and limitations of board members.

What Are Homeowners Association Bylaws?

Bylaws outline how the association operates, including the board election process, meeting requirements, and the procedures for making decisions.

Additional Homeowners Association Rules and Regulations

Beyond the CC&Rs and bylaws, your board may establish additional rules and regulations, such as operating rules or community guidelines. These often address evolving needs or practical, day-to-day topics, such as

• Pet cleanup responsibilities
• Pool and clubhouse use
• Signage restrictions
• Event and guest policies
• Updated hours or seasonal regulations

These rules are typically easier to amend and reflect the evolving needs of the community.

Want to know more? Read our article on HOA Governing Documents for a more in-depth look.

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Who Makes the Rules for My HOA?

Initially, the developer establishes the rules when the community is formed. Once the association is transferred to homeowners, the elected Board of Directors gains the authority to enforce, revise, or add rules based on the governing documents and homeowner feedback.

Homeowners can influence rule changes by attending meetings, voting, joining committees, and participating in the governance process.

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Does State Law Supersede HOA Rules?

Yes. While HOA rules govern your community, they cannot override federal, state, or local laws. If an HOA rule conflicts with a legal statute, the statute will always take precedence. HOAs must also comply with the Fair Housing Act, accessibility laws, and state-specific HOA statutes.

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Can an HOA Board Change or Add Rules?

Yes, but within limits. The Board of Directors may revise or create new rules as long as they align with the governing documents and serve the best interests of the community.

Typical rule changes involve:

• A formal vote by the board in an open meeting
• Advance notice to all homeowners
• An opportunity for homeowner feedback (depending on state law or bylaws)

Major amendments to the CC&Rs typically require a vote of the membership to be approved.

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Do You Have to Follow HOA Rules?

If you live in an HOA community, the answer is yes. These rules are a condition of ownership and are enforceable under contract law. Following them ensures consistency, protects your investment, and helps the community thrive.

Ignoring HOA rules can lead to fines, loss of privileges, or even legal action in extreme cases.

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How Does an HOA Enforce Rules?

Enforcement typically starts with education and reminders. Most violations are resolved informally. However, the process may escalate if issues go unaddressed:

1. Courtesy notice or warning
2. Formal violation letter
3. Fines or fees
4. Possible legal action or liens for repeat non-compliance

The amount and frequency of fines are typically outlined in your community’s governing documents, often within the CC&Rs or a separate fine schedule adopted by the board. These documents outline the procedures for handling violations, including the limits on fines, timelines for resolution, and your right to request an appeal.

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Can Police Enforce HOA Rules?

Generally, no. HOA rules are civil in nature and enforced by the association. However, when a violation overlaps with public law (e.g., excessive noise), local authorities may get involved.

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Quick HOA Rules FAQs

• What are HOA rules?
  Legally binding community standards are established by the HOA to maintain property values and foster neighborhood harmony.
• Can HOA boards add rules?
  Yes, board members can, through a public meeting and notification process to homeowners.
• Do I have to follow HOA rules?
  Yes. Compliance is a condition of ownership in an HOA community.
• Who enforces HOA rules?
  The Board of Directors, often with the assistance of a community manager, handles enforcement and resolution.
• Where can I find the rules?
  In your community’s CC&Rs, bylaws, operating guidelines, or through your county recorder’s site.

Final Thoughts

Understanding your HOA rules isn’t just about avoiding fines—it’s about being an informed homeowner, contributing to a thriving homeowners association, and protecting your investment. If you ever have questions about your community’s policies, your board members and management team are here to help guide you.

An HOA Management company is hired by the Board of Directors of an HOA to manage the association’s budget, collections of dues, enforcement of rules, process maintenance requests, maintain common areas, manage vendors, advise the Board, oversee projects, organize meetings, and communicate with homeowners. They streamline operations, ensure compliance, and support the Board and residents in running a well-functioning, thriving community.

Benefits of Working with an HOA Management Co.

• Budgeting and financial reporting
• Collecting dues and enforcing late fees
• Enforcing HOA governing documents
• Handling homeowner maintenance requests
• Maintaining pools, parks, and shared spaces
• Coordinating services like landscaping and trash removal
• Managing vendor contracts and relationships
• Overseeing major improvement projects
• Organizing meetings and board administration
• Communicating with homeowners

A professional HOA management co. keeps your community running smoothly. They manage the budget, handle bookkeeping, and collect dues on time. When homeowners submit maintenance requests, they respond promptly and ensure pools, parks, and other shared spaces stay clean and functional.

They coordinate vendors, enforce community rules, and guide the board on legal, insurance, and financial matters. They also schedule board meetings, prepare agendas, and deliver clear, consistent communication to residents. With expert leadership and proactive service, the management team helps your HOA stay organized, responsive, and focused on long-term community success.

HOA Board vs. Management Company: Who Does What?

Category	HOA Board of Directors	HOA Management Company
Decision Making	Holds ultimate decision-making power on all policies, fines, fees, budgets, contracts, and approvals. Responsible for all executive-level governance and community leadership.	Acts in an advisory and administrative support role. Executes board decisions but does not have independent authority to create or change policy. Cannot waive fines, alter rules, or approve spending outside board guidelines.
Budget Oversight	Approves annual budget, sets assessment amounts, and hires auditors. Signs checks and imposes spending limits. Ensures reserve funding. Upholds fiduciary responsibilities	Assists with bookkeeping, financial reporting, and invoice processing. Assists in the preparation of the annual budget for board action. May sign checks within a board-authorized limit. Coordinates with CPAs after the Board has selected
Maintenance	Approves maintenance work, selects vendors, and ensures upkeep of shared property like pools, parks, roofs, and signage. Oversees Architectural Review decisions.	Coordinates with vendors for inspections and repairs. Verifies insurance and licenses. Manages vendor communication, but does not perform or approve work
Rules & Violations	Enforces CC&Rs and all association rules. Review reports of violations and issues, as well as formal rulings. Cannot excuse themselves from rule compliance.	Sends violation notices and follow-up communication. You cannot enforce or excuse violations; you must act based on board direction.
Fines & Fees	Sets policies for fines and late payments. Reviews and approves any fee waivers. Maintains control over financial discipline	Processes fines, tracks payments, and sends late notices. Cannot waive or adjust fines without board instruction.
Architectural Requests	Approves or denies architectural change requests based on governing documents. May delegate review to an ARC committee.	Communicates decisions and helps coordinate documentation. Does not evaluate or approve ARC requests.
Resident Communication	Answers homeowner questions regarding decisions, rules, and board actions. Hosts and leads board meetings. Must remain transparent and impartial.	Distributes newsletters, notices, and emails. Manages digital communication tools and customer service inquiries. Acts as liaison between residents and board.
Legal Compliance	Ensures the HOA operates within its governing documents and state laws. Makes legally binding decisions. Upholds fiduciary duties of loyalty and care.	Advises the board on legal best practices and risk mitigation. May assist in gathering documents for legal counsel
Volunteer Status	Board members are elected volunteers. Receive no compensation. Must follow the same rules as residents and pay assessments.	Paid service providers hired by the HOA to provide expertise and daily operational support.
Accountability	Protects property values and ensures community governance aligns with its charter and vision. Accountable to homeowners.	Helps the board run the community like a business, ensuring efficiency, compliance, and administrative continuity. Accountable to the board.

How do I find an HOA Management Company?

Start by identifying your community’s needs—full-service management, financial oversight, or stronger governance support. Look for:

• Local expertise and strong references
• Transparent communication and reporting
• Reliable technology tools for residents and boards
• Customized service options

Meet with potential partners, review proposals, and look for alignment with your community’s values. The right HOA management company enhances operations and elevates homeowner satisfaction.

Not sure if your current provider is the right fit? Explore the top 10 signs it may be time to switch management to make sure your community is getting the service it deserves.

What to Look for in a Great HOA Partner

Category	What to Look For
Experience & Track Record	Success with communities of similar size and needs
Communication	Responsive, clear, and accessible
Financial Expertise	Accurate reports and strong fiscal discipline
Technology	Modern tools for boards and homeowners
Manager Support	Experienced, proactive community managers
Maintenance Oversight	Reliable vendor coordination and follow-through
Transparency	Open processes with real-time access and clear expectations
Board Alignment	Adapts to your goals and governance needs
Resident Experience	Enhances quality of life and access to services

Why AAM is a Trusted Leader in HOA Management

AAM provides expert guidance and tailored solutions to help communities thrive. With decades of experience, AAM supports board members through:

• Legal and financial compliance
• Vendor and maintenance management
• Resident communication and service
• Operational efficiency and board empowerment

We empower Boards to focus on strategic decisions while we handle the complexities of day-to-day management. If you’re looking for a management company that delivers expertise, consistency, and a commitment to your community’s success, AAM is the partner you can rely on.

HOAs often enter into contracts with contractors and vendors, but these agreements can contain hidden pitfalls that can cause trouble down the road. To ensure that your association is protected and avoids any unwanted surprises, it’s important to evaluate each HOA vendor contract carefully before signing. Here are some key factors to consider:

Termination Requirements

Before entering into a contract, it’s important to know what it takes to terminate the agreement if needed. Review the contract for any provisions that could make it difficult to end the agreement, such as lengthy termination notices or penalties for terminating the contract. An association should consider the following:

(A) Does the contract require a lengthy termination notice (such as 90 days, or is termination only allowed at the end of each year?)

(B) Does the contract violate any provisions in the association’s governing documents?

(C) Is there a penalty for terminating the contract?

Also, ensure the contract does not violate any provisions in the association’s governing documents. 

Liability for Contractor Actions

It’s essential to understand who will be responsible if someone is hurt due to the actions or negligence of the vendor or contractor. Some association contracts may require the HOA to be liable for such incidents. Be sure to review the contract language carefully to ensure that the HOA is protected.

Conflict Resolution Requirements

Many contracts have provisions requiring mandatory arbitration of any conflicts. Make sure to review these provisions and understand the requirements.

Hidden Costs

Review the contract for any hidden costs that are not explicitly outlined, such as copies, postage, or extra time spent. If such costs are not given, determine what they are before entering into the contract.

Time of Completion

If the completion date is a concern, ensure that it is specifically addressed in the contract. For example, is this the type of contract where liquidated damages may be an appropriate remedy if the contract is not completed by a specific date?

Clear Requirements

It is much easier to enforce a contract where the terms are black and white versus some oral representation. The contract should clearly set forth the requirements of both parties. Ensure that all terms of concern to the HOA are properly addressed in the contract.

Personal Liability

Review the contract for any provisions that may hold board members personally liable for payments due to the contractor. Shockingly, some contracts have actually been known to contain this provision. No board member wants to be personally liable for the contracts of the association. 

Contractor Performance

Ensure that the association is protected if the contractor fails to fully perform the contract requirements. Retain a certain amount of funds owed to the contractor to ensure the project is completed. Also, the contractor should only be paid for the work actually performed, and an expert should be hired to ensure sufficient funds remain to finish the project.

Recovery of Attorney’s Fees

Ensure that the association is entitled to recover its attorney’s fees and costs if it hires an attorney to enforce the terms of the contract. Protect the association from any potential legal fees and expenses.

By reviewing each contract carefully and considering these factors, HOAs can protect themselves from unwanted surprises and ensure they enter into agreements that are in their best interests.

• Community Management: How to Work with Your HOA Management Company
• Selecting an HOA Vendor
• HOA Management Company: How to Select the Best Partner
• A Guide to HOA Insurance for New Board Members

HOA financial management is one of the most vital components of a successful community association. It goes beyond collecting dues—it’s about budgeting, reporting, auditing, and maintaining a healthy reserve fund. Whether your association is self-managed or partners with a professional management company, understanding the basics of HOA accounting and financial planning is essential. In this guide, we’ll walk through budgeting tips, reserve strategies, financial reports, and common pitfalls to avoid to keep your HOA finances healthy.

The Foundation of Effective HOA Financial Management

Strong financial management starts with clear policies, defined Board roles, and a commitment to transparency. HOA Boards must establish internal controls to reduce the risk of fraud and create consistency in financial operations. Assigning a dedicated treasurer, forming a finance committee, and using HOA accounting software ensures accurate reporting and better compliance.

Establishing written financial procedures for handling accounts payable, dues collection, and reporting timelines builds accountability. Transparency fosters homeowner trust, especially when financial information is shared regularly through portals, emails, or meetings.

Annual Budget Planning for HOAs

Creating an annual HOA budget is more than a numbers game—it’s a strategic process that reflects the community’s values. Your HOA’s budget should cover recurring expenses, long-term maintenance, reserve contributions, and contingency funds. Begin budget planning early, involving vendors, community input, and historical data.

Key elements of successful HOA budgeting include:

• Breaking down operating expenses by category
• Including line items for landscaping, insurance, utilities, and legal fees
• Allocating adequate contributions to reserves
• Planning for inflation or vendor increases

Regularly comparing actual financial performance to the budget ensures your community stays on track throughout the year.

HOA Reserve Fund Planning and Requirements

Reserves are a cornerstone of long-term HOA financial stability. The association uses the reserve fund to repair or replace major common elements, such as roads, roofs, and pools. Conducting a reserve study every 3 to 5 years is considered a best practice in the industry. These studies help Boards determine how much to save annually.

Reserve fund planning includes:

• Following the recommendations in your most recent reserve study
• Setting a percentage goal for funded status (70 %+ is ideal)
• Separating operating and reserve accounts to avoid misuse

Failure to fund reserves properly can result in special assessments or deferred maintenance, both of which can negatively impact homeowner satisfaction and property values.

Key HOA Financial Reports Explained

Every Board member should understand the basic HOA financial statements. These documents reveal the community’s financial health and help support responsible decision-making.

1. Balance Sheet – Lists the association’s assets, liabilities, and equity.
2. Income Statement (Profit & Loss) – Tracks revenue and expenses over a specific period.
3. General Ledger – Provides a detailed view of every financial transaction.
4. Aged Delinquency Report – Shows overdue homeowner accounts.
5. Bank Reconciliation Report – Confirms that bank statements match recorded transactions.

Boards should review these reports monthly and include them in Board meeting packets. Many states require associations to share this information with homeowners on a quarterly or annual basis.

HOA Audits and Financial Reviews

AAM is proud to have engaged in the SOC 1 (SSAE 18) audit, which reflects our commitment to financial integrity, internal controls, and industry-leading operational standards. This independent audit ensures that our clients can trust the accuracy and consistency of our financial reporting systems.

In addition to internal reviews, many HOAs benefit from annual financial audits or third-party reviews by a CPA. These assessments verify compliance with GAAP (Generally Accepted Accounting Principles), detect errors, and reinforce trust. Governing documents or state law may require larger communities to conduct an audit annually.

Common HOA Financial Mistakes to Avoid

Even experienced HOA Board members can make financial decisions that seem minor but result in long-term challenges. Below are common mistakes associations face when managing their community’s finances, and actionable ways to fix them while maintaining accurate financial records and reducing the risk of unexpected expenses.

• Failing to follow the budget or update it annually
  

• Neglecting reserve funding
  

• Not enforcing collection policies consistently
  

• Using outdated or manual accounting systems
  

• Lack of separation between operating and reserve funds
  

• Overlooking proper documentation
  

• Inadequate vendor oversight
  

Avoiding these mistakes helps your HOA operate smoothly and improves transparency with homeowners. If your Board struggles with any of these issues, partnering with a firm that offers professional financial management services may be the best next step.

When to Hire a Professional HOA Management Company

Managing HOA finances requires time, skill, and consistency. If your Board is experiencing burnout, making frequent financial errors, or receiving increased homeowner complaints, it may be time to consider professional management.

Here are signs your HOA could benefit from expert help:

1. Repeated budget shortfalls or unexplained variances
2. Missed deadlines for financial reports or tax filings
3. High delinquency rates with no collection strategy
4. Lack of transparency or homeowner trust in financial decisions
5. Unfamiliarity with HOA laws, GAAP, or tax requirements
6. Difficulty maintaining accurate and accessible records
7. Infrequent or outdated reserve studies
8. Board Members’ fatigue or lack of financial experience

Partnering with a management company brings:

• Professional HOA accounting software
• Access to experienced finance and compliance professionals
• Standardized financial procedures
• Risk reduction and better reporting accuracy

Financial Transparency and Homeowner Communication

Today’s homeowners expect timely and clear updates about how their assessments are being used. Sharing quarterly financial summaries, providing access to an owner portal, and including budget overviews in newsletters helps build credibility.

Boards should also be prepared to answer common questions like:

• Why did assessments increase?
• What happens if reserves are underfunded?
• How are delinquent payments handled?

Being proactive in communication prevents misunderstandings and enhances community relationships.

Next Steps for Strengthening Your HOA’s Financial Health

If your Board is ready to improve its financial management process, start by:

• Reviewing your reserve study and funding level
• Auditing your current budget for accuracy and transparency
• Establishing or updating financial policies and procedures
• Scheduling monthly Board-level financial reviews
• Consulting with a CPA or management professional for deeper insight

At AAM, we offer tailored HOA financial management services designed to support your community’s unique needs. From accurate accounting and transparent reporting to reserve planning and audits, we’re here to help Board Members lead with confidence.

• Reviewing HOA Financials
• What is an HOA Transition
• HOA Budget Planning
• HOA Reserve Funds

With the cooler temps, what better time to get together for community activities? There is much to do during the spring and fall months, no matter where you live. Let us talk about some fun events HOA Boards could offer in your community this fall and, most importantly, how to execute them effectively!

Successful HOA events all come down to planning. The more you plan, the better your event will be executed. Below is a checklist or guide of items you can do before your event to ensure success. 

HOA Event Planning Tips

Choosing a date/time 

When choosing an event date and time, it’s essential to avoid scheduling multiple events on the same day or time. Also, be sure to check your local events, such as those in your city, state, and neighboring communities. It may not always be possible to avoid planning events on the same day as others, but try to avoid scheduling “like” events on the same day. For example, if your city has a Fun Run, don’t schedule a community Fun Run around the same time.

Know your Association

Know your Association. What exactly do we mean by that? If you plan an event in a multi-generational community, there are better options than weekdays or weeknights during the school year. Family communities offer events on Friday evenings or the weekends to maximize attendance. If your community is for Active Adults (55+), do most of your residents still work? If so, then weekday or weeknight events may also not be ideal. However, if your association comprises a majority of retired residents, you may have more flexibility when offering events. Knowing your community can ensure the most attendance at your events.

Know your budget

Defining and sticking to your budget is crucial for planning successful events by reducing the stress of going over budget and having to cut corners to make the event happen. Knowing your budget for each event will ensure a successful year of events!

Booking your vendors for HOA events

Be sure to do your due diligence when choosing your vendors, whether a band, a caterer, or a performer. Please do your homework, get referrals, check YouTube videos, or call a colleague who may have used them. Knowing what you are getting upfront will help you have a successful event.

Building your team 

Build your team! Putting on a successful HOA event is not a one-person job and requires a team. Every team needs a leader and support behind them. So, whether your team is supporting staff or volunteers, be sure to equip them with the necessary tools. Timelines and job assignments with detailed information will help your team support you in being effective. Plan accordingly with team meetings leading up to your event, and always have a post-event meeting. There is always room for improvement, so post-event discussions are an excellent tool for continuing to plan successful events. 

Promoting your event

Utilize your team to promote your events. It is crucial to ensure that event details are adequately promoted. Create flyers, announce them in community newsletters, send emails, add them to your website, and mention them at Board meetings. The more ways you can inform the members of your HOA, the more successful your event will be.

Event Ideas

Low-cost, high turnout—sharing food always brings people together.

Recurring events that establish tradition and community pride.

Build connections while promoting health and personal growth.

Appeal to hands-on hobbyists and families alike.

Inclusive events that bring out kids, parents, and grandparents.

Events that create pride and a sense of shared responsibility.

HOA events can be a lot of work, but they can certainly help build a stronger sense of community and increase overall resident satisfaction. Events are also a good time to activate homeowner participation by creating a Social Committee to help the Board plan and execute community events. Learn more about Building HOA Committees. Use this information provided to get inspired, organized, and ready to implement successful events for years to come.

When it comes to helping Boards and residents get the most out of their HOA, AAM is here to help. Communities under our care benefit from the direct support of a lifestyle team that serves as AAM’s global resource for community events and lifestyle programming. The team is also responsible for ensuring that all programs, services, and events are conducted and fulfilled in a manner consistent with the community’s goals and objectives and remain compliant with local, state, and federal regulations.

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Whether you are a homeowner living in an HOA, a recently elected Board member, or an aspiring Community Manager, it is important to understand the differences between the multiple HOA governing documents: the HOA Bylaws, CC&Rs, and Rules & Regulations, by which an HOA operates. If you are a homeowner, for example, becoming familiar with your community’s rules, knowing what is and isn’t permitted concerning your home, and knowing where and how to find this information will prevent you from having to deal with the consequences of non-compliance, which in most cases, can include fines and other types of penalties.

What are the HOA Governing Documents

Typically, all associations have governing documents, including Bylaws, CC&Rs (Covenants, Conditions, and Restrictions), and Rules and Regulations. These HOA governing documents outline the rules, policies, and contractual terms that Board members and homeowners must follow within the homeowners association.

In most cases, these governing documents are initially drafted by the community’s developer and enforced and modified as necessary by the Board of Directors.

All new owners moving into a property within an HOA will be given access to the association’s official records for review. As soon as they close escrow, they agree to the legally binding rules and policies mentioned.

HOA Governing Documents Hierarchy

Legal Requirements:

All federal, state, and local laws must be followed across all levels of governance.

Covenants, Conditions, and Restrictions (CC&Rs):

This key document outlines the balance of authority and the HOA’s and its homeowners’ respective obligations.

Articles of Incorporation:

Establishes the HOA as a legal entity and defines its basic structure and purpose.

Bylaws:

Detail the internal rules and procedures by which the HOA operates, including voting, meetings, and board responsibilities.

Understanding the Differences Between HOA Documents

CC&Rs

Generally, the CC&Rs are the most extensive HOA governing document of an HOA. They contain homeowners’ rights and responsibilities and outline the architectural guidelines of the properties within the association. The primary purpose of CC&Rs is to regulate homeowners’ association architectural modifications based on community-approved standards. This regulation aligns with the HOA’s core mission: to protect, preserve, and enhance home values within the community.

For example, your homeowners association CC&Rs might require that all homes be painted tan for aesthetic reasons. If your neighbor decides to paint their house red, the HOA might fine them until they comply. Fines and other penalties for non-compliance will vary from association to association. Nonetheless, all should be clearly outlined in the CC&Rs.

It is important to note that if any conflict exists between a provision stated in the CC&Rs and an “HOA rule” generated by the HOA board members, the one outlined in the CC&Rs will always precede, and the latter will become invalid.

Common HOA CC&Rs can include: 

• HOA Dues and Assessment Obligations
• Association and Homeowner Maintenance Obligations
• Architectural and Design Standards
• Vehicle Restrictions
• Pet Restrictions
• Rule Enforcement Procedures and Penalties
• Short-Term Rental Restrictions

Rules & Regulations

Many associations adopt additional rules to help enforce or clarify the guidelines outlined in the CC&Rs, known as Rules & Regulations. They’re commonly referred to as a catch-all for items not specifically addressed in the other governing documents of the homeowners association. Typically, these rules will be more detailed than the CC&Rs and will likely be modified based on the community’s current needs.

For example, pool hours, gym hours, visitors’ parking hours, pet policies, and others. These things could change based on seasonality, membership demographics, the community’s current state, and current events, e.g., pandemics etc.

The Board of Directors can modify the Rules and Regulations by vote. However, HOA members should always be informed of any changes or additions to the Rules and Regulations or any other governing document.

Bylaws

The Bylaws of an HOA contain all the information and rules specifically related to the association’s operations and management. In most cases, they outline the Board of Directors’ governing structure, the procedures for matters such as Board elections and membership meetings, and the board’s rights and responsibilities.

More detailed examples of what you can find in your HOA Bylaws are:

• Membership Requirements
• Board Requirements
• Meeting Notices
• Board Meeting Frequency
• Quorum Requirements
• Voting Requirements and Frequency
• Term Limits for Board Members

A basic understanding of the differences between an association’s governing documents is crucial for harmonious living in an HOA. Familiarize yourself with your HOA governing documents, including HOA Bylaws, CC&Rs, and Rules & Regulations. It’s always wise to follow your HOA governing documents. When community members collaborate to improve their neighborhood, everyone shares in the positive results.

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• Legislative Updates

Tips for reviewing HOA financial statements.

Reviewing your HOA’s financial statements isn’t just a best practice—it’s essential for protecting your community’s long-term stability. Whether you’re a seasoned board member or new to HOA leadership, knowing what to look for in your financial reports can help you spot trends, catch inconsistencies, and confidently make informed decisions.

1. Comparison Variance Report

The month-to-date and year-to-date budget comparison variance report is a great place to start your financial report review. This report is designed to provide board members with explanations of variances beyond the information supplied by dollar figures in a standard income and expense report. Your Community Manager can explain valuable operating and reserve activity details that cannot be captured in standard accounting reports. Also, it will assist you with questions you may have about the financial performance of your community. It may also answer many questions before board meetings, so meeting time can be allocated as efficiently as possible.

2. Balance Sheet

A review of the balance sheet will provide the Board with a snapshot of the Association’s assets, liabilities, and equity as of the end of each month. Operating and reserve cash balances are listed separately so the Board can make informed cash flow decisions. AAM’s accounting staff members reconcile each operating and reserve bank account every month. The full HOA financial package provides Bank reconciliations and statements to ensure financial transparency. As part of the reconciliation process, our accountants ensure that total account balances do not exceed FDIC limits at each financial institution. They also assist in setting up new money markets and certificate of deposit accounts.

3. General Ledger

The General Ledger is the source of all accounting data used to build the monthly HOA financial reports. Reviewing this activity provides detailed debit and credit information for each transaction processed during the monthly reporting period. Digesting this information may be a challenge, but once you are familiar with the report format, you can find many of the answers you might be searching for. It provides transaction dates, code descriptions, memos, debits, credits, and dollar figures.

4. Transparency

At least one designated Board member (generally the Board Treasurer) receives an additional monthly PDF file by email containing images of all paid invoices. This information is available to provide financial peace of mind and full transparency.

These are just a few quick tips for reviewing the monthly financial reports. Please feel free to contact your Community Manager as a starting point for any questions related to the financials. Additionally, we have an experienced and dedicated accounting support team ready to assist your Community Manager and Board of Directors at all times.

You can download this guide here

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