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By Ed Morrissey Note: This article first appeared in the Summer 2024 Edition of The Communicator Magazine.

HOW IMPORTANT IS a budget in operating a business? (And yes, HOAs are businesses. They are non-profit corporations licensed in the state of California.) The importance of a working budget and its implementation can be measured by the health and happiness of the homeowner’s association. 

A strong HOA community has underpinning practices that create an environment of neutrality and harmony when operated correctly. This promotes stability, which supports social equality. In order to achieve this, financial stability is a necessity. In other words, no monetary (assessment) surprises. Surprises destabilize HOA residences’ finances, particularly in lower income households, resulting in community pushback and the postponement of needed work. This scenario is the start of a downward spiraling trend that begins to envelop all aspects of HOA community...